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Ubisoft reports 67% YoY drop in DS sales

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Ubisoft reports 67% YoY drop in DS sales

French publisher's Q1 fiscal results suggest Nintendo handheld market is suffering

Ubisoft has seen Q1 revenue generated by DS titles fall by a huge 67 per cent in the last year.

CEO Yves Guillemot reveled the news in the publisher's Q1 fiscal results announced yesterday.

Ubisoft’s share of the DS software market has remained exactly the same, however – suggesting that the overall DS software market is in freefall.

“The DS is declining quickly,” boss Guillemot stated. “The casual business is changing rapidly and we have to reinvent it this year. We already have a big shift from DS to Wii this year and it will continue with the Wii and Xbox 360 new camera next year.



“What we are seeing in Europe, especially on the DS, is that the piracy is strong so we are working to put new figurines and new elements in the box that will change that for the future.

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“But in the short-term it's affecting us. For example in Europe we have the same market share on DS as last year, so it's really the market which is declining. Retail, because of that, is less active on the format.”



Ubisoft’s executive dorector Alain Corre added: “We expect the Wii to account for 40 per cent of sales in our causal label versus last year when it was at 18 per cent, so it's a big change.”

blame piracy instead of quality

posted by ross Jul 29, 2009 at 12:33 am
1
ross

i like how they blame piracy for the decline instead of game quality. been no good ubi titles on the ds this year with the exception of broken sword imo

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Glut...

posted by john Jul 29, 2009 at 1:36 am
2
john

Further to ross's comment, there is a glut of DS games produced and distributed all at the same or similar cost entry point yet the level of quality difers significantly across the board. There are too many to choose from and prices do not reflect quality or probable development costs. Basically there is little care for this market in the belief that flooding it will produce a return. Instead, consumers buy one too many poorly executed tacky DS games and don't buy any more.

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although

posted by holdmykidney Jul 29, 2009 at 8:41 am
3
holdmykidney

To be fair, however, piracy is a massive problem on the DS. I seem to be the only DS owner I know that doesn't use an R4 card. On the flipside Wii, with its regular updates and new games enforcing an update, means that piracy on that system is far less commonplace.

People don't even realise it's a problem. A mate of mine went into a shop abroad to get a replacement screen for his DS and the shop owner said, "fancy a game cartridge with 90 games on it for a tenner? You can downlown more from the internet." What do you suppose he said, "No"?

Piracy has always been a problem but it has never been as generally accessible as the DS has allowed it to be. Nintendo have been happily making their money from hardware sales and have had no need to curb piracy to protect third parties who depend on software sales to make profit.

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lack of sales

posted by stuart Jul 29, 2009 at 11:00 am
4
stuart

Lack of sales on ds you do suprse me lol sure all publishers must be in the same boat with ds sales on the decline. Funny thing is most customers dont think they are even doing anything wrong by downloading games they just come in for advice how to do it & browse the titles they can get. We just refuse to talk to customers about r4's & report them if we have their details.
We are now refusing to stock 90% of ds titles due to the decline in sales

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not just piracy to blame

posted by Tom Jul 29, 2009 at 12:12 pm
5
Tom

Yes I agree piracy has got to be a major factor why DS publishers are seeing a sharp decline in sales. Another major factor has got to be the amount of pre-owned DS stock being sold by most stores. Whenever I visit my local high street specialist game chain store, the DS pre-owned section is surrounded by a swarm of parents and their kids, eager for credit crunch bargains. By comparison, the DS new/full price area is a surprisingly lonely place to hang out.

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broken model

posted by BC Jul 29, 2009 at 12:58 pm
6
BC

For a start, Ubisoft hasn't released anything good on the DS. Hardly surprising that they're not doing well.

The big problem with the DS is that the games cost too much. That's because they have to be put onto expensive cartridges keeping the price high.

I'm sure more people would be willing to pay for the kind of shovelware that Ubisoft is pumping out if it was for a reasonable price.

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Piracy?

posted by The Lord Aug 04, 2009 at 1:37 pm
7
The Lord

Is it really piracy? Yes we all know it's a problem, especially no doubt in the hard-core audience and in certain parts of the world (Spain comes to mind). However 1st party UK DS sales (ASP value) are only down 5% on last year (to date) as compared to 3rd Party which is down 27%. Compare this to unit sales at 9% down for 1st party and 16% down for 3rd. Isn't this to be expected in the worst recession in recent history?

Compounding this are the huge number of poor quality games being dumped into the market at cheaper and cheaper prices (SRPs below COGs in many retailers prove this), driving down the 3rd party ASP. While Nintendo maintain their SRPs for much longer due to their general higher quality and massive consumer marketing spend (creating demand).

So let's not jump on the piracy bandwagon so quickly, it's just the continuing evolution of our business.

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