Ubisoft has lost over 80% of its market value since 2018

Ubisoft has been in crisis mode over the last couple of years due to tumbling game sales. The company had hoped that its big open-world Star Wars game, Star Wars Outlaws, would help turn the tide but it seems sales have been lower than anticipated and, as a result, Ubisoft shares have fallen to a 10-year low. 

Ubisoft's stock price has dropped to €13.82 at the time of writing, with shares continuing to drop over the weekend. Prior to the weekend, Ubisoft was doing slightly better at €15.50 per share. This is the lowest Ubisoft shares have been since 2014 and is a very substantial drop from Ubisoft's pre-pandemic share price.

Ubisoft peaked back in 2018, with shares rising to around €100 per share. That means in the post-pandemic era, Ubisoft has lost over 80% of its market value.

In recent years, Ubisoft has considered selling, but instead opted to stay the course and take on investment from Hedge funds like Blackrock. Ubisoft also took on investment from Tencent in the years prior to avoid a hostile takeover by former Activision parent company, Vivendi.

This follows a rough number of years for Ubisoft, which has seen franchises like Watch Dogs shelved, many planned free-to-play titles cancelled after years in development, as well as a few high-profile flops, like Skull & Bones, as well as XDefiant, which has been bleeding players since its first weeks on the market.

Ubisoft will have an opportunity to bounce back before the end of the year with the impending release of Assassin's Creed Shadows, the first game in the franchise set in Japan.

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KitGuru Says: Perhaps Assassin's Creed Shadows will surprise us all but given Ubisoft's track record, I'm not holding out much hope. The big question is, will Ubisoft still be around in five years' time? Right now, it appears to be in the weakest position of all the major publishers when you factor in future prospects. 

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