Current Events > Why Ubisoft is obsessed with "games as a service"

Topic List
Page List: 1
antfair
02/12/18 6:34:16 PM
#1:


https://kotaku.com/why-ubisoft-is-obsessed-with-games-as-a-service-1822938255

Wondering why big video game publishers are so enamored of games as a service? The answer may not shock you: It makes them way more money. Wayyyyyyyyyy more money.

This morning as part of a quarterly earnings report, Ubisoft put out a slideshow full of interesting nuggets for anyone whos curious about the future of video games. This slide might be the wildestthe right side of it, that is:

What Ubisoft is saying there is that while a standard game might over its second year make 13% of the revenue it generated in its first year, a live game can reach 52%, which is an astounding leap. Games like The Division and Rainbow Six: Siege continue to stay in the public eye long after they launch, which leads to a longer tail and, if all goes well, happier players.

Or, as is far more relevant to Ubisofts shareholders, bigger profits.

Ubisofts strategy for the past two to three years has been simple: Release fewer games, but stick with them longer, hooking players for months if not years after launch. From Ghost Recon Wildlands to Assassins Creed Origins, Ubisofts whole lineup is full of these service games, designed to be supported with a regular stream of updates and downloadable content.

On top of that, Ubisoft really, really hopes youll buy digitally:

This slide is particularly interesting because it shows just how much more money publishers like Ubisoft are bringing in when you buy from the eShop or Xbox Live instead of going to GameStop. With physical games, Ubisoft has to give 25% of your $60 to the store and then 20% of the remainder to the hardware manufacturer. With digital games, Ubisoft just has to give 30% to the distributor.

In other words, Ubisofts ideal customer is the guy or gal who buys service games digitally and then just keeps playing them. In fact, the company says that 56% of its total revenue now comes from digital sales of games and content (as opposed to last years 47%).

---
What is this, a fair for ants?
... Copied to Clipboard!
chill02
02/12/18 6:34:37 PM
#2:


lousy whales
---
Ave, true to Caesar.
... Copied to Clipboard!
Dash_Harber
02/12/18 6:37:38 PM
#3:


Because they want to be the Netflix of video games. They smell profit and are willing to chase it off a cliff if they think they can catch it. I mean, they won't be wiped out because they have enough money printing anchors to keep them going, but it's definitely a bad direction for any video game company. The only company that has pulled off anything even remotely close is Steam, and that is still more of a storefront than a streaming service.
... Copied to Clipboard!
Darmik
02/12/18 6:41:28 PM
#4:


Dash_Harber posted...
Because they want to be the Netflix of video games. They smell profit and are willing to chase it off a cliff if they think they can catch it. I mean, they won't be wiped out because they have enough money printing anchors to keep them going, but it's definitely a bad direction for any video game company. The only company that has pulled off anything even remotely close is Steam, and that is still more of a storefront than a streaming service.


I'm not sure what you mean. The games as a service model has paid off for Ubisoft, EA, Take Two and Activision. Ubisoft uses graphs that show the industry as a whole.

It pays off for anyone who goes for it.
---
Kind Regards,
Darmik
... Copied to Clipboard!
Fishy
02/12/18 6:42:22 PM
#5:


Siege is a great example of how to do DLC and cosmetics right. Though the new Outbreak packs are showing that they're getting greedy.
---
~Dr. FishyStick| Welcome Back.
http://i.imgur.com/z50xS2H.jpg
... Copied to Clipboard!
KazumaKiryu
02/12/18 6:43:08 PM
#6:


Yeah of course it's about money. They said that The Division would mark a new era for them. Even though it wasn't very popular and didn't sell as much as they hoped, even a mediocre title done in this way makes much more money.
---
Just your bad luck... to run into me.
... Copied to Clipboard!
Dash_Harber
02/12/18 6:44:11 PM
#7:


Darmik posted...
Dash_Harber posted...
Because they want to be the Netflix of video games. They smell profit and are willing to chase it off a cliff if they think they can catch it. I mean, they won't be wiped out because they have enough money printing anchors to keep them going, but it's definitely a bad direction for any video game company. The only company that has pulled off anything even remotely close is Steam, and that is still more of a storefront than a streaming service.


I'm not sure what you mean. The games as a service model has paid off for Ubisoft, EA, Take Two and Activision. Ubisoft uses graphs that show the industry as a whole.

It pays off for anyone who goes for it.


