Assassin’s Creed, Just Dance and Tom Clancy’s The Division publisher Ubisoft share price up as company reveals less is more approach to games for revenue growth with focus on digital and DLC
Share price in Ubisoft rose today as the software company unveiled a quality over quantity approach to video games to boost revenue.
At an investor day, the French-headquartered company revealed that it intended to boost its revenue by 60 per cent over the next three years to reach €2.2bn (£1.7bn) by fiscal year 2018-19.
To do this, the company said it would focus heavily on building franchise pipelines, improving brand performance and increasing brand awareness, and pointed to cuts it had already made in the number of releases to focus more on bigger name titles.
The company, which publishes popular gaming franchises FarCry, Just Dance and Assassin's Creed, also revealed that it would be shifting further towards a digital model to build revenues.
In its fiscal year 2015-16, the company projects that 30 per cent of its revenue will come from digital distribution and 70 per cent from physical content.
By comparison, the company foresees that it will generate 45 per cent of its revenue from digital content by fiscal year 2018-19, including 17 per cent from player recurring investment, such as in-game purchases, downloadable content and subscriptions.
Share price in the company, which is listed in Paris, rose throughout the day, closing up 11 per cent at €22.31.