"If yesterday's Ubisoft announcements of cancellations and studio restructuring and promises to focused on gen-AI were intended to win back shareholder confidence, it's safe to say that's not really worked out. At the start of trading today, the publisher's share price dropped to its lowest level in 14 years, a third of their value wiped out overnight, and that's after years of colossal falls. In fact, an Ubisoft share bought in June 2018 has now dropped in value by more than 95 percent."
"The plan promised to focus its attentions on turning its established IPs into "annual billionaire brands" while focusing on all of last year's buzz-words like live-service and "Gen-AI initiatives." It appears that simply stating that the games that currently don't make a close to a billion dollars a year will now start doing so hasn't convinced shareholders of the company's future."
Ubisoft announced the cancellation of multiple projects, including the Prince of Persia: Sands of Time remake, and unveiled another round of studio restructuring and staff cuts. The company described the moves as a "radically new value-creation model" aimed at simplifying operations, creating efficiency, and convincing investors it will stop losing money. The strategy centers on converting established IP into recurring, high-revenue "annual billionaire brands" and emphasizing live-service and Gen-AI initiatives. Investors reacted by selling shares heavily, driving the stock to its lowest level in 14 years and erasing a third of market value overnight.
Read at Kotaku
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