Ubisoft 2005 Annual Report Download - page 8

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We will also continue to enter or build our presence on new high-potential market
segments in fiscal 2006-2007: games for kids, license games, extreme sports and
heroic fantasy. We are stepping back into the kids segment thanks to the return of
our all-time best-selling hero, Rayman®, and a game adaptation of Sony’s first CGI(7)
movie, Open Season™. In addition, we are reinforcing our presence in the Hollywood
licensing segment with the adaptation of the cult TV series Lost®. We’re entering the
popular extreme sports segment, thanks in particular to the signature of a deal with
Olympic snowboarding gold medalist Shaun White. Finally, we will pursue our efforts
to enter the role-playing game segment by capitalizing on our best-selling heroic
fantasy franchise Might & Magic®.
Ubisoft’s next-gen investment strategy in 2005-2006 and 2006-2007 will enable the
company to fully benefit from the upcoming growth cycle. Indeed fiscal 2007-2008
is set to be a year of exciting growth for video game publishers, with a market that is
due to increase by around 17%. Next-gen console games should generate around
70% of industry software sales in 2008, versus 33% in 2006(8). Thanks to our ama-
zing brands and our technological lead, we have everything it takes to outperform
the market and strongly increase our profitability.
I’d like to finish by mentioning our acquisition in August of Driver®of which we are
especially proud. With over 14 million units sold worldwide, this renowned franchise
will allow Ubisoft to enter the key action-driving gaming segment.
Finally, I would like to thank our shareholders, customers and business partners for
their continued support over the last few years. Special thanks to all Ubisoft teams
who, thanks to their passion and extraordinary dedication, keep pushing back the
technological and, above all, creative limits of video games.
Yves Guillemot
CHAIRMAN & CEO
Thanks to our amazing brands and our technological lead, we have
everything it takes to once again outperform the market and strongly
increase our profitability.”
“
(7) Computer generated image
(8) Ubisoft International
Strategic Marketing Forecasts
(North America + Europe)