Please support Game Informer. Print magazine subscriptions are less than $2 per issue
Ubisoft Stock Drops Over 25 Percent Following Delays, Earnings Adjustments
Yesterday's Watch Dogs and The Crew delays have had predictable and severe repercussions for Ubisoft. The company's stock has dipped 25 percent on the news.
The company revised its outlook severely on the move of those two games outside of the current fiscal year. The bottom line results will put Ubisoft in an operating loss scenario after previously setting expectations for a $148 million to $168 million operating surplus. This was compounded by weaker than expected sales of both Splinter Cell: Blacklist and Rayman Legends.
At this point, Ubisoft's fiscal year hinges on the performance of Assassin's Creed IV and South Park: The Stick of Truth. Ubisoft has not yet offered hands-on opportunities with the latter.
Our Take
Delays can be good for games, giving developers a chance to improve them. The severe delay of five months (or more) alongside the fiscal timing, the co-marketing funds spent by Sony, the confusion that emerged over launch bundles, and the inevitable PR campaign reboot that will take place all deal Ubisoft a blow.
Ubisoft experienced a drop in sales of 42 percent in its first quarter, and Watch Dogs and The Crew were expected to help make up that deficit. On top of this, I'm skeptical that The Division will see the light of day during the 2014-15 fiscal year.
I’d like to ask you to support Game Informer’s continued coverage of games with a subscription. For less than two dollars per issue, we mail you a full year of 10 print magazines, each with cover stories and preview features filled with exclusive details about the most exciting upcoming games. We profile and interview game creators. We look back on the rich history of gaming, and we celebrate what’s next.
Here on the website, we offer much of our content for free, including game reviews, daily news, videos, event coverage, and more – all with minimal ads.
We do so with a small editorial team, alongside contributing paid writers from around the world – over 65 individuals from 9 countries around the world, just in the last couple of years.
It’s not possible without support.
In a time when game makers and games coverage have faced hard struggles and layoffs, the future of this 30+ year magazine and community is at risk. Our new standalone magazine subscription is the number one way you can keep us alive – and we believe you’ll get a pretty fantastic gaming magazine in your mailbox every few weeks for your trouble.
Thank you.
