Ubisoft cancelled three unannounced games and lowered its full-year financial targets on Wednesday, citing “worsening macroeconomic conditions” in the video game industry.<\/h4>\n

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The company cited the poor performance of titles Mario + Rabbids: Sparks of Hope and Just Dance 2023, as well as a challenging economic environment. For the full year, Ubisoft said it expects a 10% decline in 2022 net book revenue. The company previously forecast a 10% increase in net bookings.<\/p>\n

“We are clearly disappointed by our recent performance,”<\/em> said Yves Guillemot, the company’s CEO, in a statement.<\/p>\n

“We are facing contrasted market dynamics as the industry continues to shift towards mega-brands and everlasting live games, in the context of worsening economic conditions affecting consumer spending.”<\/p><\/blockquote>\n

Faced with higher prices and credit costs, consumers are cutting back on discretionary purchases. Gambling, in particular, has come under pressure.<\/p>\n

According to a July research note from market data firm Ampere Analysis, global sales of games and services, including console and PC games, are expected to fall 1.2% to $188 billion annually in 2022.<\/p>\n

With consolidation in the industry on the rise, analysts see Ubisoft as a potential takeover target. Its share price plunged more than 38% in 2022, erasing \u20ac3 billion from the company’s market value.<\/p>\n

Meanwhile, the company has been dogged by internal scandals. In 2020, it underwent a management reshuffle after reports of sexual harassment and abuse. Several executives resigned, including former chief creative officer Serge Hascoet.<\/p>\n

Michael Pachter of Wedbush Securities said Ubisoft’s holiday game line-up<\/a> “just aren’t good enough to command attention.”<\/em><\/p>\n

He said he expects improvements from upcoming games such as Avatar, Assassin’s Creed and Skull & Bones, “but they couldn’t pull it off with Mario + Rabbids this year,” he said.<\/p><\/blockquote>\n

In September, Chinese tech giant Tencent increased its stake in the company. Tencent invested \u20ac300 million in Guillemot Brothers Limited, taking a 49.9% stake in the family investment firm, which owns 15% of Ubisoft.<\/p>\n

Source: Vandal<\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Ubisoft cancelled three unannounced games and lowered its full-year financial targets on Wednesday, citing “worsening macroeconomic conditions” in the video game industry.     The company cited the poor performance of titles Mario + Rabbids: Sparks of Hope and Just Dance 2023, as well as a challenging economic environment. For the full year, Ubisoft said it expects a 10% decline in 2022 net book revenue. The company previously forecast a 10% increase in net bookings. “We are clearly disappointed by our recent performance,” said Yves Guillemot, the company’s CEO, in a statement. “We are facing contrasted market dynamics as the industry continues to shift towards mega-brands and everlasting live games, in the context of worsening economic conditions affecting consumer spending.” Faced with higher prices and…<\/p>\n

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