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Ubisoft: Only triple-A games are profitable photo

Ubisoft Europe MD Alain Corre: "The games that are not triple-A are not profitable anymore."

That's hard for me to hear. It seems that it's safer for the publisher to put their money into AAA titles rather than test the waters on smaller projects.

"When you have a triple-A blockbuster it costs more money to develop, but at the end of the day there’s also the chance of a good return on it because there’s a concentration at the top of the charts. To a certain extent it becomes less risky to invest more in a single game or franchise than spreading your investment between three or four games. Because if those three or four games are not at the right quality level, you are sure to lose money," said Corre in an interview with GamesIndustry.

He goes on to say that with hardcore games, they'll stop work on them if they're not sure they're reaching the right level. Their whole business model has changed because of this shift, which Corre says has changed in the last 18 months. And then this shot to my chest: "The market is not supporting the full range of product that it used to anymore."

As a gamer who finds himself enjoying the rare new experience more than the seasoned franchise, I hope this trend does not continue. As much as I love big blockbuster games, I don't think our industry will continue to be healthy if we're just focusing on these titles.








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Dale North is Destructoid's Editor-In-Chief, a founding editor, and specialist in Japanese gaming. An accomplished musician, Dale was reporting from Japan during the earthquakes of 2011. Luckily, he got the fuck out alive and is home in America now with his wife and beloved corgi, Einstein. Dale is also a co-founder of Destructoid's sister anime site Japanator. Likes Corgis, Sega Saturn, PSP, iPhone, Photographic tools. Meet the rest of the team



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72 comments | showing # 1 to 50
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delta2kbr's Avatar - Comment posted on 08/31/2010 14:23
delta2kbr
And Imagine games still exist.
Occams electric toothbrush's Avatar - Comment posted on 08/31/2010 14:25
Occams electric toothbrush
Seems to me like only big budget games are profitable for him. I've gotten more enjoyment out of smaller, more experimental titles than big budget AAA titles over the past few years. This guy's a businessman and that's part of his business. I play video games and for me, AAA titles are a very small part of why I play games.
GoodGuyA's Avatar - Comment posted on 08/31/2010 14:25
GoodGuyA
Maybe if you guys put effort into:

1. Making a good non-AAA game.

2. Marketed the damn thing well enough.
rexwolf2's Avatar - Comment posted on 08/31/2010 14:31
rexwolf2
BS!
Dreamscape's Avatar - Comment posted on 08/31/2010 14:34
Dreamscape
Bullshit, they used to make almost all games what would be considered today as "Hardcore games" and people used to buy them because they wanted to fucking play video games.

They need to stop trying to force everybody on earth to like games and focus on the people who are actually trying to spend money on shit.
woneal's Avatar - Comment posted on 08/31/2010 14:34
woneal
The unfortunate thing is that you often learn things from your "failures" that helps create your "successes."
Ball Buster's Avatar - Comment posted on 08/31/2010 14:36
Ball Buster
Yeah, but big-budget games can also be the biggest flops. It seems like the game industry is becoming more and more of a crapshoot.

Also, little companies like Treasure still get by. I understand damn good niche games couldn't support a bigger company, though.
HubertJass's Avatar - Comment posted on 08/31/2010 14:37
HubertJass
So Budget titles and Movie games dont make a profit. Well hopefully they will stop being made. This also made me think that the only way more experimental games can succeed is through XBLA, wiiware and PSN.
NateT's Avatar - Comment posted on 08/31/2010 14:37
NateT
This is because everything is $60. If all steak was the same price, would'nt you gravitate torwards the best quality meat?
Elsa's Avatar - Comment posted on 08/31/2010 14:40
Elsa
Maybe what he's saying is that shitty games aren't worth making. I tend to agree with that assessment.
I don't think this means that they'll stop publishing games like Scott Pilgrim vs the World... but maybe games like Avatar: the Game, or Lost: the game, or Call of Juarez, or Driver - maybe those games won't get made/published anymore. Honestly I don't think that it will be a big loss.

The Imagination games series... I can only hope that they might be classed in with games they won't make - but I suspect they must be profitable as there are so many of them! Never played one and never will though.
Qraze's Avatar - Comment posted on 08/31/2010 14:41
Qraze
what this lower being says is very disheartning to hear.
falinter's Avatar - Comment posted on 08/31/2010 14:42
falinter
@NateT "This is because everything is $60. If all steak was the same price, would'nt you gravitate torwards the best quality meat?"

