• French video game publisher Ubisoft saw its shares slump 20% after the company shared some bad news.
• The bad news includes delaying the release of its game “Skull and Bones” and canceling three other projects.
• Ubisoft plans to “depreciate around €500m of capitalized R&D” to address the financial challenges.
Ubisoft, the French video game publisher, recently faced a 20% decline in its shares due to some bad news. The news that was shared included the postponement of their game “Skull and Bones”, as well as the cancellation of three other projects. This news came as a huge shock to the gaming community, as well as investors, as the Skull and Bones game was expected to be released on the 9th of March, 2021.
The Assassin’s Creed creator announced that they are canceling the three projects to focus on their existing brands and live services. This decision was made in order to better focus on the existing projects and ensure the best possible quality for them. The projects that were canceled remain unknown, but it is clear that this news has had a great impact on the company’s finances.
To address the financial challenge, Ubisoft has announced that they plan to “depreciate around €500m of capitalized R&D”. This is a huge sum of money and it is clear that the company is taking their financial situation seriously. It is yet to be seen how this measure will affect their financial situation and if it will help them recover from the current crisis.
The gaming industry is an ever-evolving and competitive market and Ubisoft’s recent news has shown that even a well-established publisher can face difficult times. It is now up to the company to find solutions to their financial challenges and continue to produce quality games. Only time will tell if they will be able to recover from this and remain a major player in the gaming industry.