Restructuring planned as Assassin’s Creed Shadows is delayed again
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Ubisoft has announced that it plans to undergo further reviews and possible restructuring, as the publisher looks to steer its business into profitability or towards a merger.
The company has appointed leading advisors to “review and pursue various transformational strategic and capitalistic options to extract the best value for stakeholders. 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.”
Ubisoft plans to continue its cost reductions, together with a highly selective approach to investments, and now expects to exceed €200 million in reduction of its fixed cost base by FY2025-26 vs. FY2022-23 on an annualized basis.
In December, XDefiant was discontinued and three production studios in high-cost geographies were closed. Assassin’s Creed Shadows has also now been delayed slightly, from its current February target, to a new date on March 20, to allow for a higher level of Day-1 polish and player experience.
Ubisoft still expects approximately break-even non-IFRS operating income and free cash flow for FY2024-25. Net bookings are now expected to come in at around €1.9 billion, and include new partnership opportunities for Ubisoft’s games and franchises as well as for the monetization of the streaming rights acquired last fiscal year.
