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Ubisoft postponed the release of the next title in its popular “Assassin’s Creed” game franchise — called “Assassin’s Creed Shadows” — by three months to Feb. 14, 2025.

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French video game publisher Ubisoft is facing questions over its future, as it grapples with a lackluster games pipeline and pressure from investors to seek a sale.

The company, which produces the “Assassin’s Creed” franchise, said in updated guidance last week that it has postponed the release of the next title in the popular game series — called “Assassin’s Creed Shadows” — by three months to Feb. 14, 2025.

Ubisoft also cut its guidance for the 2024-2025 fiscal year, saying it now expects net bookings to fall to around 1.95 billion euros. Ubisoft said it expects net bookings for its fiscal second quarter to come in at 350 million to 370 million euros, down from 500 million euros anticipated previously.

“The revised targets are mainly a reflection of decisions taken for Assassin’s Creed Shadows and the softer than expected launch for Star Wars Outlaws,” Ubisoft said.

It comes after the company’s “Star Wars Outlaws” game — an action-adventure title based on the iconic sci-fi movie series, which was released this summer — was met with disappointing sales performance and a mixed reception from gamers. Ubisoft said that its learnings from the Star Wars Outlaws release pushed it to give more time to polish Assassin’s Creed Shadows.

The company said it was also scrapping plans to release its new Assassin’s Creed game with a “Season Pass,” which was a paid add-on providing access to a bonus quest and additional downloadable content at launch.

Ubisoft added that it now plans to release Assassin’s Creed Shadows on Valve Corporation’s online games store Steam on the day of its launch, ending its track record of exclusively distributing PC versions of its games on Epic Games’ digital storefront.

Yves Guillemot, CEO and co-founder of Ubisoft, speaks at the Ubisoft Forward livestream event in Los Angeles, California, on June 12, 2023.

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“In the light of recent challenges, we acknowledge the need for greater efficiency while delighting players,” Ubisoft CEO Yves Guillemot said in the statement last week, adding that the company’s executive committee is launching a review to further improve its execution.

Ubisoft shares have slumped to decade-lows against this backdrop of dismal investor expectations about its triple-A games pipeline and financial prospects.

To further compound the business’ woes, the company is facing possible strike action in France after the country’s STJV video game workers’ union called for three days of industrial action on Oct. 15-17 over the company’s bid to get workers back in the office three days a week.

Pressure from activist investor

In an open letter last week, AJ Investments said it had gathered the support of 10% of Ubisoft shareholders for its pressure campaign, adding that it intends to cooperate with proxy advisory firms in preparation for voting at the company’s next general meeting. CNBC could not independently verify this figure.

“We have talked to industry experts as potential boards members and executives to replace current management and realise our strategy targets, we will propose our candidates due time,” AJ Investments said.

AJ Investments noted it is due to speak with Ubisoft management on Tuesday to discuss its proposals. The firm added it would demonstrate in front of Ubisoft’s headquarters in Montreuil, Paris, if needed.

Several bank analysts slashed their price targets for Ubisoft after news of the delays to its upcoming game, although many kept their ratings unchanged.

Deutsche Bank, which downgrade the stock to “hold” from “buy,” said that Ubisoft’s guidance cut was “bigger than we expected” and that the postponement to Assassin’s Creed Shadows “pushes a substantial amount of revenue” out into the next fiscal year.

Deutsche Bank’s George Brown also said he anticipated Assassin’s Creed Shadows will perform worse than he expected initially, forecasting unit sales of 7 million in the 12-month period following release. That’s down from a projection of 8 million, previously.

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Meanwhile, JPMorgan said in a note last week that they now expect lower unit sales of Ubisoft’s triple-A game releases and see a slower cadence of releases moving forward. JPMorgan maintained its “neutral” rating on Ubisoft stock, but cut its price target to 11 euros from 21 euros.

“Mid-size developers continue to be squeezed by development cost inflation which has not been matched by sufficient volume/ monetization improvement to sustain attractive returns,” JPMorgan analysts Daniel Kerven and David W Peat said in the note.

“UBI’s capital structure and lack of cash generation in recent years have left it under increasing pressure to cut investments/costs.”

