Key conclusions
- Ubisoft is launching an internal review of its internal practices.
- The investigation should help him identify the causes of some recent problems.
- Ubisoft's stock is currently at a decade low, and the company just announced that its second-quarter results missed expectations, as did sales of Star Wars Outlaws in the third quarter.
Ubisoft the company is launching a comprehensive review of its internal practices, the company announced. The research is meant to help identify the causes of some of the recent issues, and thus help Ubisoft improve itself.
As of the end of 2023, Ubisoft is still among the top 15 largest video game publishers in the world by revenue. But despite the significant volume of activity, the company has struggled recently, with longer development cycles and project delays causing its 2023 fiscal year to end more than $530 million in the red. These record losses and reduced future targets have further weighed on Ubisoft's already steep decline, with Ubisoft shares currently trading at a decade low of €11.42, down more than 83% from five years ago .
Ubisoft will explore how to become better and more “player-centric”
These ongoing problems forced the campaign to be shelved Assassin's Creed Shadows to 2025, which the publisher described as reflecting its increased “player-centric approach” to doing business that prioritizes fan feedback. This move led to a reduction in financial indicators for the current fiscal year, which were published on September 25. The update to investors also revealed that Ubisoft has launched an investigation into its internal practices and how they relate to the current fight. “The Executive Committee, overseen by the Board of Directors, is launching a review aimed at further improving our operations, particularly in this player-centric approach, and accelerating our strategic journey to a more efficient model,” the announcement added. that all this should ultimately be for the benefit of the shareholders.
Ubisoft's Q2 2024 performance is lower
In the same statement, Ubisoft revealed that its performance in the second quarter of this year fell short of expectations, prompting it to launch an internal study and spend some time making sure that Assassin's Creed Shadows this is the best possible first day game. The company's Q3 performance is now unlikely to impress investors, not least because Ubisoft also confirmed today that Star Wars. Outside the law failed to live up to its initial sales expectations.
The Executive Committee, overseen by the Board of Directors, is launching a review aimed at further improving our operations, particularly in this player-centric approach, and accelerating our strategic journey to a more efficient model.
Overall, these recently announced changes will not affect the group's overall focus on the open world and live services business model, said Ubisoft CEO Yves Guillemot. Ubisoft's decision to go all-in in 2023 Assassin's Creed so it also seems unlikely to make an impact at this point.
Things that will change include some of the finer details of how the company approaches game development, such as its recently confirmed decision to abandon its traditional subscription business model in favor of something more flexible. To this end, all Assassin's Creed Shadows pre-orders are now returning, and Ubisoft says the game's first expansion will be given away for free to anyone who buys it during the second pre-order period, which hasn't started yet.
