Ubisoft Entertainment SA ( UBSFY ) seems to be in the limelight in the gaming world, albeit for all the wrong reasons, following the launch of its Assassin's Creed: Unity . The game has been drawing negative reviews and users' outrage globally, leading to an almost 8% fall in the share price over the last three trading days. The technical glitches and game bugs have led the company's new game score to 76 on the Xbox One version, beating only Activision Blizzard, Inc.'s ( ATVI ) not-so-popular game Destiny .
In addition, just a couple of days after its launch, Amazon is offering a 17% discount on Assassin's Creed: Unity (Xbox One version), which is estimated to go down further given the criticism. However, the company is working to fix the current issue and has even come up with a live blog to keep players updated about the latest patches.
The company has recently addressed technical glitches such as Arno falling through the ground and game crashes in the PC and PlayStation 4 versions of Assassin's Creed: Unity . Nevertheless, the company still anticipates further issues related to the overall game performance, which it plans to address over a period of time.
Considering the number of glitches detected in Assassin's Creed: Unity , it seems that the company launched the game in a considerable hurry most likely to capture holiday demand, consequently affecting its market value and drawing negative review from famous video-game reviewers like TotalBiscuit and Polygon. This is especially surprising as gaming companies like Take-Two Interactive Software Inc. ( TTWO ) have historically delayed the launch of most famous series like Grand Theft Auto to ensure a smooth gaming experience for players.
While early promotions of the game resulted in substantial pre-orders, launch of the half-baked product disappointed both investors and players as it exposed the company's weak long-term strategy. We believe that while the company may be able to resolve the issues, the negative responses may have a long-lasting effect, further adding to its woes. However, we look forward to the release of Far Cry 4 on Nov 18 and racing video game - The Crew - before the Christmas that we believe may bring back the mojo in this gaming stock, provided it strikes the right cord with gamers.
Ubisoft currently has a Zacks Rank #3 (Hold)
A better-ranked gaming stock worth considering is Penn National Gaming Inc. ( PENN ) with a Zacks Rank #2 (Buy).
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