Shulou(Shulou.com)11/24 Report--

Thanks to CTOnews.com netizen OC_Formula for clue delivery! CTOnews.com Ubisoft announced today that it is changing its internal strategy due to its recent content release failing to meet expectations, including canceling three unannounced development projects and the sixth jump ticket for Blue Sea Black Sail.

Ubisoft said that over the past 10 years, the Ubisoft team has created one of the deepest and most diversified proprietary IP portfolios in the industry, but the company still faces significant challenges as the industry shifts to super-IP and ongoing games. Over the past four years, Ubisoft's strategy has been to build enduring, ongoing games and adapt the strongest franchises. However, games from this investment phase have yet to be released, and recently released games have underperformed expectations.

Moreover, against the backdrop of deteriorating macroeconomic conditions, the recovery was notably slower than expected over the Christmas holidays, particularly in the last weeks of December and early January. This overall picture has triggered a comprehensive review of revenue prospects, leading to greater caution in the years ahead.

As a result, Ubisoft announced a series of measures aimed at strengthening its long-term growth:

In addition to the four cancelled projects announced in July 2022, Ubisoft has decided to cancel three unannounced projects.

Ubisoft expects a net reduction in its non-variable cost base of more than € 200 million over the next two years, which will be achieved through targeted restructuring, divestiture of some non-core assets and layoffs.

CTOnews.com understands that Ubisoft also announced a revised revenue target for the third quarter of 2022-23, which is now expected to be about 725 million euros (currently about 5.278 billion yuan), compared with the previous target of about 830 million euros (currently about 6.042 billion yuan).

In addition, Ubisoft has once again postponed the release date of Blue Sea Black Sails, and now aims to release it in early 2023-24, which is the sixth time.

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