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Ubisoft Shares Plunge 20% as Game Delays Increase Cash Burn

Ubisoft shares tumbled nearly 20% on Thursday, marking the company’s biggest single-day drop in over a decade, after the French video game maker announced it would burn more cash to extend development timelines for major titles.

In an earnings statement, CEO Yves Guillemot revealed that Ubisoft is allowing “additional development time to some of our biggest productions,” which will push the release of significant content into the next two years. The move, while aimed at improving game quality, has rattled investor confidence.

Key Financial Outlook:

  • Ubisoft now expects to break even in operating profit for the fiscal year ending March 2026.

  • Net bookings for the current fiscal year (to March 2025) fell by 20.5%, due to both delayed releases and underperformance of major titles.

  • The company aims to return to positive cash flow next year, but analysts are skeptical.

Barclays analysts had projected 96 million in free cash flow this year, but said Ubisoft’s latest guidance falls “well below” expectations. “Investors will believe in the free cash flow when it is in front of them,” the bank noted.

Game Performance and Delays:

  • The much-anticipated Assassin’s Creed: Shadows has been delayed multiple times.

  • Star Wars Outlaws, another flagship title, received a lukewarm reception.

  • Morningstar analysts expressed doubt that Shadows will be enough to turn Ubisoft’s fortunes around in 2026, given the current outlook.

To manage soaring development costs, Ubisoft has launched a joint venture with China’s Tencent, targeting the production of blockbuster franchises such as Assassin’s Creed, Far Cry, and Rainbow Six.

Despite long-term hopes pinned on these franchises, the short-term outlook remains bleak. By 08:23 GMT on Thursday, Ubisoft shares were down 19.5%, putting the company on track for its sharpest decline since 2013.

Far Cry 4 Receives Free 60FPS Upgrade on PS5 and Xbox Series Ahead of Game Pass Debut

Ubisoft has rolled out a surprise update for Far Cry 4, breathing new life into the decade-old open-world shooter with a performance boost tailored for modern consoles. Originally launched in 2014, Far Cry 4 is now optimized to run at 60 frames per second on PlayStation 5 and Xbox Series X|S, enhancing the fluidity and responsiveness of gameplay across both platforms. Developed by Ubisoft Montreal, the game first arrived on PC, PS4, and Xbox 360 before making its way to the current-gen lineup.

The performance upgrade comes as part of Patch 1.08, a free update quietly released and first noticed by PS5 players, who began sharing their findings online. Ubisoft later confirmed the update via an official blog post, noting the improved frame rate now available to players on newer hardware. This enhancement offers a more polished experience in Kyrat, the game’s Himalayan-inspired setting, and brings a fresh feel to a fan-favorite entry in the Far Cry series.

In the update announcement, Ubisoft highlighted how the increased frame rate heightens the intensity and immersion of the game’s iconic moments. Whether players are soaring in a wingsuit, engaging in chaotic firefights, or riding an elephant into enemy territory, the smoother visuals contribute to a more cinematic and dynamic experience. It’s a significant quality-of-life improvement for players revisiting the title or discovering it for the first time.

The timing of the update is especially notable, as it comes just ahead of Far Cry 4’s upcoming debut on Xbox Game Pass. By ensuring the game runs at its best on current hardware, Ubisoft is not only rewarding longtime fans but also preparing for a new wave of players who will soon have access to the game through Microsoft’s subscription service. This move suggests a broader strategy of reinvigorating legacy titles for today’s performance standards.

Nintendo Teases New Mario Game for Switch 2, Assassin’s Creed Shadows Also Expected

Nintendo has dropped a hint about a new Mario game coming to the Nintendo Switch 2, sparking excitement among fans. In a recent interview, Doug Bowser, President of Nintendo of America, was asked about the next Mario installment and responded with a cryptic “stay tuned,” leaving fans eagerly awaiting more details. While many had speculated that the Switch 2 might launch alongside a new Mario title, such as a sequel to Super Mario Odyssey, the company instead announced other first-party games for the upcoming console.

Bowser’s comments came during an interview with CNN, where he hinted that a new Mario game could be coming to the Switch 2 sooner than expected. “We have a long, long catalog, and a long list of (intellectual property) that I’m sure will make its way to the platform,” Bowser said. While Nintendo hasn’t yet disclosed all the first-party titles set for the Switch 2, the company recently showcased a few confirmed games in an April Direct presentation, building anticipation for the new console’s lineup.

The confirmed launch titles for the Switch 2 include Mario Kart World, an open-world racing game, and Nintendo Switch 2 Welcome Tour, which serves as an interactive guide to the new console. These titles will be available on June 5, marking the official debut of the Switch 2. Following the launch, the next major first-party release is Donkey Kong Bananza, a 3D action-platformer, which is set for release on July 17. Several other games, including Kirby Air Riders, Drag X Drive, and Hyrule Warriors: Age of Imprisonment, are also slated for release in 2025.

With the Switch 2’s launch titles now confirmed, it seems likely that the long-awaited mainline Mario or Legend of Zelda games may not arrive this year. Instead, fans will have to wait for the next chapter in these iconic franchises, though Nintendo’s extensive catalog of games could still keep players engaged in the meantime. As Bowser mentioned, the company has much more in store for the Switch 2, including potential surprises for Mario fans in the near future.