Ubisoft has announced the creation of a new subsidiary focused on its Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six franchises, backed by a significant €1.16 billion (approximately $1.25 billion) investment from Tencent. This move comes as Ubisoft aims to revitalize its standing in the gaming industry following a challenging period marked by high-profile flops, layoffs, studio closures, and game cancellations. The launch of Assassin's Creed Shadows, which has already surpassed 3 million players, is seen as a critical success for the company, especially after its share price reached a historic low.
The newly formed subsidiary, valued at €4 billion (approximately $4.3 billion) and headquartered in France, will concentrate on developing game ecosystems intended to be "evergreen and multi-platform." Tencent's investment secures them a 25% stake in the subsidiary. Ubisoft plans to enhance the quality of narrative solo experiences, expand multiplayer offerings, introduce free-to-play elements, and incorporate more social features within these franchises.
In addition to the three major franchises, Ubisoft intends to focus on further developing its Ghost Recon and The Division series, aiming to grow its top-performing games. Yves Guillemot, Ubisoft's co-founder and CEO, emphasized that this strategic move marks a new chapter for the company. He highlighted the intent to transform Ubisoft's operating model to be more agile and ambitious, with a strong emphasis on building robust game ecosystems, growing high-performing brands, and innovating with emerging technologies.
The subsidiary will encompass the development teams in Montréal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia, covering not only the ongoing projects related to Rainbow Six, Assassin’s Creed, and Far Cry but also Ubisoft's back-catalog and future game developments. This indicates that current projects are secure, with no immediate plans for further layoffs.
The transaction with Tencent is expected to be finalized by the end of 2025. Ubisoft's leadership is committed to creating a more focused organization that can elevate its brands, accelerate the growth of emerging franchises, and lead innovation in next-generation technologies and services, ultimately aiming to deliver exceptional gaming experiences and value to shareholders and stakeholders.
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