Watch Dogs & The Crew Delays Could Cost Ubisoft $500 Million
Earlier today, we reported that Ubisoft pushed Watch Dogs back from this holiday season to Q1 2014. This news, coupled with a second game delay, means Ubisoft’s revenue expectations for 2013 have been drastically lowered.
Along with the Watch Dogs delay, Ubisoft has also pushed The Crew back four to six months. The MMO racing game was originally slated for a Q1 2014 release, but it will now hit store shelves sometime between April and September.
The delays push both games from Ubisoft’s Fiscal Year 2013-14 calendar into FY2014-15. According to Ubisoft’s press site, the delays have dramatically affected the publisher’s financial situation this year. Instead of generating income between $145 million-$170 million, Ubisoft expects to take an operational loss of somewhere between $55 million-$95 million. Overall, Ubisoft expects the delays to have a total FY2013-14 revenue impact north of $500 million.
Ubisoft CEO Yves Guillemot:
“Our long term goal is to win the next generation. The tough decisions we are taking today to fully realize the major potential of our new creations have an impact on our short-term performance. We are convinced that, longer term, they will prove to be the right decisions both in terms of satisfaction for our fans and in terms of value creation for our shareholders. We are building franchises that will become perennial pillars of Ubisoft’s financial performance. In a context of growing successes for mega-blockbusters, the additional time given to the development of our titles will allow them to fulfill their huge ambitions and thus offer players even more exceptional experiences. Fueled by strong momentum for PlayStation 4 and Xbox One, calendar 2014 will see the return of growth to the console market. Combined with the quality of our line-up and our strong financial situation, this growth will allow us to achieve record operating income in fiscal 2014-15 and 2015-16.”
Since its debut at E3 2012, Watch Dogs has quickly developed into one of the most talked about next-gen titles. We certainly dig it.