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Ubisoft Q3 2010-11 report

Pooya

Member
http://www.ubisoftgroup.com/index.php?p=164

http://www.ubisoftgroup.com/gallery_files/site/270/1042/2387.pdf

Sales
Sales for the third quarter of 2010-11 came to €600 million, up 21.2% (or 14.7% at constant exchange rates) over the €495 million recorded for the same period of 2009-10.
For the first nine months of fiscal 2010-11, sales totaled €861 million, versus €661 million in the corresponding prior-year period, representing an increase of 30.3%, or 22.5% at constant exchange rates.
Third-quarter sales were significantly higher than the previously issued guidance of around €520 million. This performance reflects the following:

− Solid sales for Assassin’s Creed® Brotherhood, with over 6.5 million sell-in units.
− An outstanding performance from dance titles, with Just Dance®, Just Dance® 2, Just Dance® Kids, Michael Jackson: The Experience, and Dance on Broadway™ reaching an aggregate of more than 10.5 million sell-in units during the quarter.
− Ubisoft’s successful investment on Kinect, with over 2 million units sold-in, giving the Company 18% market share on this platform in the United States and 21% in Europe.
− Promising launches of CSI: Crime City on Facebook, as well as The Settlers® Online in Germany.

Comment from CEO

Yves Guillemot, Chief Executive Officer, stated "The video game industry is an industry of opportunities. Creating new genres, innovating to attract new consumers and seizing the opportunities offered by new hardware lie at the heart of Ubisoft’s development and growth. We have already proven this with the Wii and the DS, and we are further proving it with the recently-launched Kinect, which has met with outstanding success thanks to its revolutionary interface. Ubisoft has also made its mark as a creator of new game genres, with its two flagship brands, Assassin’s Creed and Just Dance. The record performance achieved in third-quarter 2010-11 as well as the fact that three of our games were among the best sellers over the crucial Christmas period is further evidence of the relevance of our strategy. Going forward, we intend to continue to innovate and pursue our refocus on key franchises in the high definition segment, while investing in upcoming opportunities in digital, in the casual segment and in future consoles, notably the 3DS and the NGP".


New Assassin's Creed Confirmed for this year, announcement around May.
http://www.computerandvideogames.com/288914/news/new-assassins-creed-to-be-announced-in-may/
"We will have an Assassin's Creed this year. We are going to give you more details in May," he said, confirming that it's a "packaged title".

Market share
-In calendar 2010 Ubisoft continued to win market share both in Europe (9.2% versus 7.8% in 2009) and the United States (7.3% versus 5.4%).


Targets for full-year 2010-11

Ubisoft expects full-year 2010-11 sales to amount to around €1,020 million, approximately 17% higher than in 2009-10. Current operating income1 should be around €20 million and cash flow generation is expected to be positive. This is in line with Ubisoft’s previously announced targets for full-year 2010-11, which were achieving sales growth, a return to profitability and positive cash flow generation.
Comments for 2011-12
Both sales and current operating income1 are expected to rise in 2011-12. The Company will provide further details when it releases its full-year results in mid-May 2011.


Notes from QA:
- ACB Higher revenue but less units than ACII
- "Guitar Hero was able to succeed for five years. What they did was launch a new instalment every year... We have launched a few games now and what we see is consumers want more and more songs,"
- New Assassin's Creed Confirmed for this year, announcement around May.

it's over, lots of Kinect and move talk, nothing noteworthy or new.
 
− An outstanding performance from dance titles, with Just Dance®, Just Dance® 2, Just Dance® Kids, Michael Jackson: The Experience, and Dance on Broadway™ reaching an aggregate of more than 10.5 million sell-in units during the quarter.

07-01-schwarzenegger_full_600.gif


That's almost CoD level of sales !
 
I think the dance comment refers to the fact that the LTD of those titles (that segment) has reached 10.5 million during the quarter, not that the titles sold 10.5 million units from the beginning of the quarter to the end.
 
Without profit figures it's hard to give proper analysis, but these seem like very solid results.

Just Dance is a huge hit for them. This is something they needed to remain competitive with the others in the big 4.
 
Stumpokapow said:
I think the dance comment refers to the fact that the LTD of those titles (that segment) has reached 10.5 million during the quarter, not that the titles sold 10.5 million units from the beginning of the quarter to the end.

