The main point is definitely their massive workforce with little to show for it. They obviously have a problem with execution. They chase trends instead of setting them, then the trend dies and they have to internally cancel/restart projects because they are behind the times.
The only thing keeping them afloat is their play-it-safe franchises like AssCreed and the MTX from R6 and various other games. Ubi is not Take2 or EA (yet) where the MTX makes up 80%+ of the revenue but they are at over 50% as well.
With so many studios and their huge headcount, they really need to work on execution and getting shit (i.e. games) done. They are sitting on so many franchises. Where is the next Ghost Recon? Where is The Division 3? Where is a Might&Magic RPG? How about a new Rainbow Six that is not just multiplayer only? Why cancel the Immortal Fenyx Rising sequel when IFR was just gaining traction? Where the actual fuck is the long overdue Splinter Cell sequel? They could also revive some niche franchises like Silent Hunter etc. ... but most importantly they should focus on coming up with all new franchises without chasing after trends.
That said, I think we should wait for their upcoming financial reports. Star Wars Outlaws underperformed and everyone has their panties in a bunch. The stock took a good old dive but are they really in trouble? We'll see. Last quarter they exceeded their guidance and were doing pretty well on a whole:
First-quarter 2024-25 net bookings totaled €290.0 million, exceeding the target of around
€275.0 million and up 8.3% (7.8% at constant exchange rates) on the €267.7 million figure for
the first quarter of 2023-24.
We'll have to wait and see about how hard SWO actually tanked. Ubi's guidance for the next (2nd) quarter was €500 million. Whether they are in any real trouble remains to be seen. The stock tanking does not really mean much. Investors can be a very fickle bunch. What actually counts is the operating metrics and we'll only find out about those when they publish actual hard financial data.
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