In recent days, Ubisoft shares have recorded a sharp drop, yet another sign of trouble for the video game giant. The company, already struggling in recent years, announced the closure of two major studios (Halifax and Stockholm) and the cancellation of as many as six projects, including titles that had raised considerable expectations such as the new Prince of Persia and the remake of Assassin’s Creed Black Flag.
The decisions were taken as part of a broad, company-wide restructuring, as Ubisoft attempts a relaunch after years in the red marked by delays, commercial flops, and management that has often been criticized. The stated goal is to revive the brand and return to being competitive in an industry that has meanwhile changed dramatically.
However, the market reacted with a drop of around 40%, and at the moment the shares are trading at just under $6. Overall, the value of the stock has fallen by 95% in five years, from $100 to $5; a collapse of this magnitude, in terms of scale and context, had practically never been seen in the company’s history. Ubisoft is a historic brand in the video game industry, which over the years has released many famous titles. For those who believe in the company’s potential and its relaunch, this could be an excellent time to invest. But now the real question is whether Ubisoft will truly be able to reinvent itself, or whether this will simply be another chapter in a deeper crisis.