So you think the reason that EA and Ubisoft are profitable is because of Origin and Ubisoft Club? I mean, how do you even measure that when the product you are selling is the game and you are forcing people to use the service to play them?
... Copied to Clipboard!
halomonkey1_3_5
02/12/18 6:45:01 PM
#8:


Fishy posted...
Siege is a great example of how to do DLC and cosmetics right. Though the new Outbreak packs are showing that they're getting greedy.

the starter edition on PC is also pure greed

should have just dropped the game to $25 or something, instead we have the scam edition at $15 or the real game at $40 still
---
Billy Mays: July 20, 1958 - June 28, 2009
The Greatest
... Copied to Clipboard!
Darmik
02/12/18 6:46:11 PM
#9:


Dash_Harber posted...
So you think the reason that EA and Ubisoft are profitable is because of Origin and Ubisoft Club? I mean, how do you even measure that when the product you are selling is the game and you are forcing people to use the service to play them?


Ubisoft aren't talking about uPlay. They're talking about their new business model for games. Basically releasing a game and then supporting it with post-launch content for a year or more. That's what they mean by Games as a Service.
---
Kind Regards,
Darmik
... Copied to Clipboard!
Dash_Harber
02/12/18 6:47:14 PM
#10:


Darmik posted...
Dash_Harber posted...
So you think the reason that EA and Ubisoft are profitable is because of Origin and Ubisoft Club? I mean, how do you even measure that when the product you are selling is the game and you are forcing people to use the service to play them?


Ubisoft aren't talking about uPlay. They're talking about their new business model for games. Basically releasing a game and then supporting it with post-launch content for a year or more.


My misunderstanding. That makes more sense. It's not really new, though. Expansion packs have been a thing for almost as long as video games have.
... Copied to Clipboard!
AvantgardeAClue
02/12/18 6:53:04 PM
#11:


I don't see what's wrong with that type of thinking. If Siege wasn't being considered a long-term service we'd be on Siege 2 already.
---
Sometimes I say things and I'm not voice acting.
... Copied to Clipboard!
#12
Post #12 was unavailable or deleted.
Darmik
02/12/18 6:54:14 PM
#13:


Basically the idea consumer for these AAA third party developers are;
- You buy the game digitally
- You keep playing that game until the next one comes out
- You spend some coin on DLC/microtransactions

In order to support this they're releasing less games but they're putting more resources behind each one to keep you engaged.

There are some upsides to this. You probably can get more playtime per dollar spent compared to before. But personally I don't really need games that keep me hooked for a long time. I'm fine with moving on quickly. Unfortunately I think I'm not really a priority market for these AAA developers anymore.
---
Kind Regards,
Darmik
... Copied to Clipboard!
Youngster_Joey_
02/12/18 6:54:49 PM
#14:


because GTA Online has made like 2 billion dollars now
... Copied to Clipboard!
Smashingpmkns
02/12/18 6:55:00 PM
#15:


If Siege wasn't treated as a "games as a service" game it would have died on arrival. I'm 100% sure that Ubi will follow EA and MS with a subscription based way of playing their games too. I think it's all around a good next step for them.
---
Posted with GameRaven 3.3
... Copied to Clipboard!
NibeIungsnarf
02/12/18 6:58:31 PM
#16:


Because charging 60 dollars for a game and then charging the same consumer endlessly more times afterwards makes more money than charging the consumer 60 dollars.
... Copied to Clipboard!
AvantgardeAClue
02/12/18 6:59:42 PM
#17:


NibeIungsnarf posted...
Because charging 60 dollars for a game and then charging the same consumer endlessly more times afterwards makes more money than charging the consumer 60 dollars.


Alternatively, charging a low cost and subsiding that low price with microtransactions or optional content.
---
Sometimes I say things and I'm not voice acting.
... Copied to Clipboard!
SatanicHalibut
02/12/18 7:02:57 PM
#18:


... Copied to Clipboard!
#19
Post #19 was unavailable or deleted.
ZombiePelican
02/12/18 7:09:11 PM
#20:


Number39 posted...
games as a service is better for multiplayer games because then the game won't fucking die after a few months 1 year

Sure, however it doesn't mean that they have to entirely cater to the publisher and only the publisher.

MHW and Warframe have proven you can have great services without being overtly anti consumer
---
... Copied to Clipboard!
Darmik
02/12/18 7:10:27 PM
#21:


ZombiePelican posted...
MHW and Warframe have proven you can have great services without being overtly anti consumer


Doesn't Warframe have a whole bunch of lootboxes and in-game currency microtransactions?
---
Kind Regards,
Darmik
... Copied to Clipboard!
FaceThePain
02/12/18 7:26:41 PM
#22:


Darmik posted...
ZombiePelican posted...
MHW and Warframe have proven you can have great services without being overtly anti consumer


Doesn't Warframe have a whole bunch of lootboxes and in-game currency microtransactions?

