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France’s Ubisoft Full-Year Net Bookings Fall 20.5%

A man passes by the main entrance of Ubisoft video firm company where a strike call is planned on February 14, 2024, in Montpellier, south of France, on February 13, 2024. (AFP)
A man passes by the main entrance of Ubisoft video firm company where a strike call is planned on February 14, 2024, in Montpellier, south of France, on February 13, 2024. (AFP)
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France’s Ubisoft Full-Year Net Bookings Fall 20.5%

A man passes by the main entrance of Ubisoft video firm company where a strike call is planned on February 14, 2024, in Montpellier, south of France, on February 13, 2024. (AFP)
A man passes by the main entrance of Ubisoft video firm company where a strike call is planned on February 14, 2024, in Montpellier, south of France, on February 13, 2024. (AFP)

France's largest video game maker Ubisoft on Wednesday posted a 20.5% fall in full-year net bookings as the company has faced issues with delayed releases and the underperformance of some of its leading titles.

The maker of the blockbuster franchise "Assassin's Creed" reported net bookings of 1.85 billion euros ($2.07 billion) for the year to March 31, slightly below its guidance of around 1.9 billion euros.

Ubisoft plans to announce a new overall group organization by the end of the year, with the objective to best serve player needs, deliver superior game quality and drive disciplined capital allocation, it said in a statement.

It expects full-year 2025-2026 stable net bookings year-on-year and roughly break-even non-IFRS operating income. Net bookings for the first quarter are forecast at 310 million euros.

Ubisoft also expects to return to positive non-IFRS operating income and free cash flow generation in 2026-2027, it said.

"After a review of our pipeline, we have decided to provide additional development time to some of our biggest productions to create the best conditions for success," CEO Yves Guillemot said in the statement.

As a result, he said, the next two years would see "significant content coming from our largest brands."

In March, the company faced a make-or-break moment with the launch of the newest instalment in "Assassin's Creed" franchise as the company grappled with falling revenue, a sinking stock price and takeover speculation.

"Aware of the challenges ahead, we took decisive steps to continue strengthening the company's future. The launch of 'Assassin's Creed Shadows' was a defining moment," Guillemot said.

The release had reaffirmed the power of the brand, he added, and had received a "highly favorable community response".

Ubisoft said that the game delivered the second-highest Day 1 sales revenue in franchise history and set a new record for Ubisoft's Day 1 performance on the PlayStation digital store.

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Technology

US May Target Samsung, Hynix, TSMC Operations in China

A man walks past the logo of Samsung Electronics displayed outside the company's Seocho building in Seoul on April 30, 2025. (Photo by Jung Yeon-je / AFP)
A man walks past the logo of Samsung Electronics displayed outside the company's Seocho building in Seoul on April 30, 2025. (Photo by Jung Yeon-je / AFP)
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US May Target Samsung, Hynix, TSMC Operations in China

A man walks past the logo of Samsung Electronics displayed outside the company's Seocho building in Seoul on April 30, 2025. (Photo by Jung Yeon-je / AFP)
A man walks past the logo of Samsung Electronics displayed outside the company's Seocho building in Seoul on April 30, 2025. (Photo by Jung Yeon-je / AFP)

The US Department of Commerce is considering revoking authorizations granted in recent years to global chipmakers Samsung, SK Hynix and TSMC, making it more difficult for them to receive US goods and technology at their plants in China, according to people familiar with the matter.

The chances of the United States withdrawing the authorizations are unclear. But with such a move, it would be harder for foreign chipmakers to operate in China, where they produce semiconductors used in a wide range of industries, Reuters said.

A White House official said the United States was "just laying the groundwork" in case the truce reached between the two countries fell apart. But the official expressed confidence that the trade agreement would go forward and that rare earths would flow from China, as agreed.

"There is currently no intention of deploying this tactic," the official said. "It's another tool we want in our toolbox in case either this agreement falls through or any other catalyst throws a wrench in bilateral relations."

Shares of US chip equipment makers that supply plants in China fell when the Wall Street Journal first reported the news earlier on Friday. KLA Corp dropped 2.4%, Lam Research fell 1.9% and Applied Materials sank 2%. Shares of Micron, a major competitor to Samsung and SK Hynix in the memory chip sector, rose 1.5%.

A TSMC spokesman declined comment. Samsung and Hynix did not immediately respond to requests for comment. Lam Research, KLA and Applied Materials did not immediately respond, either.

In October 2022, after the United States placed sweeping restrictions on US chipmaking equipment to China, it gave foreign manufacturers like Samsung and Hynix letters authorizing them to receive goods.

In 2023 and 2024, the companies received what is known as Validated End User status in order to continue the trade.

A company with VEU status is able to receive designated goods from a US company without the supplier obtaining multiple export licenses to ship to them. VEU status enables entities to receive US-controlled products and technologies "more easily, quickly and reliably," as the Commerce Department website puts it.

The VEU authorizations come with conditions, a person familiar with the matter said, including prohibitions on certain equipment and reporting requirements.

“Chipmakers will still be able to operate in China," a Commerce Department spokesperson said in a statement when asked about the possible revocations. "The new enforcement mechanisms on chips mirror licensing requirements that apply to other semiconductor companies that export to China and ensure the United States has an equal and reciprocal process.”

Industry sources said that if it became more difficult for US semiconductor equipment companies to ship to foreign multinationals, it would only help domestic Chinese competitors.

"It’s a gift," one said.