Visit our new website: worldnews.easybranches.com

Keep playing, keep paying: Ubisoft seeks games with “longterm engagement”

  • Wed, 14 Feb 2018 03:30
Games like Rainbow Six: Siege are indicative of a new focus on long-lasting "live" games at Ubisoft.

a sprawling 256-page annual report released this week. "Our players not only play for more hours at a time, but do so over a period of months or even years. We are thus able to offer them new experiences and content, thereby extending the lifetime of our games."

Guillemot points to Rainbow Six: Siege as the primary example of this new focus; the game saw its player base double between February 2016 and February 2017. But continued developer refinement and player engagement with online-focused titles like The Division, For Honor, and Steep also reflect the company's focus on "live" games, Guillemot says.

Ubisoft's new focus doesn't come entirely out of left field. For years now, the industry as a whole has been gravitating toward a "games as a service" model that prizes continuing support for existing games. Now, though, Ubisoft is being quite explicit in moving to "a model which is less dependent on releasing new games" and more focused on "developing numerous multiplayer games... which have dramatically increased player engagement."

Where the money is

An accompanying quarterly report Powerpoint presentation helps explain just why these long-lasting "live" games have become the company's primary concern. While "traditional" games tend to maintain only 13 percent of their revenue into their second year, "live" games bring in 52 percent of that first-year level into year two, according to Ubisoft's data.

In another slide, Ubisoft cites advantages like "recurring revenue business," "high user engagement," and a focus on "lifetime value" as benefits of these continuing games. The "digital-first" focus generates a "more predictable & cash-generative business model and market" than the former annual release cycle, Ubisoft says.

With the new model also comes a new focus on the "players' recurring investment" as a major metric for the health of Ubisoft's business. Things like in-game items, DLC, season passes, subscription, and advertising revenue now make up 18 percent of Ubisoft's revenue, the company says, compared to 38 or 39 percent for the likes of EA and Activision. Raising this ratio "has the potential to deliver prodigious value for our shareholders," Guillemot writes in the annual report.

With these kinds of numbers, it's not hard to see why Ubisoft would shift its focus almost entirely away from annual single-player adventures and toward online-focused platforms that can be extended with new content indefinitely. Don't be surprised as you see that focus reflected more and more in the big-budget games released by Ubisoft and others going forward.

business – Ars Technica

Tags


Businessweek

Related Stories

This week in video games, May 21, 2018: This year's Game Fest brings indie release State of Decay 2
  • Mon, 21 May 2018 14:46

This week, Nintendo is manufacturing more NES Classic and SNES Classic retro consoles, Star Wars Battlefront II gets ready for some Solo action, and y...

Motability boss's pay 'unacceptable' say MP committees
  • Mon, 21 May 2018 10:28

The salary of Mike Betts - who runs the disabled car scheme - has grown by 78% since 2008. BBC News - Business

Malaysia’s Najib seeks police protection, visits hometown, claims he’s a scapegoat
  • Mon, 21 May 2018 09:14

Malaysia’s former prime minister Najib Razak fears for his safety and has asked for police protection, his spokesman said on Sunday, a day after...

Drone deliveries ready to soar in Japan but lingering issues likely to keep post office in business
  • Mon, 21 May 2018 08:39

A drone carrying a package sails through the air, touching down to make a delivery right on a customer’s doorstep.Amazon.com Inc. wowed the worl...

UK turns blind eye to dirty Russian money, say MPs
  • Mon, 21 May 2018 07:33

The City is being used as "a base for the corrupt assets" of President Putin's allies, says a report. BBC News - Business

With bees on the brink, World Bee Day seeks to raise awareness
  • Mon, 21 May 2018 03:25

Bee populations have witnessed a steady decline over the past decade, according to the UN. German Chancellor Angela Merkel has called for people to "d...

What to do when the boss isn't paying you properly
  • Mon, 21 May 2018 02:37

So, you're worried you're being underpaid. Maybe your mates are earning more for doing the same job, or maybe you're working weekends and not getting ...

Trump seeks probe into FBI election campaign 'infiltration'
  • Mon, 21 May 2018 02:32

The US president wants to know if the FBI was ordered to penetrate his campaign for political purposes. BBC News - World

Warren Buffett Thanks Bruce Greenwald
  • Mon, 21 May 2018 02:32

In this short video Berkshire Hathaway’s Warren Buffett thanks Bruce Greenwald. Q1 hedge fund letters, conference, scoops etc, Also read Lear Ca...

There Were So Many Celebrities at the Royal Wedding We Could Hardly Keep Up
  • Mon, 21 May 2018 00:56

Post by Kayla Boyd. The royal wedding was one star-studded event! Although all eyes were Meghan Markle and Prince Harry, we loved seeing the celebriti...

Brexit: MP Barry Gardiner pressed on 'playing up' remark
  • Sun, 20 May 2018 22:33

Emma Barnett asked the Labour MP if he stands by remarks that people are playing 'up the issue of the Irish border'. BBC News - UK Politics

Forge First Funds April 2018 Commentary – Danger With Canadian Natural Gas
  • Sun, 20 May 2018 22:32

Forge First Funds commentary for the month ended April 30, 2018. April experienced more of the same volatility in equity markets that has persisted fo...


News Categories