Ubisoft’s Restructuring Plummets Shares to 15-Year Low, Down 34%
Ubisoft has experienced a substantial decline in its share price, dropping 34% in response to a recent restructuring announcement. This brings their shares to a 15-year low, closing at €4.06. Just one week earlier, the shares were priced at €6.89.
Impact of Restructuring on Ubisoft
The company has decided to close two studios and cancel six games, which includes the highly anticipated remake of *Prince of Persia: The Sands of Time*. These actions are part of a broader strategy to address challenges in an increasingly competitive gaming market.
Key Changes and Delays
- Six game cancellations.
- Closure of two studios.
- Delays for seven other game releases.
Ubisoft described this initiative as a “major organisational, operational and portfolio reset.” The publisher aims to navigate the challenges of a “selective AAA market” and the dynamics of competitive shooter games.
Revised Financial Expectations
Following these announcements, Ubisoft revised its financial outlook, now expecting net bookings to be approximately €1.5 billion. This figure represents a reduction of €330 million compared to previous estimates.
Focus Areas for the Future
To improve efficiency, Ubisoft is restructuring its approach by creating five distinct “creative houses.” These houses will concentrate on:
- Scaling and extending major franchises such as *Assassin’s Creed* and *Far Cry*.
- Competitive and cooperative shooters, including *The Division* and *Ghost Recon*.
- Live gaming experiences, such as *For Honor* and *Skull & Bones*.
- Immersive worlds focusing on narrative-driven titles like *Rayman* and *Beyond Good & Evil*.
- Casual and family-friendly games.
Legal Challenges
In addition to these operational changes, former *Assassin’s Creed* leader Marc-Alexis Côté has reportedly filed a lawsuit against Ubisoft following his unexpected departure from the company last year. The outcome of this legal matter remains to be seen.
Ubisoft’s current situation illustrates the challenging landscape of the gaming industry. As the company pivots and adapts, only time will tell how these changes affect its long-term position in the market.
