Ubisoft shares surge after China lifts console ban

Assassin's Creed publisher gains more than 7 percent following suspension of console ban and news that PlayStation 4 and Xbox One are off to a strong start.

by

On the same day that Nintendo shares reached a two-year high, Assassin's Creed publisher Ubisoft also saw its stock value rise as much as 7.3 percent in Paris following China's announcement that it had lifted its decade-long ban on video game consoles, Bloomberg reports today.

China announced the temporary suspension of its 14-year ban yesterday. While the country draws up new rules, manufacturers like Microsoft, Sony, and Nintendo will be able to build consoles within Shanghai's new free-trade zone, which originally opened in September.

China enacted its console ban in 2000, following concerns about potential harm to the physical and mental development of children. The console ban coming to an end could prove to be lucrative for platform holders like Nintendo, Sony, and Microsoft, though that remains to be seen.

The uptick in Ubisoft share value is also likely attributable to the news this week that the Xbox One has sold 3 million units and the PlayStation 4 has shifted 4.2 million consoles. Strong sales would benefit Ubisoft.

The rise in Ubisoft share value comes after the stock took a drubbing last fall.

Ubisoft shares plummeted a whopping 32 percent in October--the most since the company debuted on the Paris Stock Exchange in 1996--after the company announced delays for much-anticipated next-generation games Watch Dogs and The Crew.

Discussion

Load Comments