Ubisoft share price falls back to 2011 and 2004 levels, two decades gains wiped out

After Ubisoft announced studio closures and game cancellations, including the Prince of Persia: Sands of Time remake, its share price has fallen.

Ubisoft share price falls back to 2011 and 2004 levels, two decades gains wiped out
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Tech and Science Editor
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2-minute read time
TL;DR: Ubisoft announced a major restructuring, canceling multiple games including the Prince of Persia: Sands of Time remake and closing several studios. This move follows financial struggles and disappointing launches, causing a 34% drop in share price. Ubisoft plans to focus on generative AI to innovate future game development.

Ubisoft announced on Wednesday that it was canceling several of its games in development and closing multiple studios in a sweeping move under the banner of company restructuring.

Ubisoft share price
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Ubisoft share price

The next day, Ubisoft stock awoke to a price seemingly in freefall as the company's share price dropped by 34% by the end of Thursday. At the time of writing, Ubisoft's share price is continuing to fall, reaching a low not seen since 2011, and the last time before that was 2004, before the company released the first Far Cry game, which was the title that put the publisher on the map.

It has been known that Ubisoft has been struggling financially for quite some time, especially following the disappointing launch of several titles, prolonged development cycles, and overblown budgets demanded by some of its IPs. The financial strain was assisted by Tencent, which injected $1.2 billion into the company for a 25% stake in Ubisoft's new company that manages its most-valuable franchises, Assassin's Creed, Far Cry, and Rainbow Six Siege.

Ubisoft announced it was closing several studios and the games they were working on. Among those titles was the highly anticipated Prince of Persia: Sands of Time remake, announced in 2020 and targeting a 2021 release. While announcing several studio closures and game cancellations, Ubisoft stated it was doubling down on generative AI in game development.