Ubisoft (UBSFY) is in a dangerous position right now, as the video game developer’s future may hinge on the performance of Assassin’s Creed Shadows, which will be released on Thursday. A string of failures from licensed games, including Avatar: Frontiers of Pandora and Star Wars Outlaws, has brought Ubisoft to this point, as its strategy of releasing games based on other companies’ intellectual properties (IPs) hasn’t gone as expected.
Ubisoft has pinned its hopes on Assassin’s Creed Shadows, but it could be in trouble, as the game has stirred up controversy ahead of its release. The content of the game is the reason for the controversy. That’s because it takes place in medieval Japan but focuses on an African samurai. This hasn’t gone over well with gamers on social media, who expected the game to feature a more traditional Japanese samurai.
Ubisoft likely already expects the worst from Assassin’s Creed Shadows as reports claim it created a special team to handle developer harassment. This team will monitor social media for attacks against developers of the game and reportedly has a legal team ready to threaten action against overly zealous critics.
What This Means for UBSFY Stock
Ubisoft is coming off the worst year in its history as the stock dropped roughly 40% in 2024. It might have been even worse had the video game developer not delayed Assassin’s Creed Shadows to 2025. However, a negative reception for the game could still cause trouble for the company.
There have also been rumors that Ubisoft is getting close to bankruptcy, with the company reportedly in talks with larger companies for a buyout. That includes alleged discussions with Tencent (TCEHY) that would allow it to retain control of the business. There have also been rumors that Ubisoft is considering selling some of its IPs.
Is Ubisoft Stock a Buy, Sell, or Hold?
Turning to Wall Street, there’s a lack of coverage of UBSFY stock, but plenty for Ubisoft (UBI). The analysts’ consensus rating is Hold based on six Hold and two Sell ratings, with an average price target of €11.14. This represents a potential 13.14% downside for UBI stock.
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