Ubisoft is a company that I have watched for quite some time, producing and owing some of the video games that I love the most. If you follow much, I’m not a huge gamer. I have most of my time occupied in many other things. But Ubisoft is a company that I feel I should mention. They are the largest independent game producer of Europe and the 3rd largest in the United States (independent), headquartered in France.
Ubisoft is a company of five brothers, who all got together to distribute video games in 1986. They made deals with Electronic Arts and Sierra On-Line early on. Do you remember these? In the early 1990′s, they began their own in-house development, after expanding their market in Germany, the UK, and the United States. In 2000, they bought Red Storm Entertainment, which launched their Tom Clancy series and which led them to international stardom.
Ubisoft is a company known for offering free internet gameplay to their customers who buy their products. This is called Free-to-Play (F2P). But, with F2P, comes many other challenges, such as server costs and network bandwidth. Even with “host” type games where individuals are in-charge of hosting their own games, you still need servers to connect them all together. And with the piracy rate so high, Ubisoft has been battling their predicted cost estimates.
Popularity of a game can be very good, spurring others to also join in by buying. But, the estimates have now grown to 93 to 95% piracy, which means there is a lot of lost revenue. Take a look.