Ubisoft Strategic Focus Update: 2022-23 Financial Targets

Ubisoft has announced a significant strategic pivot to address recent financial underperformance and shifting industry dynamics characterized by a move toward mega-brands and long-term live services. Faced with disappointing sales for titles like Mario + Rabbids: Sparks of Hope and Just Dance 2023, alongside a challenging macroeconomic climate, the company is narrowing its focus to its most powerful franchises. This restructuring aims to ensure long-term growth and value creation by prioritizing high-impact projects over a broader, less focused development pipeline.

Key operational measures include the cancellation of seven total projects—three newly announced and four previously disclosed—and a €500 million depreciation of capitalized research and development costs. To improve organizational efficiency, the company plans to reduce its non-variable cost base by more than €200 million over the next two years through restructuring, divestment of non-core assets, and natural attrition. Additionally, the release of Skull and Bones has been postponed to the 2023-24 fiscal year to allow for further quality refinements.

Financial targets have been revised downward to reflect these headwinds. The company now expects full-year net bookings to decline by more than 10% year-on-year, compared to previous growth projections of 10%. Consequently, non-IFRS operating income is forecasted at -€500 million for the 2022-23 period. Despite these immediate setbacks, management remains optimistic about the 2023-24 fiscal year, citing a robust pipeline that includes Assassin's Creed Mirage and Avatar: Frontiers of Pandora. The company maintains a stable balance sheet with approximately €1.5 billion in cash and cash equivalents, providing a foundation for its continued transition toward a leaner, brand-centric operational model.