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Ubisoft Reports Record €1.3 Billion Operating Loss and Predicts Another Weak Year

The company is executing a two-year transformation that pivots to live-service games, increases generative‑AI investment, cuts costs, targets a return to profit by FY2027-28.

Overview

  • Ubisoft disclosed Wednesday that it posted a record operating loss of about €1.3 billion for the year to March 2026 and saw steep falls in revenue and net bookings.
  • The firm warned FY2026-27 will be a low point with sales forecast down about 8–9 percent and potential cash burn up to €500 million before it expects to return to profit in FY2027-28.
  • January’s reorganisation has already cancelled seven projects, delayed six more, cut roughly 1,200 jobs and begun consolidating development into five 'creative houses' to lower fixed costs.
  • Management confirmed a pipeline of major franchise releases through March 31, 2029 — including Assassin’s Creed Black Flag Resynced — while leaning on live-service titles and the back catalogue to sustain bookings.
  • Ubisoft said it will accelerate investment in generative AI (notably the Teammates experiment) and named Nicolo Laurent as a special adviser to Vantage Studios, a Tencent‑linked unit that will help steward top brands.