Ubisoft unveils revenue growth measures, cancels three unannounced projects

Ubisoft said that the currently challenging environment and disappointing sales results has triggered a full review of its revenue prospects leading to increased cautiousness over the coming years. Considering this, combined with the significant additional investments that resulted from lockdown and new working patterns that have had a profound impact on productions across the industry over the past 3 years, Ubisoft is announcing a set of measures dedicated to strengthening its long-term growth and value-creation prospects: Ensure all energy is focused on building its brands and live services into some of the most powerful within the industry. As a consequence, the company has decided to cancel three unannounced projects, on top of the four already announced in July 2022. The company also intends to depreciate around EUR500M of capitalized R&D, concerning upcoming premium and Free-to-Play games and the newly cancelled titles. This notably reflects the increased cautiousness related to the current challenging videogame market and macroeconomic environment as well as the necessary increased focus on fewer titles. As part of the company’s increased strategic focus, Ubisoft seeks to adapt its organization to a more challenging market, with an expected net reduction of non-variable costs base of more than EUR200M over the next 2 years. This will be achieved through targeted restructuring, divesting some non-core assets and usual natural attrition. Ubisoft said it will continue to look at hiring highly talented people for its biggest brands and live services.