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

jammy2211 said:
Avinash_Tyagi said:
jammy2211 said:
Avinash_Tyagi said:
^I'd believe that, if companies weren't taking huge losses

You're new to this common sense thing, arn't you

 http://news.vgchartz.com/news.php?id=5871

That's why MW2 had huge dev costs, cause it could. Once a game (Or any form of entertainement) gets that big, it'll cost more to make, it's how it is.

If anything is going up it's marketing costs.

http://www.vg247.com/2009/09/05/kitase-final-fantasy-titles-shouldnt-take-as-long-to-develop-in-the-future/

ROFL, Wii games are even bigger, and they don't cost anywhere near as much, I think you need to review common sense

 Eh? I was never even debating about Wii games, when the hell did they even come into any debate with me? Please actually read what I'm saying, or at least think before posting.

 I was merely explaining - with a link to a developer agreeing what I'd said - of why HD developement costs are falling, and explaining why when they do go up it's a standard procedure due to the western corporate mindset, whether it be MW2, a Wii game, a blockbuster film or some other appropriate example from the entertainment industry.

 You insued any comparison to the Wii in this debate without any cause or reason, which suggests to me you're only in this thread to try put some damage control on a wishy-washy, most likely out of context, statement on Ubisoft's fiscal report.

Did you not read the thread, this involves Wii games as well.

Now you were saying that Dev costs can be expalined by HD gaming becomeing as big as any other form of entertainment, and I pointed out, how Wii is bigger in that regard, its games generate more revenue, and profits and yet cost a fraction to make, so the argument that dev costs have to go up to create big revenues is false,  the idea that dev costs are falling, is belied by the act that devs and publishers are losing money, if they were seeing costs drop, then why are they in the red so much?  Nintendo isn't, even in a down year its swimming in profits



 

Predictions:Sales of Wii Fit will surpass the combined sales of the Grand Theft Auto franchiseLifetime sales of Wii will surpass the combined sales of the entire Playstation family of consoles by 12/31/2015 Wii hardware sales will surpass the total hardware sales of the PS2 by 12/31/2010 Wii will have 50% marketshare or more by the end of 2008 (I was wrong!!  It was a little over 48% only)Wii will surpass 45 Million in lifetime sales by the end of 2008 (I was wrong!!  Nintendo Financials showed it fell slightly short of 45 million shipped by end of 2008)Wii will surpass 80 Million in lifetime sales by the end of 2009 (I was wrong!! Wii didn't even get to 70 Million)

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Avinash_Tyagi said:
Ail said:
So when Nintendo says sales are slowing down and they need to do something noone question them.
But when Ubisoft says the same thing, They are lying ?
Double standard much ?

No, because Nintendo  didn't blame the market, they blamed themselves for the sales dropoff, and responded with a price cut and better games, and Sales have come thundering back

Sales might not be thundering so much actually........

 

http://www.gonintendo.com/viewstory.php?id=106083

 

a little over 550k for the whole week as claimed by Nintendo America ( which would make 620k or so for America if you add canada) is quite far from last year 825k....



PS3-Xbox360 gap : 1.5 millions and going up in PS3 favor !

PS3-Wii gap : 20 millions and going down !

Avinash_Tyagi said:
jammy2211 said:
Avinash_Tyagi said:
jammy2211 said:
Avinash_Tyagi said:
^I'd believe that, if companies weren't taking huge losses

You're new to this common sense thing, arn't you

 http://news.vgchartz.com/news.php?id=5871

That's why MW2 had huge dev costs, cause it could. Once a game (Or any form of entertainement) gets that big, it'll cost more to make, it's how it is.

If anything is going up it's marketing costs.

http://www.vg247.com/2009/09/05/kitase-final-fantasy-titles-shouldnt-take-as-long-to-develop-in-the-future/

ROFL, Wii games are even bigger, and they don't cost anywhere near as much, I think you need to review common sense

 Eh? I was never even debating about Wii games, when the hell did they even come into any debate with me? Please actually read what I'm saying, or at least think before posting.

 I was merely explaining - with a link to a developer agreeing what I'd said - of why HD developement costs are falling, and explaining why when they do go up it's a standard procedure due to the western corporate mindset, whether it be MW2, a Wii game, a blockbuster film or some other appropriate example from the entertainment industry.

 You insued any comparison to the Wii in this debate without any cause or reason, which suggests to me you're only in this thread to try put some damage control on a wishy-washy, most likely out of context, statement on Ubisoft's fiscal report.