I think actually it's the latter.

Just Dance LTD is probably around 5 M. The sequel may have reached those numbers already. And Michael Jackson reached 1 M in the US alone. Just my two cents.
 
Kagari said:
They're going to run the Assassin's Creed franchise into the ground at this rate.
I liked part 1 and LOVED part 2 and skipped Brotherhood because enough is enough :/

Just bring me part 3 and end it.
 
Kagari said:
They're going to run the Assassin's Creed franchise into the ground at this rate.

What is the gap between Assassin's Creed 2 and Brotherhood? Is the franchise declining or stable?

A quick Google shows that AC2 was over 6 million at January 14, 2010, and Ubi put out another press release on May 18th stating that it was over 9 million. So far Brotherhood may be tracking close.

Brotherhood was critically acclaimed for its multiplayer mode, so I'm not sure if it would be fair to say that they're running it into the ground.
 
Stumpokapow said:
I think the dance comment refers to the fact that the LTD of those titles (that segment) has reached 10.5 million during the quarter, not that the titles sold 10.5 million units from the beginning of the quarter to the end.

Just Dance 2 alone sold already + 5 million worldwide

http://www.computerandvideogames.com/article.php?id=283069

.. so its probably the latter, with JD 1 still selling, MJ dance game and their JD Kids Version.
 
Tiktaalik said:
What is the gap between Assassin's Creed 2 and Brotherhood? Is the franchise declining or stable?

A quick Google shows that AC2 was over 6 million at January 14, 2010, and Ubi put out another press release on May 18th stating that it was over 9 million. So far Brotherhood may be tracking close.

Brotherhood was critically acclaimed for its multiplayer mode, so I'm not sure if it would be fair to say that they're running it into the ground.

I said they're 'going to' run it into the ground, not that they have yet. Add in all the spin-offs on DS and PSP and it's getting ridiculous.
 
faridmon said:
huh?

No, because that is the amount of shipped of 5 games in the series.

You're right, I was more referring to the Ubi series as a whole.

Ubi may succeed in trying to not emulating Guitar Hero downfall.
 
Still trying to understand why Ubisoft canceled a Tom Clancy MMO that had been in development for over two years to completely start over on making an Assassin's Creed MMO. Like, they probably canceled the Tom Clancy MMO because it was taking forever and because they had run the series into the ground, but won't that happen as well with the Assassin's Creed MMO? Pretty bad company.
 
Kenka said:
You're right, I was more referring to the Ubi series as a whole.

Ubi may succeed in trying to not emulating Guitar Hero downfall.
This is Ubi we are talking about mate. The only franchise they have that I kind of like is AC and it seems they are going to ruin it now.

nice going going Ubi, just give me AC 3 and kill the series the way you see it appropiete.
 
I cannot show concerns given the fact that those numbers (and the forecast) are outstanding but somehow, I feel like 2011 will tell many truths about how they will sustain such success.

Eventual Just Dance ports on Kinect and Move will do a lot I guess, but what will fuel this growth in sales this year ?

Oh, and I want more details about the split within the dance games group.
 
Kenka said:
I cannot show concerns given the fact that those numbers (and the forecast) are outstanding but somehow, I feel like 2011 will tell many truths about how they will sustain such success.

Eventual Just Dance ports on Kinect and Move will do a lot I guess, but what will fuel this rise in earnings for this year ?
Ghost Racon: Future
If that becaose remotly good

*sigh* who am I kiddin GR is dead :(
 
If they manage to keep up the quality like they did with ACB, I'm all for a yearly Assassin's Creed game.
ACB though had the advantage of being based on designs originally for AC2, so we'll see how this one will go. I'll stay cautiously optimistic until further notice :)
 
Kagari said:
I said they're 'going to' run it into the ground, not that they have yet. Add in all the spin-offs on DS and PSP and it's getting ridiculous.
I'd usually be concerned about that as well but Ubi has the tendency to slap a brand name on a game irrespective of the content. See Tom Clancy.
 
TheOddOne said:

Ehhhhhhhhhhhhhhhhhhh what? Profit Y2Y down 90%, FFXIV is a failure, FFXIII sold in Japan the worst for the series in a long time. PSP games never bring the profits HD games do. It's all riding on FF Versus XIII now.
 
