Ubisoft has recently announced the creation of a new subsidiary focused on its flagship brands: Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six. This move comes with a significant €1.16 billion (approximately $1.25 billion) investment from the Chinese tech giant, Tencent. This strategic partnership aims to bolster Ubisoft's efforts to recover from recent challenges, including high-profile flops, layoffs, studio closures, and game cancellations. The pressure is immense, especially following the successful launch of Assassin's Creed Shadows, which has already surpassed 3 million players. This achievement is crucial for Ubisoft, whose share price had reached an all-time low before the game's release.
The newly formed subsidiary, valued at €4 billion (approximately $4.3 billion) and headquartered in France, will concentrate on developing "game ecosystems designed to become truly evergreen and multi-platform." Tencent will hold a 25% stake in this venture. Ubisoft has outlined ambitious plans for this subsidiary, aiming to enhance narrative solo experiences, expand multiplayer offerings, increase the frequency of content releases, introduce free-to-play elements, and incorporate more social features into their games.
In addition to the new subsidiary's focus on Assassin’s Creed, Far Cry, and Rainbow Six, Ubisoft plans to continue developing its Ghost Recon and The Division franchises while growing its top-performing games. Yves Guillemot, Ubisoft's co-founder and CEO, emphasized the significance of this move, stating, "Today Ubisoft is opening a new chapter in its history." He highlighted the company's transformation and the goal of creating agile and ambitious operations that will foster the growth of strong game ecosystems and high-performing brands.
Guillemot further explained that the new subsidiary would have a dedicated and autonomous leadership team, focused on transforming the three major brands into unique ecosystems. He reaffirmed Ubisoft's commitment to building a more focused organization, aiming to elevate its brands, accelerate the growth of emerging franchises, and lead innovation in next-generation technologies and services. The ultimate goal is to deliver enriching, memorable games that exceed players' expectations and create superior value for shareholders and stakeholders.
The new subsidiary will encompass the teams currently working on the Rainbow Six, Assassin’s Creed, and Far Cry franchises across various locations, including Montréal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia. This includes Ubisoft's back-catalog and any new games in development or planned for the future. There have been no announcements regarding additional layoffs, suggesting that existing projects will remain secure.
The transaction is set to be completed by the end of 2025. As Ubisoft embarks on this new venture with Tencent, the gaming community eagerly anticipates how these changes will shape the future of these beloved franchises.
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