Ubisoft CEO Yves Guillemot has said Microsoft’s bid to acquire Activision Blizzard can be viewed as a sign that Ubisoft is on the right track with its current business strategy.
While the merger has often been framed asMicrosoftseeking to purchase Call of Duty,XboxbossPhil Spencerhas consistently claimed that the $69 billion deal isprimarily driven by the company’s mobile gaming ambitions.
Of course,Activision Blizzardis also home to some of gaming’s biggest worldwide brands, as well as leading live service andPC games– all areas Microsoft hopes to acquire a greater foothold in, and whichUbisoftis pursuing too.
During Ubisoft’s first quarter earnings call on Thursday, Guillemot was asked if he thinks theActivisiondeal will be a catalyst for further M&A activity in the space and if so, what his view is on remaining independent in an industry that’s consolidating.
“I think it’s good news that the transaction can go through because it’s really showing the power of IPs and where the industry is going. So, there will be lots of opportunities too in the future for all the companies,” he replied.
“And It’s also showing the value of IPs that can now be on console and PC, but also mobile, and become more worldwide brands, and when we say worldwide it’s really everywhere in the world, and that’s a fantastic opportunity.
“And Microsoft is saying that the mobile part of the Activision deal is important,” Guillemot continued, “so all the investment we are making to be stronger on mobile are also in line with that, so all those elements will help the value of the company to grow.”
In January, Ubisoft said it hadcancelled three unannounced gamesas it moved todouble down on its biggest IPs and live services.
The company said it was “facing major challenges as the industry continues to shift towards mega-brands and long-lasting titles than can reach players across the globe, across platforms and business models”.
It said it had spent the last four yearsattempting to adapt its biggest brands(Assassin’s Creed,Far Cry, Ghost Recon, Rainbow Six andThe Division) to these converging trends. And while the games from this investment phase have yet to be released, Ubisoft expects them to bear fruit in the coming years.
On the mobile front, Ubisoft will release free-to-play games Rainbow SixMobileand The Division Resurgence during its current fiscal year ending in March 2024.
Two mobile Assassin’s Creed games are also in the works.A mysterious collaboration with Netflixcould tie into its upcoming live-action series with the streaming giant, while China-set Codename Jade willbegin closed beta testing next month.
Codename Jade is a free-to-play game set to be published byTencent’s Level Infinite division, after Ubisoft announced a majorstrategic partnership with the Chinese company last September.
Further reading
In April 2022, it was reported that Ubisoft wasattracting takeover interest from several private equity firms.
And the following month, it was claimed that Guillemot Brothers Limited, the holding company of Ubisoft’s founders, wasconsidering teaming up with a private equity firm to acquire the company.
“There has been a lot of talk around consolidation in the industry and in Ubisoft in particular,”Guillemot said during an earnings call last May.
“Our overall position is clear and well known. As we said last February, we have everything we need to remain independent. We have the talent, the industrial and financial scale, and a large portfolio of powerful IPs to create massive value in the coming years.
“It has provided us with the plan to build strategic partnerships with the biggest players in entertainment and tech. The current speculation is putting in plain sight the real appeal and value of our assets and of our value creation potential.”
