Riding on the heels of the commercial failure of Star Wars Outlaws, Ubisoft is taking a cautious approach with Assassin's Creed Shadows. The company aims to deliver a polished and refined product by gathering player feedback and investing additional resources into development. However, this cautious approach comes at a significant cost, straining the company's already precarious financial situation.
To improve its financial standing, Ubisoft has been exploring various options, including a potential sale of the company. While negotiations with Tencent have stalled due to the Guillemot brothers' desire to retain control, the possibility of a buyout remains on the table. Assassin's Creed Shadows is seen as Ubisoft's last hope for a turnaround, but its success is far from guaranteed.
Beyond financial challenges, Ubisoft has also been grappling with internal issues such as mismanagement and a string of failed projects. These problems have led to significant cost-cutting measures, including a planned reduction of €200 million in fixed costs by the 2025-2026 fiscal year.
With its future hanging in the balance, Ubisoft is facing its most challenging period in its history. The success of Assassin's Creed Shadows is crucial for the company's survival, but even a successful launch may not be enough to solve all of its problems. Ubisoft will need to implement significant changes to its business strategy and management practices to overcome its current difficulties and secure a sustainable future.
