Ubisoft's Star Wars Outlaws Underperforms, Impacting Share Price
Ubisoft's highly anticipated Star Wars Outlaws, intended as a financial turnaround for the company, has reportedly underperformed in sales, causing a significant dip in Ubisoft's share price. Despite positive critical reception, sales have been described as sluggish.
Falling Short of Expectations
Ubisoft had pinned its hopes on Star Wars Outlaws and Assassin's Creed Shadows (AC Shadows) to revitalize its financial outlook, highlighting them as key "value drivers" in its Q1 2024-25 sales report. However, J.P. Morgan analyst Daniel Kerven revised his sales projections for Star Wars Outlaws downward from 7.5 million units to 5.5 million units by March 2025, citing the game's struggle to meet expectations.
Share Price Decline
Following the game's August 30th release, Ubisoft's share price experienced a consecutive two-day decline, falling 5.1% on Monday and an additional 2.4% by Tuesday morning. This drop marked the lowest share price since 2015, adding to a year-to-date decline of over 30%.
While critics generally praised the game, player reception has been less enthusiastic, reflected in a 4.5/10 user score on Metacritic. This contrast highlights a disconnect between critical acclaim and consumer demand. One outlet, Game8, gave the game a 90/100 rating, calling it "an exceptional game that does justice to the Star Wars franchise," showcasing the disparity in opinions.
The underperformance of Star Wars Outlaws raises questions about Ubisoft's future strategy and the effectiveness of its high-profile releases in boosting its financial position. The company's continued reliance on Assassin's Creed Shadows now carries even greater weight.
