The global video game market…
While the global video game market fell 7% in 2022, the nugget created by the Guillemot brothers has warned investors that its 2022-2023 revenues (officially unveiled at the end of March) will fall by 10%. Ubisoft management rather expected a 10% increase.
200 million euros in savings in two years
During his last investor communication (January 12, 2023), CEO Yves Guillemot could only point out the commercial shortcomings of the latest version of the Mario + The Rabbids game, as well as the Just Dance 2023 version, “despite heavy marketing investment.”
“The studio is suffering from a recession that has affected our market,” said an industry expert. “Ubisoft releases games that usually sell for around €70, which is a high price range. Currently, while gamers’ budgets are being stretched, it’s games that are the subject of deferral purchases. But be careful, the publisher is solid,” continues the latter.
The economic situation alone probably does not explain the current poor performance of the publishing house. Since 2020, Ubisoft has recorded the departure of many important executives. The company was forced to urgently reorganize its top management. So many events that weakened him in a sector that for several years, in terms of human resources, has been involved in a real “war for talent”.
Bordeaux under the protection of Assassin’s Creed?
However, if Ubisoft treads water and sees its title plummet in the stock market, Ubisoft will remain truly stable. And has a cash position of more than 1.5 billion euros. To cope with the economic downturn, the publishing house with 20,000 employees worldwide is committed to cutting its costs by 200 million euros at the end of the next two years.
“We will do this through purposeful restructuring and sale of assets. Ubisoft will continue to recruit very talented people,” promises Yves Guillemot.
The worst difficulties the publishing house has faced since its inception in 1986 may not have affected the Bordeaux studio. The site Girondin, which currently has 260 employees, is developing a new version of the world bestseller “Assassin’s Creed” with the 13th opus “Mirage”.