Key Points from the Lecture on Ubisoft's Current Situation

Overview

• Ubisoft is facing a significant downturn in their stock value and investor confidence.
• The company’s recent game, Star Wars Outlaws, has not been financially successful, contributing to the decline.
• Ubisoft's stock price is at a similar level as it was 10 years ago, showing stagnation and financial struggles.

Historical Context

• In 2014, Ubisoft's stock traded around 13 euros, and now it’s back to the same level.
• The decline isn't attributed to one specific issue but rather a pattern of underperformance and negative investor sentiment.

Factors Contributing to the Decline

• Quality of Games: A perceived decline in the quality of Ubisoft games over the last five years.
  • Assassin's Creed series, notably Valhalla, isn't perceived as maintaining the series' legacy.
  • Splinter Cell and Skull & Bones games have not performed well.
  • Star Wars Outlaws is criticized for poor gameplay and narrative choices.

Investor Sentiment

• Investors are frustrated with Ubisoft's failure to achieve profitable results.
• The company's recent meetings have shown disappointing projections.
• Stock Market Impact:
  • September 5th saw a notable stock dip from 14.70 to 13.45 euros.
  • Continuous attempts to recover stock value have been unsuccessful.
• Current Stock Situation:
  • Ubisoft's market cap has dropped to 1.7 billion euros.
  • Recent negative investor meetings caused further stock decline.

Criticism and Proposed Changes

• Investor Activism:
  • An activist investor, AJ Investments, is calling for strategic and structural changes.
  • They suggest changes in management and potentially selling the company.
  • AJ Investments argues that Ubisoft is mismanaged and that the CEO and family should be removed.
• Gameplay Critiques:
  • Games criticized for lack of innovation and poor execution.
  • Ubisoft accused of placing ideology over gameplay quality.

Ubisoft's Future

• Concerns over the company's direction and ability to recover.
• The upcoming Assassin's Creed release could be pivotal for the company's recovery.
• Potential for major management changes if upcoming releases do not perform well.

Conclusion

• Ubisoft is at a critical junction, with significant investor pressure to change its current strategies.
• The company's ability to innovate and improve game quality will be crucial to regaining investor and player trust.