Ubisoft’s Bold Transformation: A New Era for Gaming Excellence

Ubisoft has notified investors that it plans to take “decisive actions” to transform the company.

The creator of Assassin’s Creed has signaled that modifications are necessary to “provide top-tier player experiences, improve operational efficiency, and optimize value generation.”

Ubisoft affirmed that it will continue to “implement significant cost reductions” and now aims to adopt a more selective approach to investments. Game Developer has contacted Ubisoft to clarify whether layoffs are anticipated to be part of these ongoing cost-cutting strategies.

“Ubisoft announced today that it has engaged leading advisors to examine and pursue various transformative strategic and capital options to extract the greatest value for stakeholders,” reads an investor communication.

“This process will be overseen by the independent members of the Board of Directors. Ubisoft will notify the market in compliance with relevant regulations if and when a transaction takes shape. Operationally, the firm will persist in implementing significant cost reductions, along with a highly selective investment strategy, and now anticipates exceeding €200 million ($206 million) in slashing its fixed cost structure by FY2025-26 compared to FY2022-23 on an annualized basis.”

Ubisoft indicates significant transformation is imminent

In October 2024, reports suggested that Ubisoft’s primary shareholders, the Guillemot family, were considering buyout opportunities in collaboration with Tencent. Ubisoft declined to comment on these speculations during a recent strategic earnings call.

However, the company did emphasize its desire to elevate the quality of its releases. Last year, the flagship title Star Wars Outlaws fell short of sales expectations, while the live-service shooter XDefiant was canceled, resulting in the closure of two development studios in Osaka and San Francisco. It also laid off 45 employees in August.

Ubisoft has now decided to postpone the release of Assassin’s Creed Shadows by one month to “better integrate the player feedback collected over the last three months and to foster optimal launch conditions.” The game was originally scheduled to debut on February 14, 2025.

Ubisoft noted that Q3 projected bookings are expected to close around €300 million ($309 million), largely due to “lower-than-anticipated holiday sales, especially for Star Wars Outlaws, as well as the cancellation of XDefiant.”

“We have made significant strides on the strategic and execution evaluations initiated a few months back and are confident that this will position Ubisoft for a stronger future. We have taken decisive actions to reshape the organization to provide top-tier player experiences, enhance operational effectiveness, and maximize value creation. We have also recently appointed leading advisors and are actively investigating various strategic and capital options to unlock the full value potential of our assets,” said Ubisoft CEO Yves Guillemot.

“We believe there are numerous potential avenues to generate value from Ubisoft’s assets and franchises. Furthermore, we fully support our teams’ efforts to create the most ambitious Assassin’s Creed installment in the franchise and decided to grant an extra month of development to Shadows to better integrate the player feedback collected over the last three months, enabling us to fully realize the game’s potential and conclude the year on a strong note.”

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