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Forums - Sales - Ubisoft financial results

SaviorX on 18 May 2010
forest-spirit said:
So Assassin's Creed II and Just Dance (almost) saves the day, huh? It seems like Ubisoft are playing a dangerous game right now.

They are probably playing Wii Fit. If they aren't careful, they can turn into sex maniacs.

Last thing we need is another Leisure Suit Larry of Custer's Revenge...........



Leatherhat on July 6th, 2012 3pm. Vita sales:"3 mil for COD 2 mil for AC. Maybe more. "  thehusbo on July 6th, 2012 5pm. Vita sales:"5 mil for COD 2.2 mil for AC."

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famousringo on 18 May 2010
psrock said:
famousringo said:
psrock said:

The source answered the question about the year, the DS sales has cost them tons of sales, but enough about the 60 million dollars game stuff.

Why? You're missing half the picture if you only look at revenues and ignore costs. It's a fact that while revenues are contracting, Ubi's R&D budget expanded 25% last year. Guillemot himself has stated that he thinks it will be the average cost of an 8th gen game, and I don't think that they're all going to sell 9 million units.

Yeah, because that's not why they lost money. When that's reason, then we can use that excuse.

Okay, so they're spending 60 million more Euros than they used to spend on R&D, and it hasn't yet yielded any increase in revenues, but somehow it isn't losing them money. I must be missing something.

I'm sure Ubisoft expects their swelling R&D budget to yield returns in the future, and perhaps it will, but there's no guarantee that it will. And until it does, those increased costs are losing Ubisoft money!



"The worst part about these reviews is they are [subjective]--and their scores often depend on how drunk you got the media at a Street Fighter event."  — Mona Hamilton, Capcom Senior VP of Marketing
*Image indefinitely borrowed from BrainBoxLtd without his consent.

darthdevidem01 on 18 May 2010

How the HELL did they make a loss when AC2 shipped 9 Million? PLEASE EXPLAIN SOMEONE!



All hail the KING, Andrespetmonkey

Arius Dion on 18 May 2010

^I'm guessing something similar to Take2 and the GTAIV situation.



Bet between Slimbeast and Arius Dion about Wii sales 2009:


If the Wii sells less than 20 million in 2009 (as defined by VGC sales between week ending 3d Jan 2009 to week ending 4th Jan 2010) Slimebeast wins and get to control Arius Dion's sig for 1 month.

If the Wii sells more than 20 million in 2009 (as defined above) Arius Dion wins and gets to control Slimebeast's sig for 1 month.

Gamerace on 18 May 2010

Really sad to see as Ubisoft as been one of the few companies posting regular profits. Now that they alienated their 'girl' base on DS with too much shovelware they are hurting big time.

HD develepment costs plus as lack of understanding of what works on Wii is killing this industry. Just Dance being a notable exception.



 

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forest-spirit on 18 May 2010
darthdevidem01 said:
How the HELL did they make a loss when AC2 shipped 9 Million? PLEASE EXPLAIN SOMEONE!

Company trip to Las Vegas.



TheSource on 18 May 2010

Well...I was thinking about that.

Assassin's Creed 2 cost $60 in stores for you and I. Ubisoft sold it for $48 to retailers at launch. Lets say that price held over the entire fiscal year...

 

The most they could get for the game is ~$48 * 9,000,000 or ~$432,000,000

Sony and Microsoft get ~$90 million of that

Another ~$9 million goes to making the discs / instruction manuals

So Ubisoft is left with ~$332 million

The game probably had $30-$50 million in advertising (15% of total revenue)

Probably cost $20-$30 million to make

 

So on the $432 million (340m Euro) they get up to 65% of the revenue as profit, maybe as much as $282 million / 222m Euro profit on the game. 

Their revenue was $1.106b for the fiscal year, 45% of which came on X360 / PS3....but 39% of X360/PS3 revenue (432/1106) came fron Assassin's Creed 2...which means almost every game for those systems probably performed well below expectations. It amounts to something like $432m from Assassin's Creed 2...and $66m from all other HD games...

