Ubisoft is likely going to be putting less emphasis on AAA game experiences going forward. In a recent earnings call, Ubisoft describes that these types of games will not be the main focus of its business model in the future.
The AAA moniker may be somewhat informal, but it is a label that describes many of the major experiences available today. Games by well-known publishers like Activision or Nintendo tend to fall into this category. However, it typically includes video games with higher development and marketing budgets. Genre matters little, and Ubisoft has even been teasing more AAA games for 2021.
Now, Ubisoft is suggesting that this model is not necessarily what it will be following in the coming years. CFO Frederick Duguet said it will change from solely AAA games to a diverse catalog. This could also include back catalog titles, which see strong engagement over time. These will be titles that bring revenue long term, something seen from a few different games already. Ubisoft's best-selling shooter Rainbow Six Siege still rakes in new players despite releasing six years ago. This kind of performance is likely to be a major aspect supporting the company, according to CEO Yves Guillemot.
However, it also sounds like Ubisoft will be dabbling more with other types of games too. Rather than just AAA, development will also create free-to-play releases and other premium experiences. While the details are scarce, the implication is that these types of small entries could flesh out the catalog. As an example, Duguet refers to a partnership with investor Tencent to create an Assassin's Creed mobile game. Since mobile makes up 9 percent of the company's total business, the plan is to have these differing experiences compliment each other.
It is not particularly shocking that Ubisoft is looking to diversify its library of games. Popular games like Fortnite and Apex Legends dominate the market even without an upfront cost for consumers. Plus, mobile has become a sizeable gateway into gaming for players across the globe. Combining both of these elements can be a profitable course for Ubisoft's future, and as video games get more complex, creating massive AAA experiences can result in releases with plenty of issues.
This direction can also come with a host of problems for players. Not all free-to-play games are of high quality, and occasionally utilize aggressive in-game microtransactions as a way to offset the lack of a buy-in price. With some of Ubisoft's main AAA games already including microtransactions, some may be skeptical of a bigger focus on that going forward. However, few would likely complain about a more varied catalog, and it is possible future games could be great despite a smaller scale.
Source: IGN