Castor Krieg said:
Ehhhhhhhhhhhhhhhhhhh what? Profit Y2Y down 90%, FFXIV is a failure, FFXIII sold in Japan the worst for the series in a long time. PSP games never bring the profits HD games do. It's all riding on FF Versus XIII now.
you are all over the place. Are implying that Square is ruining its franchise into ground more than Ubi or otherway around?
 
faridmon said:
you are all over the place. Are implying that Square is ruining its franchise into ground more than Ubi or otherway around?

That if Ubi starts to hammer AC to the ground chances are they will have way harder time putting it back on track than S-E would with FF series.
 
Castor Krieg said:
Ehhhhhhhhhhhhhhhhhhh what? Profit Y2Y down 90%, FFXIV is a failure, FFXIII sold in Japan the worst for the series in a long time. PSP games never bring the profits HD games do. It's all riding on FF Versus XIII now.

LOL. You are a funny man.
 
Castor Krieg said:
Ehhhhhhhhhhhhhhhhhhh what? Profit Y2Y down 90%, FFXIV is a failure, FFXIII sold in Japan the worst for the series in a long time. PSP games never bring the profits HD games do. It's all riding on FF Versus XIII now.
After all that info.... you still believe what your saying.
 
Castor Krieg said:
That if Ubi starts to hammer AC to the ground chances are they will have way harder time putting it back on track than S-E would with FF series.
I am more confused now.

What makes you think that FF will bounce back if its been oversaturated? And how would you say AC is being hammered to the ground after a single bad paradgim shift in the bad direction? and how did you actually managed to compare between FF and AC series? and you do know that there are more fans of AC fans than many other franchises?
 
faridmon said:
and you do know that there are more fans of AC fans than many other franchises?

Actually I wonder about that now. AC2 has sold more copies worldwide than the best selling FF has. AC:B shows that AC sales at the moment are still significantly higher than almost all FF entries, and all recent ones.
 
duckroll said:
LOL. You are a funny man.

Spare me witty one sentece replies and elaborate.

faridmon said:
I am more confused now.

What makes you think that FF will bounce back if its been oversaturated? And how would you say AC is being hammered to the ground after a single bad paradgim shift in the bad direction? and how did you actually managed to compare between FF and AC series? and you do know that there are more fans of AC fans than many other franchises?

Go back in this thread. Kagari said that Ubi will run the franchise to the ground, someone pointed out that S-E is doing the same with FF. I disagree: each FF is different and has different mechanics. AC is the same game, based on the same premise. Main FF series doesn't have games released every year, AC does.

One FF goes bad, S-E will pull their shit together and make a different one. Once AC start going bad there it will be way harder to fix it.
 
Castor Krieg said:
One FF goes bad, S-E will pull their shit together and make a different one. Once AC start going bad there it will be way harder to fix it.

Is that working out so far? more sales with each change? looks like it's all downward regardless of what combat system or other things they have.
 
Castor Krieg said:
Go back in this thread. Kagari said that Ubi will run the franchise to the ground, someone pointed out that S-E is doing the same with FF. I disagree: each FF is different and has different mechanics. AC is the same game, based on the same premise. Main FF series doesn't have games released every year, AC does.

One FF goes bad, S-E will pull their shit together and make a different one. Once AC start going bad there it will be way harder to fix it.
Oh, I see. Well, We all know that this is just a matter of time before this franchise is being deliverd to the ground because of the yearly versions. But FF has left a bad taste in my mouth that I think both of them are screwed to trhe same degree or similiar.
 
miladesn said:
Is that working out os far? more sales with each change? looks like it's all downward regardless of what combat system or other things they have.
Their handheld efforts have been hit hard as well.

FFIIIR -> FFIVR -> FFG was basically going from 1+ million to 200k in Japan for titles with a similar market target.
 
-Pyromaniac- said:
I liked part 1 and LOVED part 2 and skipped Brotherhood because enough is enough :/

Just bring me part 3 and end it.

I thought the same thing and borrowed Brotherhood from a friend cause I was bored but ended up loving it a lot. Way more than I thought I would. Played single player all the way through and now I'm addicted to multiplayer. Brotherhood is really... really good.
 
Castor Krieg said:
Spare me witty one sentece replies and elaborate.

Okay!

