• French video game publisher Ubisoft saw its shares slump 20% after the company shared some bad news.
• The bad news included the delaying of the release of “Skull and Bones” game, as well as the cancellation of three other projects.
• Ubisoft plans to “depreciate around €500m of capitalized R&D” due to these recent financial challenges.
Video game publisher Ubisoft experienced a 20% drop in its shares after the company shared some bad news. The news included the postponement of their game ‘Skull and Bones’ and the cancellation of three other projects. The French company plans to “depreciate around €500m of capitalized R&D” due to these financial challenges.
This is a huge blow to Ubisoft, which had been planning to launch ‘Skull and Bones’ on the 9th of March. This game has now been delayed indefinitely, with no specific date fixed, and the company expecting to release it anytime from April 2023 to March 2024. It is the latest in a string of delays for the game, which has been in development since 2017.
The cancellation of three other projects also adds to the bad news. Ubisoft has said that it is dismissing the three projects to focus on its existing brands and live services. This decision will have a financial impact on the company, as it will result in the depreciation of around €500m of capitalized R&D.
The news has been met with criticism from Ubisoft’s shareholders, who have seen their shares drop significantly in the wake of the announcement. Many have expressed their dissatisfaction with the company’s decisions and the lack of transparency surrounding them.
It remains to be seen how Ubisoft will recover from these financial challenges. The video game publisher has a history of producing some of the most successful titles in the industry, and it is now relying on these existing brands and live services to help boost its revenue. The company also plans to focus more on its streaming service, which could potentially be a source of income as the gaming industry moves away from physical copies.
Nevertheless, the news of the delayed game and cancelled projects has put a dampener on the company’s recent successes and has caused a significant drop in its share price. It will be interesting to see how the French publisher recovers from these financial difficulties, and whether it can once again become a leader in the gaming industry.