Ubisoft Significantly Drops Financial Targets

Major video game publisher Ubisoft  — known for the Assassin’s CreedFar Cry, and Rainbow Six franchises — just significantly dropped its previously announced fiscal 2019-2020 financial projections. 

Originally projecting net bookings of €2.1 billion, that number has now been lowered to €1.4 billion. The previously announced non-IFRS operating income of €480 million has also taken a major hit and is now expected to land between €20-€50 million. 

Lower than expected revenue and negative reviews for latest release Tom Clancy’s Ghost Recon Breakpoint are the major contributing factors to those reduced numbers, as the game currently holds a 2.7 / 10 user score at Metacritic. 

Ubisoft CEO Yves Guillemot commented on the expected loss of income and plans to turn the game’s sales around: 

We have not capitalized on the potential of our latest AAA releases. For Ghost Recon Breakpoint, while the game’s quality appeared on track, critical reception and sales during the game’s first weeks were very disappointing. As we have done with past titles, we will continue to support the game and listen to the community to deliver the necessary improvements.

Ubisoft is no stranger to major ongoing franchises suddenly experiencing negative fan reaction and requiring re-tooling.  

The company made major headlines in 2014 with the rocky launch of Assassin’s Creed: Unity, which was panned by critics and players for its unfinished, buggy state due to a yearly release schedule that didn’t allow enough time for sufficient development polish. 

In an effort to avoid that issue again later this year, Ubisoft has revealed plans to postpone the releases of upcoming titles Gods & Monsters, Rainbow Six Quarantine, and Watch Dogs Legion. All three titles will now be pushed back into the 2020-2021 launch window. 

While those games will see delays, previously announced eSports events for Rainbow Six Siege are still ongoing.  

The United States Nationals are currently in the Wild Card phase for both the eastern and western conferences, with the Grand Finals to take place in December. The fourth edition of the Rainbow Six Invitational will also kick off in Montreal this coming February. 

In other Ubisoft news, the company recently announced plans to strengthen its mobile gaming division by opening the Ubisoft Da Nang studio in Vietnam. 

The opinions provided in this article are those of the author and do not constitute investment advice. Readers should assume that the author and/or employees of Capital 10X hold positions in the company or companies mentioned in the article. For more information, please see our Content Disclaimer.

Ty Arthur
Ty Arthur has spent the last decade of his journalism career covering everything from cutting-edge tech to local news through outlets such as the Houston Chronicle. He has focused on the counterculture aspects of society, from marijuana legalization to underground music through Metalunderground.com and rapidly changing trends in the entertainment industry. He lives in the cold, dark north with his wife and son. Address: 682 Indian Road, Toronto, Ontario, M6P 2C9. Phone: 416-721-8257.

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