Ubisoft Plunges 20% as Cancelled Games, Financial Challenges Loom

•Ubisoft shares plunged 20% due to bad news, including the cancelled games and financial challenges.
•The company announced that its game „Skull and Bones“ will be delayed again, and expects to release the game anytime from April 2023 to March 2024.
•Ubisoft also mentioned canceling three other projects in order to focus on its existing brands and live services.

Ubisoft, a French video game publisher, recently experienced a massive decline in its share price, with a staggering 20% drop due to some unfortunate events. The company announced that its game „Skull and Bones“ would be delayed again, with no specific date fixed, instead expecting to release the game anytime from April 2023 to March 2024. This was bad news, as the Skull and Bones game was most recently scheduled for March 9th. Adding to the bad news, Ubisoft also mentioned canceling three other projects in order to focus on its existing brands and live services.

The canceled games and financial challenges have forced the French company to „depreciate around €500m of capitalized R&D“. This has resulted in a significant decline in the company’s share price. This is in spite of the company’s attempt to decrease its operating expenses by €200 million and its decision to reduce its staff by around 600 employees to adjust to the current market demand.

Many investors are worried about Ubisoft’s future and the potential impact of these decisions on the company’s performance. Ubisoft’s CEO, Yves Guillemot, has stated that the company will continue to focus on delivering quality content to its players. He also mentioned that they will continue to invest heavily in innovation and technology to ensure the company remains at the top of the gaming industry.

With the ongoing financial challenges, Ubisoft will have to make difficult decisions in order to remain competitive. The company’s future success will depend on its ability to balance cost-cutting measures with the development of new and exciting games. Only time will tell how Ubisoft will navigate its way out of this difficult situation.