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Ubisoft Faces Mounting Issues as 700 Employees Strike Following Studio Shutdown

Since its founding in France in 1986, Ubisoft has been a dominant force in the gaming industry, producing some of the most iconic and genre-defining games across multiple platforms. For decades, the company saw consistent success, particularly after it chose to slow down the rapid release of its flagship Assassin's Creed series, aiming for more polished and refined projects. However, recent years have marked a turbulent period for the company, culminating in October 2024, which has been one of the most challenging months in Ubisoft's history.



A Company in Crisis

Ubisoft is currently grappling with a slew of issues that show no signs of abating. Recent projects, including Star Wars Outlaws and Assassin's Creed Mirage, have underperformed, failing to meet the company's ambitious sales targets despite the significant investment in content and development. Additionally, the company’s reluctance to revive beloved franchises like Rayman, instead doubling down on yearly Just Dance releases, has left long-time fans disappointed. With each controversial decision, consumer trust continues to erode.


From Golden Age to Decline

While Ubisoft faces its most difficult period yet, it wasn’t always this way. From 1986 to 1990, then known as Hudson Soft, the company developed games for PC and the Commodore 64, though these titles received little attention. That changed in 1991 with the release of Bomberman, a retro classic that cemented its early reputation. Over the next three decades, Ubisoft built a legacy through its major franchises: Rayman, Prince of Persia, Far Cry, and Assassin's Creed.


Yet, in recent years, Ubisoft has seemed intent on leaving some of its best ideas behind. The Rayman series, for instance, hasn’t seen a mainline release since Rayman Legends in 2013. This shift marked a downturn for the company, as it began focusing on producing large-scale AAA games that often felt bloated and devoid of the charm found in earlier titles. While Assassin's Creed Origins managed to stand out as an exceptional experience, many of the company’s modern releases have been criticized for being formulaic, buggy, and lacking depth—a sentiment that Star Wars Outlaws failed to dispel.


Star Wars Outlaws: A Missed Opportunity

Star Wars is one of the most beloved franchises in pop culture, and its universe has inspired some excellent games over the years, such as Star Wars: The Force Unleashed and Star Wars Jedi: Fallen Order. Unfortunately, Star Wars Outlaws did not live up to these high standards, and Ubisoft’s attempts to course-correct have only led to more drastic actions, including a scramble to overhaul its release schedule.


The Shocking Shutdown of a Beloved Studio

Despite these setbacks, Ubisoft still managed a surprise hit with Prince of Persia: The Lost Crown. Announced in June 2023 and released in January 2024, the game marked a return to the series’ roots with a Metroidvania-style action-adventure reminiscent of its original titles from the late 1980s and early 1990s. Earning an 86 on Metacritic, The Lost Crown received praise for its engaging gameplay and deep narrative. Yet, despite its success, Ubisoft made the shocking decision to shut down the studio responsible for the game, citing that it did not meet financial expectations.


The decision is puzzling, considering the game was understood by developers to be a passion project for a dormant series. Reports suggest it cost $200 million to produce but only made $15 million—a clear loss that nonetheless didn’t stop fans from expressing dismay over Ubisoft's choice. The shutdown reflects a troubling trend in the gaming industry, where corporate interests overshadow creative expression, putting passion projects at risk.

Although the development team remains at Ubisoft, the future of the Prince of Persia franchise seems bleak, especially after a pitch for a sequel was swiftly rejected. The company’s apparent preference for bloated AAA titles over smaller, well-crafted games has alienated many players and made its defense of underperforming projects like Star Wars Outlaws even harder to justify.


Employee Unrest: A Company on the Brink

Ubisoft's woes extend beyond poor game sales and creative stagnation. Recent internal conflicts have exacerbated the company's struggles, with employees expressing frustration over what they perceive as unreasonable demands from management. Last week, Ubisoft France required staff to work at least three days a week in the office, sparking a backlash that led to a three-day strike involving over 700 employees. The company justified the mandate, claiming it would foster creativity and stronger work relationships, but the move only deepened the divide between staff and executives.


This labor dispute is just one of many crises facing Ubisoft, which has been forced to consider drastic solutions, including seeking a buyout from Tencent, a major Chinese developer known for titles like Pokémon Unite and League of Legends. With delays affecting anticipated games like Assassin's Creed Shadows and disappointing sales from Star Wars Outlaws, Ubisoft's future appears increasingly uncertain.


A Legacy at Risk

While Ubisoft is unlikely to disappear altogether, its recent actions have put its long-standing reputation in jeopardy. The company has not only struggled to recapture its past glory but also failed to adapt to evolving industry trends and player expectations. The recent studio shutdown, employee strike, and potential buyout talks indicate a company that is losing its grip on the market and its identity.


If these issues continue to go unaddressed, Ubisoft risks tarnishing the legacy it built over nearly four decades. What was once a pioneering force in the gaming industry now faces an uncertain future, as missteps and internal strife threaten to undermine everything it has achieved.

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