Ubisoft starts the year with bad news. Their shares plunged by 21% on Thursday, January 12, 2023. Furthermore, they decided to reduce revenue guidance, cancel three games, and delay the release of Skull and Bones. It is also the sixth time that Skull and Bones get delayed.
Their share price dropped to €18.80 right after the market opened. It is also the lowest it’s been for seven years. However, the stock slightly lessened those losses to around €20.52.
Why Did This Happen?
Unfortunately, it was due to poor performance. Ubisoft recently released titles like Mario + Rabbids: Spark of Hope and Just Dance 2023. However, those games underperformed, resulting in the cancellation of three other games.
Although they celebrate the diversity of their video games, Ubisoft is experiencing significant challenges. They try to keep up with the shift towards mega-brands that create sustainable video game titles. These titles can also reach players globally in each platform and other business models.
That is also why titles like Assassin’s Creed, Far Cry, Tom Clancy’s Rainbow Six, and The Division remain priorities. However, Ubisoft claims fewer and fewer titles that adapt to newer trends. Ultimately, it leads to lesser revenue and flagging profits.
What’s Next for Ubisoft?
Ubisoft canceled three games in the development pipeline while also canceling four titles already announced. These titles also include Ghost Recon Frontline and even the Splinter Cell VR. However, we don’t know much about the canceled games because Ubisoft did not announce them.
‘We are clearly disappointed by our recent performance. We are facing contrasted market dynamics as the industry continues to shift towards mega-brands and everlasting live games in the context of worsening economic conditions affecting consumer spending.”Yves Guillemot, co-founder and CEO of Ubisoft
Overall, it looks like a rough quarter for Ubisoft and a bad start to the year. Although they are approaching strategic and operational decisions, we can only wait for Ubisoft’s announcement. If you liked this article, read more on our website. You can also follow us on social media to stay updated with the latest gaming and esports news.