Ubisoft Lowers Financial Targets After Breakpoint Release

October 25, 2019
Ubisoft Lowers Financial Targets After Breakpoint Release

The release of Ghost Recon: Breakpoint didn't meet expectations and Ubisoft is lowering financial targets and changing release schedules for upcoming games.

In a recent financial call it was revealed that Ghost Recon: Breakpoint has failed to meet expectations and due to it financial targets for the fiscal 2019-20 have been lowered and future releases will be having an increased development time.

The original targets were $2,400 million in net bookings and non-IFRS operating income of $530 million, they were substantially lowered to $1,600 million for net bookings and an operating income between $20 million and $55 million.

Besides that, release schedules have been altered for Watch Dogs Legion, Rainbow Six Quarantine, and Gods & Monsters, pushing all of them to a launch during fiscal 2020-21.

This has resulted in some very high expectations for 2020-21, net bookings of $2,900 million and non-IFRS operating income of $670 million.

Yves Guillemot, Co-Founder and CEO, said, "We have not capitalized on the potential of our latest two AAA releases. For Ghost Recon Breakpoint, while the game’s quality appeared on track – based on E3, Gamescom, previews and our latest internal playtests –, 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."

He also continued by listing the following as the reasons they believe they have failed to meet financial goals:

First, it is harder to generate interest for a sequel to a Live multiplayer game, when prior iterations benefited from years of optimization. Consequently, we need to make sure there is more time between each iteration of Live games.

Second, our strategy of introducing gameplay innovations in our games has had a very positive impact on our brands. However, to win over players, these innovations need to be perfectly implemented in order to offer an optimal experience. This has not yet been sufficiently the case with Ghost Recon Breakpoint. While the change of formula has been very well received by some players, with an average daily playtime per player of over three hours, it also has been strongly rejected by a significant portion of the community.

Finally, Ghost Recon Breakpoint did not come in with enough differentiation factors, which prevented the game’s intrinsic qualities from standing out.

It will be interesting to see how Ubisoft will tackle this new situation.