Summary
Entertainment analyst Joost van Dreunen believes thatUbisoftis headed for privatization and other major shifts in strategies. 2024 has been a particularly hard year forUbisoft. Despite having a hold on giant IPs likeAssassin’s Creed,Rainbow Six, andPrince of Persia, recent outings have been less than stellar, with the reception to releases likeStar Wars Outlawshighlighting what could be a broader lack of trust in Ubisoft’s approach to gaming.
Most recently,Ubisoft announced plans to shut downXDefiant, its first-person shooter that set out to contend with gaming giants likeCall of Duty. Many people expectedXDefiant’s shutdown, predicting the game’s future based on its dwindling player count. Now thatXDefiant’s services are planned to shutter, new registrations and downloads will be blocked, preventing more of Ubisoft’s resources from being allocated towards the title. People following Ubisoft have also takenXDefiant’s failure as a greater sign of the company’s current status.
Areport by Joost van Dreunen, a business professor and gaming analyst, suggests that Ubisoft “is headed for privatization and dismantling in 2025.” The analyst supports this claim by citing the company’s track record throughout 2024, especially noting thesubstantial drop in Ubisoft stocksthat occurred this year. Further along, van Dreunen describes the company’s approach to game development as “stubbornly outdated,” suggesting that Ubisoft’s recent habits, including a refusal to take risks, innovate, and find more engaging ways to monetize its games are a pattern leading it towards failure.
Ubisoft Could Be Headed for Major Changes
Rumors of a potential Ubisoft buyout have been floating for a few months, hinging on the fact that investors have encouraged and even demanded the company to go private recently.Ubisoft CEO Yves Guillemot has attempted to manage the conversationsurrounding a buyout, and fans have stated their desire for the company to utilize its most well-known IPs to prevent further losses.
Joost van Dreunen points toAssassin’s Creed Shadowsas the saving grace for Ubisoft amid several recent missteps, but he doesn’t project confidence in the project restoring the Ubisoft brand.Assassin’s Creed Shadowswas delayed to ensure the product gets the best launch possible. However, van Dreunen discusses the way that player trust is a form of currency in the gaming market that Ubisoft is running low on. Although the company has taken steps to ensure a better rapport with its audience,Ubisoft may have attempted to obfuscate its Steam data, which could cause a wider rift. Regardless of how Ubisoft’s next big release fares, many believe the company has a difficult future ahead.
Ubisoft
Ubisoft is a well-known video game developer and publisher with a main headquarters in Saint-Mandé, France. Current CEO Yves Guillemot runs an array of teams responsible for some of the most iconic and well-known series in video games, with franchises like Assassin’s Creed, Farcry, The Crew, Just Dance, and more. Ubisoft also acts as a parent company for an array of other video game developers, including names like Massive Entertainment, Ubisoft Paris, Blue Mammoth Games, Red Storm Entertainment, and more.
