Investing.com -- Several developments have given Ubisoft 's (EPA: UBIP ) stock a boost in recent days, boosting optimism about the company's prospects.
A deal with Saudi Arabia's Savvy Games Group is driving this momentum, as well as positive early previews of Assassin's Creed Shadows, according to Barclays (LON: BARC ) analysts.
Ubisoft is exploring strategic options to revive its business, and these updates are not transformative on their own.
According to French newspaper Les Echos, Ubisoft has struck a deal with Savvy Games Group to develop downloadable content for Assassin’s Creed Mirage.
Savvy, which is backed by Saudi Arabia’s sovereign wealth fund, will reportedly fund the creation of additional expansions—such as maps, levels, and characters—for the game.
The partnership marks a shift for Mirage, a smaller entry in the franchise, which Ubisoft had previously stated would not feature any DLC.
The move appears to align with Savvy’s interest in promoting content relevant to regional audiences, given that Mirage is set in Baghdad and could expand into other Middle Eastern locales.
This deal is thought to form part of the “partnership deal” revenue that Ubisoft previously indicated would bolster its fourth-quarter results for fiscal year 2025.
Barclays analysts estimate that such deals contributed around €330 million in the same period last year and have modeled a slightly higher figure—€365 million—for this year.
While the exact financial impact of the Savvy agreement remains unclear, it is likely already factored into current revenue forecasts.
The deal also raises questions about the broader relationship between Ubisoft and Savvy Games Group.
While there is no evidence that discussions have extended beyond the DLC agreement, Savvy’s deep financial resources and ambitions in gaming naturally spark speculation about potential future collaborations or investments.
Ubisoft, which has hired advisors to explore strategic alternatives, may find itself fielding increased interest from partners like Savvy as it seeks new avenues for growth.
The early previews of Assassin's Creed Shadows are expected to add further momentum to Ubisoft's shares.
A number of journalists from outlets such as IGN, Game Rant, and Polygon have shared overwhelmingly positive impressions of the game.
In addition to its visually stunning open world, smooth mechanics, and engaging storyline, critics praised its dual protagonist approach and distinct gameplay experiences.
There is a balance between this game's stealth-focused origins and its more recent RPG-style evolution that appeals to a variety of players.
The main criticism of Assassin's Creed Shadows was that some quests felt repetitive, potentially impacting long-term player engagement.
However, the overall response has been overwhelmingly positive, the best for Ubisoft in years. This strong initial reception suggests high early sales.
“We model c.5m units in the 12 days that Shadows will contribute in FY25: a strong launch,” the analysts said, which will contribute to Ubisoft's fiscal year performance.