Ubisoft had a strong first fiscal quarter, and digital sales are an enormous piece of its ongoing strategy.
The publisher, which is responsible for games like online special-ops shooter The Division, generated a record 75 percent of its revenues from digital channels. The company has seen consistent increase in that segment of its business since 2011. Full-game downloads as well as digital add-ons and in-app purchases (console, PC, and mobile) are powering a far more significant chunk of Ubisoft’s $153.2 million ($139.1 billion) in sales than ever before.
Three major games are behind Ubisoft’s digital surge.
The Division is a connected experience where players run through missions together. Developer Massive has a content plan that will see new expansions and quests roll out through the rest of the year. Rainbow Six: Siege is a competitive military shooter that has a heavy emphasis on unlocking items, and players can speed up that process by spending money. Both The Division and Rainbow Six are capitalizing on the increased number of people spending money through the Xbox Live, PlayStation Network, and Steam online services on Xbox One, PlayStation 4, and PC, respectively.
On mobile, Hungry Shark World is a game where players must cause destruction and mayhem as one of nature’s perfect killing machines. It isn’t one of the top-performing iOS and Android games, but it is in the top 500 grossing chart in 48 countries on iPhone, according to App Annie.
“Our solid figures for the first quarter of 2016-17 have confirmed the excellent digital trends and demonstrate we are successfully executing our strategic plan,” Ubisoft chief executive Yves Guillemot said in a statement to investors. “Player engagement levels reached record highs during the period, fueled by the success of Tom Clancy’s The Division, Tom Clancy’s Rainbow Six Siege, and Hungry Shark World. [Monthly active players] were up 53 percent year on year, driving digital revenue to a record weighting of 75 percent of overall sales.”
Looking ahead, Ubisoft expects digital to continue to rise to new heights. It predicts that digital sales will act as a pillar for the growth of its business alongside expansion into Asia, competitive professional gaming, and virtual reality.
