NewsUbisoft's future in jeopardy as financial woes deepen

Ubisoft's future in jeopardy as financial woes deepen

Ubisoft, a renowned game developer, is facing the threat of bankruptcy. Financial and operational difficulties, including a decline in share value and unsuccessful releases, threaten the company's future. Net debt has risen to approximately £1.16 billion, and cash reserves have fallen to around £774 million, according to thatparkplace.com.

Financial Problems of Ubisoft
Financial Problems of Ubisoft
Images source: © Getty Images | VCG, ZHOU YOU
Piotr Bera

The French company Ubisoft is grappling with serious financial challenges. The company's net debt has increased to about £1.16 billion, and cash reserves have dwindled to approximately £774 million. The share value has plummeted by 80 per cent over the past five years, which is a cause for concern among investors.

One of the main issues is the unsuccessful game releases, such as "Star Wars Outlaws," which failed to meet sales expectations. Consequently, Ubisoft decided to release the game on Steam, which can be seen as a desperate measure. Furthermore, operational costs related to employing over 18,600 staff amount to nearly £637 million.

They released hits

Ubisoft, known for titles like "Splinter Cell" and "Assassin's Creed," is in a financial crisis. "In the past five years, the firm's shares have lost about 80 per cent of their value and are now priced at just £10.20. This is one of the lowest levels in the company's history, and investor confidence in Ubisoft's ability to recover is waning with each passing quarter," adds ithardware.pl.

Ubisoft is attempting to salvage the situation by delaying releases and introducing corrections to games, as in the case of "Assassin’s Creed Shadows." However, analysts are sceptical of the company's ability to cover its debts. Rumours are circulating about a possible takeover by Tencent, which could spell the end for Ubisoft. Tencent is an international corporation based in China.

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