This week, France-based giant Ubisoft announced changes to its release schedule and fiscal forecast.
Watch Dogs and The Crew,
previously scheduled for release this fiscal year, have been pushed
back to the next, 2014-2015 fiscal year. The delays mean big changes for
their anticipated bottom lines.
The company now aims for a
significantly lower gross income this year, putting their sights in the
€995 to €1,045 million range, down €400 million from their previous
goal. This new figure will put them at a €40 to €70 million operating
loss for the fiscal year, which cannot feel good for Ubisoft. However,
the releases of their games will still mean income when they actually do
come out, so the company is targeting a €150 million profit for next
fiscal year and a €200 million profit for the 2015-2016 period, which
should help them catch up after this year.
The company had this to say on the subject:
Our long term goal is to win the next generation. The tough decisions we are taking today to fully realize the major potential of our new creations have an impact on our short-term performance. We are convinced that, longer term, they will prove to be the right decisions both in terms of satisfaction for our fans and in terms of value creation for our shareholders. We are building franchises that will become perennial pillars of Ubisoft’s financial performance. In a context of growing successes for mega-blockbusters, the additional time given to the development of our titles will allow them to fulfill their huge ambitions and thus offer players even more exceptional experiences” stated Ubisoft co-founder and CEO Yves Guillemot. He concluded “Fueled by strong momentum for PlayStation 4 and XboxOne, calendar 2014 will see the return of growth to the console market. Combined with the quality of our line-up and our strong financial situation, this growth will allow us to achieve record operating income in fiscal 2014-15 and 2015-16.