Did you not read the thread, this involves Wii games as well.

Now you were saying that Dev costs can be expalined by HD gaming becomeing as big as any other form of entertainment, and I pointed out, how Wii is bigger in that regard, its games generate more revenue, and profits and yet cost a fraction to make, so the argument that dev costs have to go up to create big revenues is false,  the idea that dev costs are falling, is belied by the act that devs and publishers are losing money, if they were seeing costs drop, then why are they in the red so much?  Nintendo isn't, even in a down year its swimming in profits

All I was doing is explaining why HD dev costs have in general fallen, and why in certain situations they rise - and when they do rise the reasoning is financially viable and is based around maximizing profits. Just like Nintendo do when they set aside a $40 million Wii Fit Advertising campaign.

 The blockbuster Wii games all have a marketing budget which is comparable (If not exceeds) that of a HD title ( Source ) making costs easily comparable. We've still no real idea how much something like Wii Fit or Mario Kart Wii cost to make, I still struggle to beleive this assumed 'it's cheaper just cause it's on Wii mentality', when it comes to any big name game the developement costs are significient.

 All the publishers losing money make Wii games too; you can pin their financial struggling on any number of things (Recession an obvious one). It's laughable to try pin a comapny the size of EA or Ubisoft and blame a poor quarter (Or year in EA's case :P) on supporting HD gaming - and just as easily I could bring up a company who really hasn't supported the Wii or DS (i.e. Capcom or Konami) yet are still in the black.



Ail said:
Avinash_Tyagi said:
Ail said:
So when Nintendo says sales are slowing down and they need to do something noone question them.
But when Ubisoft says the same thing, They are lying ?
Double standard much ?

No, because Nintendo  didn't blame the market, they blamed themselves for the sales dropoff, and responded with a price cut and better games, and Sales have come thundering back

Sales might not be thundering so much actually........

 

http://www.gonintendo.com/viewstory.php?id=106083

 

a little over 550k for the whole week as claimed by Nintendo America ( which would make 620k or so for America if you add canada) is quite far from last year 825k....

Perhaps, but its still far higher than what it was earlier in the year



 

Predictions:Sales of Wii Fit will surpass the combined sales of the Grand Theft Auto franchiseLifetime sales of Wii will surpass the combined sales of the entire Playstation family of consoles by 12/31/2015 Wii hardware sales will surpass the total hardware sales of the PS2 by 12/31/2010 Wii will have 50% marketshare or more by the end of 2008 (I was wrong!!  It was a little over 48% only)Wii will surpass 45 Million in lifetime sales by the end of 2008 (I was wrong!!  Nintendo Financials showed it fell slightly short of 45 million shipped by end of 2008)Wii will surpass 80 Million in lifetime sales by the end of 2009 (I was wrong!! Wii didn't even get to 70 Million)

jammy2211 said:

All I was doing is explaining why HD dev costs have in general fallen, and why in certain situations they rise - and when they do rise the reasoning is financially viable and is based around maximizing profits. Just like Nintendo do when they set aside a $40 million Wii Fit Advertising campaign.

 The blockbuster Wii games all have a marketing budget which is comparable (If not exceeds) that of a HD title ( Source ) making costs easily comparable. We've still no real idea how much something like Wii Fit or Mario Kart Wii cost to make, I still struggle to beleive this assumed 'it's cheaper just cause it's on Wii mentality', when it comes to any big name game the developement costs are significient.

 All the publishers losing money make Wii games too; you can pin their financial struggling on any number of things (Recession an obvious one). It's laughable to try pin a comapny the size of EA or Ubisoft and blame a poor quarter (Or year in EA's case :P) on supporting HD gaming - and just as easily I could bring up a company who really hasn't supported the Wii or DS (i.e. Capcom or Konami) yet are still in the black.

Actually publishers themselves have stated that Wii is much cheaper to Develope for, THQ said it was a fraction of the cost, even if you include the marketing, its still a cheaper endeavor to make Wii games.

