Editing Ubisoft Entertainment SA
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Furthermore, Barclays reports that the largest AAA games have recently outperformed while smaller AAAs have underperformed: "Our 7 interviewees noted that improvements to the stickiness of the major games and their ability to keep gamers within their ecosystem were a major competitive factor in the AAA market. They also felt it was becoming more difficult to deliver success in 1-5m unit AAA games. They pointed to the squeezed consumer as exacerbating rather than creating this trend." This new trend reinforces the fact that Ubisoft's new strategy to focus on their core franchises, most of which are considered 'Mega games', synergises with structural changes in the industry and is the right path of action.<ref>Barclays. (2023) Ubisoft, Embracer and CD Projekt: Mega games getting bigger?</ref> | Furthermore, Barclays reports that the largest AAA games have recently outperformed while smaller AAAs have underperformed: "Our 7 interviewees noted that improvements to the stickiness of the major games and their ability to keep gamers within their ecosystem were a major competitive factor in the AAA market. They also felt it was becoming more difficult to deliver success in 1-5m unit AAA games. They pointed to the squeezed consumer as exacerbating rather than creating this trend." This new trend reinforces the fact that Ubisoft's new strategy to focus on their core franchises, most of which are considered 'Mega games', synergises with structural changes in the industry and is the right path of action.<ref>Barclays. (2023) Ubisoft, Embracer and CD Projekt: Mega games getting bigger?</ref> | ||
However, consensus analyst reports don't seem to have the same opinion, and view the execution risk as significant | However, consensus analyst reports don't seem to have the same opinion, and view the execution risk as significant. Therefore, it may be prudent to sit and watch how Ubisoft develops over time. | ||
==== Risks to Price Target ==== | ==== Risks to Price Target ==== |