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Embark on a journey through the world of finance and gaming as Roula Khalaf, the Editor of the FT, handpicks her favorite stories to share with you in this exclusive weekly newsletter.
- Ubisoft’s Financial Woes:
- Shares in French gaming giant Ubisoft took a nosedive by more than 17 percent after slashing its financial outlook and delaying the release of its highly anticipated Assassin’s Creed video game.
- Aiming to turn its fortunes around after years of setbacks due to launch delays and cancellations, Paris-based Ubisoft had geared up for the release of two major games. However, weaker than expected sales of the Star Wars Outlaws game prompted a delay in launching Assassin’s Creed Shadows by three months to February.
- With net bookings for the second quarter now expected to be significantly lower at €350mn to €370mn compared to previous estimates of around €500mn, the company faces the challenge of navigating financial turbulence while striving to meet the demands of discerning gamers.
- Activist Investor Pressure:
- As Ubisoft grapples with financial woes, activist shareholder AJ Investments is mounting pressure on the company. With support from 10 percent of Ubisoft’s shareholders, AJ Investments is pushing for a potential sale and exploring discussions with private equity groups.
- In the crosshairs of this investor pressure, Ubisoft, primarily owned by the Guillemot family with a 15 percent stake, is facing a tough decision. With China’s Tencent holding just under 10 percent ownership, the company is at a critical juncture to address its financial challenges.
- Defeat or Redemption:
- The three-month delay in the launch of Assassin’s Creed Shadows is seen as a strategic move by Ubisoft to learn from past experiences and ensure the game meets expectations. With criticism surrounding its portrayal of feudal Japan, the company is taking the time to refine the game and deliver a premier gaming experience.
- Despite setbacks and criticism, Ubisoft remains steadfast in its pursuit of excellence. By acquiring streaming rights for Activision Blizzard’s games as part of Microsoft’s blockbuster deal, the company is positioning itself for a potential turnaround in the gaming landscape.
In an industry that demands innovation and adaptation, Ubisoft is at a crucial juncture. As they navigate through challenges and setbacks, the power of resilience and determination will define their path forward. In the ever-evolving world of gaming, every setback is an opportunity for a comeback. Unlock the Editor’s Digest to stay in-the-know and witness the unfolding saga of Ubisoft.
