XDefiant

Top Games in Live Streaming: May 2024

The live streaming industry experienced modest growth in May 2024, with total viewership across the top 100 games increasing by 3.5%, or approximately 50 million hours watched compared to April.

• Total viewership across the top 100 streamed games grew by 3.5% in May 2024, representing an increase of 50 million hours watched compared to April.
• Minecraft viewership surged 172.6% to 76.8 million hours, securing the #4 spot due to 15th-anniversary community events and challenges.
• Diablo 4 experienced a 500% viewership increase to 11 million hours, driven by a Steam price promotion and the release of the 'Loot Reborn' Season 4 update.

Our Industry News (20/05/24 - 02/06/24)

The brief outlines a two-week snapshot of global gaming industry activity, focusing on corporate moves, media adaptations, AI integration, and a comprehensive list of new releases.

• Nintendo acquired Shiver Entertainment from Embracer Group to bolster its internal porting capabilities for high-profile titles like Hogwarts Legacy and Mortal Kombat 1.
• Microsoft is integrating OpenAI-powered Copilot tools into Minecraft and future Xbox titles, signaling a strategic industry shift toward generative AI for player experience enhancement.
• Ubisoft is prioritizing recurring revenue models by launching a new subscription initiative specifically for its live-service title Rainbow Six Siege.

Plus: Soulmask, MultiVersus Relaunch Lead This Week's Debuts

This analysis examines the performance of recent video game launches and upcoming releases across PC and console platforms for the final week of May 2024.

• The relaunch of MultiVersus reached 114,000 concurrent users on Steam, though the title faced significant player backlash regarding its new monetization model.
• The survival craft game Soulmask demonstrated strong commercial viability with a successful launch peaking at over 16,000 concurrent users on Steam.
• The Rogue Prince of Persia significantly underperformed market expectations, recording only 850 concurrent users at launch.

XDefiant’s Arcade-style Shooter Action Attracts Call of Duty Streamers

The launch of Ubisoft’s arcade-style shooter, XDefiant, has significantly impacted the live-streaming landscape, specifically by drawing top-tier content creators away from established titles in the Call of Duty franchise.

• XDefiant generated 7.5 million hours watched across all live-streaming platforms during its first week following its May 21, 2024, release.
• The game achieved significant initial scale with 3 million unique players within 48 hours and approximately 500,000 concurrent players on launch day.
• Top FPS streamers, including Scump and Shroud, drove initial engagement with 432,000 and 402,000 hours watched, respectively.

TWIG #284 Squad Busters launch talk / Stumble Guys vs. Fall Guys

The global gaming industry is currently defined by a tension between massive launch-day engagement and long-term structural instability.

• Mobile gaming remains the industry's primary revenue driver, accounting for 50% of total consumer spending in 2023 despite ongoing volatility.
• The gaming sector faces significant structural instability, evidenced by over 10,000 industry layoffs in 2024 and ongoing consolidation, such as Nintendo’s acquisition of Shiver Entertainment and Atari’s purchase of the Intellivision brand.
• High-profile launches continue to command massive reach, with Supercell’s Squad Busters securing 40 million pre-registrations and Ubisoft’s XDefiant attracting 8 million unique players in its first week.

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 Financial Results: Fiscal Year Ended March 31, 2023

Ubisoft’s financial results for the fiscal year ending March 31, 2023, reveal a period of significant financial contraction characterized by a record operating loss of €585.8 million.

• Ubisoft recorded a significant financial downturn for the fiscal year ending March 31, 2023, reporting a record operating loss of €585.8 million and an 18.3% decline in net bookings to €1.73 billion.
• The company is implementing a restructuring program to cut operating expenses by over €200 million within two years, a process that has already included the closure of five European offices and the reduction of over 700 staff members since September 2022.
• Recurring revenue from in-game purchases and downloadable content grew by 23.3% to reach €1 billion, highlighting a shift toward long-term monetization.

Ubisoft FY23 Earnings Results

The Ubisoft fiscal year 2023 earnings results detail a challenging period characterized by a strategic pivot toward cost optimization and a focus on core intellectual properties.

• Ubisoft reported net bookings of €1,739 million for FY23, an 18% year-over-year decline that resulted in a non-IFRS operating loss of €500.2 million.
• Management has launched a cost-reduction program targeting €200 million in savings over two years, supported by a headcount reduction of over 700 employees since September 2022.
• The company is shifting its strategic focus toward core intellectual properties like Assassin’s Creed and Rainbow Six while testing the free-to-play market with titles such as XDefiant and The Division Heartland.

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.

A Deep Dive into the Performance of XDefiant Closed Beta

The closed beta for Ubisoft’s arena shooter XDefiant serves as a case study for the efficacy of integrating live-streaming platforms and influencer partnerships into the game development lifecycle.

• Ubisoft’s XDefiant closed beta generated 7.3 million hours watched across major live streaming platforms between April 13 and April 25, 2023.
• Unlike the competitor title The Finals, which saw a 64% viewership drop by its third day, XDefiant experienced a 48% increase in viewership by day three and peaked at nearly 1 million hours watched on day four.
• The top five streamers for the XDefiant beta were Pixuy (463K hours), eliasn97 (325K hours), TeePee (274K hours), Gotaga (241K hours), and scump (222K hours).

Ubisoft First-Quarter 2021-22 Sales

Ubisoft’s first-quarter financial results for fiscal year 2021-22 demonstrate performance in line with internal expectations, characterized by a 3.8% increase in net bookings compared to the same period in 2019-20.