Ubisoft Forward 2023 Event Unveils Host of New Games, But Stock Still Struggles
Key takeaways
- Ubisoft unveiled new Star Wars, Avatar and Prince of Persia games at its headline Ubisoft Forward 2023 event
- Despite the flagship event, the company’s finances have struggled in recent months with a poor full-year earnings report
- Ubisoft’s stock was down 1.24% on Tuesday
The gaming world was alight with anticipation after the Ubisoft Forward 2023 event this week, which showcased some of the gaming company’s hotly anticipated new works. Star Wars, Avatar and Prince of Persia were the headline announcements, but investors have still been left skeptical about whether the company can recover after a weak full-year earnings. Here’s the lowdown.
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What happened at Ubisoft Forward 2023?
Ubisoft’s Forward 2023 event was the first look at what the company plans to focus on for the next year, with some big brand tie-ins and a continued focus on best selling franchises.
Ubisoft shared a first look at the Stars Wars Outlaws game, announced the Avatar: Frontiers of Pandora first-person adventure game release date, and revealed footage from the upcoming Prince of Persia: The Lost Crown gameplay.
Some of the less flashy announcements included an Assassin’s Creed game coming to the Meta Quest 2 VR headset and a beta for the much-anticipated Skull and Bones action adventure game.
The event was met with a lot of excitement from gamers, but investors were unimpressed after the company’s struggles for the last few months have piled on the pressure.
What was the market reaction?
Despite the host of news, Ubisoft’s shares were down 1.24% on Tuesday from the day before and have slumped nearly 8.2% in the last five days. The stock has been on a rollercoaster ride of late as UBS double-downgraded the stock a few weeks ago, slashing its price target to €20 from €55.
Its full-year figures didn’t give investors much confidence, either. Ubisoft’s sales were down 15% year-on-year to €1.81 billion, while the net losses came to €495 million compared to an €80 million profit the previous year. Ubisoft has also canceled three games that were slated for release this year and begun a two-year cost-cutting strategy.
The bottom line
Ubisoft needs a win this year against a pretty dismal fiscal backdrop. The gaming company’s Forward 2023 event has generated some excitement amongst its customer base, so investors will be looking to see if that translates into sales for the embattled Ubisoft.
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