Gaming company investments offer interesting opportunities, especially when they launch a successful title. Ubisoft now presents exactly such an opportunity in the stock market, as the release of the new installment in the successful Assassin’s Creed series is expected to have a positive impact on the company’s share value. Let’s take a closer look at this potential investment opportunity in the context of the French gaming giant’s latest success.
Patience Paid Off: Assassin’s Creed Shadows Celebrates Success After Two Delays
Ubisoft Entertainment SA made an unprecedented decision last year – delaying the release of the anticipated title Assassin’s Creed Shadows from November 2023 to February 2024, and subsequently to March 20, 2024. For a game series that had been releasing its major titles exclusively in the fall for nearly two decades, this was a surprising move.
The reason for these delays was the subpar performance of Star Wars Outlaws from August 2023, which was criticized for numerous bugs and unfinished content. Ubisoft stated in its press release that “the learnings from the Star Wars Outlaws release led us to provide additional time to further polish the title” and emphasized a “renewed focus on gameplay quality and engaging Day-1 experiences.”
And patience paid off. Assassin’s Creed Shadows arrived last week and received positive player reactions and solid reviews. Although the company has not yet published specific sales figures, it announced that the game reached 3 million players within seven days.
Second-Highest Revenue in Series History
In an internal email sent to employees, executive producer Marc-Alexis Côté wrote that the game “delivered the second-highest Day 1 sales revenue in the franchise’s history.” First place is still held by Assassin’s Creed Valhalla from 2020, which was released during the pandemic and alongside a new generation of gaming consoles.
“It’s a clear example of what’s possible when we align creativity, craft, and strategy across Ubisoft,” Côté stated in the email, which Bloomberg had access to. He also praised the testing, technology, and bug-fixing teams.
Ubisoft’s Strategic Restructuring
The game’s success comes at a crucial moment for Ubisoft, which announced on Thursday the creation of a new entity for licensing its biggest franchises, including Assassin’s Creed. Although many questions remain about how this new structure will function, the success of Shadows gives the company a strong position for future negotiations.
Why is this an investment opportunity? Given the successful launch of Assassin’s Creed Shadows and the announced restructuring of the company focused on better monetizing its most valuable franchises, Ubisoft is becoming an interesting investment opportunity. The company’s shares may reflect positive momentum from this success in the coming months.
A Game Breaking Prejudices
Assassin’s Creed Shadows, set in feudal Japan, features two protagonists: a female shinobi named Naoe and an African samurai named Yasuke. This casting made the game a cultural friction point for some internet commentators who loudly hoped for its failure.
Even Elon Musk joined the controversy, writing on X that “DEI (diversity, equity, inclusion) kills art,” which provoked sharp responses from users of his own platform.
Key insights for investors:
- Quality takes precedence over deadlines – Ubisoft’s willingness to delay game release to ensure quality has proven to be the right strategy, which will likely shape the company’s future decision-making.
- Diversity sells – Despite criticism from some internet commentators, it has been shown that a game with a Black protagonist can still sell millions of copies.
- Strong foundation for future licensing – The game’s success provides the company with a better negotiating position for licensing agreements within the newly announced restructuring.
Summary for Investors
Ubisoft has demonstrated that it can learn from past mistakes and adapt its strategy. The success of Assassin’s Creed Shadows suggests that the company may be entering a period of more stable growth, which could positively affect the share price.
With continued development of other titles in the Assassin’s Creed series (including a project codenamed Hexe) and Far Cry, the company should benefit from the lessons learned during the development of Shadows.
