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Avatar: Frontiers of Pandora and Assassin's Creed Mirage are 60% off with the promo code UBISOFT20, how does Ubisoft stay in business?

Gaiff

SBI’s Resident Gaslighter
Within less than two months, these games were already selling for 40% off. Frontiers of Pandora came out in December and they've already heavily discounted the title multiple times. It was already 30-40% off by January and now with the promo code, you can get it for 60% off.

With how huge their budgets must be, how do they even stay afloat? The Days Gone director (or someone else I forgot) stressed how important the first few weeks of sales were, stating the profit they made selling the game at full price was critical. Yet there Ubisoft is, one of the largest gaming companies discounting their titles within weeks of their release. They must be making up for those thinner margins with sheer volume. Otherwise, I don't see how they can keep pumping those games, only to slash their prices by half within just a few months. This doesn't sound like a winning business strategy.

https://store.ubisoft.com/
 

Nydius

Member
Even at 60% off for both (and the sale only shows the standard editions, for reference), it would still be cheaper to just subscribe to Ubisoft+ for one to two months at $18 per month, and get to play the “ultimate” edition versions of the games. Both of them can be easily completed in 1-2 months.

But your point stands, I can’t see how this ends well for Ubisoft, especially if their MTX whales dry up.
 

elmos-acc

Member
That's how you get sales. You reduce the price to get people buying the game. The industry works on hype cycles and with digital media, the value is arbitrary. More buyers equals more money. And a copy sold is still an actual sale, instead of someone playing the game on subscription service.
 

Arsic

Loves his juicy stink trail scent
I mean they are promoting the next AC. The discount on this one is to get whoever is left for impulse buys.

The next game from the avatar devs is this year too Star Wars. Development is done on both so it’s about making any extra dollars left on the table.

They know how to turn a buck. Impatient folks pay top dollar right away. Once that flood is done then drop it to capture the on the fence buyers.
 

T4keD0wN

Member
Better to sell a copy for 40% than not sell a copy at all, there are no production costs once the game is developed with digital goods. Seems to have worked out for them for years now.

You can look at certain games (on steamdb) and see that they get a big spike in playerbase that perfectly correlates with sales (perfect example of this is Titanfall 2 or to a lesser degree watch dogs 2) i imagine its a similar case for Ubisoft on their own launcher, but we dont have data for that unfortunately.
 
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ZehDon

Member
Players fall into categories of purchase, and I imagine companies like Ubisoft stay in business by understanding their market, something like:
  1. Hardcore fans
    1. Will pre-order, buy expensive editions with bonus content, and pre-purchase battle passes.
  2. Interested
    1. Will buy the game at 100% for 1-2 months post-launch
    2. Might buy addition content on discount
  3. Mildly interest
    1. Will buy the game at 60% for 3-8 months post-launch
    2. Will not buy additional content
  4. Take it or leave it
    1. Will buy the game at 20% for 9-18 months post-launch
    2. Will buy complete edition for 50%
  5. Not interested
    1. Will not buy the game.
    2. Would play the game on Game Pass / Ubisoft+
Nintendo gets away with charging top prices for their games because fans continue to buy their games at full price years after they've come out. Nintendo are virtually alone in that category. Everyone else employs some kind of waterfall like the above
 

Nankatsu

Member
Should the code be UBISOFT40?

Thinking Think GIF by Rodney Dangerfield
 

Ozriel

M$FT
Within less than two months, these games were already selling for 40% off. Frontiers of Pandora came out in December and they've already heavily discounted the title multiple times. It was already 30-40% off by January and now with the promo code, you can get it for 60% off.

With how huge their budgets must be, how do they even stay afloat? The Days Gone director (or someone else I forgot) stressed how important the first few weeks of sales were, stating the profit they made selling the game at full price was critical. Yet there Ubisoft is, one of the largest gaming companies discounting their titles within weeks of their release. They must be making up for those thinner margins with sheer volume. Otherwise, I don't see how they can keep pumping those games, only to slash their prices by half within just a few months. This doesn't sound like a winning business strategy.

https://store.ubisoft.com/


Because they’ve already sold a decent amount of copies in the first few weeks at full price.
 

feynoob

Banned
That's how you get sales. You reduce the price to get people buying the game. The industry works on hype cycles and with digital media, the value is arbitrary. More buyers equals more money. And a copy sold is still an actual sale, instead of someone playing the game on subscription service.
Better than not buying their games.

3m copies at 60$ is worse than 9m copies at 20$.

That 9m copies have a higher chance of buying more mtx, compared to the 3m people who bought it at the launch price. Cheap game leads to more mtx sale mentality.
 
