Ubisoft Investor Day 2016

Key insights

6 takeaways

01
Ubisoft is transitioning to a recurring revenue model focused on long-term live services, aiming for €2.2 billion in revenue and a 20% operating margin by fiscal year 2019.See it on page 80
02
Digital sales are projected to reach 45% of total revenue as the company shifts from standalone releases to year-round player engagement.See it on page 74
03
The strategy prioritizes scaling a concentrated portfolio of blockbuster franchises, including Assassin’s Creed, Rainbow Six, The Division, and For Honor.See it on page 34
04
Player retention will be driven by consistent content updates, seasonal roadmaps, and the integration of esports.See it on page 60
05
The company is focusing on internal growth and agile, data-centric organizational units rather than pursuing expensive mergers and acquisitions.See it on page 77
06
Brand reach is being expanded through cross-media entertainment partnerships to extend the lifespan and audience of proprietary intellectual properties.See it on page 27

Summary

Ubisoft is executing a fundamental strategic pivot toward a recurring revenue model, aiming to transform its business from a cycle of standalone, one-off releases into a platform for long-term, high-engagement live services. By targeting €2.2 billion in revenue and a 20% operating margin by fiscal year 2019, the company intends to capitalize on digital growth, which is projected to account for 45% of total sales. This transition relies on shifting player behavior toward year-round interaction, supported by consistent content updates, seasonal roadmaps, and the integration of esports to maximize player retention.

The core of this strategy involves scaling a concentrated portfolio of blockbuster intellectual properties, including established franchises like Assassin’s Creed and Rainbow Six alongside new titles such as The Division and For Honor. By diversifying gameplay segments and utilizing data-driven development, the company seeks to extend the lifespan of its games significantly. This approach is bolstered by a focus on cross-media entertainment partnerships, which serve to expand the reach of these brands beyond traditional gaming audiences.

Operationally, the company is prioritizing internal growth over expensive mergers and acquisitions, leveraging a large, cost-efficient global workforce to maintain a steady pipeline of proprietary content. By reorganizing into agile, data-centric units, the organization aims to improve return on investment and ensure consistent annual output. This structural shift is designed to solidify a competitive advantage in the open-world market, ensuring that the company remains a leader in the industry by fostering deep, ongoing relationships with its global player base.