Ubisoft's current financial situation hints at bankruptcy in 2025
Ubisoft has lost about 80% of its value in just 5 years and 47% this year, highlighting that this year has been particularly bad. If things continue on this path, the company may have no choice but to file for bankruptcy, especially if Assassin's Creed Shadows fails to generate huge revenue.
This clearly shows that the company is facing financial problems , as Star Wars Outlaws, Skull and Bones, Avatar: Frontiers of Pandora and Prince of Persia: The Lost Crown were not commercial successes. These games also did not receive a positive reception, so it was obvious that they would not sell well. Now, with such huge losses, Ubisoft had no choice but to take on even more debt, as shown in its financial statements.
The French giant already had huge debts, but in 2024 they have grown too much. The latest financial report shows that the company's non-IFRS net debt is €1.1 billion and its IRFS net debt is €1.4 billion.
What's even more surprising is that the growth debt compared to the previous year exceeded 880 million euros. This clearly shows that Ubisoft is not generating the necessary profits to run the company, indicating potential bankruptcy in the near future.
The main reason why the company continually faces such problems is because it has stopped listening to your fandom. The gaming giant seems to have ignored what fans want and lost its identity.