Ubisoft suffers historic stock market drop

The French video game giant, Ubisoftis going through a turbulent time. The company’s shares suffered a precipitous fall from more than 18% in a few hoursmarking one of the biggest casualties in its history. Since the beginning of the year, the company has already lost an impressive 60% of its value on the stock market.

The trigger for this crisis was the company’s recent announcement about the downward revision of its forecasts for the current fiscal year. Two main factors contributed to this decision: the poor commercial performance of the game Star Wars: Outlaws and the postponement of the release of Assassin’s Creed Shadows for 2025.

Also read
Ubisoft announces Just Dance 2025; game hits stores in October this year
Ubisoft announces free trial of Assassin’s Creed Mirage until April 30th

As a result of this discouraging news, financial institutions like Deutsche Bank downgraded their recommendations on shares of Ubisoft, known for popular titles like Far Cry.

The company’s already delicate situation was worsened a few weeks ago, when investors publicly demanded the resignation of the company’s executives. In scathing statements, shareholders accused the administration of mismanagement, stating: “Ubisoft is poorly managed and we, the shareholders, are hostages to both Guillemot and Tencent, who take advantage of us. They don’t have a long term strategy and are ruining Ubisoft’s reputation.“

In response to the crisis, Ubisoft announced changes to its policy with the Steam platform in an attempt to boost sales of its PC games. However, experts question whether this measure will be enough to reverse the company’s current situation.

The current scenario represents a marked contrast with Ubisoft’s golden years, raising doubts about the company’s future in the competitive video game market. Industry analysts point out that the company faces significant challenges in regaining investor confidence and regaining its prominent position in the industry.

As the situation unfolds, all eyes are on Ubisoft’s next moves and how it plans to navigate these turbulent waters. The company’s future in the video game sector seems more uncertain than ever, and the next few months will be crucial in determining whether the French giant will be able to overcome this crisis and return to the path of success.

Source: 3D Games