Ubisoft Executive Summary

Topics: Video game industry, Game programmer, Video game / Pages: 5 (1066 words) / Published: Feb 27th, 2012
EMBA 2010-2012, Group F

UBISOFT CASE STUDY – EXECUTIVE SUMMARY

Industry’s structure – Porter’s five forces

Competitive Rivalry within Industry - HIGH * Very attractive, dynamic market * Large number of competitors * High and innovative technology in use * Sophisticated, cross industry creation process (Telco, IT, entertainment)

Bargaining power of Suppliers – LOW * Games made-in house, by hired developers having access to necessary software and engine licenses * Fight for exclusivity on important game titles

Bargaining power of Customers – LOW * Mass market, mass retailers, specialty stores * Online purchases, electronic game distribution as the cheapest source * Large number of alternatives, low bargaining power

Threat of new Entrants – HIGH * Little initial investment needed * Little exit costs, no fixed assets (licenses, workstations) * Established brand not necessary - the most important part is game playability * Barrier size for major game releases - average size of production – 12 min $, 2 years development + marketing costs

Threat of Substitute Products – LOW * Non-electronic entertainment * Non corporate game creators * Open source alternatives

Main opportunities and threats for video game industry

Opportunities

Partnership with film-makers, sport’s industries

New technologies (mobile, web-browser, Flash)

Cross-platform games distribution

Online and social network gaming

Shift of gamer profile – older and more woman,

Shift of business models in game advertisements

Games developed after blockbuster hits

Subscription games – new trend, access to cash

Consolidation and unification hardware platforms

Industry moving strongly toward online gaming, both for massively-multi-player concepts and for on-line multi-player versions of existing titles

Penetration of untouched markets by means of bundling

Electronic game

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