I recall them being in trouble and they stated they would concentrate on more AC as that is their money maker. So they could be in more trouble or perhaps Mirage is an in-between AC game that's done the job before the Japan set game
 

Deft Beck

Member
Players fall into categories of purchase, and I imagine companies like Ubisoft stay in business by understanding their market, something like:
  1. Hardcore fans
    1. Will pre-order, buy expensive editions with bonus content, and pre-purchase battle passes.
  2. Interested
    1. Will buy the game at 100% for 1-2 months post-launch
    2. Might buy addition content on discount
  3. Mildly interest
    1. Will buy the game at 60% for 3-8 months post-launch
    2. Will not buy additional content
  4. Take it or leave it
    1. Will buy the game at 20% for 9-18 months post-launch
    2. Will buy complete edition for 50%
  5. Not interested
    1. Will not buy the game.
    2. Would play the game on Game Pass / Ubisoft+
Nintendo gets away with charging top prices for their games because fans continue to buy their games at full price years after they've come out. Nintendo are virtually alone in that category. Everyone else employs some kind of waterfall like the above

Ubisoft and Nintendo are odd companies to compare in this scenario.

Ubisoft makes and releases many games each year. They also put their games on every platform they can manage. They charge full price, drop it within months, and then sell the game to platform holder game subscription services once they exhaust those sales. Ubisoft's games are very frontloaded, making most of their money in the first month of the games' existence. As of late, Ubisoft games have been low-to-middle quality, serving as fodder for the calendar year. Ubisoft is also notorious for having a bloated, overextended army of studios and substudios funded by taxpayer dollars.

Nintendo releases a couple of high-quality titles per quarter, give them adequate marketing space and time, and reap the rewards. They are the master of "evergreen" games. Their games sell well in every year, because they're high quality, and they refuse to compromise that quality. Most importantly, Nintendo games typically only come out on Nintendo platforms. They can get away with remastering a game and charging full price. They capture people who want to replay games on new platforms, as well as brand-new players.

Nintendo and Ubisoft only breathe the same air whenever Nintendo wants to give Ubisoft a deal. They should not be compared otherwise.
 

feynoob

Banned
Nintendo and Ubisoft only breathe the same air whenever Nintendo wants to give Ubisoft a deal. They should not be compared otherwise.
They are the same coin but opposite side.

Nintendo=full front business.

Ubisoft= maximizing every option.

At the end of the day, both will get their money.
 

simpatico

Gold Member
It's not about the $60. Ubi stuff is no longer worth the time spent playing. Who needs games made by AI when we can have games made by human resources and accounting.
 

JaksGhost

Member
I recall them being in trouble and they stated they would concentrate on more AC as that is their money maker. So they could be in more trouble or perhaps Mirage is an in-between AC game that's done the job before the Japan set game
Naw Ubisoft is actually doing amazing right now. Rainbow Six Siege had it's best year last year as a 9th year live service game. Assassin's Creed also does amazing with their back catalog sales. All-in-all they had record profits of 2.5 billion USD. That's why they want to release annually with the series.

 
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knguyen

Member
Most of their games are recycled shit, that sell for $60-$70. that's how they stay in business. Same goes for sport games from EA.
 

poppabk

Cheeks Spread for Digital Only Future
Within less than two months, these games were already selling for 40% off.

... stressed how important the first few weeks of sales were.....
Because the pre-order and day one folks that are caught up in the hype cycles are the important ones for those initial sales which are very front loaded. After those first few weeks, full price sales are gonna be non-existent unless you have a word of mouth must have hit.
 

ZehDon

Member
Ubisoft and Nintendo are odd companies to compare in this scenario.

Ubisoft makes and releases many games each year. They also put their games on every platform they can manage. They charge full price, drop it within months, and then sell the game to platform holder game subscription services once they exhaust those sales. Ubisoft's games are very frontloaded, making most of their money in the first month of the games' existence. As of late, Ubisoft games have been low-to-middle quality, serving as fodder for the calendar year. Ubisoft is also notorious for having a bloated, overextended army of studios and substudios funded by taxpayer dollars.

Nintendo releases a couple of high-quality titles per quarter, give them adequate marketing space and time, and reap the rewards. They are the master of "evergreen" games. Their games sell well in every year, because they're high quality, and they refuse to compromise that quality. Most importantly, Nintendo games typically only come out on Nintendo platforms. They can get away with remastering a game and charging full price. They capture people who want to replay games on new platforms, as well as brand-new players.

Nintendo and Ubisoft only breathe the same air whenever Nintendo wants to give Ubisoft a deal. They should not be compared otherwise.
This has nothing to do with my post.
 

Fess

Member
If I’m excited for the game why wouldn’t I want to play it as soon as possible?
I try to avoid it unless I can go in cheap, the release day version is the worst possible version to play, except review codes and beta etc.

However I think it’s okay if it’s a game I know I’m not going to stop playing after the first playthrough, then I at least know I’ll experience the fully updated version. But I find it more honest if devs do it like Moon Studios with No Rest for the Wicked, if it’s not final then label it early access and sell it cheaper.
 
