**Ubisoft Projects Flat Sales Amid Development Delays**
Ubisoft Entertainment SA, renowned for its popular Assassin’s Creed franchise, has announced expectations for flat sales in the upcoming fiscal year, alongside plans to extend the development timeline for some of its major titles. The company reported a 20% decline in bookings, totaling €1.85 billion ($2.07 billion) for the recently concluded fiscal year 2025, falling short of Wall Street’s projections of €1.89 billion. Additionally, bookings in the fourth quarter saw a decrease of 3.4%.
This forecast, coupled with the need for additional development time, marks another challenge for the French gaming giant, whose stock has plummeted from a peak of €88.16 over four years ago to its current value of €11.68. The latest financial results were disclosed after the Paris market closed.
CEO Yves Guillemot is spearheading efforts to stabilize the company. In March, Ubisoft revealed that Tencent Holdings Ltd. would invest €1.16 billion in a new subsidiary, which will house key franchises such as Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six. This investment is seen as a vote of confidence from Tencent, which already owns a 10% stake in Ubisoft, especially following a challenging period after the pandemic-induced gaming surge.
Guillemot acknowledged the difficulties faced this year, stating, “This year has been a challenging one for Ubisoft, with mixed dynamics across our portfolio amid intense industry competition.” He also mentioned plans to reshape the company’s operational model, with a new organizational structure expected to be announced by year-end.
During a press call, CFO Frederick Duguet emphasized that Ubisoft would continue to operate as “one unique company,” allowing employees to work across both the subsidiary and parent company brands. The decision to extend production timelines means that revenue from Ubisoft’s major franchises will be deferred into the next two fiscal years.
Furthermore, Ubisoft has successfully achieved its €200 million cost-cutting target ahead of schedule and aims to pursue an additional €100 million in savings over the next two years. The company concluded the fiscal year with a workforce of 17,782 employees, a reduction of 1,230 from the previous year.
In summary, while Ubisoft faces significant challenges, including flat sales projections and extended development timelines, strategic investments and cost-cutting measures may help the company navigate its current difficulties.
**FAQ**
**What are Ubisoft’s sales projections for the upcoming fiscal year?**
Ubisoft expects flat sales for the new fiscal year, following a 20% decline in bookings in the recently concluded fiscal year 2025.
