Ubisoft CEO Insists XDefiant’s Strategy is ‘Core’ Amid Plummeting Financial Performance

As a long-time Ubisoft gamer, I can’t help but feel a mix of disappointment and concern after hearing about their recent financial call. The downturn in portfolio performance, particularly with XDefiant, is disheartening, especially since I was looking forward to diving into its third season.

Ubisoft recently held a meeting for its shareholders to discuss the first-half financial results of their fiscal year 2024. During this call, there was much expressed concern as the company’s leadership reported a decrease in their portfolio performance, resulting in a decline of up to -28.9% compared to the previous year.

Although playtime and monthly active user numbers are increasing, spending is decreasing, and the recent disappointing performance of Star Wars: Outlaws has added to existing problems within the company at a particularly tough period. However, the CEO of the company, Yves Guillemot, has tried to calm everyone by stating that, despite the difficulties faced by XDefiant, game-as-a-service will continue to be a key focus for the future.

Not Much to Say

During a recent financial discussion, one question aimed at Ubisoft’s CEO pointed out the lack of updates on XDefiant. The analyst inquired as to why Ubisoft hasn’t been discussing XDefiant and whether it could be an instance where their games-as-a-service strategy didn’t succeed for the company.

To that, Yves Guillemot said:

XDefiant is behind our expectations but the games-as-a-service strategy remains core.

In May 2024, XDefiant was launched as a live-service first-person shooter game. Soon, its third season of content will begin. However, Ubisoft is facing challenges with this title, as it’s been encountering problems since its debut. Despite being free and easily accessible, the number of players has significantly decreased, and many gamers have shown less interest in the game.

And now, games like Black Ops 6 have stripped XDefiant’s audience to the bare bones.

During their latest financial discussion, Ubisoft revealed that their year-on-year earnings have decreased by 19.6%, with back catalog sales dropping by up to 28.9%. However, despite the decline in revenue, gameplay time has risen by 9% and the total monthly active users (MAUs) across Ubisoft’s various games currently stands at approximately 37 million, representing a 3% year-on-year growth.

Yves Guillemot continued to reassure shareholders:

Regardless of recent challenges, our focus remains on significantly evolving Ubisoft to rekindle the creative spark and innovative edge that fueled our past achievements, ensuring a more consistent delivery and reliability in our work.
To achieve our goals, it’s crucial that we intensify our efforts on implementation and maintain a player-focused perspective in all our actions. For instance, we are enhancing the quality of Star Wars Outlaws, taking players’ feedback into account through updates for the game, as we prepare for its Steam release, the first story pack, and the approaching holiday season.
Apart from working diligently on the new game in our main series, Assassin’s Creed Shadows, we are also dedicating extra effort to make sure it shines brightly on its release day. Our aim is to create a refined, top-notch gaming experience that deeply connects with players from the get-go.

Over the past few months, Ubisoft has faced a series of challenging situations. They’ve been grappling with strikes, debates over historical accuracy in their upcoming Assassin’s Creed: Shadows (which could have led to delays), and the burden of redundancies and financial constraints.

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