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Danjin44

The nicest person on this forum
I try to avoid it unless I can go in cheap, the release day version is the worst possible version to play, except review codes and beta etc.

However I think it’s okay if it’s a game I know I’m not going to stop playing after the first playthrough, then I at least know I’ll experience the fully updated version. But I find it more honest if devs do it like Moon Studios with No Rest for the Wicked, if it’s not final then label it early access and sell it cheaper.
I dont see any reason to wait for the game I'm excited about, unless I'm seriously financially in trouble, i dont see any reason for it.

I buy 99% of all my games day one and so far I'm happy with most of them.....I'm also mostly buy Japanese games and avoid MP/GaaS games like a plague.
 

The Cockatrice

Gold Member
There was a article a few years ago where they showed that Ubisoft makes more money from mtx than the actual game sales. Its no shocker that they continued to fill their singleplayer games with such trash.
 

SkylineRKR

Member
Ubisoft works with a high rate of output, with a recycled formula for better or worse and with MTX. They sell for a month or 2, and the next game is already greenlit and gets a release date.
 

KungFucius

King Snowflake
Within less than two months, these games were already selling for 40% off. Frontiers of Pandora came out in December and they've already heavily discounted the title multiple times. It was already 30-40% off by January and now with the promo code, you can get it for 60% off.

With how huge their budgets must be, how do they even stay afloat? The Days Gone director (or someone else I forgot) stressed how important the first few weeks of sales were, stating the profit they made selling the game at full price was critical. Yet there Ubisoft is, one of the largest gaming companies discounting their titles within weeks of their release. They must be making up for those thinner margins with sheer volume. Otherwise, I don't see how they can keep pumping those games, only to slash their prices by half within just a few months. This doesn't sound like a winning business strategy.

https://store.ubisoft.com/
Clearly if you haven't bought them already, you are not going to pay full price. There must be a fair amount of people who will buy at these reduced prices in addition to those who buy at release. I am tempted, but I will restrain myself because I can just sub to their service for a month or so and play what I want when I reach the point that I need something to play. If that ever happens.

In contrast, who buys a game for full price several months after release?
 

Laptop1991

Member
I've bought a lot of Assassin's Creed and it depends which version you buy, i will get Mirage at some point, but the standard is the only one i need judging by the whats offered for deluxe and the top one, but it's not always like that sometimes they have so many different version's it gets confusing, but i will wait for a sale, Ubisoft must make quite a lot of their MTX store with all the different packs and sets, which i never buy, to make money.
 
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HL3.exe

Member
If their games felt more distinct from each other, maybe i'd buy it.

For at their core they're still reskinned Far Cry 3 (2012), map icon lawnmower simulators with boring writing and been-there-done-that mechanics and systems.

Used to love Ubisoft games back in the 00's. With Splinter Cell taking big swings with they're design, Assassin's Creed with their Bolt setting and mechanics, and of course Far Cry 2. The fuck happened?
 
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Fess

Member
I dont see any reason to wait for the game I'm excited about, unless I'm seriously financially in trouble, i dont see any reason for it.

I buy 99% of all my games day one and so far I'm happy with most of them.....I'm also mostly buy Japanese games and avoid MP/GaaS games like a plague.
I’m just not a fan of paying full price and play through a game over a week or two and then the next month there is a patch there for a performance issue or a 60fps mode or photo mode or something else that I might’ve enjoyed.
 
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Sybrix

Member
Makes me laugh that people defend these games.

These games are pure shit, Ubisoft wouldn't be discounting them if they were popular.

Assassins Creed is more stale than a 1000 year old loaf.

Avatar game looked like a re-skined Far Cry game and Far Cry games were already as bland and predictable and dry toast.

Ubisoft used to be one of those devs where you'd get excited about a new game..... however that was a very long time ago now. What a fall from grace.
 

Toots

Gold Member
My bad, I keep buying Far Cry games day one because i always forget how unfulfilling fast food fps is.
 

Mr Reasonable

Completely Unreasonable
In answer to the original question, I imagine that plenty of games have sold the majority of their full price sales within a couple of months. It wouldn't surprise me if the vast majority of game sales happen in the first couple of weeks for most releases.

Obviously, really well received games, or games that are first party for platform holders are a slightly different proposition, but for third parties, it seems quick to discount after a couple of months, but I don't think it doesn't make sense.

And then, after 6 months, who's buying who hasn't already? Might as well offer a big discount, because you're only going to appeal to people who weren't convinced the last time you discounted it.

As always, never preorder, never buy anything until you actually want to play it and have time to. :messenger_grinning:
 
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Shubh_C63

Member
Those games were not that expensive to produce... Avatar is a farcry mod and AC repeats since Origins...
This is my takeaway also.
They have consistently made similar feeling games with a new paint and have become expert in this "factory" model. Their budget might be way cost efficient than we think.
 
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