Ubisoft Financials; Ubisoft Returns to Steam

The Ubisoft stories come amid the release of the company's updated financial targets for FY2024-25, saying the company "now expects net bookings of around €1.95bn, and around break-even non-IFRS operating income and free cash flow." Common to both reports on Ubisoft releases is word they are coming earlier than expected to Steam. Back in 2019 the, company started a romance with the Epic Games Store with Ubisoft's Chris Early calling the Steam business model "unrealistic." Now Ubisoft seems to have gotten a reality check, as the report includes word that the company's upcoming PC launches will all come to Steam on day one starting with Assassin's Creed Shadows:
The game will mark the return of our new releases on Steam Day 1.
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Re: Ubisoft Financials; Ubisoft Returns to Steam
Sep 25, 2024, 22:43
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Re: Ubisoft Financials; Ubisoft Returns to Steam Sep 25, 2024, 22:43
Sep 25, 2024, 22:43
 
Back in 2019 the, company started a romance with the Epic Games Store with Ubisoft's Chris Early calling the Steam business model "unrealistic."

To be fair, Valve introduced a new revenue split system (30%/25%/20%) under Epic's pressure and there are credible rumors that huge gigs like EA et al returned to Steam because they got even more special individual conditions.

IIRC, Ubi referred to the original 30% as "unrealistic" (which it is... 30% is a fucking ripoff) but the new conditions are likely much more bearable. Ubi are big enough to pretty much almost always end up in the 20% tier, i.e. >$50 million revenue per title and, who knows, maybe they are getting a special deal as well.

Anyway, in their current situation it would be very hard to justify to their investors and stockholders why they are not optimizing their income as much as possible. The PC platform has become surprisingly "important" to them in recent times.
The PC only made up 18% of their total revenue in 2022/2023, then jumped up to 32% in 2023/2024 and last quarter it almost equaled the consoles at 44% PC vs. 46% consoles.

So, in Ubi's shitty place it makes a whole lot of sense to optimize that PC revenue by going where they can maximize day 1 sales, i.e. Steam.
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Sep 26, 02:14Sep 26 02:14
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Sep 25, 22:43Sep 25 22:43
Re: Ubisoft Financials; Ubisoft Returns to Steam