Ubisoft's franchise retention grows as profits dip in 2023

gamedeveloper.com:

Ubisoft's financials for the full 2023 fiscal year are out, and it's a land of contrasts. For the most part, the French publisher saw declines in several key areas, even as its top franchises continue to show growth in their user bases. 

Its net bookings hit €1.739 million (or $1.890 million), a yearly decline of 18 percent. Digital revenues were also down by 10 percent (for €1.485 million), and its previously celebrated back catalog by 30 percent (€1.004 million). Likewise, it operated at a loss of €500.2 million, down 28 percent versus the last year's €407.6 million.

Both digital and back catalog were sizable contributors to this year's net bookings by a respective 85 and 58 percent. The latter was previously celebrated during Ubisoft's second quarter for the year, but it appears those earlier titles could only do so much for the company's bottom line. 

CEO Yves Guillemot admitted the numbers were in line with readjusted projections for the fiscal year. Though he acknowledged that Ubisoft had a "challenging year," he called it "pivotal" ahead of a cost reduction plan, "strategic focus on our biggest opportunities...and additional development time for our strong pipeline of content."

That cost reduction plan, according to CFO, Frédérick Duguet, will equate to 200 million euros ($217.3 million) over the next two years. Layoffs will be part of that reduction, as he said that Ubisoft's worldwide staff now comes to "below 20,000" employees. 

Part of that "strategic focus" will be on Assassin's Creed. Guillemot revealed that the number of employees for the action-stealth franchise is planned to grow by 40 percent in the next few years, presumably ahead of Assassin's Creed Infinity and future projects currently