French video game publisher Ubisoft (UBIP.PA) posted a record operating loss of 500.2 million euros ($550.6 million) in the year to March 31, 2023, the company said on Tuesday.
The loss was due to a number of factors, including the delayed release of several major titles, such as “Beyond Good and Evil 2” and “Prince of Persia: The Sands of Time Remake.” Ubisoft also cited a decline in digital sales and a rise in development costs.
Despite the loss, Ubisoft said it is sticking to its guidance for the current financial year, which ends in March 2024. The company expects to generate revenue of 2.2 billion euros ($2.4 billion) and operating profit of 300 million euros ($325 million).
Ubisoft CEO Yves Guillemot said the company is “confident” in its ability to achieve its guidance, thanks to a strong pipeline of upcoming titles, including “Skull & Bones” and “The Division Heartland.”
“We are committed to delivering high-quality games that our players love,” Guillemot said in a statement. “We believe that our long-term strategy is the right one, and we are confident in our ability to deliver sustainable growth in the years to come.”
Ubisoft’s results come at a time when the video game industry is facing a number of challenges, including the ongoing chip shortage and the war in Ukraine. However, Ubisoft is not the only major publisher to report a loss in recent months. Electronic Arts (EA) and Activision Blizzard (ATVI) both posted losses in their most recent quarters.
Despite the challenges, the video game industry is still growing. The global video game market is expected to reach $203.1 billion in 2023, up from $177.8 billion in 2022. This growth is being driven by the rise of mobile gaming and the increasing popularity of subscription services such as Xbox Game Pass and PlayStation Now.
Ubisoft is one of the largest video game publishers in the world. The company has a strong portfolio of brands, including “Assassin’s Creed,” “Far Cry,” and “Tom Clancy’s.” Ubisoft is also a major player in the esports industry, with its Rainbow Six Siege and For Honor games being among the most popular esports titles.
Ubisoft’s results are a reminder that even the biggest video game publishers are not immune to challenges. However, the company is confident in its ability to overcome these challenges and deliver sustainable growth in the years to come.
