Ubisoft's Struggles: A Deeper Look | Opinion

The history of Ubisoft has been marked by battles against takeover attempts and struggles for control. Since its initial public offering nearly thirty years ago, the company has evolved from a European distributor to a major global publisher. However, this growth has also made it a target for larger companies seeking to expand through acquisition. The share price of Ubisoft has been on a downward trend, with a significant decline over the past year. The company's valuation has been impacted by its past battles with Vivendi, which led to an inflated share price. The pandemic-era surge in valuations for game companies was short-lived for Ubisoft, and the company's latest struggles, including a disappointing launch for Star Wars: Outlaws, have further contributed to its decline. Despite these challenges, the company's problems are more complex than a simple takeover solution. Ubisoft has struggled to translate its popular IPs into commercial success, and its attempts to develop new IPs have been unsuccessful. The company lacks a reliable source of revenue, unlike its competitors, and its decisions have failed to effectively focus the company's efforts. The proposed solution by the activist investor, to sell out to private equity, would be disastrous for the company. Instead, Ubisoft needs to address its editorial problems and make changes at the top to improve its management and oversight. The company's current leadership has been in place for over three decades, and it is time for a change to ensure the company's future success. Ubisoft remains a vital part of the gaming industry, and its recovery would benefit the entire industry, especially in Europe. However, this will not be achieved by bringing in outsiders to slash and burn, but rather by making real changes at the top of the company.