"Nothing is written in stone." Ubisoft head responds to Stop Killing Games petition

At its annual shareholder meeting, Ubisoft CEO Yves Guillemot addressed key investor concerns, including the 'Stop Killing Games' petition and a class-action lawsuit over *The Crew*'s discontinuation, asserting that while game services are not eternal ("nothing is written in stone"), the company aims to minimize player impact. Guillemot also defended *Assassin's Creed: Shadows* against 'woke' accusations by highlighting historical accuracy and discussed plans to explore AA game development for portfolio diversification. He additionally noted the company was not found liable in past misconduct cases, despite recent executive convictions.

Analysis

Ubisoft's recent annual shareholder meeting revealed significant friction points between management and stakeholders, casting a negative sentiment over the company's governance and operational strategy. CEO Yves Guillemot's response to the 'Stop Killing Games' petition, stating that game services are not eternal and "nothing is written in stone," directly addresses the business model for live-service titles but also confirms a key source of consumer backlash. This stance is material given the ongoing class-action lawsuit in California over the shutdown of *The Crew*, which represents a tangible legal and financial risk. Furthermore, management is on the defensive regarding creative direction, with Guillemot justifying the protagonist choice in *Assassin's Creed: Shadows* based on historical fact against shareholder accusations of a "woke-ist trend," highlighting a persistent reputational risk that could impact consumer demand. On governance, Guillemot’s claim that the "company was not found liable" for misconduct contrasts with the conviction of three former executives, suggesting that while corporate liability may have been avoided in specific cases, leadership and cultural issues remain an overhang. A notable strategic development is the confirmation that Ubisoft will explore the AA games market to diversify its portfolio, a move that could de-risk its heavy reliance on high-budget AAA titles but whose success is yet to be proven.

Key Decisions for Investors

• Investors should closely monitor the progress and potential outcome of the class-action lawsuit related to The Crew, as an unfavorable ruling could set a costly precedent for the company's live-service business model.
• The controversy surrounding Assassin's Creed: Shadows introduces a tangible risk to the title's commercial success; therefore, tracking pre-order numbers and initial sales data will be critical to gauge consumer sentiment impact.
• The strategic pivot to test the AA games market should be viewed as a potential long-term positive for portfolio diversification, but its impact on margins and capital allocation requires scrutiny.
• Persistent governance concerns, highlighted by the contrast between CEO statements and executive convictions, warrant caution and a closer look at the company's environmental, social, and governance (ESG) risk profile.