- Ubisoft CEO compares streaming to Netflix’s impact on TV and film
- Ubisoft acquires streaming rights for Activision Blizzard’s game portfolio as part of Microsoft’s acquisition bid
- Experts predict that streaming game services will double their revenue in the next five years
Ubisoft, the famous video game company behind titles like Assassin’s Creed, is making a big move. They’re joining forces with Microsoft to bring a change to how we play video games, just like Netflix transformed how we watch TV and movies.
The CEO of Ubisoft, Yves Guillemot, told Financial Times that this shift in the video game world is similar to how Netflix started its streaming service. At first, people didn’t believe in Netflix, and their stock prices fell. But now, we all know how popular and successful Netflix has become. Guillemot believes the same will happen with video games, although it might take a little time to get going.
Ubisoft’s recent deal with Microsoft is making waves. They’ve acquired the rights to stream games from Activision Blizzard, which is part of Microsoft’s huge $75 billion plan to buy Activision. This news made Ubisoft’s stock price jump by almost 9% in a single day.
Even though streaming games have faced some challenges, experts believe that it’s going to grow. Omdia, a research group, predicts that streaming game services like Xbox Game Pass Ultimate and PlayStation Plus Premium will double their revenue in the next five years, reaching $3.2 billion in 2023.
The deal with Microsoft means that Ubisoft can stream Activision’s popular games, like Call of Duty, outside of Europe for the next 15 years. Plus, new mobile technology, like Apple’s latest iPhone 15, will help Ubisoft expand in places where console gaming isn’t as popular.
This is a big step for Ubisoft, which has faced some challenges in recent years, including allegations of problems in how they handle things at the company. But they’re betting on big game releases, a focus on their most successful games, and a $200 million cost-cutting plan to turn things around.
As the gaming industry anticipates Microsoft’s acquisition of Activision to trigger further consolidation, Ubisoft, one of the largest standalone games publishers, remains vigilant. A strategic partnership with China’s Tencent has helped protect the company from takeover attempts. While Guillemot mentioned the possibility of increasing Tencent’s stake in the future, current controls limit it to 30% of voting rights and share capital.
Ubisoft’s forward-looking strategy positions the company to capitalize on the future of gaming, powered by streaming technology.
