Ubisoft 2000 Annual Report Download - page 41

Download and view the complete annual report

Please find page 41 of the 2000 Ubisoft annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 94

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94

40
4.4. INVESTMENT POLICY AND RECENT INVESTMENTS
>>>
Since its beginnings as a publisher and distributor 15 years ago, Ubi
Soft has developed into an integrated company which handles every
stage of game production, from design to distribution.
Its strategy is focused on the production of high-quality video
games, which are the key to generating high sales volumes.
The 2000/2001 financial year was marked by major trademark
acquisitions and the consolidation of the distribution network:
>Studios and brands: Sinister Games (United States), Grolier
Interactive Ltd (Great Britain), Red Storm Entertainment (United
States), Blue Byte Software (Germany) and the Entertainment
division of The Learning Company (United States).
>These operations will bring substantial synergies in terms of pro-
ducts, skills and geographical operations, and are part of the
Group’s strategy to manage its internal growth. These acquisi-
tions will help build up the PC games line, sales of which tend to
offset cycles in the console market. The PC market is growing
steadily, offering new outlets with the online game market.
Investment in production
Investment in design and production reflects the growing importan-
ce of the Group’s production studios around the world, in particular
due to acquisitions. 130 new products were developed during the
financial year.
At the same time, Ubi Soft acquired well-known trademarks to posi-
tion itself on market segments with strong growth potential (strate-
gy, role-playing, shooting, etc.).
In addition, Ubi Soft has continued to make significant investments
in the creation of new games in order to ensure continued growth.
>Investment in production over the last three financial years:
The figures are expressed in millions
2000/2001 1999/2000 1998/1999
FF 456 FF 361 FF 229
69 55 35
Estimated investment in production for the next two financial years is:
>between 70 and 72 million for the 2001/2002 financial year,
>between 80 and 85 million for the 2002/2003 financial year.
Investment in sales
Control over distribution ensures that Ubi Soft retains local control of
its products in a highly competitive environment. A direct presence
on all markets is also essential for negotiating license agreements.
In 2000/2001 Ubi Soft has completed is network distribution:
GameBusters (Austria), 3D Planet SpA (Italy), and the
Guillemot Corporation’s games distribution networks in
Germany, France, Belgium, the Netherlands and Canada.
4.5. RESEARCH POLICY
>>>
Ubi Soft endeavors to develop products which incorporate the latest
technological developments in order to produce higher-quality
games with a longer product life.
An important distinguishing feature of Ubi Soft is its use of game
engines, a key part of interactive software. Design tools and softwa-
re engines are conceived and developed in-house in dedicated struc-
tures (Ubi Studios in Paris and Ubi Simulations in Annecy), or by
teams in subsidiaries in China, Canada, Romania, Italy and Morocco.
The engine is the software program that makes the game work. It is
what the end user executes. It consists of a set of modules (lines of
code, also called objects or bricks) written in the C or C++ program-
ming languages which are interconnected. Each module handles a
game function: 3-D, behavior, mechanical features, Artificial
Intelligence, sound, animation, networking, etc.
An engine’s modular structure makes it possible to change a single
module when its requirements or the relevant technology changes,
instead of having to design a completely new tool. It is possible, for
example, to adapt the 3-D module to a new 3-D graphics card.
Ubi Soft thus designs its engines in a flexible, optimum manner so
that they can be adapted quickly, giving them a long product life. The
Group’s technical expertise makes it an innovator in game play and
graphics, and allows it to continue to create high-quality games.
At Ubi Soft, R & D engineers work upstream of game development to
anticipate medium- and long-term technological developments, and
this means that Ubi Soft can have a presence as soon as new gene-
rations of machines are launched.
It is the software engineers who develop the tools for the various
teams (game designers, info designers, graphic designers, sound
designers) so that they can fully unleash their creativity.
It takes an average of one year to create a complete engine and less
than six months to develop it with technical upgrades and by adding
functionalities to enhance design quality. All Ubi Soft engines have
the distinctive feature of being modular, upgradeable and reusable
for other programs. This helps Ubi Soft capitalize on the experience
of its teams, who work on one project and then once again com-
mence research and training on new projects.