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Ubisoft Says Open World Games Are the Future

| 12 Nov 2013 21:33
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Ubisoft credits open-world games and digital distribution for first-half sales of nearly $400 million.

Ubisoft reported sales of €293 million ($394 million) for the first half of its 2013-14 fiscal year today, a five percent increase over the €279 million ($375 million) it took in over the same period the previous year. Gross profit was also up, from €193 million ($259 million) to €202 million ($271 million), while the overall non-IFRS operating loss for the half hit €98 million ($132 million), up from €58 million ($78 million) in the first half of 2012-13.

Ubisoft credited the solid showing to "robust back-catalog sales" driven by Far Cry 3 and Assassin's Creed 3, and a 29 percent increase in digital sales. CEO Yves Guillemot predicted that the coming launches of the Xbox One and PlayStation 4 will be "a new driving force for the industry," and said that the company intends to take full advantage of the growing popularity of open-world games and digital distribution.

"This deep-seated market trend - which Ubisoft has fully embraced - is going to move up another gear when the next-generation consoles arrive. At the same time, the ongoing growth in our digital business demonstrates the progress we have made in an area which is set to expand even further in the coming years," he said. "Consequently, we are continuing to make strides in the implementation of our strategy, by concentrating our resources on regular releases of our open world franchises, investing in digital expertise and increasing the visibility of our brands, notably through movies and TV series."

Ubisoft said it expects third quarter sales of €500 to €540 million ($672 to $726 million), down 33 to 38 percent compared to the third quarter of 2012-13, which it attributed to last year's release of Far Cry 3. The company is standing by its full-year outlook, which it recently adjusted downward to between €995 million and €1.045 billion ($1.34 billion and $1.41 billion).

Source: Ubisoft

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