Ubisoft Announces Company Probe Amid Struggles

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Ubisoft Announces Company Probe Amid Struggles

Key Takeaways

  • Ubisoft is launching an internal review of its internal practices.
  • The investigation is meant to help it identify the reasons for some of its recent struggles.
  • Ubisoft’s stock is currently at a decade low, with the company just announcing its Q2 performance failed to meet expectations, much like the Q3 sales of Star Wars Outlaws.

As a seasoned gamer with decades of gaming experience under my belt, I’ve seen the rise and fall of many gaming giants. The latest twist in Ubisoft’s tale, however, is a bit more intriguing than usual. It’s refreshing to see such a titan as Ubisoft taking a hard look at itself, aiming to improve its internal practices, particularly with a ‘player-centric’ approach.

Ubisoft has revealed plans for an extensive examination of their internal operations. This investigation aims to uncover the causes behind some of their recent challenges, ultimately enabling Ubisoft to make necessary improvements.

By the close of 2023, Ubisoft remains among the world’s top fifteen biggest video game publishers in terms of revenue. Despite its large scale business, the company has faced challenges in recent periods, with extended development periods and project postponements leading to a financial loss exceeding $530 million during fiscal year 2023. This substantial deficit, along with lowered future expectations, has added to the downward trend of Ubisoft’s stocks, currently trading at €11.42 – a decade-low and over 83% lower compared to five years ago.

Ubisoft Will Investigate How To Be Better and More ‘Player-Centric’

Due to persistent issues, the company has decided to postpone the release of “Assassin’s Creed Shadows” until 2025. This delay is seen as a demonstration of the company’s commitment to a more fan-focused business strategy, where they emphasize fan input. Consequently, financial goals for the current fiscal year have been lowered, as announced on September 25. Additionally, Ubisoft has started an examination of its internal operations in relation to their current difficulties. The statement explains that the Executive Committee, under the watchful eye of the Board of Directors, is initiating a review aimed at enhancing operational efficiency, particularly in terms of this fan-centric approach, and speeding up the transition towards a more effective business model. All these actions are intended to ultimately benefit the shareholders.

Ubisoft Underperformed in Q2 2024

Ubisoft recently admitted that their second-quarter results this year didn’t reach the anticipated targets, leading them to conduct an internal investigation and take extra time perfecting Assassin’s Creed Shadows. Unfortunately, it appears that investors might not be impressed by Q3 performance either, given Ubisoft’s announcement today that Star Wars Outlaws did not meet its initial sales targets.

The Executive Team, overseen by the Board of Directors, will be conducting a thorough evaluation to enhance our operational efficiency, particularly focusing on our player-oriented strategy, and speed up our progress toward a more effective model.

Regarding the recent updates, Ubisoft’s CEO Yves Guillemot stated that they won’t alter the company’s primary emphasis on crafting open-world games and managing live services in the bigger picture. Therefore, it appears that Ubisoft’s commitment to the Assassin’s Creed franchise, as seen by their 2023 strategy, is unlikely to change for now.

The adjustments we’ll make involve refining certain aspects of our game development process, such as abandoning the conventional season pass model and transitioning to a more adaptable one. In line with this shift, all pre-orders for ‘Assassin’s Creed Shadows’ are being returned, according to Ubisoft. They further announced that the game’s initial expansion will be provided free of charge to those who buy it during its second pre-order phase, which has not yet been initiated.

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2024-09-26 00:44