Ubisoft Profits Down For First Half of 2006

Citing heavy R&D costs, lower game sales and general administrative costs, Ubisoft is reporting a $58 million loss in the first half of fiscal 2006.

For the six month period ending September 30th, Ubisoft has reported $12.3 million more in loses compared to this time last year. Sales were up 13 percent however, indicating that next-gen development is taking its pound of flesh while new tools and methods are developed.

Things are looking up, according to CEO Yves Guillemot. "The third quarter of 2006-07 is off to a good start, with Red Steel and Rayman in the top five sales on the launch of the Wii, and Tom Clancy's Splinter Cell and Tom Clancy's Rainbow Six returning to the front ranks. These positive factors have enabled us to raise our minimum growth target for 2006-07."

The company has raised sales projections for the 3rd quarter to $372 million in the face of strong software sales.

Source: Next-Gen