Ubisoft 2006 Annual Report Download - page 16

Download and view the complete annual report

Please find page 16 of the 2006 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 189

  • 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
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189

UBISOFT • 2007 ANNUAL REPORT
a dynamic market
at the heart
of entertainment
today
ong gone are the days when
video games were on the margins
of the entertainment industry.
today they stand proudly along-
side films and music and, in 2006,
the industry registered sales of
$28.47 billion(1). seldom is a block-
buster movie released without
planning for its video game tie-in.
the synergies between media are
increasing, making for an exciting
and dynamic market.
LTHE EXPLOSION OF NEXT-GEN
CONSOLES
The long-awaited and highly-anticipated next generation is finally
upon us and promises to fuel a strong growth cycle. Hardware
manufacturers and software developers alike are optimistic about
potential gains from the cycle and early forecasts predict overall
market growth (hardware and software combined) of 17%(2).
This year, Microsoft’s Xbox 360™ and Nintendo’s DS™ continued
to gain ground while Sony’s PS®3 and Nintendo’s Wii™ made their
market début. From this transition emerged two strikingly diffe-
rent, yet equally innovative, approaches to gaming. On the one
hand, Microsoft and Sony engineered technological powerhouses
capable of delivering stunning graphic realism and strong online
capabilities. On the other hand, Nintendo designed a deceptively
simple machine, offering unparalleled gameplay possibilities.
The Xbox 360™ and PS®3, the two machines at higher price
points, have fared well in key markets, with the Xbox 360™
registering particularly strong sales in North America (installed
base of 4,975,000)(3), and Great Britain (installed base of
1,099,000)(4), and the PS®3 quickly gaining ground throughout
Europe and Japan. Nintendo has performed consistently across
all markets as have handheld consoles, whose sales have been on
the rise. As for the software market, early figures show that it is
growing at an encouraging pace, up 6%(5) compared to last year,
which bodes well for the future.
ONLINE GAMING:
A FAST-GROWING PHENOMENON
The Internet has undergone remarkable evolutions over the
past few of years with the arrival of Web 2.0 and the widespread
adoption of broadband online connections for PC, making it
easier for users not only to share information, but also create
OLD GENERATION CONSOLES
59%
NEXT-GENERATION
CONSOLES
23%
HANDHELD CONSOLES
40%
BREAKDOWN OF GAMERS
BY PLATFORM
Source: New Platform Quantitative US, April 2007.
(1) Source: Report from the International Group “The PC & Video Game
Markets : North America, Europe, Japan” (April 2007).
(2) Source: NPD, March 2007.
(3) Source: Ibid.