Ubisoft 2000 Annual Report Download - page 90

Download and view the complete annual report

Please find page 90 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

UBI SOFT / REFERENCE DOCUMENT
89
The North American region more than tripled its sales compared
with the first quarter of the preceding year, and accounted for 47%
of the Group’s total sales. Europe grew at an average pace of 75%,
with growth exceeding 100% in Great Britain (+205%), Germany
(+135%), Italy (+265%), Spain (+111%) and the Netherlands
(+160%). Europe accounted for about 48% of the Group’s sales,
reflecting 29 million euros in sales. The Pacific zone also doubled its
sales.
>Ubi Soft launched ShadowBane, a massively multiplayer
online game in North America, developed by Wolfpack Studios
(Texas). The game is scheduled for release in the first quarter of
2002. The exclusive agreement covers Europe, Australia and
Japan.
8.2. OUTLOOK AND STRATEGY
>>>
8.2.1. The environment
Recovery expected in global demand for video games
In the second half of 2001, two new 128-bit game consoles will beco-
me available: Nintendo’s GameCube and Microsoft’s X-box, along
with Nintendo’s Game Boy®Advance handheld console.
There will also be large numbers of the PlayStation®2 available:
20 million units are forecast on the three main markets worldwide
(Japan, United States, Europe), bringing the installed base to 32
million units. This is more than half the PS®One base at less than
two years from its release.
In addition, Sony, Microsoft and Nintendo will invest hundreds of
millions of dollars in marketing, either to defend established posi-
tions or to position themselves as challengers.
Online games will also experience growth, as a consequence not
only of the steady increase in numbers of PCs and the ongoing move
to broadband, but also of the Internet connections available on the
new consoles.
These factors should lead to steady growth in the market starting in
the second half-year.
8.2.2. Ubi Soft’s growth strategy
Ubi Soft’s objective is to achieve sales of 1.5 billion dollars by March
2006 and establish itself as one of the top five companies1in the
world in the field of interactive games. To do this, Ubi Soft is working
to develop a portfolio of strong international brands that will enable
it to generate higher profits and optimize both its production costs
and its distribution network.
The Group’s growth strategy is based on the following main ele-
ments:
>capitalizing on established brands;
>maximizing its great capacity for in-house development and its
international production system;
>controlling a worldwide distribution network;
>developing its online business.
8.2.3. Financial Year 2001/2002
160 titles are currently being developed in Ubi Soft studios around
the world, 50% of which will have multiplayer and online options. 70
titles are being produced on new platforms, of which 19 on
GameCube™ and 5 on X-box. As previously, Ubi Soft will have a pre-
sence both at the launch of the new Game Cube™ and X-box conso-
les and in the months which follow.
Among this year’s leaders are:
>Myst®III : Exile (PC, X-box)
>Rayman M (PS®2, GameCubeTM et PC)
>Batman Vengeance (PS®2, GameCubeTM, X-box, GB®A)
>Tarzan Free Ride(PS®2, GameCubeTM)
>Ghost Recon (PC, PS®2, Xbox)
>Battle Realms (PC)
>IL2 Sturmovik (PC)
and 14 titles on Game Boy®Advance:
>Rayman®Advance
>Rogue Spear
>Disney's Donald Quack Attack
>Streer Fighter 2X Revival
>Planet of Apes...
Ubi Soft aims to build on these strengths to achieve steady growth
over the year and make substantial improvements in profitability.
1Excluding manufacturers