Ubisoft’s company overhaul has led to a 39% drop in shares, recording its sharpest intraday decline ever.
French video game giant Ubisoft continues its downward spiral after suffering a sharp 39% drop in share value, marking the company’s largest single-day decline and lowest level in share value in 14 years.
Ubisoft’s shares crumble further after years of decline
Ubisoft’s shares have struggled for years, gradually declining since their peak in 2018–the year the studio released successful titles such as Assassin’s Creed Odyssey and Brawlhalla. Since then, the company has struggled to maintain its valuation, experiencing only a brief resurgence following the release of Assassin’s Creed Valhalla in 2020.
Over the past five years, however, Ubisoft has entered a major downturn, driven not only by weak sales, but also by a series of controversies. These include its heavily criticised foray into blockchain gaming and the alleged sexual misconduct among its employees.
The company’s rough patch has continued to worsen. Ubisoft’s shares fell sharply this morning from 6.64 to 4.38, before dropping further to 3.99 mere hours later–recording the steepest single-day decline in the company’s history, while also reaching their lowest point in 14 years.
An internal overhaul that led to chaos
Ubisoft’s attempts to address its financial struggles have resulted in a chaotic aftermath. The company announced plans to identify an additional €200 million in cost savings, on top of the €300 million already cut over the past three years. This strategy has led to aggressive cost-cutting measures, including the closure of two studios in Stockholm and Halifax, multiple rounds of mass layoffs, and a shift in genre focus.
The pivot has resulted in major project disruptions, with five game cancellations–including the highly-anticipated Prince of Persia: The Sands of Time remake–alongside delays affecting seven other titles.
While the gaming community has strongly criticised these decisions, backlash has also emerged internally. A union-led strike was organised in protest against CEO Yves Guillemot, calling for an end to the cost-reduction plan, the preservation and expansion of remote working conditions, and fair pay increases in the coming year.
