The launch of Star Wars Outlaws ought to have been a triumph for Ubisoft—a milestone second heralding a turnaround within the firm’s fortunes. But on the monetary entrance at the very least, it hasn’t actually labored out that approach. Outlaws has been typically nicely obtained by critics, however gross sales do not seem like assembly preliminary expectations, and as a substitute of seeing a surge Ubisoft’s share value has tumbled following the sport’s launch to its lowest mark since 2014.
Ubisoft was banking closely on Star Wars Outlaws, saying in its most up-to-date monetary report that gameplay previews have been “not solely praised by gamers and critics alike but in addition highlighted the cutting-edge capabilities of our recreation engines.”
“As we progress by means of FY25, all our efforts are centered on efficiently launching our promising new releases and positioning them as long-lasting worth drivers for Ubisoft whereas persevering with the transformation of our group,” Ubisoft CEO Yves Guillemot stated. “We are excited concerning the future and assured within the sustained progress of our turnaround all year long.”
But a Reuters report says gross sales of Star Wars Outlaws are “sluggish,” quoting JP Morgan analyst Daniel Kerven as saying that the sport “has struggled to satisfy our gross sales expectations regardless of optimistic important critiques.” Kerven additionally lowered his gross sales expectations for Star Wars Outlaws by means of the tip of March 2025 from 7.5 million items to five.5 million.
I’ve been round lengthy sufficient that I nonetheless have a tough time envisioning 5.5 million copies offered as any type of failure, however such is the way in which of the world today. Cyberpunk 2077, by means of comparability, had offered 25 million copies as of October 2023; extra not too long ago, Helldivers 2 surpassed 12 million copies offered in simply three months, whereas Black Myth: Wukong blasted to 10 million items gross sales in every week. Star Wars Outlaws is clearly not a flop, however neither is it working with the massive canines.
Investors appear very disillusioned about Star Wars Outlaws’ gross sales numbers and let Ubisoft inventory crash.Shares misplaced over 10% mixed within the final 2 days, so the corporate simply slipped to below €2B in market cap in Paris.Ubisoft is nearly at a 10-year low. pic.twitter.com/pxpicUl8CzSeptember 3, 2024
Star Wars Outlaws is not solely accountable for Ubisoft’s troubles. The firm’s share value has been falling since early 2021, from a excessive of €85 ($94) to simply €15 ($16), the place it sits right now. That’s been pushed by years of difficulties together with cancellations of quite a few in-development video games, struggles to finish high-profile initiatives, and tepid reactions to video games that it does handle to launch. Midcap Partners analyst Charles-Louis Planade cited XDefiant within the Reuters report as one latest instance of a Ubisoft recreation failing to seek out an viewers: Following a powerful launch pushed by optimistic phrase of mouth, Planade stated curiosity within the recreation has not held up. XDefiant’s viewership numbers on Twitch have additionally fallen off dramatically: According to TwitchTracker, viewers have slumped from a excessive of greater than 203,000 in May to simply 1,440 proper now.
2020 additionally noticed allegations of widespread sexual misconduct and harassment on the firm, sparking an investigation and promise of a “structural shift” to handle office toxicity. That resulted within the resignation or elimination of a number of executives on the firm, together with Serge Hascoët, Tommy François, vp Maxime Beland, managing director of Ubisoft’s Canadian studios Yannis Mallat, and world head of human sources Cécile Cornet—however not, notably, Guillemot, who pointed the finger at different workers he stated had “betrayed the belief” he positioned in them. Guillemot stays on the head of Ubisoft.
Ubisoft has additionally made dangerous bets on broader expertise inside the gaming world. Its early NFT dabbling in Ghost Recon Breakpoint was a bust (though it is not prepared to surrender on the thought of “digital possession” simply but—considerably ironic for a corporation that additionally says folks ought to get comfy with the thought of not proudly owning their video games) and earlier this yr it introduced a slowdown on VR recreation improvement following disappointing gross sales of Assassins’ Creed Nexus.
The internet result’s an organization that is not in an awesome place. Seeking Alpha analyst Oliver Rodzianko stated in August that Ubisoft’s valuation “displays skepticism on account of historic underperformance and modest income projections,” though he additionally believes the corporate was overvalued when its share value was driving excessive between 2017 and 2022.
Whatever the case, it is clear the efficiency of Star Wars Outlaws is not going to do a lot to return Ubisoft to these lofty heights. Assassin’s Creed Shadows has the potential to be a significant hit however with no main releases locked in for its 2025 yr past that, it appears unlikely {that a} Ubisoft bounceback goes to occur anytime quickly.
