Watch Dogs Delay Batters Ubisoft Financial Targets

Watch Dogs Delay Batters Ubisoft Financial Targets

Ubisoft Logo Hi-Res

Ubisoft says the delay of Watch Dogs and The Crew into 2014 will have serious consequences for its bottom line.

Ubisoft announced earlier today that Watch Dogs, as well as the lesser-known title The Crew, have been pushed back into the spring of 2014, a doubly-hurtful blow because it means that both games will miss not only the holiday quarter, but also the opportunity to be a launch title for what will presumably be the biggest console launches in history. Unsurprisingly in that light, the company has now revised its financial outlook for 2013-14 dramatically downward.

Ubisoft had originally targeted sales of between €1.42 billion and €1.45 billion ($1.92 billion and $1.96 billion) for the fiscal year and a non-IFRS operating income of €110 million to €125 million ($148 million to $169 million). Following the delay, it said it now expects sales of between €995 million and €1.045 billion ($1.34 billion and $1.41 billion) for the fiscal year, resulting in a non-IFRS operating loss of €40 million to €70 million ($54 million to $94.5 million.)

"Our long term goal is to win the next generation. The tough decisions we are taking today to fully realize the major potential of our new creations have an impact on our short-term performance," Ubisoft CEO Yves Guillemot said in a statement. "We are convinced that, longer term, they will prove to be the right decisions both in terms of satisfaction for our fans and in terms of value creation for our shareholders. We are building franchises that will become perennial pillars of Ubisoft's financial performance. In a context of growing successes for mega-blockbusters, the additional time given to the development of our titles will allow them to fulfill their huge ambitions and thus offer players even more exceptional experiences."

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On the one hand - Watch Dogs is delayed. :(

On the other - That means I've have more time to play X Rebirth. :D

As for Ubi's finances. Yeah, ouch. If only they had another guaranteed to sell AAA title coming out in this quarter....

Thank god for franchises, eh?

As long as operating costs don't outstrip sales, 2013 should be fine for Ubisoft. If anything, the'll have a headstart for 2014, thanks in no small part to releasing a hot title in the winter deadmonths.

"Our long term goal is to win the next generation. The tough decisions we are taking today to fully realize the major potential of our new creations have an impact on our short-term performance,"

Translation: Our financial and technical forecasters fucked up so now we are backpedaling as fast as we can. And instead of being able to offer our investors and customers great new games, we have only empty promises.

"We are convinced that, longer term, they will prove to be the right decisions both in terms of satisfaction for our fans and in terms of value creation for our shareholders. We are building franchises that will become perennial pillars of Ubisoft's financial performance. In a context of growing successes for mega-blockbusters, the additional time given to the development of our titles will allow them to fulfill their huge ambitions and thus offer players even more exceptional experiences."

Translation: Dear God please let this corporate bullshit spin speech convince the proles and investors that our mistakes were in actuality a cunning plan that will somehow be a magnificent boon for them sometime in the uncertain future. I.E. "Yes we shot ourselves in the foot, but the resulting limp promises to help us invent a kooky new modern dance that will have all the cool kids jumping. And in no way means that our hot new games will end up being released looking tired and old as we failed to get them ready while the iron was hot."

Andy Chalk:
Ubisoft CEO Yves Guillemot said in a statement. "We are building franchises that will become perennial pillars of Ubisoft's financial performance. In a context of growing successes for mega-blockbusters, the additional time given to the development of our titles will allow them to fulfill their huge ambitions and thus offer players even more exceptional experiences."

That is just about everything that is wrong with the videogames industry and entertainment in general.

And now I'm even MORE worried about the current state of the Industry! It wasn't enough that these guys also had to port a Handheld Game to consoles (An Assassin's Creed Spin off), but now they have to postpone one of their biggest titles of this year, which is now going to make them loose money this year instead of make it.

Ubisoft really needs to get their act together, or else they'll become THQ 2: Deja Vu.

How? They're avoiding a clash with their own Assassin's Creed IV, with Call of Duty and Battlefield, and a lot of people are still not done with GTA V. If anything, this will benefit their bottom line. There's not a whole lot of overhyped games coming out in spring 2014, besides maybe the PC version of GTA V is the rumors are true.
Unless the game is completely messed up.

Atleast there not rushing the game.

Actually Ubisoft's bread and butter(triple what they make in AAA) in past years had been young audience DS games like Petz and Imagine series. However young kids are not buying the 3DS to make those games sell well.

I think they could make up a good chunk of their losses by REMOVING UPLAY

 

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