Assassin's Creed Mirage
Documents about Assassin's Creed Mirage
Epic Layoffs, EA's FIFA Fallout, and the Future of Gaming Haptics
This analysis examines significant shifts within the gaming industry as of October 2023, focusing on corporate restructuring, licensing transitions, and emerging hardware trends.
- Epic Games laid off 16% of its workforce, totaling over 800 employees, as it shifts toward a creator-backed revenue share business model for Fortnite.
- Electronic Arts has successfully transitioned away from the FIFA brand with the launch of EA Sports FC 24, suggesting the licensing split has increased the value of EA's internal sports portfolio.
- The gaming industry is increasingly experimenting with wearable haptics, exemplified by the OWO haptic shirt tie-in for Ubisoft's Assassin’s Creed Mirage.
Unity Divides: New Fee Structure Sparks Controversy
This analysis examines the shifting economic landscape of the video game industry, focusing on the controversy surrounding Unity’s 2024 "Runtime Fee" structure and the evolving platform strategies of Roblox and Apple.
- Unity’s new 'Runtime Fee' structure, which charges developers based on game installations rather than revenue, has caused its stock price to plummet from a 2021 peak of $197 to approximately $36.
- The shift toward aggressive rent-seeking by platform holders is driving developers toward alternative engines like Unreal, Godot, and GameMaker to avoid being locked into a single provider.
- Roblox is leveraging its 65.5 million daily active users to expand onto Meta Quest and PlayStation while utilizing generative AI to improve user retention.
Ubisoft Q1 Financial Results: June 2023
Ubisoft’s financial performance for the first quarter of fiscal year 2024, ending June 30, 2023, reflects a period of transition characterized by a year-over-year decline in revenue alongside a strategic pivot toward mobile expansion and high-profile partnerships.
- Ubisoft reported Q1 fiscal year 2024 revenue of €288.9 million, a 9.2% year-over-year decrease.
- Net bookings reached €267.7 million, exceeding the company's internal target of €240 million despite an 8.7% year-over-year decline.
- Approximately 92% of net bookings were generated by the company's back-catalog, with in-game purchases, subscriptions, and DLC accounting for 47.6% of total net bookings.
Ubisoft Reports First-Quarter 2023-24 Sales
Ubisoft announced first-quarter fiscal 2023-24 sales, reporting IFRS 15 revenue of €288.9 million and net bookings of €267.7 million, both down 8–9% YoY but exceeding the target of €240 million.
- Ubisoft reported Q1 fiscal 2023-24 net bookings of €267.7 million, an 8-9% year-over-year decline that nonetheless exceeded the company's internal target of €240 million.
- Live-service titles Tom Clancy’s Rainbow Six Siege and The Division 2 drove performance with double-digit growth in both net bookings and daily active users.
- Digital net bookings accounted for 90% of total revenue, despite an overall 8% decline in the digital segment and a 17% drop in player-recurring investment (PRI).
Ubisoft Full-Year 2022-23 Earnings Figures
Ubisoft’s fiscal year 2022-23 served as a period of strategic transition, characterized by a pivot toward core brand expansion and the implementation of a significant cost-reduction program.
- Ubisoft reported net bookings of €1,739.5 million for fiscal year 2022-23, representing an 18.3% decline and a non-IFRS operating loss of €500.2 million.
- The company is executing a restructuring plan to cut €200 million in non-variable costs over two years, involving the closure of five European offices and a reduction of the global workforce to under 20,000 employees.
- Management is targeting a return to profitability in fiscal year 2023-24 with a projected non-IFRS operating income of approximately €400 million.
Ubisoft Third-Quarter 2022-23 Sales
Ubisoft’s third-quarter fiscal 2022-23 sales report outlines the company’s financial performance for the period ending December 31, 2022, while detailing strategic shifts toward operational efficiency and brand-focused development.
- Ubisoft reported Q3 2022-23 net bookings of €726.9 million, with nine-month fiscal year-to-date bookings reaching €1,426.3 million, a 2.6% decline year-over-year.
- Player Recurring Investment (PRI) grew by 57.1% to €841.7 million, now representing 59% of total net bookings.
- Mobile gaming's share of quarterly net bookings surged to 43%, up from 7% in the same period the previous year, while console and PC shares declined.
Ubisoft Strategic Focus Update: 2022-23 Financial Targets
Ubisoft has announced a significant strategic pivot to address recent financial underperformance and shifting industry dynamics characterized by a move toward mega-brands and long-term live services.
- Ubisoft is pivoting to a brand-centric strategy, canceling seven projects and prioritizing high-impact franchises to counter recent financial underperformance.
- The company expects a full-year net bookings decline of over 10%, a significant reversal from previous projections of 10% growth.
- Management forecasts a non-IFRS operating loss of €500 million for the 2022-23 fiscal year.
FY24 Earnings: Q2
The presentation outlines Ubisoft’s financial performance for the first half of fiscal year 2024, highlighting a robust Q2 that surpassed expectations.
- Ubisoft exceeded Q2 FY24 expectations with €555 million in net bookings, significantly outperforming the €350 million target driven by the launches of The Crew Motorfest and Assassin’s Creed Mirage.
- Non-IFRS operating income turned profitable at €43.5 million for H1 FY24, a substantial improvement from the €139.0 million loss recorded in the same period last year.
- H1 FY24 net bookings grew 17.6% year-on-year to €822.4 million, supported by an 87% digital revenue mix and a 22% increase in player-generated revenue to €514 million.