Ubisoft stock loses over 30 percent in value

Ubisoft's major reset leads to a massive stock market crash: Since the announcement on Wednesday evening to realign the company, the stock of the French gaming company has lost over 30 percent of its value. Currently, a Ubisoft share is worth less than 4.40 euros, compared to 11 euros just one year ago.

A look into the more distant past shows the extent of the stock drop: Anyone who bought Ubisoft shares at the market launch of the Playstation 5 and Xbox Series X/S in autumn 2020 and has held them until today has a loss of 95 percent, according to the industry magazine Gameswirtschaft.de. Ubisoft's market capitalization is now below 600 million euros.

Investors are reacting with uncertainty to Ubisoft's new corporate strategy, which is intended to lead the company out of its ongoing crisis in the long term. At the heart of the new organization are five “creative houses” that clearly divide brands and game concepts. This is accompanied by cost-saving measures: Ubisoft plans to save 200 million euros in the next two years – in addition to 300 million euros that Ubisoft claims to have already saved in previous years. Furthermore, the development of a total of six games has been discontinued, and the forecast for the fiscal year has been revised downward.

“Crucial Turning Point”

Ubisoft CEO and founder Yves Guillemot speaks in a press release (PDF) of a “major reset” and a “crucial turning point” for the company. However, he warns that the company must prepare for tough years until it returns to the path of success. “The realignment of the portfolio will have significant implications for the group's short-term financial performance, particularly in fiscal years 2026 and 2027.”

(dahe)