Game On: Ubisoft’s Q1 net bookings ‘below expectations’

“Game On” is The Fly’s weekly recap of the stories powering up or beating down video game stocks.

NEW RELEASES: This week’s notable releases include the Nintendo Switch 2 (NTDOY) port of Take-Two’s (TTWO) “WWE 2K25,” which launches for the hybrid console on July 23, 2025. The game marks the first 2K sports title headed to the platform. In addition, Nintendo is launching the Switch 2 version of 2024 Switch title “Super Mario Party Jamboree,” which includes upgraded graphics and new gameplay features. The update launches July 24 exclusively for the Switch 2.

UBISOFT: On Tuesday, Ubisoft (UBSFY) reported Q1 results, with both net bookings and IFRS 15 sales for the period falling 2.9% and 3.9%, respectively, year-over-year. The company noted that bookings result, which was “below expectations,” reflects a lower-than-expected performance for “Tom Clancy’s Rainbow Six Siege,” a partnership that is now expected to materialize in Q2 and, to a lesser extent, an unfavorable foreign exchange impact.

Yves Guillemot, Co-Founder and CEO, said “The first quarter delivered mixed results. On the positive side, Assassin’s Creed Shadows delivered on its expectations, with now more than 5 million unique players since its launch, and Rainbow Six Siege X received highly positive player feedback thanks to its renewed gameplay and enhanced features that drove significant player engagement growth. However, player spending in Rainbow Six Siege faced temporary but significant disruptions due to technical pricing issues, which have now been identified and addressed. Despite this one-off setback, the growth potential of the game is strong with solid traction on activity and in-game spending.”

Looking ahead, the company guided for Q2 net bookings of roughly EUR450M, with expected growth compared to Q1 driven strategic B2B partnerships, including new ones, growing “Rainbow Six Siege X” contribution, and material TV Series milestone-based revenues. In addition, the French game maker confirmed its financial targets for FY2025-2026, expecting stable net bookings year-on-year, approximately break-even non-IFRS operating income and negative free cash flow. Following the closing of the Tencent (TCEHY) transaction, the company expects to maintain a consolidated non-IFRS net debt position of around zero. The line-up for the rest of FY26 includes “Anno 117: Pax Romana,” “Prince of Persia: The Sands of Time” remake, “Rainbow Six Mobile” and “The Division Resurgence.” A couple of titles will be announced at a later stage, Ubisoft added.

The earning news comes roughly a week after Ubisoft announced the appointment of Christophe Derennes and Charlie Guillemot as co-CEOs of its newest game subsidiary. “This new structure will be dedicated to bringing the Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six franchises to their full potential,” the company said. “With complementary backgrounds, Christophe Derennes and Charlie Guillemot bring their strong industry expertise, deep knowledge of the Ubisoft ecosystem, and a shared culture of innovation to the role. Christophe co-founded Ubisoft’s Montreal studio in 1997 and most recently served as Managing Director for the North American region. Charlie began his career in gaming at Owlient in 2014, a studio acquired by Ubisoft. Initially known for its browser-based free-to-play games, the studio began expanding into mobile under his leadership. He returned to Ubisoft in 2025 to join its transformation committee.” The Fly notes that Charlie Guillemot is the son of Ubisoft co-founder and CEO Yves Guillemot.

Additionally, Netflix (NFLX) announced last week that it officially greenlit a live-action series based on Ubisoft’s “Assassin’s Creed” franchise, with Emmy nominees Roberto Patino and David Wiener set as creators, showrunners, and executive producers. “We are so excited to work alongside Roberto, David, and our Netflix partners to bring this beloved franchise to series,” said Margaret Boykin, executive producer and head of content at Ubisoft Film & Television. “We look forward to delivering an experience that speaks to the heart of what fans love about Assassin’s Creed, while introducing its unforgettable worlds and timeless themes to new audiences worldwide.” Netflix will also be the home of “Splinter Cell: Deathwatch,” coming out this fall.

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XBOX CROSS-DEVICE: Lily Wang, Product Manager at Microsoft’s (MSFT) Xbox Experience, said in a blog post this week, “At Xbox, we want you to play the games you want, with the people you want, anywhere you want. Building on our recent aggregated library update, we’re continuing to evolve your library as the go-to destination for your games, now with cloud-playable console titles in the Xbox PC app and play history that follows you across devices. Starting today, Xbox Insiders will also begin to see all their cloud-playable games included in their play history and Library right from the Xbox PC app. This includes all cloud playable titles, even console exclusives spanning from the original Xbox to Xbox Series X S, whether you own the title or access it through Game Pass. Now, you can now find all games able to be played via cloud gaming in one convenient place. Plus, your recent games now follow you across devices. Whether you’re on console, PC, or a Windows handheld, a new play history tile makes it easy to jump back into the games you’ve recently played within the Xbox ecosystem, so you can always pick up right where you left off. No matter the device, your progress, preferences, and play moments are always just a tap away – be it continuing a late-night session on your laptop, sneaking in a quick match on your handheld, or diving deep on your console, Xbox makes it effortless to stay connected to the games you love.”

ROBLOX AGE ESTIMATION: Last Thursday, Roblox (RBLX) announced a suite of new tools for digital connection and age-based communication on the platform. The new features include: Users 13 and older can connect and chat more freely with people they know and trust. Introducing new age estimation technology that helps confirm users’ ages and unlocks Trusted Connections. Users will have more ways to manage notifications, screen time, and privacy. New tools for transparency into their teen’s Roblox experience, including spend notifications, insight into who their teen is connected with, and screen-time stats. “Safety has always been foundational to everything we do at Roblox,” said Matt Kaufman, Roblox chief safety officer. “Our goal is to lead the world in safety and civility for online gaming. We are dedicated to supporting experiences that are both deeply engaging, and empowering for players of all ages, while continuously innovating how users connect and interact.”

A day before the announcement, JPMorgan raised the firm’s price target on Roblox to $125 from $120 and maintained an Overweight rating on the shares. The firm said Roblox platform engagement continues to inflect higher. Platform concurrent users reached a record 32M and Grow A Garden users reached a record 21.5M on Saturday, the analyst tells investors in a research note. JPMorgan now expects bookings growth of 37% in Q2 for Roblox and 30% in fiscal 2025, well above the company’s guidance. It again raised estimates for Roblox.

The day after the announcement, BMO Capital raised the firm’s price target on Roblox to $135 from $95 and reiterated an Outperform rating on the shares. The firm believes “Grow a Garden” can monetize engagement as well, if not better, than other top Roblox experiences, the analyst tells investors in a research note.

MORE VIDEO GAME NEWS:

• Nintendo’s “Mario Kart World” was the best-selling game in Japan for the week of July 7-13, (OTGLY) “Cyberpunk 2077” (AAPL) on July 17
• Microsoft is shutting down the Movies & TV storefront on its Windows PC and Xbox platforms
• Microsoft’s Bethesda has greenlit “Fallout 5,” GameSpot reports