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Ubisoft post Financial Statement


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Some headlines from Ubisofts Financial Statement for fiscal quarter ended June 30, 2009.

Sales down 50.8% to €83 million, compared with the €169 million recorded for the same period of 2008-09, this is 12.6% below the guidance .

Reasons :

  • A slowdown in sales of Nintendo DSâ„¢ games
  • Significantly lower back-catalog sales of titles for Playstation® 3 and Xbox360® than in the first quarter of 2008-09.
  • Poorer-than-anticipated market conditions.

2nd quarter release are expected to reach €80 million and are :-

  • Teenage Mutant Ninja Turtlesâ„¢ for Wiiâ„¢ and PlayStation® 2
  • Cloudy with a Chance of Meatballs for Wiiâ„¢, Nintendo DSâ„¢, Xbox360®, Playstation® 3, PSPâ„¢ and PC.
  • Academy of Championsâ„¢, which will be released for Wiiâ„¢ in the UK, the Nordic countries and Australia.
  • New casual titles for Nintendo DSâ„¢ and Wiiâ„¢

Splinter Cell Conviction™ and Red Steel® 2, whose releases were previously planned for the third fiscal quarter, will now be released in the fourth fiscal quarter.

Ghost Recon® and I am Alive™, which were previously scheduled for release in the fourth fiscal quarter, will now strengthen the line-up for fiscal 2010-11.

Download the full report from our download server here.

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I think there are 2 forces at play with such a drastic drop in profits. With the economy the way it is, gamers are less likely to buy games when they could or should be putting food on the table or even paying for gas. The other is that word has gone around that Ubi is not supporting the games it releases and does not care if games are fixed and gamers are not buying them for that reason.

The question is how much more do profits have to drop in order for Ubi to get wise?

Just my 2 cents.

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The question is how much more do profits have to drop in order for Ubi to get wise?

Well, they are showing promising signs that they have finally taken some lessons from companies like Blizzard and Valve that it is better to make a good quality game with sales staying power in the long run rather than try to rake in 1-2 months of higher sales by releasing a unfinished game before Christmas which ends up in the bargain bin after a few months.

Check out the CEO's comments in the conference call:

http://www.joystiq.com/2009/07/27/ubisofts...d-steel-delays/

Guillemot admitted that, for "those two products, it's around a million units" of lost sales in the first month. However, when faced with releasing subpar titles or losing a stronger opening month, Guillemot came down strongly in favor of the latter. "We really think with the level of quality that we'll be able to obtain with the time we give them we will have a long shelf life for those products," he explained. "Now, because [Conviction and Red Steel 2] are launching during that quarter, they will not do as many units for the first month as they would have done in November/December, but we think that on the long-term they can achieve more units than what they would've done."

Now whether or not Ubi learns to support their games with patches etc. in the long run is a different story ...

Also check out this report that shows Ubi's PC sales are higher than either PS3 or Xbox 360's

http://gonintendo.com/viewstory.php?id=90991

Sales breakdown by platform

DS - 26%

PC - 20%

PSP - 4%

PS2 - 1%

PS3 - 13%

Xbox 360 - 16%

Wii - 20%

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These are some great articles, especially the statement that Ubisoft's CEO is listening to the team members of his organization to ensure quality of the final products; which would pay dividends for longer term growth\revenues.

I don't always agree with the economy statements as we locally do have an unemployment rate of nearly 10%, which means that 90% of the people are still employed. Sure there are those who are now more aware of their finances due to the fear on the tele, but just like any addict to their favorite brand of alcohol, cigarettes, fornication, crack, etc.... we need our GR4 :shhhh:

However, thinking of the quality of Blizzard, they have taken 10 years to come up with a sequal to StarCraft.

Game On!!

Bogie

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Also check out this report that shows Ubi's PC sales are higher than either PS3 or Xbox 360's

http://gonintendo.com/viewstory.php?id=90991

Sales breakdown by platform

DS - 26%

PC - 20%

PSP - 4%

PS2 - 1%

PS3 - 13%

Xbox 360 - 16%

Wii - 20%

Interesting, I didn't think PC sales were so strong. Mind you, that is unit sales is it? The profits from console sales are higher, aren't they?

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The question is how much more do profits have to drop in order for Ubi to get wise?

Well, they are showing promising signs that they have finally taken some lessons from companies like Blizzard and Valve that it is better to make a good quality game with sales staying power in the long run rather than try to rake in 1-2 months of higher sales by releasing a unfinished game before Christmas which ends up in the bargain bin after a few months.

Check out the CEO's comments in the conference call:

http://www.joystiq.com/2009/07/27/ubisofts...d-steel-delays/

Guillemot admitted that, for "those two products, it's around a million units" of lost sales in the first month. However, when faced with releasing subpar titles or losing a stronger opening month, Guillemot came down strongly in favor of the latter. "We really think with the level of quality that we'll be able to obtain with the time we give them we will have a long shelf life for those products," he explained. "Now, because [Conviction and Red Steel 2] are launching during that quarter, they will not do as many units for the first month as they would have done in November/December, but we think that on the long-term they can achieve more units than what they would've done."

