Ubisoft 2009 Annual Report Download - page 42

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38
1.1.8 Commitments
Ubisoft still has to pay:
- €1 million following the acquisition of Hybride Technologies Inc.,
- €3.7 million following the acquisition of Nadéo SAS.
Various products are marketed under licensing agreements signed by Ubisoft Entertainment SA. The
commitments undertaken by the Company provide for the payment of guaranteed minimum royalties. As of
March 31, 2010, commitments made by virtue of this guaranteed minimum amounted to €59.1 million.
The Company has no other future investment that is already subject to a firm commitment from the
Company's senior management.
There are no minority interests in the Group’s structure. There are therefore no commitments to buy back
minority interests.
1.1.9 Recent events, outlook and strategy
1.1.9.1 Recent developments
Ubisoft has adopted a clear targeted strategy for dealing with recent developments in the market, in the top-
of-the-range console games sector, the casual sector and the online games sector:
• For top-of-the-range games, the Company is focusing its efforts on its strong franchises, in order to
increase the quality and regularity of releases. This strategy involves the use of additional resources
thanks to increased collaboration between studios and the strengthening of teams in charge of a
specific franchise.
• For casual games, the future launch of new consoles including the “Natal” project and the “Sony
Move” is expected to reward the investment made in technology over the last few years and revive
this segment. Ubisoft will also be present on the market for casual games that can be played on
social networks such as Facebook.
• For online games, a market that is expanding rapidly, Ubisoft plans to launch at least five multiplayer
games, including Might & Magic Heroes Kingdom™, Trackmania® et Imagine®.. The Company will
also continue to develop its online services portal Uplay, which is intended to reinforce direct links
with consumers.
The Group expects first-quarter 2010/2011 sales to come in at around €145 million, approximately 75%
higher than in the first quarter of 2009/2010.
Full-year 2010/2011: Ubisoft confirms that it expects to return to profitable growth and positive cash flow
from operating activities in fiscal 2010/2011.
1.1.9.2 Market outlook
In 2009, the video games market recorded a drop of 8 % in Europe and 11 % in North America. The market
was hit by the economic crisis, which affected the casual segment as well as catalogue sales of top-of-the-
range games. 2010 is expected to be stable in relation to 2009, with growth expected for the Xbox 360™ and
PlayStation®3 platforms, a stable market for the Nintendo Wii™ and a drop in sales for the DS™,
PlayStation®2, PSP™ and PC.