Ubisoft's stock fell 18% on Thursday after the company issued a warning about ongoing financial challenges.
The developer of the popular Assassin's Creed franchise cited expected losses for the year, triggering a significant sell-off in its shares.
The market reaction highlights the sensitivity of investor sentiment to earnings guidance in the gaming sector.
Ubisoft's warning has raised concerns about its ability to maintain profitability amid shifting consumer preferences and competitive pressures.
The company has not provided detailed explanations for the expected losses, but analysts suggest that rising development costs and delayed game launches could be contributing factors.
Ubisoft's stock has been under pressure in recent months, with the warning likely to intensify scrutiny of its business strategy.