Ubisoft Is in a Lot of Trouble

Every new video game console generation comes with a new set of challenges for hardware companies and publishers, all of which were exacerbated with advent of those capable of high-definition resolutions. Consider the sheer number of Japanese developers that had diminished outputs at the start of the PlayStation 3 and Xbox 360 generation, or the mid-tier developers who went out of business during that same period, nearly taking similarly-budgeted mid-tier games down with them. This led to a steep gap between AAA and indie games during the PlayStation 4 and Xbox One period, one that also knocked Microsoft out of their top position in western territories, the last one largely due to their own actions. Several other developers and publishers spent the generation trying to get back into shape, like Square Enix and Capcom.

This particular console generation is now claiming at least one victim: Ubisoft. One issue after another has befallen the publisher since the PlayStation 5 and Xbox Series systems launched, and their last couple of financial briefings have elaborated on the damage they’ve been dealt.

Ubisoft kicked off the latest one by confirming the cancellation of three unannounced projects. They, of course, didn’t elaborate on what kinds of projects those were, but this is bad news in itself. Cancelling projects is always a sign of unexpected financial issues. It’s a pity, not only because the projects could have had potential, but because Ubisoft’s software lineup has been lacking in variety lately, with their only solid sizable hit in the last two years being Far Cry 6. It’s been a little more than that time since Assassin’s Creed Valhalla launched, but that’s continued to do well for them since the November 2020 launch thanks to the copious amount of downloadable content it’s received because of its nature as a live service game. But they’ll now have less software options to go around.

Worse: This news is coming after they previously cancelled four titles last summer. Chances are there might have been at least two intriguing games among them.

They do, however, seem convinced that Skull & Bones will one day be worth it, given the massive number of delays it’s taken over several years. It received yet another one during this briefing, from March 2023 to the late 2023/early 2024 timeframe. This pirate-based action game notably started development after Assassin’s Creed IV: Black Flag released in 2013 nearly one decade ago, a game that launched alongside the aforementioned last-gen platforms. Most companies would have put a game to sleep instead of delaying it for so long, as the project required continued investments the length of time, but no one can tell Ubisoft that. As if to convince the audience they’re serious, a “narrative gameplay” demonstration was streamed shortly after this info was provided. They’ll presumably provide a more exciting gameplay video in the near future.

The words about Ubisoft believing in Skull & Bones despite its prolonged development can also be applied to Beyond Good & Evil 2. Its development continues to truck along following the departure of franchise creator Michel Ancel, disgraced following accusations of toxic leadership. The game may or may not resemble the one shown in detail a few years ago, but it’s unlikely to be the initially-teased single-player sequel featuring the return of Jade and Pey’j that vocal fans have wanted since the first game launched nearly 20 years ago.

A bit more sobering is how Ubisoft noted that Mario + Rabbids: Sparks of Hope and Just Dance 2023 sold below expectations, and were especially surprised with the former’s underperformance. “Despite excellent ratings and players’ reception as well as an ambitious marketing plan, we were surprised by Mario + Rabbids: Sparks of Hope underperformance in the final weeks of 2022 and early January,” the company said. The first game, Mario + Rabbids Kingdom Battle, sold over ten million copies, and they still have faith that it will do “good numbers” in the long term. But any hope that those who purchased the first game late would buy the second in a quicker timeframe, well, lost its spark.

Ubisoft mentioned how the underperforming titles and cancellations were the result of the gaming audience shifting “towards mega-brands and long-lasting titles.” This is an indication of what to expect from the company’s future titles. They’ll provide new installments in big and established brands and titles based on other big IP like Avatar: Frontiers of Pandora and the upcoming Star Wars game from Massive Entertainment, but little else. Ubisoft’s lineup is in need of much diversification, but that, they consider, is too big a risk.

Ubisoft CEO Yves Guillemot sent word to employees alongside the investor briefing that he will need their “full energy and commitment to ensure [they] get back on the path to success,” according to an email shared with Kotaku. “The ball is in your court to deliver this line-up on time and at the expected level of quality, and show everyone what we are capable of achieving,” he said. Besides this lending credence to the theory that CEOs contribute little themselves, it’s difficult not to think of the level of karma on display here after the pitiful response to the sheer amount of sexual harassment and abuse several employees suffered from behind the scenes. That’s reportedly still happening, as the team behind Assassin’s Creed Codename: Red has had trouble staffing up thanks to the project being led by a known abuser. This isn’t to say this would have fixed all their problems, but doing so would have done wonders for their internal morale. Whoops.

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