Man, investors and shareholder are a fickle sort. Following Ubisoft’s announcement that open-world next-gen showcase Watch Dogs and racer The Crew would see a delay, Ubisoft’s stock prices have dropped rather sharply.
According to Bloomberg, Ubisoft’s shares dropped by as much as 32% following the announcement, though they settled to being just a 25% drop in share price.
Ubisoft is set to make an operating loss of between 40 million euros and 70 million euros for the 2013 fiscal year after delaying Watch Dogs and The Crew. On top of that, some of its other releases just haven’t performed very well. Still, Ubi’s sure it’s made the right choice.
“We made a choice that will pay off in the long run,” Ubisoft CEO Yves Guillemot said in an interview. “The market has changed — we need huge blockbusters, and that means making very high-quality games.”
“It’s little bits of polish and fine-tuning, but they really matter — we want these games to be the
best out there for new-generation consoles,” said Guillemot “‘Watch Dogs’ could be as big as ‘Assassin’s Creed,’ even bigger. It’s a great opportunity to increase our market share.”
Ubisoft’s successes for the rest of this year hinge on just a few key titles. which include the latest in the ludicrously popular Just Dance series, and Assassin’s Creed IV. Yeah, I think Ubisoft is going to be just fine.
[Thanks to Chief Accountant Erwin for the tip]Last Updated: October 17, 2013
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| was reviewed on PC | |
Tarisma
October 17, 2013 at 12:03
buy Ubisoft shares now peeps
Ultimo_Cleric N7
October 17, 2013 at 12:04
Hold on let me get a second morgage on my house and sell my liver and soul. Might just be able to afford it then,
Admiral Chief Ninja
October 17, 2013 at 12:12
Thought the same thing, went into my banking portfolio, stopped thinking about it
ToshZA
October 17, 2013 at 12:16
I’m in the same boat right there. I’d really have bought shares now. Next year, I’d have made tens of rands! I’d be rich!!!
Admiral Chief Ninja
October 17, 2013 at 12:17
Heh, “tens of rands”
LOL
Sir Rants-a-Lot Llew
October 17, 2013 at 12:19
Lol
John's digital rights
October 17, 2013 at 12:17
Great opportunity.
NecroRince
October 17, 2013 at 12:34
YES!
Admiral Chief Ninja
October 17, 2013 at 12:06
Chief Accountant? Man, never been so insulted in my bloody life!
Hammersteyn
October 17, 2013 at 12:07
Just a normal tip? Not orange?
Hammersteyn
October 17, 2013 at 12:09
Ubisoft will be fine, too bad the investors aren’t gamers. Obviously they would not have pulled their cash out
Admiral Chief Ninja
October 17, 2013 at 12:11
Man, I really watch that movie again!
Sir Rants-a-Lot Llew
October 17, 2013 at 12:19
Never thought of it from this side of things. We often moan that companies launch games too soon and don’t spit and polish enough. But let them delay it to do that and they make losses when investors freak out.
Kinda sucks
Alien Emperor Trevor
October 17, 2013 at 12:22
Short term investors. Gimme Gimme Gimme. They’re a major problem. Deferring a dividend payout for a few lousy months will have no long term effect.
Sir Rants-a-Lot Llew
October 17, 2013 at 12:25
It’s a huge problem though. Kinda makes one think about the whole “Games don’t launch with as much polish and shine like they used to” argument in a whole different light.
Alien Emperor Trevor
October 17, 2013 at 12:39
True, I understand it. But I also don’t have much sympathy when a company does something like that, which is bad for the customer, to benefit a shareholder. Sure you can release an unpolished game & it’ll make a killing – but people won’t forget about that when you ask them to buy your next game.
Ubisoft have done the right thing, which will benefit customers, and further down the line, shareholders, and they shouldn’t be punished in their share price because it’s not immediate returns.
Sir Rants-a-Lot Llew
October 17, 2013 at 12:46
I agree with you 100%. In a perfect world hey?
But yeah. Good on Ubisoft for sticking to their guns. Still don’t like em though
Maxiviper117
October 17, 2013 at 12:26
So it looks like now the time to invest in ubisoft, then sell when the share prices spike close to Watch Dogs release.
NecroRince
October 17, 2013 at 12:28
Ouch! Vasaline anyone?
ToshZA
October 17, 2013 at 12:30
Vaseline*
Admiral Chief Ninja
October 17, 2013 at 12:32
Weird that Rince would misspell that, he is the expert on it 😉
ToshZA
October 17, 2013 at 12:34
There’s a new article up on LG that might just get him to replenish his stocks. He could check the spelling then.
NecroRince
October 17, 2013 at 12:35
Shut up you!
Sir Rants-a-Lot Llew
October 17, 2013 at 12:47
Shut up, you*
Punctuation, Rince.
ToshZA
October 17, 2013 at 12:51
Lets eat Grandma!
See, Rince?
SaintsRowNigri
October 17, 2013 at 13:25
GRAMMA???
ToshZA
October 17, 2013 at 13:56
What has been seen, cannot be unseen. You are evil.
Wyzak
October 17, 2013 at 15:15
Eish, that has to sting.