Tis the season. No, not that season just yet, but it is earnings call season. All the publishers are reporting to their shareholders about how much money has been earned and via which avenues in the first half of the financial year. Ubisoft hasn’t done poorly, although compared to last year which saw a AAA title launch early in the financial year, the company isn’t posting as strong results.
Total sales fell 57% in the period, resulting in a loss of about $71 million. Without any major new releases in the first half of the year, this makes sense. However, the back catalog sales have done well, increasing by 53.1%. Digital also increased with sales totaling €100.1 million, representing 48% of total sales. Despite the less than great numbers by comparison, Yves Guillemot was still happy with the company’s performance and outlook in general.
The quality of our back-catalog and the growing digitization of our business enabled us to deliver a solid performance in the first half of the year, even though – as planned – we did not release any major titles during the period. The fact that more than 80 percent of our annual sales are expected to be generated in the second half of the year mechanically weighed on our earnings for the first six months.
The outlook for our industry continues to be very promising, with a return to growth, a healthier competitive environment, and the favorable impact of digital. Against this backdrop, Ubisoft has unique value-creating potential. We are ideally positioned in open-world games, whose market share is increasing. We also own our brands and have the in-house skills and expertise to create them. These two significant characteristics offer our shareholders an unrivalled level of long term visibility and security. In addition, the release of numerous multi-player games such as For Honor, Ghost Recon Wildlands, Rainbow Six Siege and The Division represent a major opportunity to develop players’ engagement and grow our highly-profitable digital segment. And lastly, we are pioneers in leveraging our brands in areas beyond video games, as demonstrated by the agreements we have signed with the most powerful international partners such as Columbia, Fox New Regency, Nickelodeon and Warner.
Thus far, the focus has been pouring money into the development of games like Assassin’s Creed Syndicate, Rainbow Six Siege and The Division. Obviously, those games are being relied upon to boost the profits of the company. Interestingly, after a fairly weak first week for Assassin’s Creed Syndicate, the second week of sales was higher. The company attributes this to word of mouth and growing momentum for the game; considering last year’s issues, it makes sense that players were more prudent in waiting for review scores and friend feedback before rushing out to purchase the game. It has solidified for Ubisoft the important of single-player games like Assassin’s Creed and Far Cry as a balance to the co-op and multiplayer games that they are also introducing into the market. I’m just glad that they see the value in catering to players who prefer to play alone.
Ubisoft is one of the few publishers that reports on where their sales are taking place. The largest share by far is PlayStation 4, accounting for 32% of sales in Q2. PS3 came in second place with 17% with PC and Xbox One tied in third with 15% each. It certainly is intriguing to see console sales outpacing PC so much, and I think it’s pretty clear which console is king at this point. Then again, with the horrors of Uplay (now known as Ubisoft Club), it’s no surprise that PC gamers aren’t jumping on the Ubisoft bandwagon as much as PS4 gamers.
Last Updated: November 5, 2015
Hammersteyn
November 5, 2015 at 09:13
Three words. Blood Dragon Sequel. How hard can it be? Just stop with the Ass Cream line of lotions for a year or two and work on that. More profits!
WitWolfy
November 5, 2015 at 09:19
Well if future AC games are as addictive as Syndicate they can release them until my daughter finished matric!
Hammersteyn
November 5, 2015 at 09:23
Explore here, stab there, stealth now, dive into hay later.
WitWolfy
November 5, 2015 at 11:44
Heck it sounds like MGS V you play!! You know that game you said is “GOTY”.
Hammersteyn
November 5, 2015 at 12:14
LIES there is no hay to dive in
WitWolfy
November 5, 2015 at 12:18
What you talking about.. There is hay all over the place.. “HAY, HAY, HAY!! It’s an unfinished game!”
See!!! 😉
Hammersteyn
November 5, 2015 at 12:51
Hahahahaha
Greylingad[CNFRMD]
November 5, 2015 at 09:42
I still believe Blood Dragon was a result of a drug infused stupor of a weekend binging 80s action hero movies and playing with toy dinosaurs fitted with LED “lazers”, and while Robocop played in the background the lead designer walked in, wondered what the hell is happening, tripped, fell into a mountain of cocaine and *poof* BLOOD DRAGON!
Captain JJ the Goo
November 5, 2015 at 09:42
Then whatever they did, they need to do again.
Greylingad[CNFRMD]
November 5, 2015 at 09:43
I don’t think the human body can expose itself to so much drugs twice in a single lifetime and survive…
Captain JJ the Goo
November 5, 2015 at 09:44
Sounds easier than going camping to me.
Greylingad[CNFRMD]
November 5, 2015 at 09:46
The only time I camp is when it’s Oppikoppi and I haven’t done it in years…
Hammersteyn
November 5, 2015 at 09:46
KKNK. Been years as well.
Greylingad[CNFRMD]
November 5, 2015 at 09:53
Aah man… The funny thing is that I usually go for the more Bluesy stuff, but then you end up somewhere by a WubWub stage in the middle of the night and wonder how the heck you made it through the electronic music…
Captain JJ the Goo
November 5, 2015 at 09:54
RamFest for me.
