Ubisoft 2005 Annual Report Download - page 22

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ENTERING NEW HIGH-
POTENTIAL SEGMENTS
As the profile of the typical gamer has evolved, so has Ubisoft’s
catalogue of titles. Originally youth-orientated, then focused
on hardcore gamers, it is expanding to reflect the tastes of
an increasingly wider demographic of gamers. An undisputed
leader in military/tactical shooters, with a strong presence in
action/adventure, Ubisoft is now actively reinforcing its presence
in new segments that tap into the emerging preferences of casual
gamers. More mass market in nature, the strategic entry into
these new genres depends upon Ubisoft’s proactive approach to
license-based titles and its strong brand strategy.
In fiscal 2006, Ubisoft confirmed its intention to reposition itself
in the family-friendly segment, where the company historically
began, by investing in a high-quality sequel for the multi-million
unit selling Rayman®franchise and by collaborating closely with
Sony Pictures Animation on the development of two titles based
on Sony’s first Computer Generated Image (CGI) motion pictures.
In addition, Ubisoft signed two key license agreements to develop
games based on hugely popular children’s entertainment brands,
Teenage Mutant Ninja Turtles®(in conjunction with an upcoming
movie), and smash-hit Japanese anime series, Naruto.
With the launch of the highly successful European title Rugby
Challenge 2006, plus the high profile signing of a deal with
Olympic snowboarder gold medalist, Shaun White, Ubisoft
confirmed its ambition to grow its offering in the profitable
Sports segment. The company has also begun to capitalize
on existing franchises to take its first steps in the role-playing
game (RPG) segment through the inclusion of RPG elements in
titles such as Heroes of Might & Magic V®.
STRENGTHENING
LICENSE-BASED
REVENUE
Ubisoft achieved its stated target of increasing license-generated
sales to 25% of its revenues in fiscal 2006 (up 5% from the previous
year), mostly thanks to its highly successful adaptations of two major
movies in 2005. Star Wars™Episode III: Revenge of the Sith™
To respond to the increasingly diverse community of gamers, Ubisoft is today expanding its
portfolio through the strategic entry into new segments, increased license-based sales and
continued multi-platform support.
HEROES OF MIGHT & MAGIC V®
RED STEEL™
Branching out