Ubisoft‘s first quarter earnings have revealed a drop in gross sales in comparison with the identical quarter over the past monetary yr, one thing the writer was anticipating. To halt this decline, Ubisoft desires to broaden the dimensions of the viewers for a few of their franchises by increasing them into the free-to-play sector, however this doesn’t imply they are going to be fully forgetting about premium titles — they’ve “bold plans” for these too.
The 17% drop in gross sales in comparison with this time final yr was predicted by the writer as a result of various components. Not solely did they not have a serious launch throughout the first free months of the yr, the writer was benefitting from an enormous increase in gross sales final yr as a result of coronavirus pandemic. Throughout this quarter, greater than 94% of gross sales had been from Ubisoft’s again catalogue of titles as many video games obtained vital updates and/or DLC, like Murderer’s Creed Valhalla, Watch Canine: Legion, Immortals: Fenyx Rising, and Rainbow Six: Siege.
Whereas gross sales in the course of the subsequent quarter are anticipated to be related, Ubisoft feels the second half of the yr will probably be way more worthwhile. One of many methods they are going to be doing that is to put money into free-to-play titles; 20% of the writer’s yearly funding will probably be within the F2P sector. The Division is among the franchises to be launched to a wider viewers with The Division Heartland and Tom Clancy’s The Division on cellular. Tom Clancy’s XDefiant has simply been introduced, and there can even be one other unannounced cellular recreation aiming for the ultimate quarter of the yr.
The remaining 80% of the funds will probably be geared toward premium AAA titles. These are available three classes, the primary of which is current franchises that can quickly be expanded. Murderer’s Creed Valhalla will get a second yr of content material and Far Cry 6 will probably be launched in October. Rainbow Six Siege has just lately reached a milestone of 75 million gamers and Ubisoft hopes Rainbow Six Extraction will enchantment to each current and new gamers. Past Good and Evil 2 additionally stays in growth however isn’t any nearer to getting a launch window.
The second class is the creation of recent IPs. Whereas Riders Republic will probably be launched in October and will probably be a dwell service title with loads of updates, the destiny of Cranium & Bones is much less unsure. Whereas the sport has handed alpha, developer turmoil threatens its future. The ultimate class is video games based mostly on main leisure manufacturers. Avatar: Frontiers of Pandora is a standalone story within the Avatar universe, whereas Ubisoft Huge continues to work on their Star Wars title.
Ubisoft CEO Yves Guillemot concluded their presentation by explaining the writer’s plans:
The business continues to supply vivid prospects. With our high-quality manufacturers, know-how and distinctive groups, Ubisoft is ideally positioned over the approaching years to ship double-digit topline development in addition to continued profitability development resulting in a cloth rise in working revenue.