Keep Factually independent

Whether you agree or disagree with our analysis, these conversations matter for democracy. We don't take money from political groups - even a $5 donation helps us keep it that way.

Loading...Goal: 1,000 supporters
Loading...

Fact check: A company as poorly managed as Ubisoft deserves financial insolvency.

Checked on December 16, 2024

1. Summary of the results

1. Summary of the results:

The analyses show that Ubisoft is experiencing significant financial challenges, including a €494.7 million net loss in 2022-23, a 38% share price drop, and the closure of five European branches. However, the company maintains substantial operations with €642.3 million in first-half net bookings and 37 million monthly active users.

2. Missing context/alternative viewpoints:

The original statement omits several crucial pieces of context:

  • Ubisoft has implemented a successful cost reduction plan, achieving €200M in savings
  • The company is actively addressing issues through strategic changes and restructuring
  • Hundreds of former employees are returning, including senior staff
  • The gaming industry as a whole has faced post-pandemic adjustments
  • Tencent's potential investment could provide financial stability
  • The company maintains strong performance in key franchises like Rainbow Six Siege

3. Potential misinformation/bias in the original statement:

The statement presents several problematic elements:

  • It makes a moral judgment ("deserves") about complex business circumstances
  • It oversimplifies corporate financial health into a binary "well-managed vs. poorly-managed" scenario
  • It ignores the cyclical nature of the gaming industry, where companies often experience periods of struggle followed by recovery
  • It disregards the interests of thousands of employees whose livelihoods depend on the company's survival
  • The statement benefits competing gaming companies and potential hostile takeover attempts by suggesting Ubisoft should fail rather than reform
Want to dive deeper?
Jamal Roberts gave away his winnings to an elementary school.
Did a theater ceiling really collapse in the filming of the latest Final Destination?
Is Rachel Zegler suing South Park?