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- Ubisoft’s sales forecast for Star Wars Outlaws has been significantly lowered.
- Analysts predict sales of only 5 million copies, down from 8 million.
- The company hopes that Assassin’s Creed Shadows will compensate for any sales shortfall.
Ubisoft’s upcoming AAA title, Star Wars Outlaws, was supposed to be a big success.
However, the company’s latest sales forecast predicts a much tougher outcome. Ubisoft originally targeted $718 million in bookings for the second quarter, but the estimate has now been lowered to $553 million.
Why it matters: Analysts at Financial Times conclude that Ubisoft desperately needs Star Wars Outlaws to hit big. But the game’s non-existent hype paints a concerning picture for the French company.
Analysts have lowered their expectations for Star Wars Outlaws, now forecasting sales of just 5 million copies this quarter, down from the earlier estimate of 8 million.
This gloomy forecast is troubling for Ubisoft, which has already been struggling with falling revenues and profits. Last year, the company saw a sharp 18.1% drop in total revenues and reported net losses of $546 million, compared to a $113 million profit the year before.
This situation about Ubisoft’s business strategy is concerning, particularly its focus on popular but crowded open-world and live-service game models. The success of Star Wars Outlaws is extremely important for Ubisoft, but early reviews indicate it might not be the big hit the company needs.
Although the game has received mostly positive feedback, critics have said it doesn’t bring anything new to the table. It’s seen as “perfectly fine” but not exceptional, which might not be enough to turn things around for Ubisoft.
Ubisoft hopes that its upcoming game, Assassin’s Creed Shadows, will compensate for any sales shortfall. However, there are already concerns about this new title, especially the controversy surrounding the samurai protagonist, Yasuke.
Assassin’s Creed Shadows will need to sell at least 13.5 million copies to make up for the losses. Although Assassin’s Creed Valhalla sold 13 million copies, matching that success might be tough.
With Ubisoft’s annual revenue target of €2.46 billion now at risk, the company could face more setbacks if its new releases don’t meet expectations.
Ubisoft is in a tough spot, and if Star Wars Outlaws doesn’t perform well, it could seriously impact the company’s finances. If future games don’t improve the situation, Ubisoft might need to reconsider its strategy for developing its AAAA titles.
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