Ubisoft is Gradually Improving Operations After Increased Investment Delivered Weak Results

Ubisoft owns some of the best-known video game franchises, including Assassin’s Creed and the Tom Clancy series. We expect these core titles will provide opportunities to create new content that generally produces consistent revenue. Over the past couple of years, however, the firm has sharply increased investment in new game development, but the results have been poor. As Ubisoft scales back these efforts, financial results should improve. Shareholders could also realize outsize gains if one of its newer games turns into a breakout success.