Ubisoft Adjusts Expectations, Delays Titles Following Poor 'Breakpoint' Performance

Ghost Recon Breakpoint Still 1 - Ubisoft Publicity-H 2019
Courtesy of Ubisoft

The shooter, which bowed in September, failed to crack the top five list of best-sellers last month.

Paris-based video game giant Ubisoft has updated its financial targets and a number of game releases for the remaining fiscal year, revising downwards for its financial expectations and pushing back the launch of a number of upcoming titles.

Ubisoft adjusted its expectations for net bookings from €1.4 billion ($1.5 billion), down from €2.2 billion ($2.4 billion) and non-IFRS operating income to between €20 million ($22.2 million) and €50 million ($55.5 million). The adjustment was made in part to due to the poor performance of recent releases such as Tom Clancy's Ghost Recon Breakpoint, which bowed in September, and, "to a lesser extent," Tom Clancy's The Division 2, which debuted in March. Breakpoint had a disappointing launch last month, as it was unable to crack the top five list of best sellers over the period.

Meanwhile, upcoming titles Rainbow Six Quarantine and Watch Dogs Legion have also been delayed to fiscal year 2020-21, which Ubisoft co-founder and CEO Yves Guillemot said "will have a very significant impact on our financial results for this fiscal year."

"Over the past few years, we have delivered many high-quality titles, built a portfolio of diversified franchises and successfully conducted the digital transformation of our business," said the exec. "However, we have not capitalized on the potential of our latest two AAA releases."

"For Ghost Recon Breakpoint," Guillemot continued, "while the game’s quality appeared on track ... critical reception and sales during the game’s first weeks were very disappointing. As we have done with past titles, we will continue to support the game and listen to the community in order to deliver the necessary improvements."

In September, the company launched its own subscription streaming service, Uplay+, which grants access to Ubisoft's large catalog of games. Guillemot was pleased by the service's early performance, saying, "We can now draw on a very robust back-catalog, which ended up again above our expectations in the second quarter, including the particularly outstanding momentum of Rainbow Six Siege and Assassin’s Creed Odyssey."