Yes but nothing you can't get via playing the game. The same as rainbow six siege.
---
Who doesn't like a Canadian Muffin?
... Copied to Clipboard!
Antifar
02/12/18 7:28:49 PM
#23:


Steep is another game that would have been dead a while back in other circumstances, but Ubisoft has supported it well.
---
kin to all that throbs
... Copied to Clipboard!
Muffinz0rz
02/12/18 7:30:06 PM
#24:


Antifar posted...
Steep is another game that would have been dead a while back in other circumstances, but Ubisoft has supported it well.

is TC your alt
---
Not removing this until Pat Benatar is in Super Smash Bros. (Started 8/31/2010)
2018 NFLB Summersim team (drafting in progress): https://i.imgur.com/M25mokB.png
... Copied to Clipboard!
apolloooo
02/12/18 7:31:02 PM
#25:


Because people are idiots and humanity is hopeless lost cause and i hope we are all die horriby so games as a service makes alot of money with little effort.

Like make a game, and you can make money with just making lootboxes for a decade.

Aka the rockstar way
---
http://i.imgtc.com/iJyp6bF.png http://i.imgtc.com/ZBw36Qh.png
Thanks for the peeps that made the pics <3 if i make typos it means i am on phone
... Copied to Clipboard!
Darmik
02/12/18 7:47:27 PM
#26:


FaceThePain posted...
Darmik posted...
ZombiePelican posted...
MHW and Warframe have proven you can have great services without being overtly anti consumer


Doesn't Warframe have a whole bunch of lootboxes and in-game currency microtransactions?

Yes but nothing you can't get via playing the game. The same as rainbow six siege.


I'm more curious where people draw the line for this stuff being anti-consumer. There isn't really a universal answer from what I can tell.
---
Kind Regards,
Darmik
... Copied to Clipboard!
ZombiePelican
02/12/18 7:55:55 PM
#27:


Darmik posted...
ZombiePelican posted...
MHW and Warframe have proven you can have great services without being overtly anti consumer


Doesn't Warframe have a whole bunch of lootboxes and in-game currency microtransactions?

Yes, but it's completely free and Digital Extremes unlike other devs actually work with and listen to their community.

<FaceThePain posted...
Yes but nothing you can't get via playing the game. The same as rainbow six siege.

Rainbow Six Siege is an awful example as It's built like a free to play game but charges a premium upfront price

Darmik posted...
There isn't really a universal answer from what I can tell.

There actually is, you just don't see it because of your love of being a corporate mouthpiece
---
... Copied to Clipboard!
Darmik
02/12/18 8:00:14 PM
#28:


ZombiePelican posted...
There actually is, you just don't see it because of your love of being a corporate mouthpiece


Go on then.
---
Kind Regards,
Darmik
... Copied to Clipboard!
Antifar
02/12/18 9:09:29 PM
#29:


Muffinz0rz posted...
Antifar posted...
Steep is another game that would have been dead a while back in other circumstances, but Ubisoft has supported it well.

is TC your alt

Yes
---
kin to all that throbs
... Copied to Clipboard!
YOUHAVENOHOPE
02/12/18 9:11:13 PM
#30:


they're doing what i say EA should do with their sports games

stop making entirely new sports games dummies
just make one REALLY good one and keep updating that, charge people $5-$15 a month for it
---
... Copied to Clipboard!
Darmik
02/12/18 9:26:01 PM
#31:


Another interesting thing is that Ubisoft have basically outright said they're no longer doing annual franchise games. So no AC this year.

They do have two unannounced AAA games due before April 2019. I wonder what they are.
---
Kind Regards,
Darmik
... Copied to Clipboard!
Antifar
02/12/18 9:27:17 PM
#32:


Darmik posted...
Another interesting thing is that Ubisoft have basically outright said they're no longer doing annual franchise games. So no AC this year.

They do have two unannounced AAA games due before April 2019. I wonder what they are.

