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Ubisoft’s Stocks Fall After Two Of Their Newest Games Don’t Succeed

When it comes to their stocks and video game releases, things aren't looking good for French game company Ubisoft right now.

The reason for that is, after two failed game releases, Ubisoft's stocks have taken quite the massive hit. They fell to as low as 29 percent in Paris, France. This leaves net bookings of 1.45 billion euros from their previous 2.19 billion euros. Ubisoft also cut their projected operating income to be between 20 million to 50 million euros. This is a drastic decrease from their past target of 480 million euros.

How did such dramatic downturns in the company's stocks happen? Well, it turns out that it happened in the aftermath of two recent and less than stellar game releases. The revenue that came from Ghost Recon Breakpoint and Tom Clancy’s The Division 2 were both much lower than what Ubisoft had expected, much to their dismay. Tom Clancy’s The Division 2 was released back on March 15th, whereas Ghost Recon Breakpoint was released more recently on October 4th. Both games were said to "underperformed commercially", with the latter was also disappointing "critically", according to Chief Executive Officer Yves Guillemot.

via Financial Times

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"We didn’t fully deliver on both games,"  Guillemot would explain to analysts in a recent phone call.

In order to fix this, Ubisoft has delayed the release of three upcoming games to next year. The video games in question are Gods & Monsters, Rainbow Six Quarantine, and Watch Dogs. They're also holding off on the release of another game, Skull & Bones, to 2022. While these moves will hurt Ubisoft's overall financial performance this year, the company was quick to confess that it was necessary in order to regain trust from investors.

"Investors will be frustrated with recent developments, and rightly so. But by ensuring that the future releases are given a closer focus on quality -- and then timed for the following fiscal year, when the additional catalyst of the next generation of consoles will be with us, then this misstep now could turn into a well-timed opportunity ahead," Mirabaud Securities analyst Neil Campling said.

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