Editing Ubisoft Entertainment SA
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The company also has a presence in the Movies and Entertainment industry through its Ubisoft Film & Television division, which has the mission "to bring Ubisoft’s award-winning games into new areas of entertainment and to create original stories set in the world, culture and community of gaming"<ref>https://www.ubisoft.com/en-us/entertainment/film-tv</ref>. The division has a pipeline of projects, including the films “Just Dance” (Screen Gems), the live-action “Assassin’s Creed” (Netflix) series, the current “Mythic Quest” (Apple TV+) series and “Rabbids Invasion” (season 4 on Netflix).<ref>https://www.ubisoft.com/en-us/entertainment/film-tv</ref> | The company also has a presence in the Movies and Entertainment industry through its Ubisoft Film & Television division, which has the mission "to bring Ubisoft’s award-winning games into new areas of entertainment and to create original stories set in the world, culture and community of gaming"<ref>https://www.ubisoft.com/en-us/entertainment/film-tv</ref>. The division has a pipeline of projects, including the films “Just Dance” (Screen Gems), the live-action “Assassin’s Creed” (Netflix) series, the current “Mythic Quest” (Apple TV+) series and “Rabbids Invasion” (season 4 on Netflix).<ref>https://www.ubisoft.com/en-us/entertainment/film-tv</ref> | ||
Ubisoft has a “high-value licensing partnership on mobile” with Tencent announced last July, where Tencent will be the publisher of the Assassin’s Creed mobile game set in China. Ubisoft also has a collaboration with Playcrab; and collaboration with Disney and Lucasfilm Games. | Ubisoft Entertainment SA has a “high-value licensing partnership on mobile” with Tencent announced last July, where the Tencent studio Level Infinite will be the publisher of the Assassin’s Creed mobile game set in China (already described by Ubisoft and given the codename Jade). Ubisoft also has a collaboration with Playcrab; and collaboration with Disney and Lucasfilm Games. | ||
[[File:Ubisoft-HD-scaled.jpg|left|615x615px]] | [[File:Ubisoft-HD-scaled.jpg|left|615x615px]] | ||
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Ubisoft has a unique production organisation in the video game industry, which allows the company to produce and own all of its most significant franchises, enter new market segments organically, and release high quality new content and games on a regular basis. This has allowed the organisation to grow and benefit from recurring revenues. Therefore, Ubisoft has sought to take advantage of their position for the last decade and expand their portfolio of franchises with titles such as ''Just Dance'', ''Brawlhalla'', and ''The Crew''. | Ubisoft has a unique production organisation in the video game industry, which allows the company to produce and own all of its most significant franchises, enter new market segments organically, and release high quality new content and games on a regular basis. This has allowed the organisation to grow and benefit from recurring revenues. Therefore, Ubisoft has sought to take advantage of their position for the last decade and expand their portfolio of franchises with titles such as ''Just Dance'', ''Brawlhalla'', and ''The Crew''. | ||
However, Ubisoft has recently chosen to shift their focus onto their core franchises with emphasis on long-term player engagement through long-lasting Live games. This means the company will be focusing on franchises that have already been proven to be successful and will grant them greater control over their timing and quality of releases, reducing the perceived execution risks of their pipeline. This has been the top concern for investors, which has resulted in Ubisoft trading at a steep discount relative to peers.<ref>Ubisoft Entertainment SA. (2023) Universal registration Document 2023. https://www.ubisoft.com/en-us/company/about-us/investors</ref> | However, Ubisoft has recently chosen to shift their focus onto their core franchises with emphasis on long-term player engagement through long-lasting Live games. This means the company will be focusing on franchises that have already been proven to be successful and will grant them greater control over their timing and quality of releases, reducing the perceived execution risks of their pipeline. This has been something Ubisoft has struggled with in the past and is the top concern for investors, which has resulted in Ubisoft trading at a steep discount relative to peers.<ref>Ubisoft Entertainment SA. (2023) Universal registration Document 2023. https://www.ubisoft.com/en-us/company/about-us/investors</ref> | ||
[[File:Steam's_concurrent_players.png|alt=|left|550x550px|''Top 12 games by Steam's current players'']] | [[File:Steam's_concurrent_players.png|alt=|left|550x550px|''Top 12 games by Steam's current players'']] | ||
