Ubisoft is facing serious financial pressure in 2025, with its half-year earnings report abruptly postponed just minutes before release, trading of Ubisoft shares temporarily suspended on Euronext, and years of expensive underperforming titles raising fresh questions about whether the company is in financial trouble, nearing bankruptcy, or moving toward a takeover by a larger partner such as Tencent. The concerns have only intensified as Ubisoft’s stock continues to fall, now trading at less than €6.00 per share compared to its all-time high near €100.
The publisher later acknowledged that an accounting adjustment pushed it into breaching a key debt covenant, which forced a last-minute scramble to secure liquidity through Tencent’s €1.16 billion investment in Vantage Studios. Combined with a stock price that has lost more than half its value this year and major releases like Skull and Bones, Star Wars Outlaws, and Assassin’s Creed Shadows falling short of expectations, the sense of crisis is now impossible to ignore.
What is happening with Ubisoft in 2025?
Ubisoft’s situation in 2025 stems from a series of unusually serious financial and operational setbacks that became public in mid-November. The most alarming event was the company’s decision to postpone its half-year earnings call only minutes before it was scheduled to begin. Ubisoft also requested that Euronext halt trading of its shares and bonds, preventing what likely would have been a steep drop in the stock price.
Shortly afterward, Ubisoft confirmed that an internal accounting adjustment affected how revenue and costs were recognized for the period. That adjustment pushed the company into violating a debt covenant tied to its existing loans. When a covenant is breached, lenders can demand renegotiation, impose penalties, or in some cases require repayment. Ubisoft halted trading while it secured additional liquidity and finished correcting its financial statements.
At the same time, investors have been watching major structural changes inside the company. Ubisoft recently moved its most valuable franchises (Assassin’s Creed, Far Cry, and Rainbow Six) into a new subsidiary called Vantage Studios. Tencent invested €1.16 billion for a 25% stake in that entity, giving it partial influence over Ubisoft’s strongest brands. For many analysts, this shift suggests the company is preparing for a sale, a buyout, or a move to go private.
Taken together, the delayed earnings, the debt-related issue, and Ubisoft’s growing reliance on outside capital point to deeper weaknesses in the business: rising development costs, falling revenue, and several major releases that have not met expectations. All of this explains why speculation about financial trouble or a potential acquisition has accelerated so quickly.
Why is Ubisoft in this situation?
Ubisoft’s financial strain did not appear overnight. The company has spent several years dealing with rising development costs, uneven creative direction, and a string of major releases that failed to deliver the sales needed to cover billion-euro production and marketing budgets. As its internal expenses grew, Ubisoft became increasingly dependent on a few core franchises to carry the entire business. When those franchises underperformed, the company’s margins collapsed.
Another issue is the scale of Ubisoft’s operations. With roughly 18,000 employees across dozens of studios, the company carries one of the highest fixed-cost structures in the industry. By comparison, Electronic Arts and Take-Two Interactive generate far more revenue with significantly smaller workforces. Ubisoft’s sprawling structure made it harder to adapt quickly, cut projects that were falling behind, or shift resources toward stronger opportunities.
The company also spent several years attempting to reinvent itself through new service games, cross-media projects, and experimental franchise extensions. Many of these initiatives demanded substantial investment but delivered weak returns. Development timelines grew longer, budgets ballooned, and internal teams were spread thin across too many projects at once.
These financial pressures were then compounded by strategic misfires. Ubisoft invested heavily in expensive AAA games that were expected to anchor its fiscal years, only for those titles to miss expectations. With each underperformance, the company had less cash to reinvest, more debt to service, and greater dependence on outside investors. This created a cycle where one weak launch made it harder to recover before the next one arrived.
All of these factors set the stage for what we are seeing now: a publisher that is carrying too much cost, generating too little revenue, and relying on external capital to stabilize its balance sheet while it tries to reorganize.
Which Ubisoft games have underperformed in recent years?
Ubisoft’s current financial pressure is closely tied to a series of high-budget releases that failed to meet sales expectations. These titles were meant to anchor multiple fiscal years, but instead they delivered weaker-than-planned revenue while absorbing enormous development and marketing costs.
- Skull and Bones: After more than a decade in development and several complete reboots, Skull and Bones launched with one of the largest budgets in Ubisoft’s history. Despite that investment, the game struggled to find an audience, and its sales dropped quickly. Today it can be found at steep discounts, and player engagement has fallen far below what a live-service title needs to remain profitable.
