French gaming giant Ubisoft is on the brink of a serious financial crisis. Since the beginning of 2024, the company’s share value has fallen 45% to its lowest level in a year. This has raised serious concerns about Ubisoft’s future and there is talk that the company could face bankruptcy or an acquisition scenario. Details in our news…
Ubisoft is facing a financial crisis: Share value down 45% in 1 year
In fact, Ubisoft’s financial difficulties stem from the cumulative problems of the last few years. In 2023, the company posted a net loss of 4.94 billion euros. Investors and market analysts are increasingly pessimistic about Ubisoft’s future. The company’s recent games have failed to reach the expected sales figures. For example:
- Star Wars Outlaws failed to achieve the targeted sales success, leading the company to lower its revenue forecast for fiscal year 2025 from 23 billion euros to 19.5 billion euros.
- The highly anticipated Assassin’s Creed Shadows was delayed until February 2025, causing an additional drop in the company’s shares.
- Skull and Bones was a huge disappointment, reaching only 400 players simultaneously on Steam.
Of course, Ubisoft’s difficulties are not limited to external factors; the company is also struggling with internal problems. In December 2024, Ubisoft shut down its free-to-play shooter XDefiant and closed its San Francisco and Osaka studios. These decisions left many employees unemployed.
A possible acquisition or privatization options for Ubisoft’s survival came to the agenda. The Guillemot family, the founder of the company, and Chinese tech giant Tencent stand out as important actors in this process. Tencent owns more than 9% of Ubisoft’s shares, while the Guillemot family controls more than 20% of the company. However, market analysts believe that such an initiative may not be enough to save Ubisoft from bankruptcy.
Ubisoft’s market capitalization has plummeted from $12.17 billion in 2021 to $1.71 billion in early 2025, an 85% meltdown. Given this dramatic decline, there’s a very good chance the company could go bankrupt or be acquired by another big company. In short, the future of the company may depend on the Assassin’s Creed Shadows game, which is expected to be released in February 2025. Analysts say that if this game is successful, Ubisoft’s financial situation may recover, otherwise the situation will worsen.
Do you think Ubisoft can survive this financial crisis? Please share your thoughts in the comments section below.
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