On Thursday, September 26, 2024, Ubisoft’s share price opened at €9.76 (the company’s lowest in nearly eleven years) before shedding more decimal points during the day. The last time that Ubisoft’s stock traded below €10 was in November 2013 when it dipped to €9.27 before rising to reach a peak of €102.95 in July 2018.
The recent dips in Ubisoft’s share prices have been linked to the lackluster performance of their recent releases. The last dip was reported earlier this month by Reuters and was blamed for the poor performance of Star Wars Outlaws released on August 27.
ALSO READ: Why Was Indika Publisher, Merge Games, Shutting Down Message Deleted?
The delay in the launch of Assassin’s Creed Shadows which has now been pushed forward to February 14, 2025, instead of the earlier November 15 release date, likely inspired the new low in Ubisoft’s share price.
In the latest conference call, Ubisoft announced that it was making other changes to the company including ditching its traditional Season Pass model. During the conference call the company said, “All players will be able to enjoy the game at the same time on February 14” while announcing a free first expansion for those who preorder the game.
Ubisoft’s board will investigate the company’s challenges
Things have seemingly moved from bad to worse for Ubisoft in the last twelve months and the company’s Executive Committee and Board of Directors will launch an investigation to know what’s wrong and how to turn the tide. The decision was part of the company’s financial statement and update.
ALSO READ: How To Build A Gaming Laptop The Right Way—7 Steps
“In the light of recent challenges, we acknowledge the need for greater efficiency while delighting players. As a result, beyond the first important short-term actions undertaken, the Executive Committee, under the supervision of the Board of Directors, is launching a review aimed at further improving our execution, notably in this player-centric approach, and accelerating our strategic path towards a higher performing model to the benefit of our stakeholders and shareholders.
Finally, let me address some of the polarized comments around Ubisoft lately. I want to reaffirm that we are an entertainment-first company, creating games for the broadest possible audience, and our goal is not to push any specific agenda. We remain committed to creating games for fans and players that everyone can enjoy.”
Citing confessions of former Ubisoft employees, Insider Gaming said they learned the move was inevitable. Their sources also claimed many Ubisoft studios are struggling with poor management.
More troubles for Ubisoft as French workers announce October strike
The Video Game Workers Union (STJV) is calling for all French Ubisoft workers to embark on a 3-day strike starting on October 15. The decision was due to the company’s decision to impose a return to offices for 3 days per week for all employees.
The video game union said Ubisoft made the announcement without “justification or any consultation with the workers’ representatives”. Most companies transitioned to remote work to beat the COVID-19 lockdown restrictions. The decision changed the meaning of work forever.
ALSO READ: 2 Ways To Play PS5 In Tesla Exposed
“After more than five years of working efficiently in the current remote-work context, many of our colleagues have built or rebuilt their lives (family life, housing, parenthood, etc.) and simply cannot return to the previous working conditions,” said the union in a statement published on Thursday, September 26, 2024.
“The consequence of its decision will be the loss of our colleagues’ jobs, the disorganization of many game projects, and the drastic increase in psychosocial risks for those who remain”.
The union also cited the failure of the management in salary negotiations. Consequently, they are calling on all Ubisoft employees in France to join the first strike which will start on October 15 and last until October 17. The union has revealed its demands which include;
- A formal remote work agreement that will be decided based on negotiations between management and unions. The agreement must allow employees to choose their remote days and when they will be in the office.
- An immediate increase in all salaries to compensate for the decline in living standard
- Listening to employee opinions by implementing a “social dialogue”
The STJV continues to advocate for better employee working conditions and better pay for its employees. It seems Ubisoft is suffering an implosion that needs more than a quick fix to resolve.
Is there a way back from this decline for Ubisoft? Share your thoughts in the comment box below.
