Ubisoft has recently established a new subsidiary company centered around its renowned franchises—Assassin’s Creed, Far Cry, and Tom Clancy's Rainbow Six—with a significant €1.16 billion (approximately $1.25 billion) investment from Tencent, the Chinese tech giant. This development arrives shortly after the successful launch of Assassin's Creed Shadows, which has already attracted over 3 million players. The release of Assassin's Creed Shadows follows a challenging period for Ubisoft, marked by high-profile flops, layoffs, studio closures, and game cancellations, culminating in a historic low for the company's share price. There is now substantial pressure on Assassin's Creed Shadows to perform well.
The newly formed subsidiary, headquartered in France and valued at €4 billion (approximately $4.3 billion), aims to develop game ecosystems that are both evergreen and multi-platform. Tencent will hold a 25% stake in this venture. Ubisoft has outlined its plans for the subsidiary, emphasizing an increase in the quality of narrative solo experiences, expansion of multiplayer offerings with more frequent content releases, introduction of free-to-play elements, and integration of enhanced social features.
Moreover, Ubisoft plans to concentrate on the development of its Ghost Recon and The Division franchises and further enhance its top-performing games. Yves Guillemot, co-founder and CEO of Ubisoft, stated, "Today Ubisoft is opening a new chapter in its history. As we accelerate the company’s transformation, this is a foundational step in changing Ubisoft’s operating model that will enable us to be both agile and ambitious."
Guillemot highlighted that the new subsidiary will focus on transforming the three major franchises into unique ecosystems, ensuring their long-term growth and success. He emphasized Ubisoft's commitment to building a more focused organization, empowering talented teams to elevate these brands, accelerate the growth of emerging franchises, and lead innovation in next-generation technologies and services. The goal is to deliver enriching, memorable games that surpass player expectations and create superior value for shareholders and stakeholders.
The new subsidiary will encompass the development teams for Rainbow Six, Assassin’s Creed, and Far Cry, located in Montréal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia, as well as Ubisoft’s back-catalog and any new games currently in development or planned for the future. This suggests that existing projects are secure, with no immediate plans for additional layoffs.
The transaction is slated to be finalized by the end of 2025.
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