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In a recent report submitted to Companies House in the UK, Ubisoft presented a bleak vision for the future of the gaming industry, asserting that the market is undergoing a radical shift that is reshaping the way gamers play and consume content. The report, which drew attention with its blunt tone, revealed that “consumers are playing fewer games for longer periods of time,” which directly affects the ability of new games to emerge and achieve their previous historic sales.
Ubisoft explained that the model of selling full games for £50 to £60 is no longer as dominant as it once was. Instead, the industry is moving towards multiple subscription services such as Game Pass and Plus, service games that last for years, free games, and cloud game streaming, these models give players continuous content at a lower cost and thus reduce the need to buy new games frequently.
According to the report:
With the exception of a few notable titles, many new releases are struggling to stand out and achieve the sales that were once possible… The market is becoming more volatile and unpredictable.
This reflects a new reality that gamers have become loyal to long-term service games like Fortnite, Apex Legends, and GTA Online, leaving much less room for new games trying to break into the market.
Ubisoft concluded the report by noting that its UK subsidiary is expecting a decline in revenue over the coming months, an unusually candid statement that reflects the magnitude of the challenges facing the company.
While Ubisoft has a very successful service game like Rainbow Six Siege, the tone of its report seemed to some more like a complaint than a strategic speech. While companies like Embark (ARC Raiders) and Epic Games (Fortnite) are quickly adapting to the new market, Ubisoft is still balancing between the traditional model and service versions, but lacks a clear long-term vision.
From a consumer perspective, these changes may be positive, with cheaper subscription services, service games offering continuous content, and cloud platforms facilitating access, but from a developer’s perspective, the competition is much tougher and success is no longer guaranteed.
