The company’s annual finance report has revealed a new game in the pipelines
Ubisoft Entertainment SA (EPA:UBI) released its final earnings for the fiscal year 2016 today, highlighting confidence in its hard focus on open-world games. According to the company, the number of open-world games has steadily grown in the past eight years, making up for a sizable portion of the video games market. Ubisoft made it clear that it intends to be part of that growth by releasing multiple games in the genre on a regular (yearly) basis.
It cited examples from the past to make it clear that it has the resources and will to keep up with other major publishers – assumingly, pointing at Activision Blizzard, Inc. (NASDAQ:ATVI) and Electronic Arts Inc. (NASDAQ:EA) – in pace. At the same time, Ubisoft stated that it’s equally important that each launch receives excellent post-release support for the betterment and growth of its consumer-base.
Ubisoft is currently working on five major AAA projects which it intends to release by March 31, 2017. This list includes Watch Dogs 2, Tom Clancy’s Ghost Recon: Wildlands, South Park: The Fractured But Whole, For Honor, and an unannounced new IP which it intends to announce at E3 2016 in June. According to rumors, the mysterious new project is going to focus heavily on online elements, much like what we have experienced with The Division, Rainbow Six Siege, and what has been promised for Ghost Recon: Wildlands and For Honor. It may be the same formula, but it has worked wonders for the company. Ubisoft is most likely to stick with it until stagnancy in the market causes it to search for something fresh.
Elsewhere in the earnings report, Ubisoft stated that both The Division and Rainbow Six Siege proved to be excellent sources for “strong recurring digital revenue stream”. The “recurring” value here is related to post-release DLC, microtransactions and subscriptions. Ubisoft expects this revenue stream to further grow in the coming years. Microtransactions may be a highly controversial matter where the players are concerned; Ubisof, however, clearly has no plans to withdraw from this lucrative business model.