Ubi's Guillemot Predicts 50 Percent Jump in Game Market in Four Years

Andy Chalk

One Flag, One Fleet, One Cat
Nov 12, 2002
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Ubi's Guillemot Predicts 50 Percent Jump in Game Market in Four Years


Ubisoft [http://www.ubi.com/]CEO Yves Guillemot has predicted the videogame market will expand by 50 percent over the next four years.

Speaking while in attendance at the Leipzig Games Convention [http://www.gc-germany.com/index.php?page=64], Guillemot said, "There are so many new customers to the business; this is going to grow the market tremendously. I expect the market to grow by 50 percent in the next four years. It's a very exciting time for all the developers and publishers."

Much of the growth is expected to come via "casual" games that appeal to demographics beyond the typical gamer market. The success of Nintendo's Cranium [http://www.wii.com], as part of that line.

Guillemot said casual game development typically costs between $1.5 million and $5.5 million per title, depending on the number of platforms on which the game is developed; a "normal" game for the Wii costs $7 million to $13.5 million in comparison, while costs for the Xbox 360 [http://www.playstation.com]systems are double that amount.

Guillemot added that Ubisoft's casual games division was "extremely profitable," and helped finance early-stage development of releases for next-gen consoles. He also predicted casual game sales will make up 20 percent of Ubisoft's revenue this up, doubling last year's mark of ten percent.




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J.theYellow

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Jun 1, 2007
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Gee, what the hell else is a game publisher supposed to say? If it doesn't expand that much, boy howdy is it going to be difficult to do business with the rapidly expanding cost of developing games and the high instance of commercial failures. Success is going to have to grow at least as fast just to break even.

But we'll all hope he's right anyway. The development costs he cites are interesting but not surprising.