Ubisoft Q3 earnings drop 30% in 2021, and here's why

Ubisoft's holiday 2021 earnings have dropped due to a smaller number of game releases.

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Today Ubisoft announced its Q3'21 figures, and while respectable, the numbers are substantially lower than last year's period. This led to a 30% drop in sales and a 25% reduction in net bookings. Some vital context is needed.

The main reason for the slip is that Ubisoft released more games in 2020 than it did in 2021. Ubisoft had a stacked holiday 2020 period with multiple heavy-hitting games like Assassin's Creed Valhalla and Watch Dogs Legion launching with next-gen consoles. The Q3 2021 period only really had Far Cry 6 and Just Dance 2022 to prop up holiday sales.

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Ubisoft Q3 2021 earnings-at-a-glance

• Sales - 665.9 million euros (-31%)
• Net Bookings - 746.1 million euros (-26%)

Q3'2020

• AC Valhalla

• Watch Dogs Legion

• Immortals Fenyx Rising

• Just Dance 2021

• R6 Siege next-gen

Q3'2021

• Far Cry 6

• Rider's Republic

• Just Dance 2022

Ubisoft has reiterated FY22 guidance of 420 - 500 million euros and says they are currently on the lower-end of the target right now, but the ambitious post-launch content that's in development should help push towards the higher-end.