Ubisoft Reports $117M Loss On Sales Drops, Catalog Discounting

[NJ5]

jammy2211 said:

NJ5 said:

jammy2211 said:

NJ5 said:

jammy2211 said:

Assassin's Creed 2 is exceeding expectations, why are people doubting it's profitability? Unless Ubisoft expected it to lose money 0_o.

To be clear, my point is that it could not make a great profit depending on how sales end up. Sequels often sell less than their predecessors despite being more frontloaded.

 

On the other hand, Frontloaded games tend to be more profitable as they're selling more copies at a higher price.

 They'd only make a sequel if the original made plenty of money; and if that sequel is exceeding expectations you'd assume it's making more money then the original :/.

Of course it's making more revenue than the original, so far... that's not in question.

 

Thus it's making more profit - people have already explained the 450 number is an inflated figure (No doubt used to 'wow' people into thinking the game would be awesome), and I could easily counter argue the game will have cheaper developement costs then the original, now they have the Engine up and running and more experience with the HD platforms. It's all just speculation though, all we've got to go on is the game selling more copies then the original thus far, at a higher price point on average 0_o.

 

That's not how the software business works... all the money is already spent before you start collecting revenue, so you don't make profit until you've covered all the costs.

AC2 is making more revenue... how much of a profit it will make depends on its legs, which are completely unknown at this point.