Ubisoft has told investors it intends to take “decisive steps” to reshape the company.
The Assassin’s Creed maker has indicated that changes are needed in order to “deliver best-in-class player experiences, enhance operational efficiency and maximize value creation.”
Ubisoft confirmed it will continue to “drive significant cost reductions” and now intends to take a more selective approach to investments. Game Developer has reached out to Ubisoft to clarify whether layoffs are expected to be part of those ongoing cost reduction plans.
“Ubisoft announced today that it has appointed leading advisors to review and pursue various transformational strategic and capitalistic options to extract the best value for stakeholders,” reads an investor update.
“This process will be overseen by the independent members of the Board of Directors. Ubisoft will inform the market in accordance with applicable regulations if and once a transaction materializes. Operationally, the company will continue to drive significant cost reductions, together with a highly selective approach to investments, and now expects to exceed €200 million ($206 million) in reduction of its fixed cost base by FY2025-26 vs. FY2022-23 on an annualized basis.”
Ubisoft indicates big shake-up is on the horizon
In October 2024, it was reported that Ubisoft majority shareholders the Guillemot family were exploring buyout options in partnership with Tencent. Ubisoft refused to comment on those rumblings during a strategic call update earlier today.
The company did, however, reiterate that it wants to improve the quality of its releases. Last year, flagship title Star Wars Outlaws delivered lower-than-expected sales, while live-service shooter XDefiant was canceled–resulting in the shutdown of two development studios in Osaka and San Francisco. It also laid off 45 employees in August.
Ubisoft has now decided to delay Assassin’s Creed Shadows by one month to “better incorporate the player feedback gathered over the past three months and help create the best conditions for launch.” The title had been slated to launch on February 14, 2025.
Ubisoft noted that Q3 net bookings are now expected to total around €300 million ($309 million), largely because of “lower-than-expected holiday sales, mainly for Star Wars Outlaws, as well as the discontinuation of XDefiant.”
“We made good progress on the strategic and execution reviews initiated a few months ago and are confident that this will position Ubisoft for a stronger future. We have taken decisive steps to reshape the Group in order to deliver best–in-class player experiences, enhance operational efficiency and maximize value creation. We also recently appointed leading advisors and are actively exploring various strategic and capitalistic options to unlock the full value potential of our assets,” said Ubisoft CEO Yves Guillemot.
“We are convinced that there are several potential paths to generate value from Ubisoft’s assets and franchises. Additionally, we are all behind our teams’ efforts to create the most ambitious Assassin’s Creed opus of the franchise and made the decision to provide an extra month of development to Shadows in order to better incorporate the player feedback gathered over the past three months that will enable us to fully deliver on the potential of the game and finish the year on a strong note.”