- Ubisoft has lost around 80% of its value in just 5 years.
- The company is in massive debt compared to last year due to back-to-back failures.
- This highlights that it could go bankrupt in 2025, especially if Assassin’s Creed Shadows fails to generate massive revenue.
Ubisoft, one of the most iconic developers that was loved by a massive fandom, is no longer the same. It has been a long time since it released a great game that the fandom has appreciated.
The only game with a positive reception seems to be Prince of Persia: The Lost Crown, but you already know what happened to the team that worked on it. Ubisoft has lost nearly 80% of its value in the past 5 years, which is extremely concerning.
It has lost 47% value in the past year, highlighting that this year has especially been the worst. If things continue to go down this path, Ubisoft might have no choice but to declare bankruptcy.
Why it matters: Ubisoft is behind iconic franchises like Assassin’s Creed, Far Cry, Watch Dogs, and Tom Clancy. So, it would be sad to see the closure of a developer/publisher with such a history.
As mentioned before, the company has lost 80% of its value in the past 5 years, of which it lost nearly 50% in the past year. This clearly shows the company has undergone financial troubles as Star Wars Outlaws, Skull and Bones, Avatar: Frontiers of Pandora, and Prince of Persia: The Lost Crown weren’t a commercial success.
These games didn’t receive a positive reception either, so it was a given that they wouldn’t perform well sales-wise. Now, due to such a massive loss, Ubisoft had no choice but to take even more debt, which is shown in its financial reports.
The giant already was under some massive debt, but that increased way too much in 2024. Its latest financial report reveals that the gaming giant’s non-IFRS net debt is €1.1 billion, and the IRFS net debt is €1.4 billion.
What’s more surprising is that the increase in debt from the previous year is over €880 million. This clearly highlights that Ubisoft isn’t generating the necessary profits to run the company, which indicates potential bankruptcy in the near future.
The main reason why the company is continuously undergoing such troubles is because it stopped listening to its fandom. The gaming giant seems to have ignored what its fandom wants and has lost its identity.
Ubisoft has become just a shadow of its past self. The fans have longed for an authentic Assassin’s Creed experience, which they are unlikely to get in the upcoming title. The game has already received immense backlash that Ubisoft had to delay it till next year.
It will also be coming to Steam on day one, as the majority of PC gamers prefer that platform. Ubisoft’s fate now lies solely on how Assassin’s Creed Shadows perform. Given the reception it has already received, it is hard to believe that this title can save the company.
Recently, xDefiant has also been shut down, which again was a massive blow to the company’s value. After the poor sales of Star Wars Outlaws, the hit from xDefiant can prove to be lethal in the long term.
The company didn’t have time to catch a break, and after the massive disappointment from Skull and Bones, it has been facing nothing but backlash. The said game is also reported to have cost it nearly $850 million.
There have also been many rumors about a Tencent buyout that could save the company. However, it seems unlikely that Tencent would buy Ubisoft before it declares bankruptcy.
What do you think of Ubisoft’s current condition in the gaming industry? Do you think it will be forced to declare bankruptcy in 2025? Let us know your thoughts in the comments section below, or join the official Tech4Gamers forums for discussion.
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[News Editor]
Obaid is pursuing a Law degree while working as a content writer. He has worked as a gaming writer for over three years because of his passion for the medium and reporting the latest updates in the industry. Having played hundreds of games, Obaid finds himself coming back to Elden Ring, Cyberpunk 2077, and Red Dead Redemption 2, with these games being among his favorites. He has also been mentioned on highly regarded websites, such as Wccftech, Metro UK, PS Lifestyle, GamePressure, VGC, and Gamespot.
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