Speak truth. You need to start utilizing the entire spectrum of pricing. And no that doesn't mean $70 shitty special editions. It means $40 dollars for obviously B games.
ZRB's Avatar - Comment posted on 08/31/2010 14:42
ZRB
PROTIP: You could be spending more time on that triple A title if you weren't busy developing an F- DRM system
Sam Fletcher's Avatar - Comment posted on 08/31/2010 14:45
Sam Fletcher
It's only temporary. Just wait until the economy gets better.
Ganjookie's Avatar - Comment posted on 08/31/2010 14:45
Ganjookie
thats okay by me, Ive never purchased an Ubisoft game, ever. I'll live with their decisions.
Blasto's Avatar - Comment posted on 08/31/2010 14:46
Blasto
Bullshit, they just need better marketing for lower profile games. Maybe stop wasting money marketing big-budget yet shitty games (Kane & Lynch 2 for example) all over gaming websites where the people they are targeting already know if the game is shit. Seriously, does anyone even look at those ads? Seems so pointless to me
timtheterrible's Avatar - Comment posted on 08/31/2010 14:46
timtheterrible
It's ubisoft.
killias2's Avatar - Comment posted on 08/31/2010 14:46
killias2
There are so many exceptions, it's hard to take this seriously....
D-Nez's Avatar - Comment posted on 08/31/2010 14:47
D-Nez
Thing is that to a certain extent gamers are to blame. We lap up sequels and well known/marketed titles yet there ate often times when a developer tries something new and we hesitate. I'm speaking in general terms of course.

It's like you either have to develop a huge AAA title or a cheap downloadable game and there's not in-between. But I think perhaps that's an opportunity for publishers to release mid tier games. Games that release in the 29.99-39.99 range. $60 is a lot of money and gamers are less likely to take a chance on a $60 games as they are on cheaper titles. Not every game is a AAA game and therefore maybe shouldn't be priced as such.

There are other factors too. Including Marketing budgets for well known or titles that are expected to be successful are naturally higher and therefore awareness is higher.

"As much as I love big blockbuster games, I don't think our industry will continue to be healthy if we're just focusing on these titles."
Blindfire's Avatar - Comment posted on 08/31/2010 14:51
Blindfire
This makes perfectly good sense to me. Bigger budgets, more time, more people (and thus more work) devoted to a single project results in... drumroll here... generally a better game. Furthermore, it makes perfect sense that a better game is going to be more profitable. Take that same budget and work force, split it between three or four titles, and the probability that you'll wind up with garbage increases exponentially.

Sure, it doesn't encourage developers to take risks with their game design, or put out a wide library of games, but there's still a good reason to support this: Quality over Quantity. Developers aren't just going to stop taking risks. Risks are profitable, and as long as they remain profitable, you can expect to see unique games. So, in the long run, we're still going to have unique games on the market, and we're going to see overall better games due to more budget and development time... seems like a win/win to me, folks.

I don't see this as bad news at all.
TheWretchedCrow's Avatar - Comment posted on 08/31/2010 14:58
TheWretchedCrow
(A)ss(A)ssins Creed only have 2 A.
so then you have to stop developing it and make AssAssAssins Creed.
The Silent Protagonist's Avatar - Comment posted on 08/31/2010 15:00
The Silent Protagonist
Interesting someone from Ubi Soft would say that.

Seems Prince of Persia and a few other recent releases from them haven't sold to expectation and have had to be marked down within a month of release to sell at all. Maybe its because those games weren't that good.
Naim Master's Avatar - Comment posted on 08/31/2010 15:00
Naim Master
NO. SHIT.
YoTanaka's Avatar - Comment posted on 08/31/2010 15:04
YoTanaka
But the non AAA games do sell, obviously just not enough, so maybe spend less on them? And probably make sure your developers on those games and worth the money.
Markusdragon's Avatar - Comment posted on 08/31/2010 15:06
Markusdragon
Does this mean less Ubisoft shovelware?
ZRB's Avatar - Comment posted on 08/31/2010 15:11
ZRB
seriously though, this is just retarded.

If a game is AAA quality then its going to get profits, and if its shit its not going to get much profits. It doesn't matter how much money you put into the fucking game, because that doesn't determine if its AAA quality or not. There are plenty of games on cheap budgets that have become AAA quality in their own right, just as there are plenty of multi million dollar games that have turned out to be shit.
Dreamweaver's Avatar - Comment posted on 08/31/2010 15:15
Dreamweaver
Is this coming from the company who bragged that the IMAGINE series raked in tons of money?
lnc0's Avatar - Comment posted on 08/31/2010 15:20
lnc0
This is comming from the company that made the Scott Pilgrim game?

The least AAA a game can be that's been preaty profitable?

WUT?
Agent9's Avatar - Comment posted on 08/31/2010 15:27
Agent9
if its games based off movies i understand, but other thing are worth putting your money into. if this trend continues there's only going to be fps and a few rpg games making their 50th installment. what botheres me about fps is that its really the same thing with different skins and weapons. the story is different but its the same concept. run with your weapon and kill the enemy forces. you dont really grow or level up or really do much else. its mostly bought for online play. note - i do like fps games
Naim Master's Avatar - Comment posted on 08/31/2010 15:27
Naim Master
@Inc0
Scott Pilgrim is hardy a underdog.
Darren Nakamura's Avatar - Comment posted on 08/31/2010 15:31
Darren Nakamura
Sounds like a blatantly untrue statement, coming from a man working for the company that puts out the Imagine series.
pbrand's Avatar - Comment posted on 08/31/2010 15:34
pbrand
That's funny. I avoid most AAA titles because they don't do anything new.

