Ubisoft revises financial targets after "soft" sales of Star Wars Outlaws and Assassin's Creed Shadows delay

Ubisoft has revised its financial targets, saying it "expects net bookings of around €1.95bn, and around break-even non-IFRS operating income and free cash flow."

Ubisoft originally expected second-quarter net bookings of around €500 million, with the 2024-25 line-up including Assassin's Creed Shadows and Star Wars Outlaws. The latter released at the end of August, and the former had been expected to launch in November 2024.

However, in light of "learnings from the Star Wars Outlaws release" - the initial sales of which "proved softer than expected" - Ubisoft has delayed the launch of Assassin's Creed Shadows to February 2025.

"While the game is feature complete, the learnings from the Star Wars Outlaws release led us to provide additional time to further polish the title," the publisher said.

It also confirmed it was "departing from the traditional Season Pass model," and "all players will be able to enjoy the game at the same time on February 14, and those who preorder the game will be granted the first expansion for free."

"Our second quarter performance fell short of our expectations, prompting us to address this swiftly and firmly, with an even greater focus on a player-centric, gameplay-first approach and an unwavering commitment to the long-term value of our brands," said co-founder and CEO, Yves Guillemot.

"Although the tangible benefits of the Company’s transformation are taking longer than anticipated to materialise, we keep on our strategy, focusing on two key verticals – Open World Adventures and GaaS-native experiences – with the objective to drive growth, recurrence and robust free cash flow generation in our business.

"I want to reaffirm that we are an entertainment-first company, creating games for the broadest possible audience, and our goal is not to push any specific agenda. We remain committed to creating games for fans and players that everyone can enjoy," Guillemot concluded.

Guillemot also revealed that "in the light of recent challenges," the executive committee is launching a review aimed at "further improving our execution, notably in this player-centric approach, and accelerating our strategic path towards a higher performing model to the benefit of our stakeholders and shareholders."

Ubisoft's share price has fallen more than 50% over the last year, taking it near a 10-year low, and prompting one investor to call for the company to go private.