Ubisoft, the renowned French gaming studio, has reported robust growth in its third-quarter earnings for the fiscal year 2023-2024. This growth is attributed to the successful launches of several titles towards the end of 2023, following a strong but relatively quiet first half of the fiscal year.
Solid performance boosted by late releases
The company's latest earnings report highlights a stable third quarter, driven primarily by the performance of late-2023 releases such as Assassin's Creed Mirage. While specific sales figures were not disclosed, Ubisoft noted that the debut of Assassin's Creed Mirage contributed significantly to the franchise's overall success, exceeding initial expectations.
Similarly, titles like Avatar: Frontiers of Pandora and Prince of Persia: The Lost Crown, released in January, were cited for their positive impact on Ubisoft's performance. Avatar: Frontiers of Pandora is earmarked as a “long-term seller,” while Prince of Persia: The Lost Crown showcased Ubisoft's ability to rejuvenate iconic brands.
Impressive financial figures
In the third quarter, Ubisoft reported net bookings of €626.2 million, slightly surpassing initial forecasts. Notably, this figure did not include revenue from Assassin's Creed Jade due to a licensing agreement with Tencent.
Comparing year-on-year performance, third-quarter bookings saw a substantial increase of 43.1 percent. Moreover, over the nine months of 2023-2024, bookings grew by an impressive 45.1 percent, indicating sustained momentum for the company.
Strategic focus and future plans
While sales remain a priority for Ubisoft, the company increasingly emphasises the brand impact and critical acclaim of its titles as key drivers of success. CEO Yves Guillemot expressed optimism about upcoming live service games like Skull & Bones and xDefiant, aiming for them to replicate the revenue success of titles such as Rainbow Six Siege.
In contrast, Guillemot signalled a cautious approach towards virtual reality (VR), citing moderate sales of Assassin's Creed Nexus VR. Ubisoft plans to defer further VR projects until interest in the technology grows significantly.
Looking ahead, Ubisoft is exploring strategic partnerships with undisclosed studios and leveraging its cloud streaming rights to Activision Blizzard games until 2038. Additionally, Guillemot teased upcoming releases, including Star Wars Outlaws, described as the franchise's “first open-world game,” set for release later this year. Assassin's Creed Red, set in Japan, is slated for release by March 2025.
The company promises to unveil more details about its promising lineup for 2024-2025 during an upcoming event in May.
