Ubisoft Report 2009-10 Results

[Kalah]

In <a href="/http://pressextranet.ubisoft.com/EMEA/N ... ults">this release</a>, Ubisoft have published their <a href="/http://pressextranet.ubisoft.com/EMEA/N ... >full-year economic results</a> for 2009-10. In short, it has been a tough year for Ubi, as it has been for the gaming industry as a whole. Last year they could show to a net profit, this year, they've lost money.



<i>"The global economic crisis had a pronounced impact on the video game industry in 2009, which contracted by nearly 10% year-on-year. Ubisoft's sales were hit particularly hard, falling 18% over the full year despite a stabilization in the second half of the year (...) We forecast a return to profitable growth in 2010-11 with positive cash flow generation ..."</i>

- Yves Guillemot, CEO



Here's the breakdown:

<ul><li>Full-year sales: €871 million (€1.057,9 million last year)

<li>Current operating loss : €59,6 million (€128,7 <i>profit</i> last year)

<li>Net loss: €44 million (€68,8 <i>profit</i> last year)</ul>



The complete report can be found <a href="/http://pressextranet.ubisoft.com/EMEA/N ... x">here</a>. If you're an economist, feel free to read the whole thing and then <i>not</i> tell me about it.

If you would like to take a look at the original page visit this link:
https://www.celestialheavens.com/1274440315

[Kristo]

If you've ever wondered why we feel like we don't matter to Ubisoft, the report will tell you. PC sales are only 8% of their total revenue. The Might and Magic games are a small fraction of that 8%.

[GreatEmerald]

I bet that it's not only the crisis that did it, it's also their DRM.
Also, this is very similar to 3DO before their bankruptcy. "We will return to profitability ASAP".

[ByteBandit]

Looking at a larger economic crisis, namely the latest meltdown in Greece and some other countries there, it's taking the latest surge in the US economy down with it. The US stock market is sinking like a rock once again, because of investments shareholders have in Europe.
Couple that with Ubisofts plan for future games to be handled with DRM, and I don't see where the projected profits are going to come from.

[Corelanis]

A little wishful thinking never hurt nobody

[jeff]

A little wishful thinking never hurt nobody

Ok how about UBI goes bankrupt and a good game company buys the MM franchise.

[Campaigner]

They sold games for €1057 MILLIONS last year and

€871 MILLIONS this year



HOW THE #%&! can you lose money if you sell THAT much?? Incredible!



I bet their management (snobby OVERPAYED guys in suits) is too large and gets paid too much. Whatever happened to two guys making a game in his garage (or ONE guy making Kings Bounty in his living room ?)

[Kristo]

Because it costs a heckuva lot of money to sell that sheer volume of games. At that level you can be sure that management's salary is a small fraction of their total costs. It's sad, but two guys in their garage can't afford what it would cost to market the next Half Life or whatever.

[ThunderTitan]

Yeah, marketing... the real reason the games industry is dying...

I heard that MW2 or some game like it had 10x the marketing budget compared to what it cost to actually make it...

[japol]

They will have their new DRM in action for the whole next fiscal year,i'm sure it will help them bounce back...

[Loco Blutaxt]

It doesen't matter to me. The earlier they're down and out the earlier the Heroes licence is free for others to buy. I will not buy any UBI game anyway as long as they keep hold of their new DRM! No Heroes VI, no Assassins Creed, ... nothing!

[Corelanis]

You may hate ubisoft but if they go bankrupt there's a fairly good chance no one will buy the might and magic franchise from them, seeing as how its a old declining series that doesn't have a snowballs chance in hawaii when compared to Ubisofts other newer more profitable franchises.

[GreatEmerald]

You may hate ubisoft but if they go bankrupt there's a fairly good chance no one will buy the might and magic franchise from them, seeing as how its a old declining series that doesn't have a snowballs chance in hawaii when compared to Ubisofts other newer more profitable franchises.

Even that would be better than Ubi's excuse for HoMM games

[Moragauth]

"Yeah, marketing... the real reason the games industry is dying..."



*sigh* More tired whining about marketing, as if products will just sell themselves and automatically appeal to consumers when there's a million competing products out there.



/rofl

[ThunderTitan]

Yeah, because we need 10 times as much money to go into marketing then in the game...


But yeah, competing products rely on marketing instead of quality to sell... and it even sadder.