The launch of the action-adventure saga "Assassin's Creed Shadows" on Thursday presents a crucial juncture, not only for the beleaguered French game industry giant Ubisoft, but also for the broader European gaming landscape.
Despite having nearly 18,000 staff members and an extensive worldwide presence, Ubisoft has faced numerous setbacks over the past few years, including underwhelming game launches, a declining share value, accusations of harassment involving previous executives, and ongoing labor disputes.
The firm is relying once again on its long-standing cash cow, "Assassin's Creed," to lift it out of difficult times, this time featuring an installment set in feudal Japan.
"I have never viewed things from this perspective," remarked Charles-Louis Planade, an analyst at Midcap Partners, to AFP before the release, as the entire European industry turns its attention toward Ubisoft.
Over 17 Ubisoft studios, which employ thousands of people, have dedicated five years of effort to create "Shadows," with the project's budget reportedly reaching several hundred million euros.
Initial feedback has been favorable, as the title earned an overall rating of 81 out of 100 from critics on the aggregate platform Metacritic.
This was one notch above "Valhalla," the 2020 film which until now marked the peak in terms of profit for the series.
The most recent addition "appears superior both visually and in gameplay compared to almost all other entries in Ubisoft’s 18-year-old series," American game journalist Stephen Totilo stated on his site Game File.
At the same time, IGN’s review of "Shadows" stated that it "enhances and fine-tunes (the series') essence without completely reshaping it."
Fingers crossed
Julien Pillot, an economist with expertise in cultural sectors, warned that failing to introduce significant alterations to the game’s mechanisms might lead to "some players feeling exhausted."
He proposed that Ubisoft's recently disappointing launches could indicate that players might be losing interest in their titles.
However, Planade mentioned that "everybody is hoping this launch will be a massive triumph."
He mentioned that weak sales performance might trigger a ripple effect throughout the whole sector, adding that Ubisoft, in just France, is responsible for nearly one-third of the nation’s approximately 15,000 game development positions.
Numerous aspiring makers go through Ubisoft following their education, whereas ex-staff members have established fresh studios both within France and across the globe.
In 2023, the firm initiated a cost-reduction effort encompassing studio shutdowns and nearly 2,000 job cuts.
Uncertain future
The cost-cutting measures were unable to shield Ubisoft from the scrutiny of the financial markets, as the stock price plummeted from over 100 euros ($109 based on current exchange rates) about a decade ago to an all-time low of 9.01 euros in September.
Ubisoft's stock price dropped nearly 5.6 percent on Wednesday, closing at €12.60, even with positive initial reviews for "Shadows."
Prior to the anticipated launch of the hit game, Ubisoft mentioned they were "proactively considering multiple strategic and financial alternatives" for its upcoming developments.
Initial reports indicated that one possibility might involve taking Ubisoft private, potentially with assistance from Chinese technology company Tencent, which owns a 10% stake in the company.
Recently, various media sources have indicated that the group might divest a significant portion of its game portfolio to concentrate on its flagship titles.
"All possibilities remain open" for Ubisoft's future, according to Planade, with the commercial success of "Shadows" potentially bolstering their position in discussions.
Post a Comment