- Star Wars Outlaws: Ubisoft poured unprecedented marketing resources into Star Wars Outlaws, hoping the Star Wars brand would deliver a breakout hit. While the game sold moderately well at launch, it fell short of internal expectations. The DLC failed to bring players back, and the long-term revenue projections for the title were revised downward soon after release.
- Assassin’s Creed Shadows: Although Assassin’s Creed Shadows sold millions of copies, it underperformed relative to its budget. Among Ubisoft’s last five major Assassin’s Creed releases, Shadows carried the highest production cost but delivered the lowest early sales. This gap between investment and return has been particularly damaging because Assassin’s Creed has historically been Ubisoft’s most reliable revenue source.
- Avatar: Frontiers of Pandora: Despite the popularity of the Avatar film franchise, the game launched to muted interest. Engagement dropped quickly even after major updates, and the title failed to produce the long-tail revenue Ubisoft expected from a licensed open-world release.
- XDefiant: The company had hoped XDefiant would compete directly with Call of Duty, but the game’s launch was overshadowed by other FPS releases. Player numbers dropped rapidly, and server support wound down sooner than expected.
Combined, these underperforming games consumed massive budgets without producing the steady revenue needed to support Ubisoft’s large workforce and multi-site development model. Each shortfall increased financial pressure, inflated debt, and made the company more dependent on outside investors to cover operational costs.
What is likely to happen to Ubisoft now?
The abrupt earnings delay, the debt covenant breach, and the ongoing stock decline have sparked intense speculation about Ubisoft’s future. While nothing is confirmed, several realistic scenarios are now being discussed by analysts, investors, and industry observers.
1. A Tencent-led buyout becomes more likely
Tencent already holds a 25% stake in Vantage Studios, the Ubisoft-controlled entity that manages Assassin’s Creed, Far Cry, and Rainbow Six. This investment gives Tencent a foothold in Ubisoft’s most valuable properties.
If Ubisoft’s liquidity issues continue, Tencent is in a strong position to move from strategic partner to majority owner. The company also has an existing relationship with the Guillemot family, which makes this path both practical and likely.
2. A Saudi PIF acquisition or a joint take-private deal
Saudi Arabia’s Public Investment Fund (PIF) has invested heavily in the global games industry, including major stakes in Nintendo and Embracer Group, along with its recent fifty-five billion dollar move to take Electronic Arts private.
PIF has also supported recent Ubisoft projects, so a deeper partnership is possible. Some analysts believe a joint deal with the Guillemot family, potentially taking Ubisoft private, could emerge if the company needs immediate liquidity.
3. Ubisoft restructures aggressively and attempts to remain independent
Another path is for Ubisoft to pursue a major internal overhaul. This could mean consolidating studios, cutting unannounced projects, and reducing its roughly 18,000-person workforce to bring operating costs closer to current revenue levels.
While this would preserve independence, it would require difficult cuts at a scale Ubisoft has avoided in the past.
4. A sale of non-core assets
If a full acquisition does not materialize, Ubisoft may look to sell or license certain franchises, technologies, or regional studios to raise cash. Several game publishers have stabilized their finances through targeted asset sales, and Ubisoft could follow that model.
5. A complete return to private ownership
Public markets have punished the company’s stock, which is now trading near ~€6.00 per share compared to a peak close to €100. A take-private deal could appeal to the Guillemot family, Tencent, PIF, or a consortium of partners who prefer long-term restructuring without quarterly pressure.
Ubisoft’s future?
Ubisoft’s sudden earnings delay, its breach of a debt covenant, and the continued decline of its stock have all intensified speculation about the company’s future. The most discussed scenario is a potential takeover, with Tencent seen as the leading candidate because it already owns a 25 percent stake in Vantage Studios and holds a strategic position around Ubisoft’s most valuable franchises. The Saudi Public Investment Fund is another possibility, given its recent large-scale gaming investments and its growing involvement in Ubisoft projects. A joint deal that takes Ubisoft private is also on the table, especially if the company needs immediate liquidity to stabilize its balance sheet.
If no acquisition occurs, Ubisoft may face significant internal restructuring. This could involve consolidating studios, cutting projects, and reducing the company’s roughly 18,000-person workforce to bring costs back in line with revenue. Selling or licensing non-core assets is another option that could provide short-term cash. With the stock now trading near ~€6.00 per share, a transition to private ownership may ultimately be the most practical path. No matter which direction the company takes, it is clear that Ubisoft is heading toward a major turning point, and it is unlikely to look the same a year from now.
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