On Wednesday, Ubisoft announced the cancellation of three unannounced titles and the reduction of its full-year financial targets due to “worsening macroeconomic conditions” in the video game industry. It has announced the cancellation of three undisclosed games and another delay for the pirate adventure Skull & Bones.
The French video game publisher has lowered its goal for 2022 net bookings from 830 million euros to 725 million euros ($779.4 million).
The company announced the move on Wednesday, saying it is “seeing enormous difficulties as the industry continues to evolve towards gigantic and long-lasting games that can engage players throughout the globe, across platforms, and economic systems.”
The business reported sales of games during the crucial holiday period were “noticeably and surprisingly slower than anticipated,” citing the underperformance of titles including Mario + Rabbids: Sparks of Hope and Just Dance 2023.
Ubisoft CEO Yves Guillemot said, “We are plainly dissatisfied by our recent performance.” In the wake of worsening economic conditions hurting consumer spending, “we are facing contrasting market dynamics as the industry continues to transition towards mega-brands and perpetual live games.”
Due to surprisingly sluggish sales as of late, Ubisoft decided to cancel these games. The company is attempting to cut expenditures by at least $200 million to recoup losses.
Skull and Bones, which has been delayed multiple times and was most recently expected to be released this March, will now come “early” in the next fiscal year (2023-24) for Ubisoft, which runs from April to March 2024.
Ubisoft cancelled four games in July 2022, including the Splinter Cell VR project and Ghost Recon Frontline, bringing the total to seven games in less than six months. These cancellations can’t bode well for Ubisoft’s future, especially considering that the developer’s last major release was more than a year ago and that most of its franchises are currently without fresh content.
