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9/09/2024 6:22 pm
Although it remains one of the largest video game companies in the world, it seems that Ubisoft things have not gone very well with his latest projects, we saw that at the beginning of the year with Prince of Persia The Lost Crown and Skull & Bonesthis was followed by Star Wars Outlaws appeared a couple of weeks ago. With this in mind, it is clear that things would affect the company’s shares, and it seems that changes will have to be made in order not to go towards financial disasters.
The French company has seen its share price fall by 7%, reflecting shareholder concerns about its performance. The decline has been driven by pressure from a “major minority shareholder” who is demanding that it become a private company. If it does not comply, the investor plans to use French minority law to gather enough support among shareholders to initiate a sale process, increasing tension within the company.
The situation is delicate. After the launch of Star Wars: Outlaws and a noticeable drop in the number of players XDefiantthe share price has hit a nearly 10-year low of €13.67. This represents a 51% drop compared to last year, underlining the negative impact of uncertainty in the company’s direction and investor perception.
The financial problems do not end there. The dissident shareholder has proposed drastic changes to the management structure of Ubisoftincluding the hiring of a new CEO who will focus his management on optimizing costs and making the company a more agile and competitive organization. These moves seek to restore the lost confidence in the company, which despite having acclaimed titles such as Prince of Persia: The Lost Crownhas suffered repeated launch failures in recent years.
Despite employing some 20,000 developers and having a market value of €1.89 billion, the company faces an uncertain future. Investor demand for a change of leadership, coupled with falling sales and negative perception among gamers, raises questions about how the company will be able to recover in an increasingly competitive industry.
Via: Insider Gaming
Author’s note: It’s strange that this is happening, since the company’s last few games haven’t been that bad, especially Star Wars and Avatar, but it seems that people have been distrustful of Ubisoft and that is reflected in this news.
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