Ubisoft share price collapses following restructuring efforts

Ubisoft’s share price has dropped by almost 40%

Following the latest game cancellations and restructuring efforts from Ubisoft, the company’s share price has collapsed. This week, Ubisoft’s share price has dropped by 37.99%. Over the past six months, the company’s share price has fallen by more than 57%. Since 2021, Ubisoft’s share price has dropped by over 95%.

This week, Ubisoft cancelled six games, including their upcoming Prince of Persia Remake. The company also closed its Halifax and Stockholm studios and reorganised itself into distinct “Creative Houses”. Ubisoft has doubled down on “Open World Adventures and GaaS-native experiences” as its “core pillars”. Investors have responded by selling their Ubisoft shares, causing this week’s share price drop.

Seven games have been delayed to “enhance quality benchmarks”. This appears to include Ubisoft’s Assassin’s Creed Black Flag Remake. This means that Ubisoft has no major game releases this year, which will place the publisher in a poor financial position.

If Ubisoft’s share price collapse is a sign of anything, it’s that investors have lost faith in the company’s ability to generate profits. In recent years, Ubisoft has spent heavily on unsuccessful projects, with many games never being released. Hyper Scape and XDefiant were both dropped. After a decade of development, Skull and Bones wasn’t well-received. While Assassin’s Creed Shadows was a recent success, one success isn’t enough to save Ubisoft.

Will Ubisoft’s recent changes revitalise the company, or will Ubisoft continue to decline? Only time will tell.

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