Ubisoft, whose revenues declined 51 percent in the first quarter, delayed its awaited game Splinter Cell Conviction and Red Steel 2 due to slow demand and in the anticipation of market conditions.

Paris-based Ubisoft said that its first quarter revenue dropped of €83 million or $113.71 million from €169 million in a year earlier, dragged by its Nintendo DS game sales in Europe and North America, along with its PlayStation 3 and Xbox 360.

We are currently experiencing a very sharp slowdown in our sales for Nintendo DS as well as sales of back-catalog titles, in the context of a market that is tougher than anticipated,” Yves Guillemot, Chief Executive Officer said.

As a result, Its Splinter Cell Conviction and Red Steel 2 game has been moved to be released early next year instead of before the year’s end.

Meanwhile, despite Ubisoft unexpected earnings amid the current condition, Ubisoft recently announced it plans to open a brand new game studio in Toronto that will create 800 new jobs in the coming years for $263 million Canadian dollar invested by the Ontario state.

It also revised its current second quarter sales, projecting a 54% revenue drop to €80 million or $109.60 million and its 2010 outlook projected sales to e approximately €1.040 billion or $1.4 billion.