Playing It Close: Ubisoft's Tough 2024-2025 Fight
Ubisoft experiences financial losses during the 2024-2025 fiscal period.
Ubisoft, France's badass video game publisher, took a financial hit last year, posting a staggering 159 million euros loss during fiscal year 2024-2025. Despite the smashing success of "Assassin's Creed: Shadows," the company's stock plummeted like a hot potato dropping off a cliff. But, fear not, Ubisoft is pouring on the resilience and shaking things up, announcing a snazzy new organizational structure to detail by year's end.
The gaming industry is a fierce jungle where only the strongest survive, and this year was particularly harsh for Ubisoft, with wild fluctuations and stiff competition leading to a revenue nose-dive of 17.5% to a robust 1.9 billion euros.
"We faced a maelstrom this year," confessed Ubisoft CEO Yves Guillemot, "From blocked breeches in our portfolio, to predators nipping at our heels, the fight has been demanding."
In the first half of 2024, Ubisoft stumbled with the lukewarm reception of "Star Wars Outlaws" – a game that tanked faster than a leaky canoe in a storm. Adding insult to injury, "XDefiant," an online shooter, was shut down prematurely for lack of player interest. However, the company showed some bite in the final quarter, thanks to the global victory cheer for "Assassin's Creed: Shadows," the saucy newcomer in the Assassin's Creed family, which gathered over three million players in its debut week.
Ubisoft's preferred prize that gleams into the future, net bookings, also took a hard hit, plunging a disheartening 20.5% to 1.8 billion euros. For the coming fiscal year 2025-2026, the company anticipates net bookings to hang tough and predicts a non-IFRS operating result close to breakeven.
In a bid to reclaim the battlefield, Ubisoft teamed up with Chinese titan Tencent to form a new subsidiary, which will be a cozy nest for the company's flagship franchises – Assassin's Creed, Far Cry, and Rainbow Six. Tencent will quietly hold around 25% of the new venture, having shelled out a cool 1.16 billion euros. Ubisoft aims to don the armor of frugality, targeting a net debt position near zero by the end of March.
Exciting releases are in the works, with "Prince of Persia: The Sands of Time" remake, "Anno 1800," and two mobile titles – "Rainbow Six Mobile" and "The Division Resurgence" – set to hit virtual shelves by March's end.
Ubisoft has promised to share its new operational blueprint by year's end, outlining measures to enhance game quality and bolster capital allocation. The company is determined to minimize losses and boost profitability, embarking on an extensive cost-saving spree that will draw another 100 million euros over the next two years.
Ubisoft has been laying off employees in recent months, but is now replacing only one out of every three departing warriors. Since September 2022, a whopping 3,000 employees hung up their swords, leaving a troop of 17,782 as of March 31, 2025.
Despite the setbacks, Ubisoft remains a warrior on the battlefield, keen to dominate the gaming industry once again. As the company prepares for a fresh round of challenges, gamers can expect longer, fiercer, and more thrilling adventures to come.
To mitigate financial losses and spearhead an industry revival, Ubisoft aims to bolster capital allocation through innovations in technology, focusing on creating high-quality games with player-centric design. In an effort to reduce environmental impact, the company also plans to implement eco-friendly practices in the development and marketing of these new releases.
Recognizing the importance of collaboration in a competitive landscape, Ubisoft has formed a strategic partnership with Tencent, fostering a collaborative environment that leverages both companies' expertise in the gaming industry, leading to the creation of new and exciting game franchises.
