Ubisoft’s stock price plummets following the announcement of yet another Skull and Bones delay, unannounced game cancellations, and disappointing sales.
The Dow Jones took a 10% hit on Ubisoft’s stock price following three cancellations, a negative sales report, another game delay, and a sales report. Despite the fact that Ubisoft is working on a number of well-known games, such as Avatar: The French company appears to be in a bit of a bind right now, with Frontiers of Pandora, an unannounced Star Wars game, and Assassin’s Creed Mirage. Ubisoft made some awful news public thanks to a recent financial report and emergency investor call.
The highly troubled Skull and Bones is experiencing its sixth delay. Instead of being released on March 9, 2023, the game will be released sometime between April 2023 and March 2024, in a more obscure fiscal year.
Unfortunately, the bad news didn’t stop there; Ubisoft acknowledged that Mario + Rabbids sales: Even though Sparks of Hope and Just Dance 2023 had “ambitious marketing plans” and excellent ratings, neither show lived up to expectations. Lastly, the company confirmed the cancellation of three unannounced games.
The Ubisoft stock price on the Dow Jones Industrial Average initially fell by 10.5% as a result of the news, and a few hours later, it continued to fall by nearly 14%. At the time of writing, the company’s stock prices are at a seven-year low of $4.40. In addition to the games that were canceled in June 2022, Ubisoft has canceled seven games in the last six months, which undoubtedly adds to the uncertainty.
Ubisoft plans to “depreciate around €500m of capitalized R&D” and reduce the company’s internal costs by €200m over the next two years through restructuring, selling off assets, and what it calls “natural attrition” as a result of these canceled games and financial issues. Sadly, this strongly suggests that Ubisoft intends to fire employees or hopes that some will quit or retire instead.
Even though co-founder and CEO Yves Guillemot acknowledged that Ubisoft games performed poorly, he also blamed the industry’s shift toward “mega-brands” and “everlasting live games” and poorer economic conditions than anticipated.
Even though the news isn’t great, Ubisoft does have some help coming with Assassin’s Creed Mirage, which promises to take fans back to a more traditional gaming style. Along with the anticipated Avatar, Massive Entertainment, which is owned by Ubisoft, will also be releasing two games: Frontiers of Pandora and Heartland, a brand-new game in The Division series.
Source:Â MorningStar;Â Ubisoft
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