Ubisoft experienced a significant decline in its stock price, falling 18% on Thursday after revealing full-year earnings that fell short of investor expectations. The French video game developer reported a 20.5% decrease in net bookings for the fiscal year ending March 31, 2025. Despite the launch of “Assassin’s Creed: Shadows” in March, the title’s performance did not substantially uplift overall sales and was impacted by two previous delays.
The decline in net bookings, which amounted to 1.85 billion euros (approximately $2.1 billion), was attributed to “lower than expected partnerships.” Moreover, the company recorded an operating loss of 15.1 million euros for the year.
Looking ahead, Ubisoft’s outlook for fiscal year 2025-26 did not present much optimism, as the company anticipates net bookings to remain “stable” compared to the previous year. They expect to achieve a break-even point based on non-IFRS operating income.
Ubisoft’s shares ended the trading day down by 18.32%, closing at 9.55 euros.
Taking into account the current landscape of the gaming industry, Ubisoft’s situation underscores the challenges many companies face in maintaining consistent growth amidst fluctuating sales and market expectations. However, with the ongoing popularity of franchises like “Assassin’s Creed,” there remains a potential for recovery if the company can adapt its strategies and strengthen its partnerships.