Ubisoft's shares are plummeting in the stock market, despite the release of the "Assassin's Creed" box set.
Winning Streak Ends for Ubisoft: Massive Net Loss Reported for Fiscal Year 2024-2025
Game publishing giant Ubisoft has taken a hit, with a colossal net loss of 159 million euros announced for their fiscal year ending 2025. Despite the triumph of "Assassin's Creed Shadows" in the final quarter, a host of factors dragged the French powerhouse down, including the tepid launch of "Star Wars Outlaws" and scrapping the online shooter "XDefiant."
Yves Guillemot, Ubisoft's CEO, admitted to a "tumultuous year" filled with challenging dynamics in a fiercely competitive industry. However, the success of "Assassin's Creed Shadows" kept the company afloat, drawing over three million players within its first week and climbing to the second best-selling game of the year in the US according to research firm Circana [1].
Stormy Seas: Future Upheaval looms for Ubisoft
Revenue for the last fiscal year dropped significantly to 1.9 billion euros, down 17.5% year-on-year. Net bookings, a crucial metric for Ubisoft, plummeted by 20.5% to 1.8 billion euros [1]. Despite the lackluster results, the company anticipates net bookings to stay steady for the upcoming year, with non-IFRS operating income hovering close to break-even [2].
The coming months will see the release of several titles, such as the remake "Prince of Persia: The Sands of Time," strategy game "Anno 1800," and mobile spin-offs "Rainbow Six Mobile" and "The Division Resurgence." Additional games are in the pipeline, with Ubisoft promising "significant content" from its major franchises by 2028 [2].
The French publisher is also planning to carry on its cost-reduction strategy, initiated in early 2023. This includes an additional 100 million euros in expenditure cuts over the next two years [2]. Ubisoft has shuttered several foreign studios as of late, and management now only fills one in three vacancies left by employee departures [2]. About 3,000 employees have left the company since September 2022, leaving a total of 17,782 employees as of March 31, 2025 [2].
New Endeavors: Ubisoft Spins Off a New Subsidiary for its Top Franchises
Towards the end of March, Ubisoft unveiled the creation of a new unnamed subsidiary, merging its flagship sagas such as "Assassin's Creed," "Far Cry," and "Rainbow Six," which will host around 3,000 employees worldwide [3]. Instead of owning these brands directly, the new subsidiary will pay royalties to Ubisoft for their use. The venture is currently valued at over 4 billion euros, which is more than double Ubisoft's current market capitalization [3]. Approximately 25% of the new entity will be owned by Chinese conglomerate Tencent, who will inject 1.16 billion euros in fresh funding [3].
The move has raised eyebrows in the industry, with some analists suggesting it's a "minimally commitment move" without upsetting shareholders, while others view it as an attempt to be acquired by Tencent in the near future [4]. Tencent's investment in Ubisoft's capital dates back to 2018, and despite the intention to maintain control over the subsidiary, the Chinese company could potentially try to buy the company outright if Ubisoft fails to utilize the invested capital effectively [4].
Employee Unrest as Ubisoft Ends Remote Work Policy
In recent days, employee discontent has come to the surface as Ubisoft ends its remote work policy [5]. Some employees are demanding changes to the new policy, seeking more flexibility and longer remote work options. The ongoing feud between management and employees has sparked debate about employee rights, organizational culture, and adaptability in the gaming industry.
[1] Enrichment Data: "Lackluster releases, delay, and cancelation of titles contributed to the financial dip in Ubisoft's net bookings. This includes the scrapping of 'XDefiant' and underperformance of 'Star Wars Outlaws.' "]
[2] Enrichment Data: "Ubisoft is expected to focus on financial recovery, better game development strategies to prevent future losses, and continued investment in successful franchises to improve the company's financials. The new subsidiary is likely to facilitate these efforts." ]
[3] Enrichment Data: "The new subsidiary aims to gather around 3,000 talented employees from Ubisoft worldwide. The company values it at 4 billion euros, double the current market capitalization of Ubisoft. Chinese company Tencent will own roughly 25% of the subsidiary, bringing in additional capital and resources." ]
[4] Enrichment Data: "There is speculation that Tencent may attempt to acquire Ubisoft if the new subsidiary doesn't bring significant improvement in the company's financials, as evidenced by its anticipated valuation and Tencent's current minority stake." ]
Sources:- © CFOTO/Future Publishing/Getty Images- By our website with AFP- Paris (AFP) on Friday, May 15, 2025 at 4:00 PM._
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In the face of a tumultuous year filled with financial losses, Ubisoft is taking proactive steps to regain its footing by focusing on cost reductions, optimizing game development strategies, and continued investment in successful franchises. To further bolster its strength, Ubisoft recently created a new subsidiary, merging its flagship sagas, which promises to gather around 3,000 talented employees worldwide and is valued at over 4 billion euros, significantly exceeding Ubisoft's current market capitalization.
