- The new year hasn’t been kind to Ubisoft, as the company continues to struggle with poor game launches, AC Shadows delay, and plummeting stock.
- Internal problems include project failures like XDefiant, game cancellations, and low employee morale.
- Assassin’s Creed Shadows is Ubisoft’s last hope, and if it fails, we might see a probable buyout from Tencent.
2024 has proven to be a challenging year for Ubisoft. The highly anticipated Skull and Bones reportedly costing over $800 million launch faltered, facing significant criticism. Meanwhile, Assassin’s Creed Shadows, their last hope, has been delayed twice.
Stock plummets by over 45%, hitting a historic one-year low and many other factors raising concerns among fans and investors. These setbacks, coupled with multiple rounds of layoffs, have cast a shadow over the company’s future.
This article looks at the challenges Ubisoft is facing, including internal issues, game delays, and a potential takeover. Can the company overcome these obstacles and stay competitive in the gaming world? Let’s find out.
Tencent Negotiations: Uncertainty and Expectations
Ubisoft has been in talks with Tencent about a possible buyout and taking the company private. However, the discussions have stalled due to the Guillemot brothers’ desire to retain control. Tencent, for its part, prefers to buy shares, increasing its influence.
The key factor in resuming negotiations will be the release of Assassin’s Creed Shadows, and that’s the main reason the game gets delayed for the second time so they can further polish the experience as it could be their last shot at survival.
A successful release will give Guillemot a strong negotiating position, and the failure of the game will be an opportunity for Tencent to acquire the stake at a reduced price.
Internal Turmoil: Hindering Growth and Innovation
The company is experiencing serious internal problems that are hindering effective development:
- Failures of Major Projects: Skull & Bones didn’t live up to expectations and there are a lot of problems with Beyond Good and Evil 2. The latter, announced 16 years ago, still has no release date.
- Cancellations: A large number of games have been shelved or canceled due to a lack of a clear vision. For example, the development of Project U cost more than $100 million, which was the result of management problems.
- Low Employee Trust: In a recent anonymous survey, trust in management was only 15-20%.
Even the successful launch of XDefiant, a shooter with good reviews, did not save the game from being shut down. The reasons were an insufficient player base and unprofitable development.
Ubisoft’s Path to Redemption: A Course for Change
2025 could be a pivotal year for Ubisoft. Among the upcoming releases, in addition to Assassin’s Creed Shadows, are:
- Splinter Cell Remake
- Far Cry 7
- Prince of Persia: Sands of Time Remake
- Assassin’s Creed Black Flag Remake
- Assassin’s Creed Hexe
- The Division 3
- Rayman Remake
The developers are also continuing to work on Beyond Good and Evil 2, but its release is expected much later than other projects.
Ubisoft needs to streamline its development processes and stop chasing current trends. The success of Shadows will be the first step to regaining the trust of players, but for the long-term success of the company, it will need to change its internal structure from stretch.
The Road Ahead
If Shadows fails, Ubisoft risks facing major changes. Options include a Change Management coupled with major layoffs or a partial sale of stocks to Tencent.
In any case, Ubisoft is on the threshold of a new era that will affect thousands of employees and millions of players. Whether the company will be able to live up to expectations and return to the leaders of the gaming industry – time will tell.
What’s your take on Ubisoft’s current position? Do you believe they can successfully overcome these obstacles and maintain their place as a major player? Share your thoughts in the comment section below.
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[Editor-in-Chief]
Sajjad Hussain is the Founder and Editor-in-Chief of Tech4Gamers.com. Apart from the Tech and Gaming scene, Sajjad is a Seasonal banker who has delivered multi-million dollar projects as an IT Project Manager and works as a freelancer to provide professional services to corporate giants and emerging startups in the IT space.
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