Ubisoft's UK division has issued a stark warning, forecasting a significant drop in sales for its current financial year. The gaming giant attributes this anticipated decline to a fundamental shift in how people play games, combined with a lighter schedule of new title releases.
A Changing Gaming Landscape
In newly filed accounts with Companies House, the Guildford-based arm of the French developer revealed that modern gamers are playing fewer titles but for longer periods. This behavioural change means new releases are "struggling to stand out and achieve the sales they may once have had". The company further stated that the market has become "more volatile and the potential for any specific title less predictable as a result."
For the year ending 31 March 2025, Ubisoft Limited reported that its revenue actually increased by 11 per cent, from £29.9 million to £33.3 million. This growth was partly due to the integration of customer relationship centre activities, which saw its UK workforce surge from 44 to 174 employees.
However, a deeper look reveals a more troubling picture. Within that overall revenue, the crucial sale of goods plummeted by 29 per cent to £18.9 million. Furthermore, the company's pre-tax profit saw a dramatic slump, falling from £54.4 million to just £1.1 million. This sharp decline was primarily because a £55 million dividend from its subsidiary, Ubisoft Reflections, paid in the prior year, was not repeated. On an underlying basis, pre-tax profit remained flat at £750,000.
Market-Wide Challenges and Internal Restructuring
The challenges facing Ubisoft are part of a broader industry trend. The UK physical sales market for games fell by approximately 35 per cent in the year to the end of March 2025, driven by the ongoing shift to digital and subscription-based models. Hardware sales also dropped by around 25 per cent, which Ubisoft linked to "the maturing console cycle, with updates to existing consoles being offered rather than any major new console launch."
The traditional model of selling a single £50-£60 game as a one-time purchase is becoming less common. Ubisoft highlighted the rise of multi-game subscription services, long-running 'games as a service' titles, free-to-play games, and cloud streaming as new, attractive ways for consumers to access content.
This difficult environment has prompted significant internal changes. In April of this year, Ubisoft made around 100 jobs redundant at its studios in Newcastle and Leamington Spa, with the Leamington Spa studio being closed entirely. This was part of a wider group restructure aimed at cost reductions of approximately €200 million, which put 185 roles at risk across Europe.
Looking Ahead: A Volatile Future
Looking forward to the 12 months ending 31 March 2026, Ubisoft expects its revenue to fall. This is due to the combination of changing player habits and a smaller slate of new physical releases. The company released major titles like Star Wars Outlaws, Assassin’s Creed Shadows, and Just Dance 2025 in the last period, compared to a more robust line-up the year before that included Assassin’s Creed Mirage and Avatar: Frontiers of Pandora.
Despite the projected slowdown, Ubisoft does anticipate a "slower rate of decline for physical software sales in the UK market" in the current financial year. The accounts for its subsidiary, Ubisoft Reflections, showed a turnover of £54 million (down from £56.3 million) and a pre-tax profit of £25.2 million (down from £27 million) for the year to 31 March 2025. The Newcastle-based studio, which also generates revenue through ownership of the Tom Clancy brand, employed 388 people as of that date.
Globally, the Ubisoft Entertainment SA group reported sales of €1.89 billion, down from €2.30 billion the previous year, swinging from a net profit of €157.9 million to a substantial loss of €1.58 billion.
