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Ubisoft is spending 80% of investments on AAA premium games

Ubisoft is still primarily focused on core AAA premium games, free-to-play only comprises 20% of games investment revenues.

@DeekeTweak
Published Tue, Jul 20 2021 6:09 PM CDT   |   Updated Thu, Aug 19 2021 4:30 AM CDT

Ubisoft is still focusing primarily on high-production premium games and free-to-play takes a backseat.

Ubisoft is spending 80% of investments on AAA premium games 26 | TweakTown.com

Ubisoft's new free-to-play strategy won't disrupt its tentpole games, and the company has no plans to invest heavily into F2P. In a recent Q1 earnings call, Ubisoft CEO Yves Guillemot confirms premium games are still the top priority, and the majority of dev expenses are spent on premium games.

"80% of expenses are being used to substantially expand premium offerings in 3 ways," Guillemot said, outlining the following:

  1. By growing our existing franchises
  2. Creating new IPs with emphasis on player engagement and social interactions
  3. By adding blockbuster entertainment brands to our portfolio

Only 20% of spending is being used for F2P games, which Guillemot describes as low risk.

"Around 20% of our currant investments are targeted at free-to-play to expand our brands' universes and bring them to a wider audience across all platforms including mobile. Each of these premium and free-to-play projects are built to maximize impact on each respective brands' universe."

For reference, Ubisoft spent 1.104 billion euros on games development expenses in FY2021. Assuming the 80% rate, Ubisoft spent around ~883 million euros on premium games development and the remaining ~221 million euros on free-to-play games.

"We are also convinced of the strategic value of re-investing a portion of our highly-profitable and cash-generating premium core business into free-to-play. This major segment indeed offers exciting growth and value creation opportunities for Ubisoft with an attractive risk-reward profile."

Ubisoft's upcoming free-to-play games include The Division Heartlands, the new xDefiant shooter, and Roller Champions.

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Derek joined the TweakTown team in 2015 and has since reviewed and played 1000s of hours of new games. Derek is absorbed with the intersection of technology and gaming, and is always looking forward to new advancements. With over six years in games journalism under his belt, Derek aims to further engage the gaming sector while taking a peek under the tech that powers it. He hopes to one day explore the stars in No Man's Sky with the magic of VR.

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