Ubisoft’s Revenue Shrinks by Half in Q3 Compared to Last Year

French gaming powerhouse Ubisoft recently announced a steep drop in revenue, reporting a 47.5% decrease for the quarter ending in December.

The company’s Q3 financial results revealed earnings of €318.1 million, which translates to about $344.2 million. This figure is almost half of what was recorded during the same period last year, where revenue stood at €606.4 million (around $637 million). Net bookings also saw a significant decline, plummeting by 51.8% to reach €301.8 million.

Interestingly, the back catalogue accounted for €268 million (or $281.6 million) of the total net bookings, making up 88% of the tally, although this was a decline compared to the previous year’s performance.

Looking ahead, Ubisoft CEO and co-founder Yves Guillemot shared with investors, “We’re putting all our focus on the upcoming launch of Assassin’s Creed Shadows, set to release on March 20.” The game’s early reviews have been favorable, highlighting its engaging narrative and immersive experience. Both characters are said to play pivotal roles in the unfolding story, with the dual protagonist setup offering quality gameplay that has been well-received. Guillemot expressed his admiration for the Assassin’s Creed team, commending their hard work and dedication to making “Shadows” the most ambitious release in the franchise yet.

On the financial side, Guillemot mentioned they are making strong progress on their cost reduction strategy. With disciplined execution, Ubisoft has announced some targeted restructurings, albeit tough decisions, and now anticipates exceeding their cost reduction targets by the end of the 2025 fiscal year, earlier than planned. The company aims to continue these efforts into FY26, surpassing initial goals substantially.

Lastly, Guillemot addressed the strategic review process that began earlier this year. The primary aim is to optimize the value of Ubisoft’s assets for stakeholders and to establish a conducive environment for creating outstanding games in an ever-evolving market. Options are being considered, and the company is optimistic about finding the right path to achieve these ambitious goals.