Jump to content
ManUtdRedDevils

Ubisoft: Inside look into its Business and Industry

Recommended Posts

Ubisoft has stated they have four AAA games releasing next fiscal year (April 2018 - March 2019).

Known titles:
- The Crew 2
- Skull & Bones

 


Notes:

-Most of these notes are about titles that aren't going to come out in this time period, so we should guess other things, with a couple exceptions.

-Ubisoft has heavily hinted that Assassin's Creed is not getting a new game this year, and instead there will more "amazing" new DLC for Origins.

-Yves implied that he was still taking concept pitches for Splinter Cell maybe a year or so ago, so that doesn't seem super likely.

-Beyond Good & Evil 2 doesn't look like it's on track to release this generation.

-Ghost Recon, South Park, and Far Cry just came out.

-Rainbow Six and For Honor are near endless service games that won't be getting sequels for ages.

-This also seems to be true for Steep, at least thus far, but it's hard to say. I would probably expect at least a three year gap though a la The Crew 2 and The Division 2, so it would be a bit early for a Steep sequel.

-There will be a third year for The Division, but it doesn't necessarily sound like a huge amount of content is coming, especially compared to the amount of staff working on The Division.

-Watch Dogs 2 hasn't been updated in a while.

-Ubisoft excepts to sell something like 23 million units total.

-The game Ubisoft delayed out of the fiscal year was expected to move 4-5 million units, which would be notably less than either Watch Dogs 2 or The Division shipped at launch.

-Ubisoft said Avatar isn't expected to release until the second movie.

-Ubisoft generally doesn't count things like Rabbids, Trials, Rayman, or Just Dance as AAA titles.

 

so Watch Dogs 3 and The Division 2

Share this post


Link to post
Share on other sites

This is an absolutely fascinating look at financial data. 

 

That gross margin difference of 15% between retail and digital means that every 7th game sold on digital represents an "extra" sale in revenue over physical retail sales.

Share this post


Link to post
Share on other sites

Also, there's a relationship between this slide:

 

ubisoftprofitgorif.png

 

And this slide:

 

DV2faieW4AEylUu.jpg:large

 

In 2005 at the start of the 360/PS3 generation, you had a whole bunch of publishers chasing that "AAA" pie.  In 2017, you have 4 to 6 (give or take Square-Enix and Bethesda).  Because the cost of entry (development costs) for "AAA" titles skyrocketed during the 360/PS3 generation, developers who couldn't compete with the "Big Boys" were forced to drop out of the "AAA" race because while costs exploded, the revenue you could charge for a game remained constant: $60.  The big guys could "eat" that sub-par financial performance and ride it out until this generation where digital sales, GAAS, and other revenue opportunities now more than offset the still-rising costs of game development while still maintaining the "base" $60 price tag.  This can be seen in the first slide where we hit the "tipping point" in 2012, just before the start of the PS4/XB1 generation, and it's been a steady revenue rocket upwards since then.

Share this post


Link to post
Share on other sites

A case can be made that Square-Enix should be considered a Triple AAA dev/pub. 

 

Nier

FF XV

Kingdom Hearts 3

Tomb Raider

Deus Ex

FF MMO

Unknown Marvel games

Dragon Quest

 

SE has clearly been the least successful but it owns a ton of great IPs and with proper management can make a big leap. 

 

 

 

Share this post


Link to post
Share on other sites
32 minutes ago, ManUtdRedDevils said:

A case can be made that Square-Enix should be considered a Triple AAA dev/pub. 

 

Nier

FF XV

Kingdom Hearts 3

Tomb Raider

Deus Ex

FF MMO

Unknown Marvel games

Dragon Quest

 

SE has clearly been the least successful but it owns a ton of great IPs and with proper management can make a big leap. 

They certainly are a member of that club, but I think from the perspective of Ubisoft's definition for this presentation, they were basing the evaluation on the annual volume of "AAA" titles released by a publisher.

Share this post


Link to post
Share on other sites
16 hours ago, ManUtdRedDevils said:

-Beyond Good & Evil 2 doesn't look like it's on track to release this generation.

 

LOL, it's only tracking 4 years behind Duke Nukem Forever.  We might see a new record broken.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now


×