Why is Ubisoft canceling six games?

Ubisoft is canceling six games as part of a major cost-cutting plan to recover from a string of flops and streamline its operations.

How did Sandfall Interactive achieve success?

Sandfall Interactive achieved success with its debut game, Clair Obscur: Expedition 33, which sold millions and won Game of the Year, developed with a small team and modest budget.

What is happening in the video game market?

The video game market is changing, with growth slowing post-pandemic and increasing competition, leading major companies like Ubisoft to restructure.

Home / Business and Economy / Indie game success overshadows Ubisoft's crisis

Indie game success overshadows Ubisoft's crisis

26 Jan

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Summary

Ubisoft cancels six games amid a major cost-cutting plan.
Tiny studio Sandfall's game sold millions, won Game of the Year.
Video game market growth is slowing post-pandemic.

Indie game success overshadows Ubisoft's crisis

The European video game market faces significant challenges as post-pandemic growth decelerates and competition intensifies. While small studio Sandfall Interactive celebrated a Game of the Year award for its debut title, French president Emmanuel Macron also lauded its commercial success. This achievement stands in sharp contrast to the crisis at Ubisoft, a major European publisher.

Ubisoft, known for its Assassin's Creed franchise, is implementing a substantial cost-cutting plan. The company has announced the cancellation of six games and is closing several studios. This restructuring comes as Ubisoft warns of a potential €1 billion pretax annual loss, attributed to a series of underperforming titles and the need to streamline its operations. The company's shares have fallen to a 15-year low.

The broader gaming market, valued at $189 billion, is undergoing transformation. With increased competition from various entertainment forms and escalating development costs, publishers are re-evaluating their strategies. Ubisoft, despite its intellectual property portfolio, struggles with efficiency, showing the lowest sales-per-employee among major gaming firms tracked by Bloomberg Intelligence. Past ventures into trends like the metaverse have also eroded customer and investor confidence.