Nintendo is making money even with those factors, and on Wii and DS, so its not the systems, its the devs and publishers



 

Predictions:Sales of Wii Fit will surpass the combined sales of the Grand Theft Auto franchiseLifetime sales of Wii will surpass the combined sales of the entire Playstation family of consoles by 12/31/2015 Wii hardware sales will surpass the total hardware sales of the PS2 by 12/31/2010 Wii will have 50% marketshare or more by the end of 2008 (I was wrong!!  It was a little over 48% only)Wii will surpass 45 Million in lifetime sales by the end of 2008 (I was wrong!!  Nintendo Financials showed it fell slightly short of 45 million shipped by end of 2008)Wii will surpass 80 Million in lifetime sales by the end of 2009 (I was wrong!! Wii didn't even get to 70 Million)

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KungKras said:
Serves them right. Ubisoft has been terrible this generation.

ahh...prince of persia, rainbow six were great.



Not a 360 fanboy, just a PS3 fanboy hater that likes putting them in their place ^.^

Avinash_Tyagi said:
Ail said:
Avinash_Tyagi said:
Ail said:
So when Nintendo says sales are slowing down and they need to do something noone question them.
But when Ubisoft says the same thing, They are lying ?
Double standard much ?

No, because Nintendo  didn't blame the market, they blamed themselves for the sales dropoff, and responded with a price cut and better games, and Sales have come thundering back

Sales might not be thundering so much actually........

 

http://www.gonintendo.com/viewstory.php?id=106083

 

a little over 550k for the whole week as claimed by Nintendo America ( which would make 620k or so for America if you add canada) is quite far from last year 825k....

Perhaps, but its still far higher than what it was earlier in the year

yep, sales tend to raise on Black Friday week, your point ?



PS3-Xbox360 gap : 1.5 millions and going up in PS3 favor !

PS3-Wii gap : 20 millions and going down !

^That sales have been on the rise not just last week but in other weeks as well



 

Predictions:Sales of Wii Fit will surpass the combined sales of the Grand Theft Auto franchiseLifetime sales of Wii will surpass the combined sales of the entire Playstation family of consoles by 12/31/2015 Wii hardware sales will surpass the total hardware sales of the PS2 by 12/31/2010 Wii will have 50% marketshare or more by the end of 2008 (I was wrong!!  It was a little over 48% only)Wii will surpass 45 Million in lifetime sales by the end of 2008 (I was wrong!!  Nintendo Financials showed it fell slightly short of 45 million shipped by end of 2008)Wii will surpass 80 Million in lifetime sales by the end of 2009 (I was wrong!! Wii didn't even get to 70 Million)

Ail said:
I do love how each time a company claims weaker Wii revenue than expected the fanboy here have to question their statement.
This is a financial statement for Ubisoft investors, they have no reason to lie...

I do love how eact time a company cleams weaker Wii revenue (or any Wii news at that) you're the first one in line to start stirring thing up!

Anyways, I think this is easily explained in the list of games famousringo.  Not only that, but didn't you mention something in a prior discussion with Avinash about crappy games selling on the Wii in another recent thread?  Now when crappy games don't sell on the Wii you're still bitchin'?  You can't have it both ways, Ail!



I posted this in a similar thread (everything in this post is only about the Wii):

This actually doesn't include Rabbids Go Home. The report is for April through September.

Number of games sold:

April: 690,425
May: 439,382
June: 386,547
July: 394,511
August: 296,745
September: 367,952

Total sales for this time frame: 2,575,562

Total sales for the life of these games up to the end of September: 16,738,783

It seems to me, the problem is that Ubisoft's games are just getting old. The legs of their best selling games are starting to dry up and there is nothing to replace it. They did not have a single big release during this time frame, and some months didn't have any releases at all (or they didn't make the chart).

Their top sellers by far were My Fitness Coach and Gold's Gym: Cardio Workout. After that RRR: TV Party and Shaun White Snowboarding: Road Trip were the next best selling games.

The problem? By the end of September all those games were over 44 weeks old. That means Ubisoft hasn't released anything big on the Wii in almost a year. That is their fault, not Wii gamers, not the Wii, and not Nintendo.

So what were the games Ubisoft released on the Wii during this time frame?

Dawn of Discovery (June 2009)
Summer Sports 2: Island Sports Party (July 2009)
Cloudy With a Chance of Meatballs (September 2009)
Teenage Mutant Ninja Turtles: Smash-Up (September 2009)
Where's Waldo? The Fantastic Journey (September 2009)
Price is Right: 2010 Edition, The (September 2009)
Family Feud: 2010 Edition (September 2009)

Did they really expect these games to take off? Or did they expect the legs of their existing games to hold up better? It is possible they were expecting more out of the TMNT game, but for this report, the game had only been out for ONE WEEK.

Would Ubisoft complain about the sales of their HD games if their lineup had been this empty? Somehow, I think not.



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