Ubisoft isn't in the position they are because of one game, I think it's incredibly unlikely their fortunes would be completely reversed because of one game.
UBIsoft in potential financial trouble
- Thread starter Silent_Buddha
- Start date
Well, your words really say otherwise:
If you're talking about company fortunes and Shadow's impact, surely the consideration is profits, not sales? Shadow selling 20 million units would be undeniably great sales, but if it lost them money in the long run, bad for business and then visible as, at some point, a downturn in stock value. AFAICS so far the discussion has been about the amount of units sold, echoing the Steam numbers consideration, on Shadow's market performance. Insight into revenue and costs surely won't come until Ubi's next financial report, pending press releasees?
If they didn’t sell enough to recoup the cost to make it I would say those are bad sales. What is ‘good sales’ for one game is ‘bad sales’ for another, as AAA(A) games cost way more to make than random indie games where selling 20 million is incredible.
What language do you use to differentiate between units shifted and money made then? The standards are, surely, 'sales' for units, 'revenue' for money, and 'profit' for net gains? Look up a list of best selling anything and you'll get the number of items sold, not the amount of money made.
Huh? You referenced shadows which just launched. The 40% is over a year.
“Units shifted” is a useless metric. An indie game that cost $20k to make selling 400k is great, CoD selling 400k is horrible.
A company losing almost half its market cap over the course of 12 months is nuts.
In the past month they are down 10%, which is also not a gyration, that is a significant decrease, despite a major launch.
The entire US market is down 6% in the same month. If we narrow it down to tech stocks, such as Vanguard's information Technology Index Fund ETF (ARCX: VGT) we see the whole index is down 11% in the the same timeframe. IF you don't like VGT as an indicator, pick your own relevant tech stock index and tell us how it performed in the last month.
Yet again, context matters.
You've still yet to provide any data which indicates their stock drop is related to sales (or lack thereof) of their newest iteration of the AC franchise. Do you actually have any data to support your stance?
Ubisoft is not an American company so idk what US ETFs have to do with it. VXUS (the international whole market index) is only down 1%.
No I don’t have any data, I’ve gone over my reasoning for why I think they’re linked but ultimately it’s speculation. I’m not sure what data you expect me to have here.
You’re ignoring obvious macro factors. Yes 10% down is bad. The biggest Euro index is down 5% in the same month. What’s the reasoning that says the Shadows launch is more of a factor than everything else going on in the world right now?