Ubisoft Shares Plummet 20% After Delay and Cancellation of Games

• Ubisoft saw its shares plunge 20% after announcing the delay of their game “Skull and Bones” and the cancellation of three other projects.
• The company plans to “depreciate around €500m of capitalized R&D” due to their financial challenges.
• The delayed game, unannounced game cancellations, and disappointing sales all contribute to the bad news from the French video game publisher.

French video game publisher Ubisoft was dealt a major blow with the announcement of the delay of their upcoming game “Skull and Bones” and the cancellation of three other projects, leading to their share price plunging by 20%. This news, accompanied with their disappointing sales and financial challenges, resulted in the company having to “depreciate around €500m of capitalized R&D” in order to stay afloat.

Skull and Bones was initially scheduled to launch on the 9th of March, but with no specific date fixed, the French company now expects to release the game anytime from April 2023 to March 2024. This delay is a major blow, as the game is Ubisoft’s much-anticipated pirate-themed game and was expected to be one of their major releases for 2021.

Apart from the delay, Ubisoft also announced the cancelation of three other projects which had been in development for some time. This is a major development which means the company will have to put its efforts and resources into its existing brands and live services instead.

All of these bad news, including the delayed game, unannounced game cancellations, and disappointing sales, have contributed to a lower share price for Ubisoft. This has been a difficult time for the company, as they have had to take steps to reduce their cash burn rate in order to remain in business.

Ubisoft is a major player in the video game industry, and it is not surprising that investors have been rattled by this news. It remains to be seen if the company can weather this storm and make a comeback, or if they will have to face more financial challenges in the foreseeable future.