Mission Statement, Vision, & Core Values (2024) of Ubisoft Entertainment SA

A Brief History of Ubisoft Entertainment SA

Founded in 1986 by the five Guillemot brothers, Ubisoft Entertainment SA has emerged as one of the largest video game companies in the world. The company was established in Carentoir, France, and initially focused on distributing video games. By 1989, Ubisoft had begun developing its own games, with the release of titles like "Zombi" for the Commodore 64.

In the mid-1990s, Ubisoft gained significant traction by developing titles for major gaming platforms. The 1997 launch of "Rayman" marked a pivotal moment, leading to the expansion of properties that would become cornerstone franchises for the company.

Ubisoft went public in 1996, trading on the Euronext Paris stock exchange. The initial public offering (IPO) allowed the company to raise capital to finance its burgeoning development activities. As of June 2023, Ubisoft's market capitalization stood at approximately €5.45 billion.

Throughout the late 90s and early 2000s, Ubisoft expanded its portfolio with the acquisition of several studios globally. Key acquisitions included Red Storm Entertainment in 2000, known for the "Tom Clancy's" series, and the purchase of game developers such as Massive Entertainment and IGS.

In 2003, Ubisoft launched one of its most successful franchises, "Assassin's Creed." The series quickly became a cultural phenomenon, with its sales surpassing over 155 million units worldwide by 2023.

During the 2010s, Ubisoft faced significant challenges, including the industry's transition to online gaming and evolving consumer preferences. The company adapted by pivoting towards digital games and services, launching platforms like Uplay and focusing on free-to-play models. The shift proved timely, with digital sales contributing to over 70% of total revenue by 2022.

In recent years, Ubisoft has continued to innovate, releasing titles like "Far Cry 6" in October 2021 and "Mario + Rabbids Sparks of Hope" in October 2022. The results were promising, with "Far Cry 6" achieving over 3 million units sold within the first week of release.

Despite these successes, Ubisoft has not been immune to market volatility. The company projected a revenue decline of 10% in FY2023, attributing it to a challenging market environment, including a slowdown in console sales and increased competition from mobile gaming.

With a commitment to developing innovative gaming experiences, Ubisoft continues to hold a prominent place in the global gaming industry. The company's dedication to expanding its franchises and exploring new technologies positions it for future opportunities as the gaming landscape evolves.

A Who Owns Ubisoft Entertainment SA

Ubisoft Entertainment SA, a prominent player in the video game industry, has undergone various changes in ownership structures and shareholdings over time. As of October 2023, the largest shareholders in Ubisoft's ownership are detailed below.

The Guillemot family, through their significant stake, retains a considerable influence over Ubisoft's strategic decisions, as they are founders of the company. In contrast, Vivendi has reduced its stake steadily since 2020. Despite this reduction, it remains a notable player among the shareholders.

As of the latest financial data, Ubisoft reported a market capitalization of approximately €6.3 billion. This figure reflects the company's valuation and investors' perceptions amidst the competitive landscape of the gaming sector.

The company’s share price fluctuated, closing at around €46.50 per share in September 2023. The stock has faced volatility, influenced by various market trends, gaming releases, and broader economic conditions.

In terms of voting rights, shares held by family members and institutional investors often allow for substantial decision-making power, impacting governance and future direction. Strategic maneuvers, including partnerships and acquisitions, hinge on these ownership dynamics.

Ubisoft continues to face challenges and opportunities in the market, with ownership structures playing a crucial role in its adaptability and strategic initiatives. The ongoing developments will be essential for stakeholders to monitor, as they reflect broader trends in the gaming and technology sectors.

Ubisoft Entertainment SA Mission Statement

Ubisoft Entertainment SA, headquartered in Montreuil, France, aims to be a leading creator, publisher, and distributor of interactive entertainment products. The company's mission revolves around delivering high-quality gaming experiences that engage players globally, with a commitment to innovative technology and storytelling.

As of the fiscal year ending March 31, 2023, Ubisoft reported a revenue of €1.55 billion, which reflects a slight decrease from the previous year's revenue of €1.74 billion. The company’s net income for the same period was €33 million, compared to €515 million in fiscal year 2022, indicating a significant decline largely attributed to challenges within the gaming industry and project delays.

Ubisoft’s mission statement emphasizes creativity and collaboration, aiming to empower its teams to innovate and push the boundaries of interactive entertainment. The company seeks to forge strong connections with players and communities by creating immersive games that resonate on multiple levels.

Ubisoft has a diversified portfolio of franchises, including Assassin's Creed, Far Cry, and Rainbow Six. As of 2023, Ubisoft's active user base reached approximately 200 million, with 30 million monthly active users. The company's strategic focus includes enhancing player engagement and expanding its digital revenue streams, which accounted for over 70% of total sales in the latest fiscal year.

The company has also placed a strong emphasis on sustainability in its mission. Ubisoft's environmental initiatives include a roadmap to achieve carbon neutrality by 2030, following its pledge in 2021. Furthermore, in 2023, Ubisoft implemented over 50 sustainability projects across its studios worldwide.