Go back in this thread. Kagari said that Ubi will run the franchise to the ground, someone pointed out that S-E is doing the same with FF. I disagree: each FF is different and has different mechanics. AC is the same game, based on the same premise. Main FF series doesn't have games released every year, AC does.

One FF goes bad, S-E will pull their shit together and make a different one. Once AC start going bad there it will be way harder to fix it.

Each game being different from the previous one also means that the series finds it very hard to build a faithful fanbase from game to game in the current game industry climate. You say that "one FF goes bad, S-E will pull their shit together and make a different one", but yet the evidence we have of actual sales shows that there is absolutely nothing S-E can do to stem the decline of FF through "creative" means.

Every single FF game has been in decline in Japan since FFVIII. Maybe you didn't know this, but the sales have been steadily dropping from entry to entry regardless of platform or team attached.

Since you used the Japanese sales of FFXIII, let's example the growth and decline of FF in Japan. FF1-8 enjoyed straight growth from entry to entry, going from sub-million sales to a peak of almost 4 million.

For the bulk of the first 9 entries of FF, the gameplay also remained largely the same, with very similar mechanics, and very similar graphics and art style. It was only in more recent time where the game mechanics started changing very drastically from game to game.

And you know what? During the majority of this period, FF games were indeed released either yearly or bi-yearly. FF1-6 were all released either a year apart, or under 2 years apart. FF7 took almost 3 years to be released, but that was the first time that happened for the series. FF7-11 were all released with 1-2 years apart each.

Decline only started with FF9. FF9 sold less than FF8, and each subsequent entry has been selling less since. It seems that trying to make each FF game more and more different from the previous entry was something S-E actually started doing specifically to attempt to stem the decline the series was facing, as you pointed out. And the fact is that this isn't working. FFXIV is different from FFXI, and people hate it. They are now going to make it more like FFXI. FFX-2 was radically different from FFX, but now FFXIII-2 is going to be a lot more similar to FFXIII in terms of mechanics and tone.

The evidence of how the games actually sell, and the way that S-E reacts to them with each subsequence entry, seems to suggest specifically that being similar to something which sold well has a better chance of boosting your sales, then being different all the time regardless of and increase or decline in sales for a series.
 
Castor Krieg said:
Spare me witty one sentece replies and elaborate.

Go back in this thread. Kagari said that Ubi will run the franchise to the ground, someone pointed out that S-E is doing the same with FF. I disagree: each FF is different and has different mechanics. AC is the same game, based on the same premise. Main FF series doesn't have games released every year, AC does.

One FF goes bad, S-E will pull their shit together and make a different one. Once AC start going bad there it will be way harder to fix it.
You're making two strong assumptions - that AC's popularity will fade very quickly and that Ubi won't have any other big hit in the mean time. So far both AC's quality and popularity have been on the rise and it might continue to be so. Second point is that Ubi has tarnished many brands over the years, but they managed to remain big because new hits emerged.

I pointed at Square Enix to show that you can ride on one franchise for a very long time (20 years already) and this franchise won't get destroyed so easily despite shoddy quality and craaaazy amounts of games.
 
OldJadedGamer said:
I thought the same thing and borrowed Brotherhood from a friend cause I was bored but ended up loving it a lot. Way more than I thought I would. Played single player all the way through and now I'm addicted to multiplayer. Brotherhood is really... really good.
I'm sure I'll enjoy it but fuck I wasn't willing to spend the money for a spinoff turned glorified spinoff. But best believe before part 3 comes out I'll pick the shit up 10 bucks used and own it.
 
szaromir said:
You're making two strong assumptions - that AC's popularity will fade very quickly and that Ubi won't have any other big hit in the mean time. So far both AC's quality and popularity have been on the rise and it might continue to be so. Second point is that Ubi has tarnished many brands over the years, but they managed to remain big because new hits emerged.

I pointed at Square Enix to show that you can ride on one franchise for a very long time (20 years already) and this franchise won't get destroyed so easily despite shoddy quality and craaaazy amounts of games.


Mainline Final Fantasy games had never gotten a sub-90 review average prior to 2010 (FFXI does not count as mainline), the spinoffs have extremely different gameplay. Ubisoft's recent trackrecord (The brutal murders of Tom Clancy and their DS shovelware line) suggests that they aren't going to be able to keep this going.
 
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