Now whether or not Ubi learns to support their games with patches etc. in the long run is a different story ...

Also check out this report that shows Ubi's PC sales are higher than either PS3 or Xbox 360's

http://gonintendo.com/viewstory.php?id=90991

Sales breakdown by platform

DS - 26%

PC - 20%

PSP - 4%

PS2 - 1%

PS3 - 13%

Xbox 360 - 16%

Wii - 20%

Haven't I been saying this for several years now? It does not take a rocket scientist to know that gamers want a polished game with substantial features. Having a polished game with the features gamers want will pretty much guarentee that a company can make more money over the long run than if they just shovel games out the door for the quick buck.

I too wonder if this extends to proper support after release. It's one thing to release a fully featured and polished game, but if there are game stopping bugs that are not fixed, game sales will still suffer as gamers will let others know not to buy it. I still do not believe that Ubi has learned it's lesson (one just has to read through the Ubi forums to see that they still do not support games very well) on the support front. Maybe once they lose more profits due to lack of game sales will they awaken and do more, but right now, I doubt it.

I could have told you that Ubi's PC games sales were stronger, especially when looking over here and the Ubi forums, that the PC games are what keep people interested and what is more ironic is that they are not average gamer fare, they are flight sims for 2 of them with one FPS that is also rather aged (GR is what I am referring to though it does share a console brother). People are still buying iL2 Sturmovik and Lock On: Modern Air Combat. That should tell Ubi something. Also, with there being 5 consoles to share the sales wealth, it would make sense that PC sales outpace console sales.

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Interesting, I didn't think PC sales were so strong. Mind you, that is unit sales is it? The profits from console sales are higher, aren't they?

Eh, no, profit per unit revenue on PC is higher for third party devs, you don't have to pay a license fee to the console owner. At least that's without factoring increased test/support costs for multiple config support.

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So this is an important point let me get this right .... PC sales for Ubi outstrip either PS3 or X360 and the profit per unit is higher on PC?

So this is an important point let me get this right .... PC sales for Ubi outstrip either PS3 or X360 and the profit per unit is higher on PC?

Well, that depends on what those percentages are that are quoted. Are they units, revenue, profit? I don't know. Profit/revenue of a title is more on PC (i.e., a $60 PC title brings back more than a $60 Xbox 360 title). But looking at Ubi's past few PC titles, games like Grey's Anatomy and CSI tend to be lower priced games, although they generally sell a buttload, for a low cost overhead. The link also has no date information...is it the past quarter? You need more info to get anything really informative out of it.

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The link also has no date information...is it the past quarter? You need more info to get anything really informative out of it.

Hey Ser, as always thanks for the insight from the inside :ph34r:

Go Nintendo got the info from here:

http://www.crispygamer.com/news/index.php/...egion-platform/

The analysis is apparently from the recent 1st quarter financial report:

By platform: Nintendo DS sales were down by 11 percent in the first quarter (from 37 percent to 26 percent), PC sales were up by six percent (from 14 percent to 20 percent), PSP sales remained steady at four percent, and PS2 sales continued to dry up (from three percent to one percent). PS3 sales were down eight percent (from 21 percent to 13 percent); Xbox 360 sales were up by seven percent (from 9 percent to 16 percent) and Wii sales were up by nine percent (from 11 percent to 20 percent).

Perhaps it's best to read the report ourselves as some news outlets are getting a little sloppy with misreading or misinterpreting the info ...

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The link also has no date information...is it the past quarter? You need more info to get anything really informative out of it.

Hey Ser, as always thanks for the insight from the inside :ph34r:

Go Nintendo got the info from here:

http://www.crispygamer.com/news/index.php/...egion-platform/

The analysis is apparently from the recent 1st quarter financial report:

By platform: Nintendo DS sales were down by 11 percent in the first quarter (from 37 percent to 26 percent), PC sales were up by six percent (from 14 percent to 20 percent), PSP sales remained steady at four percent, and PS2 sales continued to dry up (from three percent to one percent). PS3 sales were down eight percent (from 21 percent to 13 percent); Xbox 360 sales were up by seven percent (from 9 percent to 16 percent) and Wii sales were up by nine percent (from 11 percent to 20 percent).

Perhaps it's best to read the report ourselves as some news outlets are getting a little sloppy with misreading or misinterpreting the info ...

Yeah, that breakdown is just the changing percentage of sales during the quarter compared to ????. Again, units, revenue, profits? Kind of useless data without the parameters to measure it against. Did PSP % slip because of less PSP titles, lower PSP unit sales, or higher 360 sales? Hard to tell.

Of course, if you want to manipulate numbers to meet an agenda, those are the best types of numbers!

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Hey Ser, your sig looks a little longer than before ... wonder why? :-

Looking forward to see your work on Halo: Reach!

I clicked on the link in your sig and was suprised to find you have just moved on to a new gig at WB Games. Can't wait to find out what you're working on next :thumbsup:

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