Two years ago now almost. But I opt for that thing where you get someone to set up your tent and everything. All you do is show up, enjoy the music, have a few drinks and go to sleep.
Greylingad[CNFRMD]
November 5, 2015 at 09:57
I have also come to that realisation, Kreef hotel it is for me from now on, not because I’m a snob, no, simply because I’m tired of cold showers and rather prefer to wake up feeling asif I’ve slept in a bed, not dangling from a hak and steek kameeldoring boom….
Captain JJ the Goo
November 5, 2015 at 09:59
Same here. Kreef Hotel is totally worth the price.
And maybe I am a bit of a snob…or maybe I’m just lazy.
Mossel
November 5, 2015 at 10:16
Lazy bastard! Real men pitch their own tents.
But you DO wear make up…so I guess you are excused. xD
Captain JJ the Goo
November 5, 2015 at 10:18
Haha! I would also like to add that if I were to pitch my own tent it might take all weekend, or I might just not do it at all and sleep in my boot.
Mossel
November 5, 2015 at 10:19
hahaha! I actually now plenty of guys that end up doing that.
“I’ll pitch the tent, but first…beer!”
DragonSpirit009
November 5, 2015 at 11:09
That how all our vacations started when we went camping XD
Greylingad[CNFRMD]
November 5, 2015 at 10:18
It’s not about being lazy, it’s about taking your jeans off by day 4 and it stands by itself…
Mossel
November 5, 2015 at 10:20
haha! That’s only at koppi though. Ramfest doesn’t have sandstoms, we have rivers with trees!
Greylingad[CNFRMD]
November 5, 2015 at 10:25
That’s just as bad!!
Hammersteyn
November 5, 2015 at 09:44
LIES I watched Wolf of Wallstreet. Look how motivated their employees were
Greylingad[CNFRMD]
November 5, 2015 at 09:45
HAHA!!! That stairway to the Lambo scene… I still love it, damn that was a good movie…
Hammersteyn
November 5, 2015 at 09:43
Then we should start a Kickstarter to support Ubisofts drug habit!
Greylingad[CNFRMD]
November 5, 2015 at 09:44
HAHAHA!! Are we that desperate for another Blood Dragon?
Yes, yes, we are…
Hammersteyn
November 5, 2015 at 09:46
That game had Michael Biehn starring in it. Retro 80’s is hot right now. More games with stars from back then is what we need. I would install Uclub on my PC and Laptop just to see Dolph Lundgren walk up to a bad guy and utter the words. I must break you.
Greylingad[CNFRMD]
November 5, 2015 at 09:50
Holy Sh…. That would be awesome! Can you imagine having Airwolf for air support and KITT as your getaway car?
Hammersteyn
November 5, 2015 at 09:52
http://i.memeful.com/media/post/ER55jER_700wa_0.gif
Greylingad[CNFRMD]
November 5, 2015 at 09:54
WE NEED THIS!!!
Captain JJ the Goo
November 5, 2015 at 09:53
Micheal Biehn ftw
Pieter Kruger
November 5, 2015 at 09:24
It’s simple Ubi, make better games, put some effort into them and I’ll buy them…..
Hammersteyn
November 5, 2015 at 09:29
Division though
Captain JJ the Goo
November 5, 2015 at 09:35
Mehvision
Pieter Kruger
November 5, 2015 at 09:35
Yes, maybe. For now Ubisoft games are only good for monthly free Xbox Live games though. Same engine used to still turn out last gen games is not cutting it anymore!
Captain JJ the Goo
November 5, 2015 at 09:27
They also think Uplay is a good idea.
Hammersteyn
November 5, 2015 at 09:28
It’s Uclub now, as in you clubbed Uplay over the head so they changed the name and hoped no one would notice
Captain JJ the Goo
November 5, 2015 at 09:34
They literally just changed the name.
Granted, Ubisoft has good games, but Uplay, Uclub, Ukak, still isn’t worth some of them.
Hammersteyn
November 5, 2015 at 09:36
hahaha
Pieter Kruger
November 5, 2015 at 09:38
Did Xbox 360 and Nintendo account for 21% then?
Nikola
November 5, 2015 at 09:46
Just give me Division since playing it at Rage I can’t wait to jump into it:)
Hammersteyn
November 5, 2015 at 09:47
That controller though. I think I picked up carpal tunnel
Nikola
November 5, 2015 at 09:51
hahaha I know right, my hand was flippen sore after holding that Xbox controller, they less sore after my boxing fight’s;)
Hammersteyn
November 5, 2015 at 09:52
Maybe if you actually hit somebody it would be sore.
*Runs
Nikola
November 5, 2015 at 09:54
Wow just like that hey… Totally uncalled for, low blow hey:) Luckily I have a great sense of humor:)
*Patiently waiting for next Rage
Hammersteyn
November 5, 2015 at 09:55
hehehe there should be more people like you.