Ubisoft, France-based video game producer announced its decision to delay the release of three games. Moreover, it reduced its sales goals for 2017–2018, and raised targeted profit margin.
The leading video game maker decided to utilize more time for developing new games. The company outlined its back catalog sales remained strong.
“Our back catalog performance throughout November followed the same excellent trends as in the first half of the year and sales for ‘Assassin’s Creed Origins’ continued their positive launch trajectory,” Alain Martinez, Chief Financial Officer said in a statement.
The gaming company outlined that it would postpone the release of “Far Cry 5” by a month. According to the new schedule, it will be released on March 27, 2018. Additionally, it will delay the release of “The Crew 2” and another franchise game that was supposed to be released in the fiscal year 2018–2019.
Ubisoft lowered its sales target for 2017–18 from a previous goal of 1.70 billion euros to 1.64 billion euros ($1.93 billion).
On the other hand, the company estimated its operating margin to reach 16.5 percent, higher than its target of 15.9 percent. It also confirmed that its operating income target of the company was set at 270 million euros.
Ubisoft’s share prices have been raised twice year-to-date due to higher-than-expected sales figures along with speculations about an acquisition bid from the French media giant, Vivendi.
Analysts have seen the postponement as a sign of confidence in their abilities. It is interesting to see how this decision would influence the company’s position in the global market.