Ubisoft’s Fall From Grace: What’s Next on the Road to Recovery

Ubisoft is one of the biggest game publishers in the world and is known for some of the biggest AAA franchises including Assassin’s Creed, Rainbow Six Siege, Far Cry, and many more. This French studio is currently valued at a market cap of $1.45 Billion USD and a total revenue of $2.42 Billion USD (as of 31st March 2024). It is present across more than 30 countries, including major locations in Canada, France, and the USA.

While there has been a lot of buzz around the Ubisoft name for a few months now, it has not been for good reasons. Calling this a rough patch would be an understatement since the company’s Executive Committee and Board of Directors have decided to launch an investigation and thorough review of Ubisoft after it recently released its financial statement on 25th September. 

From the underwhelming reception for Star Wars Outlaws to Assassin’s Creed Shadows getting delayed amidst public backlash, the woes seem to be never-ending for the publisher. In recent news, Ubisoft CEO Yves Guillemot confirmed that XDefiant has fallen behind expectations, adding to the company's struggles.

The struggles have been clearly reflected in its financials as Ubisoft Entertainment SA shares fell to their lowest in more than a decade after the French video publisher released the financial statement and explained the poor performance of Star Wars Outlaws and delayed the hotly anticipated Assassin’s Creed Shadows. On 26th September, Ubisoft’s shares fell 19% to €9.25 EUR, the lowest it has been since November 2013. Currently, the shares are valued at €10.38 EUR. 

The string of setbacks has led to broader questions about Ubisoft’s long-term viability. Analysts are increasingly wary of the publisher’s ability to keep pace with rivals like Electronic Arts and Activision Blizzard, both of which have shown a greater degree of adaptability and success in capitalizing on emerging trends such as live-service games and esports.