The º£½ÇÊÓƵ branch of Ubisoft has issued a warning that its sales for the current financial year are expected to be lower due to a combination of fewer new games being released and significant changes in consumer habits.
The Guildford-based division of the French group said gamers playing fewer titles for longer periods means newer games "are struggling to stand out and achieve the sales they may once have had", as reported by .
The developer further noted that the market is "more volatile and the potential for any specific title less predictable as a result".
Ubisoft indicated that these factors, along with fewer titles being launched during its current financial year, will likely lead to a decrease in sales for the 12 months ending 31 March, 2026.
In newly submitted accounts to Companies House, Ubisoft reported an 11 per cent increase in revenue from £29.9m to £33.3m for the year to March 31 this year, partially attributed to the integration of customer relationship centre activities into the business
This change resulted in the number of employees at Ubisoft in the º£½ÇÊÓƵ rising from 44 to 174 within the year.
However, within that revenue figure, the company experienced a 29 per cent decrease in the sale of goods to £18.9m.
Ubisoft's pre-tax profit fell from £54.4m to £1.1m because a dividend of £55m it was paid in the prior year from subsidiary Ubisoft Reflections was not repeated.
On an underlying basis, the firm's pre-tax profit remained steady at £750,000.
During the year, Ubisoft launched Star Wars Outlaws, Assassin's Creed Shadows and Just Dance 2025.
This contrasts with the previous 12 months, which saw the releases of Assassin's Creed Mirage, Avatar: Frontiers of Pandora, The Crew Motorfest, Just Dance 2024, Prince of Persia The Lost Crown and Skull and Bones.
The º£½ÇÊÓƵ physical sales market declined by approximately 35 per cent in the year ending March 2025 as the transition towards digital and subscription-based titles accelerates.
Hardware sales in the º£½ÇÊÓƵ also dropped by roughly 25 per cent, according to Ubisoft.
The firm attributed this primarily to "the maturing console cycle, with updates to existing consoles being offered rather than any major new console launch".
Ubisoft indicated that its performance during the current financial year is "expected to see a slower rate of decline for physical software sales in the º£½ÇÊÓƵ market".
The business noted that the conventional 'full game' model of selling a single £50-£60 game to consumers as a one-off purchase "continues to become less ubiquitous", with multi-game subscription services, long-running games as a service titles, free-to-play games and cloud streaming platforms "all providing new and attractive ways for consumers to access gaming content". Ubisoft stated: "Consumers are playing fewer games, playing them for longer and as a result, outside of a few notable exceptions, many new games are struggling to stand out and achieve the sales they may once have had, whilst the market is more volatile and the potential for any specific title less predictable as a result."
The company also indicated that due to a reduced physical new releases schedule, it anticipates a decline in revenue during its current financial year.
The most recent accounts for Ubisoft Limited have been made public following the July release of results from its subsidiary, Ubisoft Reflections.
For the year ending 31 March, 2025, the Newcastle-based studio recorded a turnover of £54m, down from £56.3m, whilst its pre-tax profit decreased from £27m to £25.2m.
In April this year, Ubisoft Reflections, which also derives revenue from ownership of the Tom Clancy brand, made approximately 100 positions redundant across Newcastle and Leamington Spa.
Its Leamington Spa studio was also shut down "as Ubisoft seeks to reposition the business in an ever-more complex and competitive market".
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The decision formed part of a broader restructuring announced by the Ubisoft group, targeting cost reductions of approximately €200m – a measure which placed around 185 employees at risk across several European locations.
Ubisoft Reflections employed 388 staff as of 31 March, 2025. Ubisoft Entertainment SA, a French-based group, runs over 45 studios across 30 countries.
In the same financial year, the group reported a decrease in sales from €2.30bn to €1.89bn compared to the previous 12 months.
The company also experienced a shift from a consolidated net profit of €157.9m to a loss of €1.58. 7m.
