Ubisoft Entertainment SA SWOT and PESTLE Analysis

Strength

1. Strong Portfolio of successful and popular game franchises: Ubisoft has a rich library of successful game franchises such as Assassin's Creed, Far Cry, Watch Dogs, and Rainbow Six Siege. These franchises have a loyal fan base and contribute significantly to the company's revenue. The three biggest brands, Assassin’s Creed, Far Cry and Rainbow Six, each delivered well over 300 million Euros of net bookings in 2021-22. Ubisoft has demonstrated a commitment to supporting its games with post-launch content updates, downloadable expansions, and regular patches. This ongoing support keeps players engaged and invested in Ubisoft's franchises, ensuring their longevity and maintaining a dedicated player base. The company's games are released on multiple platforms, including consoles, PC, and mobile devices, allowing Ubisoft to reach a wide audience worldwide.

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Weakness

1. A wave of sexual misconduct allegations and accusations of gender discrimination in hiring: In 2020, numerous allegations surfaced regarding a toxic workplace culture, sexual harassment, and discrimination against women at Ubisoft. These allegations led to internal investigations and a public reckoning for the company. These allegations have had a significant impact on Ubisoft's reputation and the trust of its employees and the gaming community. In July 2021, approximately 500 employees across Ubisoft signed a letter in solidarity with the Activision Blizzard employees protest to management's dismissive response to a hostile workplace towards women, stating that "It should no longer be a surprise to anyone: employees, executives, journalists, or fans that these heinous acts are going on. It is time to stop being shocked. We must demand real steps be taken to prevent them. Those responsible must be held accountable for their actions." Ubisoft's response to the allegations has been an ongoing process, and they have made commitments to improve and hold individuals accountable for their actions.

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Opportunity

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Threat

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Political

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Economic

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Social

1. The rise in aging population in developed countries is expected to lead to a decline in the demand for some video games, such as action games, which are popular with younger people: Ubisoft Entertainment is a French video game publisher and developer. The company is known for its popular action games, such as Assassin's Creed, Far Cry, and Rainbow Six Siege. The rise in aging population is expected to have a significant impact on the video game industry, including Ubisoft Entertainment. As the population ages, there will be fewer people in the younger demographics who are the primary target audience for action games. This could lead to a decline in the demand for these games, as there will be fewer people who are interested in playing them. Ubisoft Entertainment is taking steps to address the aging population such as it is expanding its business into new markets, such as China and India, where the population is younger. The company is also investing in mobile gaming, which is becoming increasingly popular among all demographics.

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Technological

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Legal

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Environmental

1. Commitment towards reducing its greenhouse gas emissions in line with the goal of limiting global warming to +1.5°C: In pursuit of reducing Ubisoft's carbon footprint, specific actions have been established, including the initiation of a decarbonization plan aimed at achieving a short-term target. This plan seeks to reduce the carbon footprint of Ubisoft's direct operations (scopes 1, 2, and 3 upstream) by -8.8% per employee by the end of 2023. Additionally, Ubisoft has made voluntary contributions to external projects focused on emissions reduction and capture globally, equating to the CO₂ emissions associated with Ubisoft's direct operations in 2020 and beyond. In 2021, Ubisoft reinforced its commitment by engaging with the Science-based Target Initiative (SBTi), an independent body responsible for validating the company's global carbon footprint reduction plan by 2030, aligned with scientific criteria to limit global warming to +1.5°C. This commitment encompasses reducing greenhouse gas emissions in scopes 1 and 2 while encouraging suppliers to establish environmental strategies and emission reduction goals. Furthermore, Ubisoft participated in the Carbon Disclosure Project (CDP) by completing its questionnaire, facilitating the annual publication of the Group's progress in environmental impact management and environmental leadership. In 2020, Ubisoft achieved a B- score for its environmental performance, placing it in the "Management" category, recognizing the quality of its non-financial reports and its adept handling of environmental and climate-related matters.

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