Shares of Ubisoft sank 18% on Thursday, according to CNBC, following the release of its latest ‘Assassin’s Creed’ game, which delivered record sales for the franchise. However, the company’s full-year earnings report disappointed investors, with a net loss of 159 million euros ($178 million) and a 17.5% year-on-year decline in revenue. Over the past 12 months, Ubisoft’s stock has lost almost 60% of its value, reflecting ongoing financial struggles and a challenging market position.
Despite the success of the latest ‘Assassin’s Creed’ game, which became the second-best-selling title of the year in the U.S., and set a new record for Day 1 sales on PlayStation, several other titles underperformed. Notably, the highly anticipated ‘Star Wars: Outlaws’ failed to meet sales expectations, and the multiplayer first-person shooter ‘XDefiant’ was cancelled due to a lack of players. These issues contributed to the overall decline in performance, with the company’s chief executive, Yves Guillemot, acknowledging the challenges faced by the firm in the past year.
Looking ahead, Ubisoft has set its sights on 2025-26, with plans to release a new ‘Prince of Persia’ game, a strategy title ‘Anno 117: Pax Romana’, and mobile versions of its popular shooters ‘Rainbow Six’ and ‘The Division’. To address its business challenges, the company announced the creation of a new subsidiary dedicated to managing its three most prominent franchises: ‘Assassin’s Creed’, ‘Far Cry’, and ‘Rainbow Six’. However, despite these strategic moves, the stock has continued to decline, with shares losing over 12% since January and hitting a 10-year low in April.
The market appears to be wary of Ubisoft’s long-term sustainability, especially amid rising competition and the pressure to innovate in a saturated industry. While the latest ‘Assassin’s Creed’ game has shown the company’s ability to deliver strong performance in certain areas, the broader financial and operational struggles remain a concern for investors and analysts. The company’s upcoming releases and strategic restructuring efforts will be closely watched in the coming months, as they will determine whether Ubisoft can regain investor confidence and stabilize its financial position.