Ubisoft's Star Wars Outlaws Underperforms, Impacting Share Price
Ubisoft's highly anticipated Star Wars Outlaws, intended as a financial turning point for the company, has reportedly underperformed in sales, causing a dip in Ubisoft's share price. Despite positive critical reception, sales have been described as sluggish.
Share Price Decline
Ubisoft had pinned significant hopes on Star Wars Outlaws, alongside Assassin's Creed Shadows (AC Shadows), as key drivers of future growth. However, following the game's August 30th release, Ubisoft's share price fell for two consecutive days, dropping 5.1% on Monday and a further 2.4% by Tuesday morning. This marked the lowest share price since 2015, adding to a year-to-date decline of over 30%.
Sales Projections Revised Downward
J.P. Morgan analyst Daniel Kerven revised his sales projections for Star Wars Outlaws from 7.5 million units to 5.5 million units by March 2025, citing the game's struggle to meet initial expectations despite positive reviews.
While the game received generally favorable reviews from critics, player reception has been less enthusiastic, reflected in a 4.5/10 user score on Metacritic. This contrasts sharply with some positive reviews, such as Game8's 90/100 rating, which praised the game's faithfulness to the Star Wars franchise.
Ubisoft's Q1 2024-25 sales report highlighted the importance of Star Wars Outlaws and AC Shadows in their organizational transformation strategy. The company did report a 15% increase in session days across consoles and PC, largely due to Games-as-a-Service, with MAUs reaching 38 million (a 7% year-on-year increase). However, the underperformance of Star Wars Outlaws casts a shadow over these positive figures. The company's reliance on these two titles to revitalize its financial outlook now faces significant uncertainty.
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