Ubisoft reports loss after games delayed

The loss was due in large part to delays in the release of titles like Mirage, the latest in the blockbuster Assassin's Creed franchise, as well as Avatar: Frontiers of Pandora. (Representative Image)

Ubisoft said Tuesday it plunged into a net loss in the 2022-2023 fiscal year as a number of highly anticipated video game titles were delayed.

But the French firm said it expected to turn its net loss of 494 million euros ($537 million) into an operating profit on the order of 400 million euros in the current financial year, which ends next March.

The loss was due in large part to delays in the release of titles like Mirage, the latest in the blockbuster Assassin's Creed franchise, as well as Avatar: Frontiers of Pandora.

The company confirmed the cost-cutting plan it announced in January, which consists of reducing staff levels and shedding some assets.

But the firm said it plans to boost staff working on key franchise, Assassin's Creed, which will see several titles released in the coming years.

"As part of our progressive reallocation of resources, we notably plan to increase the number of talents working on the Assassin’s Creed brand by 40 percent over the coming years," said chief executive Yves Guillemot.

The firm said the franchise had a record number of active users who were spending more on the games.

"The industry's prospects are promising, and Ubisoft has a great opportunity to transform its brands into truly global phenomena and build an increasingly recurring business," said Guillemot.