Ubisoft’s ongoing troubles have reached a breaking point, as its latest financial report paints a bleak picture for the once-revered publisher. After a disastrous 2024 filled with underwhelming releases and mounting criticism, the company’s numbers confirm what many feared—Ubisoft is in serious financial trouble. With a staggering decline in revenue and net bookings, alongside cost-cutting measures that include mass layoffs and studio closures, the future of Ubisoft appears more uncertain than ever.
Ubisoft’s Earnings Plummet: A 47.5% Revenue Drop
According to Ubisoft’s third-quarter financial report for the fiscal year 2024-25 (ending December 31, 2024), the company recorded IFRS 15 sales of €318.1 million, reflecting a 47.5% drop compared to the same period in 2023. For the first nine months of FY25, total revenue reached €990.0 million, marking a 31.4% decrease year-over-year.
The company’s net bookings took an even bigger hit, plummeting 51.8% year-over-year to just €301.8 million for Q3 2024-25. Over the first nine months of the fiscal year, total net bookings amounted to €944.0 million, a sharp 34.8% decline from the previous year. These numbers confirm that Ubisoft’s downward trajectory has only worsened, further raising concerns about the company’s future viability.
Massive Cost-Cutting Measures: Layoffs and Studio Closures
In response to these dire financial results, Ubisoft has doubled down on its Cost Reduction Plan, which, in simpler terms, means shutting down more projects, closing studios, and laying off employees at an accelerated rate.
The publisher confirmed that thanks to the cancellation of XDefiant and the closure of four production studios, they are already “ahead of schedule” in their cost-cutting strategy. Ubisoft now expects to exceed €200 million in fixed cost reductions by the end of FY25.
More concerning, however, is Ubisoft’s declaration that it “plans to pursue these efforts in FY26, going beyond the initial target by a significant margin.” This statement strongly suggests that more studios will be shuttered, and additional waves of layoffs are imminent in the coming months.
Assassin’s Creed Shadows: Ubisoft’s Last Hope?
Ubisoft is betting big on Assassin’s Creed Shadows, scheduled for release on March 20, 2025, as its primary means of financial recovery. The company anticipates net bookings of around €1.9 billion for FY25, despite only generating €944.0 million in the first nine months—making this projection seem wildly optimistic.
While pre-orders for Shadows are reportedly comparable to those of Assassin’s Creed Odyssey, a game that became the second best-selling entry in the franchise, expecting it to single-handedly turn the company’s fortunes around is a tall order. Given the controversies surrounding Shadows and the general decline in Ubisoft’s reputation, many fans remain skeptical about whether the game can live up to expectations.
Ubisoft’s Future: A Steep Climb Ahead
With revenue collapsing, cost-cutting escalating, and skepticism surrounding their upcoming releases, Ubisoft’s survival largely hinges on the performance of Assassin’s Creed Shadows. However, given the current gaming climate and Ubisoft’s struggles to maintain consumer trust, the road ahead looks more uncertain than ever.
Should Shadows fail to meet Ubisoft’s lofty financial expectations, 2025 could mark the biggest collapse in the company’s history, leading to even more closures and layoffs—perhaps even the end of Ubisoft as we know it.
