Investing.com — Ubisoft (EPA: ) shares fell over 6% on Friday after another delay in the video game series, Assassin’s Creed Shadows, and lower guidance for fiscal 2025.
In an update, Ubisoft said it had appointed “lead advisors” to explore potential alternatives following a three-month review by the Executive Committee aimed at improving operational performance.
The move underscores an “aggressive stance” in addressing the company’s broader challenges, according to Stifel analysts.
The long-awaited Assassin’s Creed Shadows, originally planned for a November release, has now been delayed for the third time, with a new launch date set for March 20, 2025.
This marks another setback for one of Ubisoft’s flagship franchises. Analysts have expressed concern that repeated delays could weigh on the company’s momentum, despite management’s confidence in the title’s long-term potential.
In addition to the delay, Ubisoft lowered its guidance for net bookings for FY 2025 to €1.9 billion, down 18% from the previous year.
That’s down from a previous forecast of €1.95 billion, with the company attributing the shortfall to disappointing holiday sales, particularly for Star Wars Outlaws, and the cancellation of the XDefiant.
Third-quarter net bookings outlook fell to €300 million, a 52% year-over-year decline and the lowest quarterly figure since FY 2006, Stifel noted.
Despite this, Ubisoft’s updated guidance predicts record net bookings of €958m for the fourth quarter, surpassing the previous year’s peak of €873m.
However, analysts have questioned the feasibility of this goal, noting that it is highly dependent on Assassin’s Creed Shadows and new partnership opportunities.
Stifel further cut its estimates for Ubisoft, projecting a FY25 loss of €0.44 per share on net bookings of €1.838bn, down from previous expectations of a €0.38 loss to €1.907bn.
Despite forecasts of net bookings of €2.057 billion for FY26, analysts noted uncertainty surrounding the release of the new Far Cry game, which is key to achieving those targets.
