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. However on the monetary entrance at the very least, it hasn’t actually labored out that method. Outlaws has been usually effectively obtained by critics, however gross sales do not seem like assembly preliminary expectations, and as a substitute of seeing a surge Ubisoft’s share worth 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 sport engines.”
“As we progress by FY25, all our efforts are targeted 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’re excited in regards to the future and assured within the sustained progress of our turnaround all year long.”
However 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 fulfill our gross sales expectations regardless of optimistic crucial evaluations.” Kerven additionally lowered his gross sales expectations for Star Wars Outlaws by the tip of March 2025 from 7.5 million items to five.5 million.
I have been round lengthy sufficient that I nonetheless have a tough time envisioning 5.5 million copies offered as any kind of failure, however such is the best way of the world lately. Cyberpunk 2077, by means of comparability, had offered 25 million copies as of October 2023; extra lately, Helldivers 2 surpassed 12 million copies offered in simply three months, whereas Black Fantasy: Wukong blasted to 10 million items gross sales in per week. Star Wars Outlaws is clearly not a flop, however neither is it operating with the massive canine.
Traders appear very dissatisfied 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 sort of at a 10-year low. pic.twitter.com/pxpicUl8CzSeptember 3, 2024
Star Wars Outlaws is not completely guilty for Ubisoft’s troubles. The corporate’s share worth has been falling since early 2021, from a excessive of €85 ($94) to simply €15 ($16), the place it sits immediately. That is 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 Companions analyst Charles-Louis Planade cited XDefiant within the Reuters report as one latest instance of a Ubisoft sport failing to search out an viewers: Following a robust launch pushed by optimistic phrase of mouth, Planade stated curiosity within the sport has not held up. XDefiant’s viewership numbers on Twitch have additionally fallen off dramatically: Based on TwitchTracker, viewers have slumped from a excessive of greater than 203,000 in Could 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 deal with office toxicity. That resulted within the resignation or elimination of a number of executives on the firm, together with Serge Hascoët, Tommy François, vice chairman Maxime Beland, managing director of Ubisoft’s Canadian studios Yannis Mallat, and international head of human sources Cécile Cornet—however not, notably, Guillemot, who pointed the finger at different staff he stated had “betrayed the belief” he positioned in them. Guillemot stays on the head of Ubisoft.
Ubisoft has additionally made unhealthy bets on broader know-how inside the gaming world. Its early NFT dabbling in Ghost Recon Breakpoint was a bust (though it isn’t prepared to surrender on the concept of “digital possession” simply but—considerably ironic for an organization that additionally says folks ought to get comfy with the concept of not proudly owning their video games) and earlier this 12 months it introduced a slowdown on VR sport growth following disappointing gross sales of Assassins’ Creed Nexus.
The web result’s an organization that is not in a terrific place. In search of Alpha analyst Oliver Rodzianko stated in August that Ubisoft’s valuation “displays skepticism because of historic underperformance and modest income projections,” though he additionally believes the corporate was overvalued when its share worth was driving excessive between 2017 and 2022.
Regardless of 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. Murderer’s Creed Shadows has the potential to be a significant hit however with no main releases locked in for its 2025 12 months past that, it appears unlikely {that a} Ubisoft bounceback goes to occur anytime quickly.
