Pixel P&L: Ubisoft UK Warns of Revenue Decline as Gamers Favor Established Titles Over New Releases

Welcome to another Pixel P&L edition. This issue takes 5 minutes to read. If you only have one, here are the 5 most important things:

• Ubisoft UK expects revenue to decline as gamers concentrate on established titles instead of new releases.

• Clair Obscur: Expedition 33 breaks records with 12 Game Awards nominations.

• Ubisoft removes AI-generated placeholder from Anno 117 after player backlash.

• Valve's Steam Machine console aims to outperform 70% of gaming PCs with 4K ray tracing support.

• Paradox Interactive and Colossal Order end their 15-year partnership, transferring Cities: Skylines development in-house. 

Let's get into it.

Ubisoft Warns of Revenue Decline as Gamers Gravitate to Established Titles

Ubisoft's UK publishing division expects revenue to decline in fiscal year 2026, citing a fundamental shift in gaming consumption patterns as players concentrate on a handful of dominant titles rather than purchasing new releases.

The company's strategic report, filed November 13, attributes the anticipated downturn to declining physical game sales and the rise of subscription services like Microsoft's Game Pass, which have diminished demand for traditional $50-60 standalone purchases.

"Consumers are playing fewer games, playing them for longer," the report states, noting that most new releases struggle to gain traction against established franchises and live-service titles.

The warning comes amid significant corporate restructuring at Ubisoft, including a partnership with Tencent to create Vantage Studios for its Assassin's Creed and Rainbow Six franchises. The company's Paris-listed shares fell 49% year-to-date through mid-November, while layoffs proceeded at multiple studios.

Clair Obscur: Expedition 33 Leads Game Awards with Record 12 Nominations

French developer Sandfall Interactive's debut title "Clair Obscur: Expedition 33" secured 12 nominations for The Game Awards 2025, the most in the ceremony's history, positioning the independent RPG as a front-runner ahead of the December 11 broadcast.

Sony Interactive Entertainment dominated publisher rankings with 19 total nominations, led by "Death Stranding 2: On the Beach" and "Ghost of Yotei" with eight nods each. Supergiant Games' "Hades II" garnered six nominations.

The Game of the Year category features six contenders including Clair Obscur, Nintendo's Donkey Kong Bananza, and long-anticipated Hollow Knight: Silksong.

Winners will be determined through a combined vote of industry media (90%) and public fans (10%), with voting open through December 10. Last year's ceremony attracted 154 million livestreams, up 31% year-over-year.

Host Geoff Keighley will broadcast the awards from Los Angeles' Peacock Theater, featuring new game announcements and performances by The Game Awards Orchestra.

⚡️Quick Bytes

Ubisoft Removes AI-Generated Image From Anno 117 After Player Backlash

Ubisoft will patch out an AI-generated placeholder image from Anno 117: Pax Romana that "slipped through" its review process, the publisher confirmed after players identified telltale inconsistencies in character rendering and environmental details. The company stated its "largest team of artists ever" uses AI tools for prototyping and iteration, though "every element players will experience reflects the team's craft, artistry, and creative vision." Unlike recent controversies, Ubisoft disclosed AI usage on Anno 117's Steam page.

Valve's Steam Machine Aims to Outperform 70% of Gaming PCs

Valve's upcoming Steam Machine console features a semi-custom AMD Zen 4 six-core processor with RDNA 3 graphics, targeting 4K gaming at 60 FPS with ray tracing support, according to company engineers. The system includes 16GB DDR5 memory and 8GB GDDR6 VRAM, positioning it above 70% of current gaming PCs based on Steam Survey data. Pricing remains undisclosed, though Valve engineer Yazan Aldehayyat suggested competitive margins to drive mass adoption in the entry-level segment.

Paradox Interactive Parts Ways With Cities: Skylines Developer Colossal Order

Paradox Interactive and Colossal Order ended their 15-year partnership, with Cities: Skylines development transferring to Paradox's internal Iceflake Studios starting January 2026. Colossal Order, which sold over 12 million copies of the original Cities: Skylines, retained independence but relinquished IP rights to Paradox under their initial agreement. The Finnish developer will complete remaining Cities: Skylines II updates before pursuing new projects.

⚔️Side Quest

🤣Laugh:

📺 Watch: Discover why Valve believes now is the perfect moment for Steam Machine's comeback. You'll learn how Steam Deck's success and Proton's evolution finally realized their original vision.

🎮 Play: Shelldiver is a charming incremental game where you play as a turtle fishing jellyfish in your submarine. Explore unique ocean biomes, upgrade equipment, and run your underwater shop. Perfectly paced progression ensures you reach 100% completion just as satisfaction peaks. A delightful few hours of cozy gameplay that respects your time and delivers heartwarming fun.

📚 Read: Young stars in game development reveal how the Game Awards' Future Class program, once promising career advancement and inclusivity, left them feeling exploited. After inductees advocated for improvements and Palestinian solidarity, the initiative quietly dissolved.

💡Did You Know

Despite the live service boom, single-player games remain king for most players. A survey of over 34,000 gamers across 22 markets found that 58% of UK players, 63% of Japanese players, and 65% of US players prefer solo experiences over multiplayer. However, there's a generational divide: only 49% of players aged 16-24 prefer single-player games, compared to 64% of those aged 55-64. This data challenges publishers' push toward multiplayer-focused titles, proving single-player games remain highly viable in today's market.

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