📢 Let's talk about #diversification strategy in the video game sector 🎮
You may have noticed that Ubisoft, a flagship of the French video game industry, is facing increasing difficulties. Following its last two releases, which are losing momentum shortly after launch, the publishing strategy of our beloved French #gaming giant raises questions 🤔.
Beyond the fact that Star Wars Outlaws was produced without adhering to the basic rules of a third-person shooter, with open-world design inferior to genre benchmarks from 2014 and an ineffective AI system... it is the #productmix strategy that is problematic ⚠ .
💡 Let me explain:
- Ubisoft's game-generated cash flow relies on older titles that bring in decreasing revenue year after year, mostly from cross-platform AAA games. However, none of these games can be considered "cash cows." Plus, the current releases are not meeting players' expectations, and revenue growth is slowing down.
- If you add to that delays on awaited titles, lack real mobile game strategy... A diversification strategy will inevitably be necessary for Ubisoft if they want to survive.
Let's recall the shift made by Riot Games :
- When the revenue generated by their flagship title *League of Legends* (a freemium MOBA) started being threatened by the rise of *Fortnite*, targeting their player base. They quickly launched new games with different profitability models, completely distinct from LoL (TFT, Valorant ...).
- They even worked with Netflix to prod a serie, #Arcane, to bring revenues on both players that are fans of LoL Universe and attract new players.
Thereby saving the revenue from their game portfolio by targeting different audiences with different economic models and advertissements.
For Ubisoft, the timing will be tight, but three key pillars can still save their upcoming releases:
🎮 Relying on collaboration with players and taking their feedback into account. Allowing them to better game performances, and better target new types of games.
📱 Develop a complete mobile strategy with studios to bring regular cash entries with low cost games.
⚙ Controlling infrastructure costs to flexibly adapt to the lifecycle of their games
📈 Diversifying the business models and game types in their portfolio to generate more consistent cash flow.
But there is hope, I strongly believe in Ubisoft capacity to handle the job and bring back successful games 💪
#gaming #games #gamingmarket #editors #SaaS #indestudios
Lancements ratés, plongeon boursier : la série noire d'Ubisoft
https://lnkd.in/e545P2UP