I guess a mass of sheep is a better consumer base than a handful of dedicated thoughtful buyers.
Edge2k10's Avatar - Comment posted on 08/31/2010 15:35
Edge2k10
Atlus has made an entire business out of making small niche games and being profitable in the process. Also look and games like Flower and Limbo! Sounds like developers are slowly turning into Activision cloes.
akatsukix's Avatar - Comment posted on 08/31/2010 15:37
akatsukix
Well, you could, you know, release other games sometime besides the last three months of the year. Hell, don't invest into graphic assets, sell the game for $20-30 on concept and level design, and if it does well, sell a graphics upgrade pack later replacing those assets.

That'd require creativity in marketing, but I suppose that is beyond you business types...
Qraze's Avatar - Comment posted on 08/31/2010 15:42
Qraze
demons souls
Leon Field's Avatar - Comment posted on 08/31/2010 15:43
Leon Field
<img>http://oldcatman.blogspot.com/bullshit-lg%202.jpg</img>
flea friend's Avatar - Comment posted on 08/31/2010 15:45
flea friend
"Our crummy business model is not working well. Therefore, we can only assume that all other game companies are doing just as badly."


This whole story is their way of saying they can't afford to cram their DRM system into smaller titles.
Sothalic's Avatar - Comment posted on 08/31/2010 15:54
Sothalic
So, instead of trying new IPs, they prefers to stick to their series and milk the hell out of them. New IP + AAA title-like funding usually results in a disaster. Seems like Ubisoft steps out of the competitive gaming industry at last, their oppressive DRMs alone is reason enough to wish them bankruptcy.
Red Boss's Avatar - Comment posted on 08/31/2010 16:06
Red Boss
So, the more money you put on a game, the better it is? Hmm... sorry indie games, you suck..
atastysammich's Avatar - Comment posted on 08/31/2010 16:23
atastysammich
Ah, okay. So that's why the Rabbids series will probably outlive all of us.
Catmurderer's Avatar - Comment posted on 08/31/2010 16:25
Catmurderer
Herp durp this is what Blizzard has been doing for years.
Sæglópur's Avatar - Comment posted on 08/31/2010 16:49
Sæglópur
I don't care what anyone says, Assassin's Creed isn't "AAA".

Bleh.
Montag 451's Avatar - Comment posted on 08/31/2010 17:07
Montag 451
Is this not partly the fault of the media. Using the example of Wet. Not a triple A game, but a harmless little fun shooter that wiles the hours away without too much pain.

Some reviews treated it like it was infecting babies with herpes. I totally agree that a company would hesitate to release it because it will not be judged for what it is.

I think pricing may be an answer.

Should a 30 buck game be judged on the same scale as a 60 buck? Is there a value for money mark?

Look at Limbo, stunning game but would it get the same scores if it was full price?
Sothalic's Avatar - Comment posted on 08/31/2010 17:21
Sothalic
It will take a great lot of humility from developers to ask themselves 'How about we lower the cost, and hope the bonus sales make up for the loss', since they don't really care about how more players means a longer-lasting community.
Lally Monkey's Avatar - Comment posted on 08/31/2010 17:33
Lally Monkey
Ubisoft to gamers: FUCK new ideas.
Remington Chin's Avatar - Comment posted on 08/31/2010 17:38
Remington Chin
The reason why A-list games are the only ones that are profitable are because you've only developed safe bets and spend your resource money on Joel McHale and Laser Tag 2.0
Ben Perlee's Avatar - Comment posted on 08/31/2010 17:40
Ben Perlee
That's funny, because I know that Just Dance is paying for much of the AAA titles coming from Ubisoft.
Dv8thwonder's Avatar - Comment posted on 08/31/2010 17:50
Dv8thwonder
Just Dance.

Insert foot into mouth.
fulldamage's Avatar - Comment posted on 08/31/2010 18:04
fulldamage
So, what she's saying is, on paper, there's a certain point at which if you pump AAA money into a project, it is highly likely to turn out an acceptable profit. Below that threshold, the chances are more likely that the profit is not enough to justify undertaking the project in the first place.

And to the number crunchers, at least for this specific publisher, it's possible that this is exactly the case. Like it or not, there are people who have to think this way, and those people keep these companies afloat.

However, it sucks and I hate to hear it said that way. Particularly because every time someone says this, all the other biz types will repeat it to each other until they've decided it's Scripture, and then there's less incentive to invest in riskier ideas at lower budgets. Which means less chances of seeing things like Rez or Persona appear and evolve.

Which sucks, because that's my favorite stuff, and the less of it there is, the less interesting games will become. And if games aren't interesting, people will lose interest, and stop talking about them, and sales will eventually decline, which is the opposite of what they wanted in the first place. But nobody wants to be the scapegoat, or have their own project lose money or tank.
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