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'''Chief Portfolio Officer - Sandrine Caloiaro'''[[File:Sandrine caloiaro jpg 800x0 crop upscale q85.jpg|left|thumb]] | '''Chief Portfolio Officer - Sandrine Caloiaro'''[[File:Sandrine caloiaro jpg 800x0 crop upscale q85.jpg|left|thumb]] | ||
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==== <u>Overall</u> ==== | ==== <u>Overall</u> ==== | ||
Overall, the reaction to these three games is positive, with Star Wars Outlaws especially capturing the imagination of gamers. Delivery is going to be challenging with so many projects coming quite close to each other. But it is hard to dwell on negatives when the community has reacted pretty well to the major games on show at Ubisoft Forward.<ref>Barclays. (2023) Ubisoft Entertainment SA: Star Wars Outlaws particularly well received at Ubisoft Forward</ref> | Overall, the reaction to these three games is positive, with Star Wars Outlaws especially capturing the imagination of gamers. Delivery is going to be challenging with so many projects coming quite close to each other. But it is hard to dwell on negatives when the community has reacted pretty well to the major games on show at Ubisoft Forward.<ref>Barclays. (2023) Ubisoft Entertainment SA: Star Wars Outlaws particularly well received at Ubisoft Forward</ref> | ||
== Market == | == Market == | ||
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=== Conglomerates === | === Conglomerates === | ||
==== '''Microsoft and Sony''' ==== | |||
Ubisoft is a prominent game developer and publisher known for franchises like Assassin's Creed, Far Cry, Watch Dogs, and Tom Clancy's series. However, the gaming industry is dominated by the 'Big 3' video game companies Microsoft, Sony, and Nintendo. They accounted for 29% of total gaming industry revenue in 2022, with Sony having the largest market share with a gaming revenue of $28.2 billion compared to Microsoft's $16.2 billion. The major advantage these players have is that they own and operate the major gaming platforms: the Nintendo Switch is one of the best-selling gaming consoles of all time, and current-gen consoles Sony’s PlayStation 5 and Microsoft’s Xbox Series X/S were both released in November 2020 and are very competitive. To date, the PlayStation 5 has sold almost 38 million units, compared to nearly 22 million Xbox X/S console sales. However, Nintendo would not be a competitor for Ubisoft as they exclusively operate on the Nintendo Switch.<ref>https://www.statista.com/topics/868/video-games/#topicOverview</ref> Alongside being hardware manufacturers, Sony publishes iconic franchises like God of War, Uncharted, and The Last of Us, and Microsoft develop and publish notable franchises such as Halo, Forza Motorsport, and Gears of War. | Ubisoft is a prominent game developer and publisher known for franchises like Assassin's Creed, Far Cry, Watch Dogs, and Tom Clancy's series. However, the gaming industry is dominated by the 'Big 3' video game companies Microsoft, Sony, and Nintendo. They accounted for 29% of total gaming industry revenue in 2022, with Sony having the largest market share with a gaming revenue of $28.2 billion compared to Microsoft's $16.2 billion. The major advantage these players have is that they own and operate the major gaming platforms: the Nintendo Switch is one of the best-selling gaming consoles of all time, and current-gen consoles Sony’s PlayStation 5 and Microsoft’s Xbox Series X/S were both released in November 2020 and are very competitive. To date, the PlayStation 5 has sold almost 38 million units, compared to nearly 22 million Xbox X/S console sales. However, Nintendo would not be a competitor for Ubisoft as they exclusively operate on the Nintendo Switch.<ref>https://www.statista.com/topics/868/video-games/#topicOverview</ref> Alongside being hardware manufacturers, Sony publishes iconic franchises like God of War, Uncharted, and The Last of Us, and Microsoft develop and publish notable franchises such as Halo, Forza Motorsport, and Gears of War. | ||
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=== Stock Performance === | === Stock Performance === | ||
=== Historical Data === | |||
=== | |||
=== Forecast === | |||
==== Investment Thesis ==== | ==== Investment Thesis ==== | ||
many new AAA games (strong lineup 2024), potential start of new lucrative franchises / IPs, appointed new independent board members with large successful track records to strengthen their corporate governance, risks around execution, which may significantly dampen upside potential of new franchises, which has been seen with e.g., Redfall, which was released by Bethesda earlier this year. | |||
==== Risks ==== | |||
== References == | == References == | ||
__INDEX__ | __INDEX__ |