By Leo Marchandon and Noemie Naudin (Reuters) -France's lead videogame maker Ubisoft announced on Tuesday a sweeping reorganisation of its internal structure, shifting to autonomous "Creative Houses"
Ubisoft Introduces 'Creative Houses' Amid First-Quarter Booking Shortfall
Ubisoft's Organizational Changes and Financial Results
By Leo Marchandon and Noemie Naudin
Introduction of Creative Houses
(Reuters) -France's lead videogame maker Ubisoft announced on Tuesday a sweeping reorganisation of its internal structure, shifting to autonomous "Creative Houses" tailored to specific gaming genres, as it reported first-quarter net bookings that fell short of expectations.
Financial Performance Overview
The company said in a call that the leadership of each Creative House would be selected based on specific gaming genres, and could include those from creative or technical backgrounds, as part of the new approach.
Booking Shortfall Explanation
"These units will reflect our diverse types of gaming experiences and will allow for enhanced quality, focus, autonomy and accountability," CEO and co-founder Yves Guillemot said in a statement.
Future Game Releases
The first such unit, jointly owned with China's Tencent, will manage flagship franchises including Assassin's Creed, Far Cry, and Rainbow Six. Co-CEOs Christophe Derennes and Charlie Guillemot will lead brand development across multiple platforms.
Ubisoft plans to roll out the full organisational changes by the end of the year.
The company reported first-quarter net bookings of 281.6 million euros ($305.7 million), missing its target of around 310 million euros and marking a 2.9% decline from the same period of last year.
It attributed the shortfall to a weaker-than-expected performance from the Rainbow Six Siege game and the delay of a partnership now expected in the second quarter.
Despite the miss, Ubisoft reiterated its full-year guidance and forecast second-quarter net bookings of approximately 450 million euros.
Upcoming releases include Anno 117: Pax Romana, a Prince of Persia remake, and mobile titles Rainbow Six Mobile and The Division Resurgence.
(Reporting by Leo Marchandon and Noémie Naudin; Editing by Jan Harvey)
