when the world markets are in turbulence with Bitcoin struggling at $85,000 and the price of gold hovering above $3,000, the game industry comes with a promising comeback.
Recently, the shares of the French publisher Ubisoft have shown increased volatility and interest from market participants after several months of decline. This activity is due to the successful launch of Assassin’s Creed Shadows.
The new installment of the iconic series gathered 2 million players in the first 48 hours after the release, surpassing the launch figures of Assassin’s Creed Origins and Odyssey. in addition, it became known that Ubisoft is planning to create a subsidiary company with Tencent’s participation. The Chinese giant is investing €1.16 billion for a 25% stake in a new division managing key Ubisoft franchises. Investors reacted positively, which led to an increased trading volume after a 50% drop over the past year.
Assassin’s Creed Shadows was initially scheduled for November 15, 2024, but Ubisoft postponed the release date twice, first to February 14 and then to March 20, 2025. The reason cited was the need to improve quality, but delays increased pressure from shareholders.
Despite this, the game launched stronger than Origins and Odyssey, confirming the continued interest in the franchise. Success is critical given Ubisoft’s challenges in recent years: the cancellation of several projects, falling stocks, and the search for strategic solutions to stabilize the business.
It is worth remembering that one of the key reasons for Ubisoft’s fall was the numerous delays in game releases and the deterioration of their quality. Projects that were supposed to be hits, such as Skull & Bones, Beyond Good and Evil 2, were in development for years, and the releases of Assassin’s Creed Valhalla and Far Cry 6 were accompanied by bugs and criticism for being formulaic.
Additionally, Ubisoft relied on games with live services as with The Division 2, Hyper Scape, Ghost Recon Breakpoint, but most of them failed. Players grew tired of aggressive monetization in the absence of high-quality content.
In January, Ubisoft announced consultations on transformational strategic and financial options. One of the options was to create a separate legal entity to which the rights to key franchises such as Assassin’s Creed, Far Cry, and Tom Clancy’s would be transferred.
The new structure will pay royalties to the parent company but will have complete control over the development of games under these brands. Tencent will not have direct management, but its stake will allow it to influence the strategy, and the deal should close before the end of 2025. This step will help Ubisoft reduce its €2.9 billion debt and attract additional resources for development.
The moderate stock’s growth after the release of Assassin’s Creed Shadows and the deal with Tencent shows that the market believes in the company’s potential. Such news may help investors to stay prepared during the periods of increased volatility. Using a stock screener can also be helpful in identifying similar companies in the gaming sector showing unusual trading volumes or positive momentum, especially in response to major news or earnings reports. This allows investors to react promptly and make data-driven decisions in a dynamic environment.
However, long-term success will largely depend on the quality of future games, the effectiveness of the new structure with Tencent, and Ubisoft’s ability to maintain control over key intellectual property assets.
If the strategy is successful, Ubisoft can return to growth after a difficult period. However, investors should keep an eye on the execution of plans, as the story of game postponements and shareholder pressure is still fresh in their minds. Without radical changes in management and creative strategy, Ubisoft risks repeating the fate of THQ or Atari.