Ubisoft’s mission is to transform through innovation and technology. The company invested approximately €1.2 billion in R&D for the year 2023, a crucial step in advancing its game development processes and enhancing player experiences. This investment aligns with its goal to create more engaging and immersive games using cutting-edge technology like virtual reality and artificial intelligence.

How Ubisoft Entertainment SA Works

Ubisoft Entertainment SA, a leading video game developer and publisher, primarily operates in the interactive entertainment industry. The company is known for its popular franchises, including Assassin's Creed, Far Cry, and Tom Clancy's series. As of the most recent financial report for the fiscal year ended March 31, 2023, Ubisoft reported a total revenue of €1.53 billion, reflecting a decrease of 9.8% compared to the previous fiscal year.

The company divides its operations into several segments, including digital and physical game sales, mobile gaming, and additional services such as DLCs and subscriptions. Approximately 82% of Ubisoft’s revenue comes from sales of digital games, indicating a significant shift in consumer behavior towards digital purchases.

Ubisoft's strategy focuses on creating immersive experiences that leverage their well-known franchises. The company invests heavily in R&D, with approximately 25% of its workforce dedicated to development roles. For the fiscal year 2023, Ubisoft's operating income was recorded at -€500 million, influenced significantly by high production costs and marketing expenses.

The company has faced challenges, including the impact of the global pandemic on game releases and supply chain disruptions. However, they have responded by enhancing their online presence and engaging with players through live events and seasonal content updates, which have proven effective in maintaining user engagement.

Regarding market performance, as of October 2023, Ubisoft's stock price hovered around €11.50, down from a peak of €20.00 in early 2022. The market capitalization of Ubisoft was approximately €3.13 billion, reflecting investor concerns over the company's profitability and competitive position within the industry.

Ubisoft's workforce consists of around 20,000 employees across various studios worldwide. The company operates multiple development studios, and strategic acquisitions have been part of their growth strategy. In 2023, they completed the acquisition of Nadeo, the studio behind the TrackMania series, expanding their portfolio and enhancing their competitive edge in the racing genre.

To diversify revenue, Ubisoft has also invested in non-gaming ventures, including the production of film and television adaptations of their franchises, a strategy that has generated substantial interest. For instance, the Netflix adaptation of 'Assassin’s Creed' has been confirmed, leveraging the growing trend of cross-media storytelling.

Financially, Ubisoft has set ambitious targets for the upcoming fiscal year, aiming for a revenue target of approximately €1.8 billion and a return to profitability with an expected operating income of €100 million. This target will heavily rely on the launches of major titles and continued engagement of their expanding player base.

How Ubisoft Entertainment SA Makes Money

Ubisoft Entertainment SA, a leading video game company, generates revenue through multiple channels including game sales, in-game purchases, subscriptions, and digital content. In the fiscal year ending March 2023, Ubisoft reported revenues of €2.2 billion, reflecting a **6.4%** increase from the previous year.

Game Sales

Physical and digital sales of games represent a substantial portion of Ubisoft's revenue. In FY 2023, Ubisoft launched several titles, contributing significantly to total revenue:

• Assassin's Creed Mirage: Sold over 10 million copies within three months of release.
• Far Cry 6: Generated approximately €300 million in revenue since its launch.
• Just Dance 2023: Recorded over 5 million copies sold in the first quarter post-release.

In-Game Purchases

Microtransactions within Ubisoft's games have become an increasingly vital revenue stream. In FY 2023, in-game purchases accounted for **34%** of total revenue, amounting to approximately €748 million. Popular titles contributing to this segment include:

• Tom Clancy’s Rainbow Six Siege: Averaged **10 million** monthly active users, generating substantial ongoing revenue from its microtransaction system.
• Assassin's Creed Valhalla: Recorded **€250 million** in additional revenue from DLCs and in-game transactions.

Subscription Services

Ubisoft has developed subscription services that bolster its revenue. Ubisoft+ allows subscribers to access their library of games for a monthly fee. As of October 2023, the service boasts over **1 million** subscribers:

• Monthly Subscription Fee: €14.99 per month.
• Annual Revenue from Ubisoft+: Estimated at **€180 million**, based on subscriber count and fee structure.

Digital Sales and Services

Ubisoft continues to enhance its digital ecosystem, generating revenue from digital downloads, online services, and premium content. In FY 2023, digital sales accounted for **82%** of total game sales:

Merchandising and Collaborations

Ubisoft also earns revenue from merchandise and partnerships. Collaborations with brands for merchandise and crossover events enhance brand visibility and revenue streams:

• Merchandise Sales: Estimated revenue from merchandise sales reached **€50 million** in FY 2023.
• Collaborations: Partnerships with brands like Netflix and LEGO have generated additional revenue through exclusive content and collaborations.

Future Trends

Looking ahead, Ubisoft is focusing on expanding its live service games, aiming to increase recurring revenue through ongoing updates and engagements. The company's strategic shift towards free-to-play models also suggests an emphasis on generating revenue through microtransactions and in-game purchases in upcoming titles.