Important takeaways
- Ubisoft faces potential privatization and major strategic changes in 2025, according to analyst Joost van Dreunen.
- XDefiant's suspension may reflect broader trust issues in Ubisoft's gaming strategy.
- Ubisoft's future plans are still uncertain.
Entertainment analyst Joost van Dreunen thinks so Ubisoft is heading towards privatization and other major changes in strategies. 2024 has been a particularly tough year for Ubisoft. Despite having a grip on gigantic IP addresses like Assassin's Creed, Rainbow Sixand Prince of Persiarecent outings have been less than stellar, with the reception of releases such as Star Wars Outlaws highlighting what could be a wider lack of confidence in Ubisoft's approach to gaming.
Most recently, Ubisoft announced plans to shut down XDefiantits first-person shooter that set out to do battle with gaming giants like Call of Duty. Many expected XDefiants suspension, predicts the future of the game based on the dwindling number of players. Now that XDefiants services are scheduled to end, new registrations and downloads will be blocked, preventing more of Ubisoft's resources from being allocated to the title. People who follow Ubisoft have also taken XDefiants failure as a larger sign of the company's current status.
Family
With XDefiant's days numbered, a Ubisoft franchise should fill the void
Now that XDefiant is headed for an early grave, Ubisoft has the opportunity to use one of its biggest franchises in its place.
A report by Joost van Dreunen, a business professor and games analyst, suggests that Ubisoft “is headed for privatization and dismantling by 2025.” The analyst supports this claim by referring to the company's track record in 2024, particularly noting the significant decline in Ubisoft shares that occurred this year. Further, van Dreunen describes the company's approach to game development as “stubbornly antiquated,” suggesting that Ubisoft's recent habits, including a refusal to take risks, innovate and find more engaging ways to monetize its games, are a pattern that is leading it toward failure.
Ubisoft may be headed for big changes
Rumors of a potential Ubisoft purchase have been floating around for a few months, due to the fact that investors have encouraged and even called for the company to go private recently. Ubisoft CEO Yves Guillemot has tried to manage the conversation around a takeover, and fans have expressed their desire for the company to use its most well-known IPs to prevent further losses.
Joost van Dreunen points to Assassin's Creed Shadows as the saving grace for Ubisoft amid several recent missteps, but he doesn't project confidence in the project restoring the Ubisoft brand. Assassin's Creed Shadows was delayed to ensure the product gets the best possible launch. However, Van Dreunen discusses how player trust is a form of currency in the gaming market that Ubisoft lacks. Although the company has taken steps to ensure a better relationship with its audience, Ubisoft may have tried to obfuscate its Steam data, which could cause a wider divide. Regardless of how Ubisoft's next big release goes, many believe the company has a difficult future ahead of it.
Ubisoft
Ubisoft is a well-known video game developer and publisher headquartered in Saint-Mandé, France. Current CEO Yves Guillemot runs a series of teams responsible for some of the most iconic and well-known series in video games, with franchises such as Assassin's Creed, Farcry, The Crew, Just Dance and more. Ubisoft also serves as the parent company for a number of other video game developers, including names like Massive Entertainment, Ubisoft Paris, Blue Mammoth Games, Red Storm Entertainment and more.
- Date founded
- March 28, 1986
- Head office
- Saint Mande, France
- CEO
- Yves Guillemot