For Wii you have ~$28 * 3m for Just Dance which is like ~$84 million but Ubisoft revenues from other Wii games were ~$204m. That means a fair amount of other Wii stuff did ok or well, or a few other games clear 1m units.

 

 



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psrock on 18 May 2010
TheSource said:

Well...I was thinking about that.

Assassin's Creed 2 cost $60 in stores for you and I. Ubisoft sold it for $48 to retailers at launch. Lets say that price held over the entire fiscal year...

 

The most they could get for the game is ~$48 * 9,000,000 or ~$432,000,000

Sony and Microsoft get ~$90 million of that

Another ~$9 million goes to making the discs / instruction manuals

So Ubisoft is left with ~$332 million

The game probably had $30-$50 million in advertising (15% of total revenue)

Probably cost $20-$30 million to make

 

So on the $432 million (340m Euro) they get up to 65% of the revenue as profit, maybe as much as $282 million / 222m Euro profit on the game. 

Their revenue was $1.106b for the fiscal year, 45% of which came on X360 / PS3....but 39% of X360/PS3 revenue (432/1106) came fron Assassin's Creed 2...which means almost every game for those systems probably performed well below expectations. It amounts to something like $432m from Assassin's Creed 2...and $66m from all other HD games...

For Wii you have ~$28 * 3m for Just Dance which is like ~$84 million but Ubisoft revenues from other Wii games were ~$204m. That means a fair amount of other Wii stuff did ok or well, or a few other games clear 1m units.

 

 

Did you check how many games Ubisoft creates for the HD consoles VS the Wii? I am just curious because I think it's a huge difference.



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11/20/09 04:25 makingmusic476 Warning Other (Your avatar is borderline NSFW. Please keep it for as long as possible.)
Kenology on 18 May 2010
koffieboon said:
TheSource said:

Can someone go tell Gamasutra that Ubisoft lost 43.7m Euros? They didn't fucking profit for the year...completely misleading headline. Its the first thing they say in their press-release that was emailed out a few hours ago.

Check out my piece...Ubisoft revenue on DS dropped by over $200 million in a single year. Pretty scary stuff for a company that only makes like a $1 billion in a good year.

 

 

 

You mean this article?

http://www.gamasutra.com/view/news/28603/Ubisoft_Posts_Losses_As_Assassins_Creed_II_Nears_9_Million.php

They obviously edited the title.  They screw up headlines a lot over there.  For example, the title of THIS article was once: "Analysis: Mass Effect 2, God Of War III Top Q1 Software Sales".  Now read the actual article and you'll see what games really dominated.  They got called out on it too.



Squilliam on 18 May 2010
TheSource said:

Well...I was thinking about that.

Assassin's Creed 2 cost $60 in stores for you and I. Ubisoft sold it for $48 to retailers at launch. Lets say that price held over the entire fiscal year...

 

The most they could get for the game is ~$48 * 9,000,000 or ~$432,000,000

Sony and Microsoft get ~$90 million of that

Alternatively you could say that S+M got $110M of that because Pachter specifically stated that the royalty payment was $12. I wonder if this is correct and we've been under-representing the console makers cut on these forums?

Another ~$9 million goes to making the discs / instruction manuals

So Ubisoft is left with ~$332 million

The game probably had $30-$50 million in advertising (15% of total revenue)

Probably cost $20-$30 million to make

 

So on the $432 million (340m Euro) they get up to 65% of the revenue as profit, maybe as much as $282 million / 222m Euro profit on the game. 

Their revenue was $1.106b for the fiscal year, 45% of which came on X360 / PS3....but 39% of X360/PS3 revenue (432/1106) came fron Assassin's Creed 2...which means almost every game for those systems probably performed well below expectations. It amounts to something like $432m from Assassin's Creed 2...and $66m from all other HD games...

For Wii you have ~$28 * 3m for Just Dance which is like ~$84 million but Ubisoft revenues from other Wii games were ~$204m. That means a fair amount of other Wii stuff did ok or well, or a few other games clear 1m units.

 

 

 



Tease.