This week, Ubisoft presented a financial report in which it made it clear that at the end of last year and the beginning of this year it did not have a good time. It was inevitable that something like this would go unnoticed by the market, which reacted negatively to the company. In fact, its shares plummeted to their worst value in 7 years.
As reported by CNBC, Ubisoft shares fell 21% this Thursday, January 12, 2023. With the above, each company share was worth up to €18.80 EUR ($20.37 USD), being its lowest level in 7 years.
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Since that critical point, Ubisoft’s shares have recovered a bit in value, reaching a price of €20.64 EUR ($22.37 USD) per share. With this, the value remained 14% below what it had at the close of the markets last Wednesday. A drop that is still significant.
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What is happening at Ubisoft?
Now, what the hell is happening at Ubisoft for the stock market to have such a reaction? As we mentioned, the company presented disappointing results.
In a statement to investors, Ubisoft reported that its most important year-end releases ―Mario + Rabbids: Sparks of Hope and Just Dance 2023― did not meet its sales expectations. In addition, the company also announced that it has canceled 3 projects under development and that it would take steps to deal with looming economic challenges.
“Despite excellent reviews and good reception from players, as well as an ambitious marketing plan, we were surprised by the underperformance of Mario + Rabbids: Sparks of Hope in the last weeks of 2022 and early January. Just Dance 2023 also performed poorly,” explained Yyves Guillemot, CEO of Ubisoft.
“We are clearly disappointed by our recent results. We are facing contrasting market dynamics, as the sector continues to shift towards mega-brands and games as a service, in a context of worsening economic conditions that affect consumer spending”, concluded the manager.
Find out: A disaster! Ubisoft has canceled a total of 7 games in the last few months
And you, what did you think of this news? Do you think Ubisoft will find a good way to recover from this situation? Tell us in the comments.
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Related Video: Mario + Rabbids Sparks of Hope – Soon-to-Release Trailer
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