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


US Weekly

Related Stories

Value Nugget Fest (20th Edition)
  • Sat, 24 Feb 2018 14:38

What We’re Reading in the Media Special Investigation: The Dirty Secret Behind Warren Buffett’s Billions .first{clear:both;margin-left...

Florida shooting: NRA-linked firms hit by consumer boycott
  • Sat, 24 Feb 2018 13:45

Hertz and Enterprise Holdings are among corporate partners shunning the powerful gun lobby. BBC News - Business

‘Peace Games’ are no game-changer for South Koreans
  • Sat, 24 Feb 2018 12:50

South Korea’s self-styled “Peace Games” have been a sporting success but public reaction suggests it may have failed its bigger test...

U.S. volatility fund sponsor tweaks strategy after market plunge
  • Sat, 24 Feb 2018 11:43

NEW YORK (Reuters) - A company behind U.S.-based funds tied to Wall Street's "fear gauge" is making changes to its investment strategy after a sudden ...

A Friday Chat About Broken Wrists
  • Sat, 24 Feb 2018 07:42

Photo credit: SmartSign, CC BY 2.0. NICOLE: Happy Friday! ALEX C: Happy Friday, Nicole! I’m feeling very TGIF! NICOLE: Me too! I am still feelin...

Playing both ends: Amphibian adapted to varied evolutionary pressures
  • Sat, 24 Feb 2018 06:37

Caecilian, Siphonops annulatus, a limbless amphibian found throughout Brazil, has a concentration of enlarged mucous glands in its head region and a c...

Steve Jobs’ First Job Application Is Now Up For Auction
  • Sat, 24 Feb 2018 06:33

While Steve Jobs was one of the most influential men alive due to his position as the CEO of Apple, he got his starts in a much more humble manner. A ...

When “Saving Money” Means “Getting Money From a Source Besides Your Own Labor”
  • Sat, 24 Feb 2018 03:34

Photo credit: Pranav_Yaddanapudi, CC BY 2.0. Remember last month, when we were looking at all of those Millennial savings surveys? There was the one t...

Ex-BHS owner Dominic Chappell fined £87,000
  • Sat, 24 Feb 2018 02:35

The fine was imposed for failing to provide information about BHS's pension schemes. BBC News - Business

Three Warning Signs For Commercial RE And REITs
  • Fri, 23 Feb 2018 23:30

Forecasting the direction of real estate prices requires the same disciplined approach as for other goods and services. Here are three reasons why com...

Second Russian athlete fails doping test at Winter Games
  • Fri, 23 Feb 2018 22:38

PYEONGCHANG, South Korea (Reuters) - A second Russian athlete has tested positive for a performance-enhancing drug at the Pyeongchang Winter Olympics,...

Adventures in Fintech: An Interview With My Dad
  • Fri, 23 Feb 2018 22:34

Photo credit: woodleywonderworks, CC BY 2.0. Hi Dad. Hello. Thanks for chatting with me. No problem. Anything for my favorite daughter. Your only daug...


News Categories