For a while now, the gaming industry has been dealing with a massive wave of layoffs that has hit most companies. One of those that has not yet experienced a significant outflow of employees is the sixth largest player on the market, Ubisoft. Even within this company, however, employees feel unprecedented tension. According to an anonymous interview for the Insider Gaming server, no one can be sure that the possible restructuring will not affect him.
The main reason why the crisis affects even such a large company as Ubisoft is supposed to be the fact that the company simply flushed money down the toilet during the development of almost a dozen battle royale games, most of which were ultimately canceled. Ubisoft’s desire to chase trends cost it money even during the NFT fever, which it wanted to benefit from through Ubisoft Quartz. In the end, however, it was not the right path, so although the company did not completely deviate from it, it certainly did not represent a large source of income for it. Currently, its future lies in live service games. According to Insider Gaming, a trio of shooters is in development. However, how many of them will be completed is a question.
Another factor causing problems for Ubisoft is the cancellation of games and the postponement of projects. During the development of the soon-to-be-released Skull and Bones, for example, morale was so bad that employees often spent time watching YouTube videos instead of working. Problems with project management should then be felt across the entire publishing house.
The results of newly released projects are also a matter of discussion. Although Prince of Persia: The Lost Crown did well by critics and reviewers, its sales have been relatively low. Currently, they are supposed to reach something around 300,000 units sold (it took 15 million dollars). Avatar: Frontiers of Pandora is not doing well either, which, despite several delays, attracted only around 1.9 million players, which is simply not enough. That is, above all, when we compare its current sales of $133 million with The Division brand, which managed to generate $594 million in the first weeks alone. Assassin’s Creed Mirage fared a bit better with 5 million units sold and revenues of around 250 million dollars.
The whole situation shows that there are many reasons for restlessness. However, nothing is lost. This is because Ubisoft should release titles this year that can lift the mood of employees and possibly also significantly reduce the risk of layoffs. The game includes the expected Star Wars Outlaws and Assassin’s Creed Codename Red. Whether these will be sufficiently fundamental works is a question, but they certainly have the potential to attract more than one player to buy them. Their success, or eventual failure, will probably show the direction this titan will take.