Ubisoft shares plunge over 30% following cancellation of six games
Shares of French video game giant Ubisoft plummeted more than 30% at the Paris stock market opening after the company announced the cancellation of six video game projects and the delay of seven others. The stock fell to €4.56 per share, reflecting a nearly 60% decline over the past year and bringing the company’s market value to its lowest level since 2012, at €606 million.
The announcement comes as Ubisoft struggles with ongoing financial difficulties. CEO Yves Guillemot described a “major organizational overhaul” aimed at creating conditions for sustainable growth and producing high-quality games. Starting in April, Ubisoft will adopt a decentralized structure, establishing five new creative divisions responsible for both game development and financial management.
The company also plans a significant cost-cutting program, including studio closures, employee layoffs or redeployments, and a return to fully in-person work. The cancellations, delays, and postponements have led to an asset write-down of €650 million and an operating loss of €1 billion for the current fiscal year.
Analysts warn that short-term financial recovery remains uncertain, and Ubisoft will implement a further €200 million cost-reduction plan over two years to stabilize its operations.
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