Backlash

Still, some analysts were more sympathetic to Ubisoft’s struggles.

Analysts at Wedbush Securities suggested the firm had become the victim of coordinated “trolling” from people trying to force down user score averages for the company’s Star Wars Outlaws game on review sites.

“We believe Star Wars Outlaws was impacted by a coordinated effort that sought to troll Ubisoft games specifically and Star Wars content in general,” Wedbush analysts Michael Pachter, Alicia Reese and Kade Bar wrote in the note last week.

“The game received an unusual number of user reviews with a clear negative bias (including a large percentage of “zero” reviews), despite seeing acceptable review scores from reputable review sites. This is a case of a rare incel victory that led to Ubisoft having to take down its numbers,” they added.

Wedbush’s analysts said that, despite delays to its upcoming Assassin’s Creed title, they expect the game to sell 7 million units in its launch quarter and think it has “potential to be one of Ubisoft’s best sellers ever.”

Industry slump

Ubisoft’s woes comes as the broader video games space is facing an industry-wide slump.

The global games market is set to grow only 2.1% year-over-year in 2024, according to research firm Newzoo. That’s up from 0.5% growth in 2023, but no where near the surging growth levels witnessed during the 2020 and 2021 Covid-19 pandemic years.

James Lockyer, technology research analyst at U.K. investment bank Peel Hunt, said that part of the problem for game publishers today is that gamers are devoting more of their time to older games than to newer titles.

“In the years that followed Covid, the number of games released per year has grown substantially,” Lockyer told CNBC via email. “Consequently, consumers have had more choice over the last couple of years.”

“However, more choice plus a cost-of-living squeezed wallet has meant consumers’ cash has been spread more thinly, leading to revenues and ROIs [return on investment] of those games often coming out below expectations,” he added.

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Week in review: The Nasdaq’s worst week since April, three trades, and earnings

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Week in review: The Nasdaq's worst week since April, three trades, and earnings

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Too early to bet against AI trade, State Street suggests 

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Too early to bet against AI trade, State Street suggests 

Momentum and private assets: The trends driving ETFs to record inflows

State Street is reiterating its bullish stance on the artificial intelligence trade despite the Nasdaq’s worst week since April.

Chief Business Officer Anna Paglia said momentum stocks still have legs because investors are reluctant to step away from the growth story that’s driven gains all year.

“How would you not want to participate in the growth of AI technology? Everybody has been waiting for the cycle to change from growth to value. I don’t think it’s happening just yet because of the momentum,” Paglia told CNBC’s “ETF Edge” earlier this week. “I don’t think the rebalancing trade is going to happen until we see a signal from the market indicating a slowdown in these big trends.”

Paglia, who has spent 25 years in the exchange-traded funds industry, sees a higher likelihood that the space will cool off early next year.

“There will be much more focus about the diversification,” she said.

Her firm manages several ETFs with exposure to the technology sector, including the SPDR NYSE Technology ETF, which has gained 38% so far this year as of Friday’s close.

The fund, however, pulled back more than 4% over the past week as investors took profits in AI-linked names. The fund’s second top holding as of Friday’s close is Palantir Technologies, according to State Street’s website. Its stock tumbled more than 11% this week after the company’s earnings report on Monday.

Despite the decline, Paglia reaffirmed her bullish tech view in a statement to CNBC later in the week.

Meanwhile, Todd Rosenbluth suggests a rotation is already starting to grip the market. He points to a renewed appetite for health-care stocks.

“The Health Care Select Sector SPDR Fund… which has been out of favor for much of the year, started a return to favor in October,” the firm’s head of research said in the same interview. “Health care tends to be a more defensive sector, so we’re watching to see if people continue to gravitate towards that as a way of diversifying away from some of those sectors like technology.”

The Health Care Select Sector SPDR Fund, which has been underperforming technology sector this year, is up 5% since Oct. 1. It was also the second-best performing S&P 500 group this week.

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People with ADHD, autism, dyslexia say AI agents are helping them succeed at work

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People with ADHD, autism, dyslexia say AI agents are helping them succeed at work

Neurodiverse professionals may see unique benefits from artificial intelligence tools and agents, research suggests. With AI agent creation booming in 2025, people with conditions like ADHD, autism, dyslexia and more report a more level playing field in the workplace thanks to generative AI.

