This may be an obvious statement, but creating, marketing, and distributing video games can be very expensive. Ubisoft is one of the biggest and most successful gaming companies out there. Even then, it seems it’s having to cut back significantly. New reports state that the company will close multiple offices around Europe as part of a reorganization strategy. Sadly, this will lead to massive layoffs as well as delays for new and ongoing projects.
Ubisoft Offices Closing in Europe
There are many reasons why a huge gaming company would need to make some serious changes. Ubisoft seems to be familiar with practically all of them. Alongside claims of highly-demanding work conditions, poor sales may be contributing to Ubisoft’s latest office closures.
According to the details covered by NME, closing offices across Europe is part of a “strategic reorganization.” Though official numbers haven’t been disclosed, a possible leaked email has explained that it’s due to a number of factors. Among several other reasons is the supposed drop in sales for physical copies of games. It’s true that most players are choosing digital formats for convenience, while many who seek physical copies buy them secondhand.
It’s no secret that Ubisoft has had problems in the past, especially concerning management of its bigger titles. It has earned the ire of the gaming community for the outrageously priced elements of the Star Wars: Battlefront series and increasing dependence on microtransactions. Even its most profitable properties like Assassin’s Creed are also being flooded with microtransactions and poor online maintenance. It also doesn’t help that the company’s streaming service Ubisoft Connect has been struggling to compete with the likes of Steam, nor that they will be raising the base prices of their games to around 70 dollars.
Ubisoft has rocked the boat a lot before, and it’s about to make even more waves. We’ll be sure to report back on how these closures may affect projects moving forward.