In addition to its financial success, Ubisoft has also been focusing on strategic initiatives to further strengthen its position in the gaming industry. The company has shifted its strategic focus towards two pillars: developing open-world adventure games, which it is well-known for, and expanding its games-as-a-service presence. This strategic shift is aimed at driving growth and generating robust free cash flow.
To support these initiatives, Ubisoft has implemented a cost reduction program, which has resulted in a reduction of 1,700 employees between September 2022 and March 2024. The total number of employees currently stands at 19,011. The CFO of Ubisoft, Frédérick Duguet, stated that the company is on track to reach its goal of €200 million in annual cost reduction by FY26 and expects to generate free cash flow by FY25.
In terms of specific game performances, Ubisoft provided more details about its individual titles. It also announced its lineup for FY25, which includes two premium titles, Star Wars Outlaws and Assassin’s Creed Shadows, as well as three free-to-play titles, XDefiant, The Division Resurgence, and Rainbow Six Mobile. Ubisoft mentioned that Skull and Bones and Prince of Persia: The Lost Crown showed high player engagement, indicating their success. However, specific sales and player numbers were not disclosed.
Interestingly, Ubisoft made the decision to halt development on one of its upcoming games, The Division Heartland, as part of its increased selectivity in investments. The company redirected its resources to focus on bigger opportunities, such as XDefiant and Rainbow Six. The Division Heartland was a free-to-play third-person shooter set in rural America.
Overall, Ubisoft’s financial report demonstrates its strong performance and strategic focus on delivering high-quality games and expanding its presence in the gaming industry. With its upcoming titles and cost reduction program, the company aims to continue its growth and maintain a competitive advantage.