A recent study from the UK’s Department for Business and Trade found that neurodiverse workers were 25% more satisfied with AI assistants and were more likely to recommend the tool than neurotypical respondents.

“Standing up and walking around during a meeting means that I’m not taking notes, but now AI can come in and synthesize the entire meeting into a transcript and pick out the top-level themes,” said Tara DeZao, senior director of product marketing at enterprise low-code platform provider Pega. DeZao, who was diagnosed with ADHD as an adult, has combination-type ADHD, which includes both inattentive symptoms (time management and executive function issues) and hyperactive symptoms (increased movement).

“I’ve white-knuckled my way through the business world,” DeZao said. “But these tools help so much.”

AI tools in the workplace run the gamut and can have hyper-specific use cases, but solutions like note takers, schedule assistants and in-house communication support are common. Generative AI happens to be particularly adept at skills like communication, time management and executive functioning, creating a built-in benefit for neurodiverse workers who’ve previously had to find ways to fit in among a work culture not built with them in mind.

Because of the skills that neurodiverse individuals can bring to the workplace — hyperfocus, creativity, empathy and niche expertise, just to name a few — some research suggests that organizations prioritizing inclusivity in this space generate nearly one-fifth higher revenue.

AI ethics and neurodiverse workers

“Investing in ethical guardrails, like those that protect and aid neurodivergent workers, is not just the right thing to do,” said Kristi Boyd, an AI specialist with the SAS data ethics practice. “It’s a smart way to make good on your organization’s AI investments.”

Boyd referred to an SAS study which found that companies investing the most in AI governance and guardrails were 1.6 times more likely to see at least double ROI on their AI investments. But Boyd highlighted three risks that companies should be aware of when implementing AI tools with neurodiverse and other individuals in mind: competing needs, unconscious bias and inappropriate disclosure.

“Different neurodiverse conditions may have conflicting needs,” Boyd said. For example, while people with dyslexia may benefit from document readers, people with bipolar disorder or other mental health neurodivergences may benefit from AI-supported scheduling to make the most of productive periods. “By acknowledging these tensions upfront, organizations can create layered accommodations or offer choice-based frameworks that balance competing needs while promoting equity and inclusion,” she explained.

Regarding AI’s unconscious biases, algorithms can (and have been) unintentionally taught to associate neurodivergence with danger, disease or negativity, as outlined in Duke University research. And even today, neurodiversity can still be met with workplace discrimination, making it important for companies to provide safe ways to use these tools without having to unwillingly publicize any individual worker diagnosis.

‘Like somebody turned on the light’

As businesses take accountability for the impact of AI tools in the workplace, Boyd says it’s important to remember to include diverse voices at all stages, implement regular audits and establish safe ways for employees to anonymously report issues.

The work to make AI deployment more equitable, including for neurodivergent people, is just getting started. The nonprofit Humane Intelligence, which focuses on deploying AI for social good, released in early October its Bias Bounty Challenge, where participants can identify biases with the goal of building “more inclusive communication platforms — especially for users with cognitive differences, sensory sensitivities or alternative communication styles.”

For example, emotion AI (when AI identifies human emotions) can help people with difficulty identifying emotions make sense of their meeting partners on video conferencing platforms like Zoom. Still, this technology requires careful attention to bias by ensuring AI agents recognize diverse communication patterns fairly and accurately, rather than embedding harmful assumptions.

DeZao said her ADHD diagnosis felt like “somebody turned on the light in a very, very dark room.”

“One of the most difficult pieces of our hyper-connected, fast world is that we’re all expected to multitask. With my form of ADHD, it’s almost impossible to multitask,” she said.

DeZao says one of AI’s most helpful features is its ability to receive instructions and do its work while the human employee can remain focused on the task at hand. “If I’m working on something and then a new request comes in over Slack or Teams, it just completely knocks me off my thought process,” she said. “Being able to take that request and then outsource it real quick and have it worked on while I continue to work [on my original task] has been a godsend.”

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