Ubisoft plummeted from profitability this past fiscal year, as the French publisher confirms it was hit with an annual net loss of €49.3 million ($67.6 million USD) for the twelve month period ended March 31st, 2014. This doesn't compare favorably with the €69.2 million ($89 million) in net income Ubisoft scored for the 2012-13 period, and total sales similarly dipped 20 percent year-over-year from €1.26 billion ($1.72 billion) to €1 billion ($1.38 billion).
President and CEO Yves Guillemot admits the company was not able to meet its annual targets. In its earnings report, Ubisoft attributed its sales performance to factors including an 18 percent year-on-year decrease in sales generated from "games for core gamers" (due to fewer such titles released in 2013-14) as well as a 24 percent drop in casual game sales.
Ubisoft took solace in the high quality of the titles it managed to release like South Park: The Stick of Truth, as well as the significant 32 percent increase in its digital revenue which ultimately accounted for 19 percent of the publisher's total.sales. Interestingly, the publisher also notes that Far Cry 3 managed to sell an additional 3 million units during fiscal 2013-14 despite being released back in December 2012.
Guillemot reassures Ubisoft is on track to return to "double digit profitability" this coming year thanks to an "ambitious games line-up" including five key titles and franchises: Watch Dogs, Assassin's Creed Unity, the newly announced Far Cry 4, The Crew and Just Dance. Guillemot is confident these titles will allow the publisher will lay claim to no fewer than three of the top ten best selling games of 2014 for console and PC.