Ubisoft, the French video game giant, has been hit hard by a significant drop in its stock value on the Euronext Paris Exchange. In just over two months, the company’s share price has been cut in half, plummeting by over 55%. This dramatic decline follows a series of setbacks and adjustments to the company’s financial forecasts.
Ubisoft’s stock peaked in February 2024, reaching €24.47 shortly after the company released its Q3’24 earnings report and investor updates. The second highest point was in May at €23.33, shortly after Ubisoft shared its full-year FY24 earnings figures. However, the tide turned when the company unveiled its Q1’25 earnings results in late July, with shares dipping to €22.54. Since then, Ubisoft’s stock has been on a steady decline, reaching a present closing value of just €10.10 at the time of this writing.
This dramatic fall coincides with two unpopular decisions among investors: the delay of Assassin’s Creed Shadows from its planned holiday release and the company’s revised financial targets for the full FY25 year, which are lower than initially expected. In the competitive world of video game publishing, releasing products during the holiday season is crucial for maximizing sales and capturing consumer spending. Ubisoft’s delay of Assassin’s Creed Shadows, a highly anticipated title, has likely dampened investor confidence, especially during a crucial time for the company’s revenue.
Adding to the woes, another big-budget AAA title, Star Wars Outlaws, failed to meet internal sales targets. The free-to-play shooter XDefiant, aimed at attracting microtransaction revenue, also underperformed. These setbacks underscore the challenges Ubisoft faces in a rapidly evolving gaming landscape.
With a significant amount riding on the success of its upcoming releases, Ubisoft is now under immense pressure to deliver successful games. Assassin’s Creed Shadows remains a key title, and the company is also relying on the release of Just Dance 2025 in October and the continued strong performance of successful live titles like Rainbow Six Siege and The Division 2. Whether Ubisoft can regain investor confidence and turn the tide remains to be seen, but the company has a lot of work to do in the coming months.