Well, if AC is an every other year franchise, I wonder if Watch Dogs might be as well. That'd be due this fall
---
kin to all that throbs
... Copied to Clipboard!
50Blessings
02/12/18 9:27:37 PM
#33:


Pretty sure Watch Dogs is dead
---
America is a tune. It must be sung together. --50 Blessings
https://i.imgur.com/xKI9rbb.jpg
... Copied to Clipboard!
SoundNetwork
02/12/18 9:36:07 PM
#34:


Honestly I hate how developers spend so much time making new open world environments instead of focusing on adding more content to them. You have a big ass world like watch dogs 2 and not much to do in it. I'd rather they stick with the same world and keep updating the game with more things to interact with, shops, npcs, quests, whatever. im so sick of ubisoft open world games lmao they're so bland
---
... Copied to Clipboard!
Lord_Shadow
02/12/18 9:36:32 PM
#35:


Because they are French
---
GT My Lord Shadow :3DS FC 0791 2649 3488
... Copied to Clipboard!
specialkid8
02/12/18 9:37:41 PM
#36:


As long as the post launch content is good i can support this. I've never cared for the new soft-MMO genre and will never spend a cent on microtransactions but if they have actual expansions and things and chumps buying loot boxes gets me good stuff for free or cheap I'm down. Its hard to make supporting games post launch a bad thing.
... Copied to Clipboard!
Bat178
02/12/18 10:50:45 PM
#37:


Lord_Shadow posted...
Because they are French

America is even worse in greed.
---
Awww, isn't that cute? He thinks he can beat me!
... Copied to Clipboard!
Guerrilla Soldier
02/12/18 10:52:38 PM
#38:


money
---
Disclaimer: There's a good chance the above post could be sarcasm.
Die-hard Oakland A's fan --- Keep the A's in Oakland!
... Copied to Clipboard!
Rika_Furude
02/12/18 10:56:16 PM
#39:


The reason they want games as a service:

$$$chaching$$$

---
Posted with GameRaven 3.3
... Copied to Clipboard!
stoltenberg11
02/12/18 11:13:37 PM
#40:


Personally I like games that get dev support for years on end instead of a sequel being pumped out every year that you have to buy or else you're playing a dead game now. I've always tended to get hooked on a game and invest in it for several years in a row.
---
You're such a boring characterless entity. Try getting laid once in a while and maybe you'll have friends and find out what a "joke" is. - derrate
... Copied to Clipboard!
Dash_Harber
02/12/18 11:57:28 PM
#41:


Lord_Shadow posted...
Because they are French


That's a new racist stereotype I haven't heard before. I assume you are American, and therefore a sort of pot kettle situation.
... Copied to Clipboard!
ZombiePelican
02/12/18 11:59:26 PM
#42:


Darmik posted...
ZombiePelican posted...
There actually is, you just don't see it because of your love of being a corporate mouthpiece


Go on then.

It's simple. If your game has an up front premium price with a season pass and or microtransactions. It's anti consumer
---
... Copied to Clipboard!
thronedfire2
02/13/18 12:00:16 AM
#43:


well yeah, it's a good business plan. does anyone actually like buying a game and only playing it once?
---
I could see you, but I couldn't hear you You were holding your hat in the breeze Turning away from me In this moment you were stolen...
... Copied to Clipboard!
Darmik
02/13/18 12:00:25 AM
#44:


ZombiePelican posted...
It's simple. If your game has an up front premium price with a season pass and or microtransactions. It's anti consumer


lol so what games do you even buy these days?
---
Kind Regards,
Darmik
... Copied to Clipboard!
ZombiePelican
02/13/18 12:01:43 AM
#45:


Darmik posted...
ZombiePelican posted...
It's simple. If your game has an up front premium price with a season pass and or microtransactions. It's anti consumer


lol so what games do you even buy these days?

I bought Monster Hunter World recently, but nice try at deflecting
---
... Copied to Clipboard!
Darmik
02/13/18 12:04:52 AM
#46:


ZombiePelican posted...
Darmik posted...
ZombiePelican posted...
It's simple. If your game has an up front premium price with a season pass and or microtransactions. It's anti consumer


lol so what games do you even buy these days?

I bought Monster Hunter World recently, but nice try at deflecting


It's not deflecting. According to you MH World is anti-consumer.

Considering nearly every single $60 game has some sort of season pass or microtransaction DLC I really doubt it's seen as universally anti-consumer.
---
Kind Regards,
Darmik
... Copied to Clipboard!
Lord_Shadow
02/13/18 9:28:22 AM
#47:


Bat178 posted...
Lord_Shadow posted...
Because they are French

America is even worse in greed.

Dash_Harber posted...
That's a new racist stereotype I haven't heard before. I assume you are American, and therefore a sort of pot kettle situation.

I was joking
---
GT My Lord Shadow :3DS FC 0791 2649 3488
... Copied to Clipboard!
Topic List
Page List: 1