- Ubisoft faces a historic low with a 45% value drop in a year
- Assassin’s Creed Shadows is crucial for the studio’s survival
- Failure could lead to drastic reorganization or a company sale
Ubisoft’s future is relying on the failure and success of Assassin’s Creed Shadow, as per predictions.
Once the studio used to be a dominant force in the gaming industry, known for creating iconic game series like Assassin’s Creed, Watch Dogs, and Far Cry. However, the company is suffering from declining fortune, and its value has dropped by 45% over the past year, marking a historic low.
The recent failures of installments, including— XDefiant, Skull and Bones, and Star Wars Outlaws — couldn’t make sales as expected by the company, adding to the already existing crisis.
The XDefiant witnessed the initial success but couldn’t survive for long, and unfortunately, in late 2024, its shutdown was confirmed, as players lost interest and the user count declined excessively.
Furthermore, in 2023, it suffered a loss of over $530 million, and its stock price has also reduced as compared to the past years. All these sufferings are more likely to emerge due to a lack of innovation and a reliance on repetitive gameplay mechanics, technical issues, and the inclusion of microtransactions in full-price games have left players dissatisfied.
Now the Gaming industry insider— Jason Schreier has predicted the significant role of Assassin’s Creed Shadows is shaping the studio’s future, set to release on February 14, 2025.
Although the game faced criticism before the launch and got delayed multiple times, it could still heavily influence Ubisoft’s direction moving forward. Jason discussed it in the Bloomberg newsletter post:
“Ubisoft Entertainment SA has seen shares plummet to their lowest in a decade on weaker-than-expected sales and the delay of Assassin’s Creed Shadows, which was originally planned for last year but slipped to February after the underperformance of Ubisoft’s previous big game, Star Wars Outlaws. Now, Ubisoft is weighing over options, including going private.”
He emphasized its pivotal role by mentioning that,
“The upcoming release of Assassin’s Creed Shadows could tell us a lot. If it’s a hit, Ubisoft will have more time (and leverage) as the founding Guillemot family sorts out the company’s future. But if it flops, we might see a drastic reorganization happen very quickly, be it a buyout or a sale.”
According to him if the installment manages to break the defeat cycle, it could offer enough time to Ubisoft to make fixes and stabilize the company. On the other hand, if it meets the disappointment, then the changes will be more drastic— The studio will be sold. Companies like Tencent Holdings Ltd.
already own a stake in Ubisoft and another one — Saudi Arabia’s Savvy Games Group is all up as a potential buyer. In the end, right now things are solely depending on how the Assassin’s Creed Shadow will perform in the market.
A prosperous launch could signal a stunning comeback, while the lack of success might mark the end of the era.
