Ubisoft 2013 Annual Report Download - page 56

Management Report
2013
51
RECENT EVENTS, OUTLOOK AND STRATEGY 1.8
RECENT DEVELOPMENTS 1.8.1
Ubisoft has adopted a strategy to develop its brands for both core and casual gamers on home and
portable consoles and online media, PCs, smartphones and tablets.
x For games for core gamers on high-definition consoles and PCs, the Company is focusing its
efforts on its strong franchises, in order to increase the quality and regularity of releases. It
also plans to capitalize on the momentum expected from the future launch of replacements for
the Xbox 360
™
and PLAYSTATION
®
3 with the launch of new brands such as Watch Dogs.
The brands for core gamers are also slated to be adapted for online gaming, like the free-to-
play model, as in the cases of the successful Settlers
Online and the 2013 launch of Anno
Online and Might & Magic Heroes Online. Ubisoft will also launch new creations on the online
segment, in particular the free-to-play game The Mighty Quest for Epic Loot™.
x For casual gaming, the Company continues to seize the opportunities offered by the
introduction of new consoles, the creation of new segments such as Just Dance or
Rocksmith
™
and the development of strong online media brands, like the highly successful
free-to-play game Howrse
®
from the acquisition of Owlient.
April 2013 – Acquisition of the remaining capital in Related Designs
Now part of Ubisoft, the 65 talented employees at Related Designs will continue to develop Might &
Magic Heroes Online, a browser-based free-to-play MMO, and will also work on other titles in
partnership with BlueByte, the Ubisoft studio based in Düsseldorf.
April 2013 – Signature of a bilateral credit line of €35 million
On April 30, 2013 the Group signed a four-year bilateral credit line of €35 million, with Export
Development Canada (EDC).
May 2013 – Placement of a bond loan of €40 million
Ubisoft placed a bond loan of €40 million, for a term of five years, accompanied by a coupon of
3.038%.
MARKET OUTLOOK 1.8.2
In 2012, the console video games market recorded a drop of 15% in Europe and 22% in North
America (sources: NPD, Chart-Track, GFK, etc.). In this segment, the year 2013 should once again be
down from 2012 due to the expected transition to new generation consoles. On the other hand, it is
anticipated that the online video games market should experience another year of strong growth,
enabling growth overall in the gaming market.
The Company communicated mid-May its initial targets for full-year 2013/2014 : sales of between
€1,420 million and €1,450 million, and non-IFRS operating income of between €110 million and €125
million.