Why Did Ubisoft Go Back to Steam? A Deep Dive into Platform Strategy

Ubisoft’s return to Steam after a three-year hiatus wasn’t a whimsical decision; it was a calculated move driven by a confluence of factors, primarily revolving around profitability, market reach, and the evolving landscape of PC game distribution. While initially prioritizing its own Ubisoft Connect launcher and the Epic Games Store for exclusivity, Ubisoft ultimately recognized the enduring power and influence of Steam’s massive user base and established ecosystem. In essence, the company realized that limiting itself to smaller platforms was hindering its potential revenue and audience engagement, prompting a strategic reversal back to the industry’s leading digital storefront.

The Initial Departure: Exclusivity and Revenue Sharing

Diving into Exclusivity

In 2019, Ubisoft made a bold move, pulling its new PC game releases from Steam. This decision wasn’t arbitrary; it was fueled by a desire to exert greater control over its distribution channels and increase its profit margins. The Epic Games Store, offering a more favorable revenue split (12% commission compared to Steam’s 30%), presented an attractive alternative. Ubisoft believed that focusing on its own platform, Ubisoft Connect, alongside the Epic Games Store, would allow it to retain a larger portion of its sales revenue.

The Appeal of Ubisoft Connect

Ubisoft Connect was, and remains, a crucial element in Ubisoft’s strategy. It provides the company with direct access to its players, enabling them to build relationships, gather data, and offer personalized experiences. By directing players to Ubisoft Connect, Ubisoft aimed to cultivate a loyal community and reduce its reliance on third-party platforms. This strategy allowed for increased control over the player experience, including aspects like cross-progression and exclusive in-game rewards.

The Return to Steam: A Strategic Reassessment

Recognizing Steam’s Undeniable Influence

Despite the allure of more favorable revenue splits and greater platform control, Ubisoft couldn’t ignore the sheer scale of Steam’s user base. Steam boasts tens of millions of active users, representing a vast potential audience that Ubisoft was effectively cutting itself off from. While the Epic Games Store has grown significantly, it still lags behind Steam in terms of market share and user engagement.

Adapting to Platform Trends

The success of Valve’s Steam Deck likely played a role in Ubisoft’s decision. The Steam Deck has brought PC gaming to a wider audience, further solidifying Steam’s position as a major force in the industry. Ensuring that Ubisoft games were available on Steam meant that they could also be played on the Steam Deck, expanding their reach even further.

Data-Driven Decisions

Ultimately, Ubisoft’s return to Steam was a data-driven decision. The company likely analyzed sales figures, player engagement metrics, and market trends to determine that the benefits of being on Steam outweighed the drawbacks of a less favorable revenue split. Ubisoft recognized that increased sales volume on Steam could offset the higher commission fees, leading to greater overall profitability.

Lessons Learned: A Balanced Approach

Ubisoft’s journey with Steam highlights the complexities of platform strategy in the gaming industry. While exclusivity deals can be tempting, they can also limit a game’s potential reach. The most successful approach often involves a balanced strategy, leveraging multiple platforms to maximize audience exposure and sales revenue. Ubisoft’s current approach reflects this balanced strategy, offering games on Ubisoft Connect, the Epic Games Store, and Steam.

The Future of Ubisoft on Steam

While Ubisoft has brought some of its games back to Steam, it’s unlikely that all of its future releases will be available on the platform. Ubisoft will likely continue to evaluate each game on a case-by-case basis, considering factors such as potential sales, marketing opportunities, and strategic alignment with its overall platform strategy. For example, while Far Cry 6 eventually came to Steam, its initial absence demonstrates that some titles may remain exclusive to other platforms for a period of time.

User Benefits and Accessibility

One of the biggest advantages for players is the added convenience and accessibility that Steam provides. Many gamers prefer to keep their entire game library consolidated in one place. By bringing its games to Steam, Ubisoft is catering to this preference and making its titles more readily available to a wider audience.

Frequently Asked Questions (FAQs)

Here are some frequently asked questions about Ubisoft’s relationship with Steam:

1. Why did Ubisoft initially leave Steam? Ubisoft left Steam in 2019 to focus on its own Ubisoft Connect launcher and the Epic Games Store, aiming for a better revenue split and greater control over its platform.
2. What year did Ubisoft return to Steam? Ubisoft started returning to Steam in November 2022, three years after its initial departure.
3. Which Ubisoft games are available on Steam? Games like Assassin’s Creed Valhalla, Roller Champions, Immortals Fenyx Rising, and eventually Far Cry 6 are available on Steam. The list continues to grow.
4. Do I need Ubisoft Connect to play Ubisoft games on Steam? Yes, even if you purchase a Ubisoft game on Steam, it still requires Ubisoft Connect to launch and play the game. Steam essentially acts as a gateway.
5. Is Far Cry 6 on Steam now? Yes, Far Cry 6 was released on Steam on May 11, 2023, after an initial period of exclusivity on the Ubisoft Store and Epic Games Store.
6. Will all new Ubisoft games be released on Steam? Not necessarily. Ubisoft evaluates each game individually, so some may remain exclusive to Ubisoft Connect and the Epic Games Store.
7. What is the revenue split between Ubisoft and Steam? Steam typically takes a 30% commission on sales, while the Epic Games Store takes 12%. Ubisoft’s exact agreement with Steam is not publicly disclosed, but it’s likely a standard arrangement.
8. Can I transfer my Assassin’s Creed Valhalla progress from Ubisoft Connect to Steam? Assassin’s Creed Valhalla supports cross-progression between platforms. Your saved games will be automatically uploaded to the cloud.
9. Why do some games disappear from Steam? Games can be removed from Steam for various reasons, including expired licenses, trademark disputes, exclusivity deals, and violations of Steam’s policies.
10. Can I play Ubisoft games without a Steam account? If you purchased the game directly from Ubisoft Connect, you do not need a Steam account. However, if you bought it on Steam, a Steam account is mandatory.
11. What happens if a Ubisoft game is removed from Steam after I buy it? You will still be able to download and play the game, as long as you have it in your Steam library. However, it may no longer be available for purchase by new users.
12. Are there any benefits to buying Ubisoft games on Steam instead of Ubisoft Connect? For some players, the convenience of having all their games in one place (Steam) is a benefit. Steam also offers features like achievements, trading cards, and community forums.
13. Has the Epic Games Store been “terrible” for Ubisoft, as some headlines suggest? While headlines may exaggerate, the Epic Games Store likely didn’t perform as well as Ubisoft hoped, leading to the renewed interest in Steam’s broader reach.
14. What are some of the controversial issues surrounding Ubisoft? Ubisoft has faced controversies related to workplace culture, including reports of sexual harassment and abuse. They have also faced criticism for removing some older games from sale and making them unplayable.
15. How does Ubisoft Connect compare to Steam? Ubisoft Connect is Ubisoft’s own platform, offering similar features to Steam, such as game purchasing, social networking, and cloud saves. Steam, however, has a much larger user base and a more extensive library of games from various publishers.

Conclusion

Ubisoft’s return to Steam is a testament to the platform’s enduring significance in the PC gaming market. It underscores the importance of adaptability, strategic partnerships, and data-driven decision-making in the ever-evolving landscape of digital game distribution. By embracing a multi-platform approach, Ubisoft aims to maximize its reach, engage with a wider audience, and ultimately, drive greater success for its games.

This strategic move aligns with broader trends in the gaming industry that promote accessibility and widespread engagement. For educators and researchers interested in exploring these trends further, the Games Learning Society offers valuable insights and resources. Visit GamesLearningSociety.org to learn more about the intersection of gaming, learning, and technology.