Ubisoft has recently announced the creation of a new subsidiary focused on its major 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. This move comes shortly after the successful launch of Assassin's Creed Shadows, which has already surpassed 3 million players. The timing is critical for Ubisoft, as the company has faced numerous challenges including high-profile flops, layoffs, studio closures, and game cancellations, leading to a historic low in its share price.
The newly formed subsidiary, valued at €4 billion (approximately $4.3 billion) and headquartered in France, aims to develop "game ecosystems designed to become truly evergreen and multi-platform." Tencent will hold a 25% stake in this venture. Ubisoft's strategy with this subsidiary includes enhancing the quality of narrative solo experiences, expanding multiplayer offerings with more frequent content releases, introducing free-to-play elements, and integrating social features.
In addition to the new subsidiary, Ubisoft plans to concentrate on the development of its Ghost Recon and The Division franchises while continuing to grow its top-performing games. Yves Guillemot, co-founder and CEO of Ubisoft, emphasized that this move marks a new chapter for the company, aiming to transform its operating model to be more agile and ambitious. The goal is to build strong, evergreen game ecosystems, grow high-performing brands, and innovate with new IPs using cutting-edge technologies.
The subsidiary will encompass the development teams for Rainbow Six, Assassin’s Creed, and Far Cry located in Montréal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia, along with Ubisoft's back-catalog and any new games in development. This suggests that existing projects are secure, and there are no immediate plans for further layoffs. The transaction is expected to be finalized by the end of 2025.
This strategic move by Ubisoft, backed by Tencent's investment, is poised to strengthen the company's position in the gaming industry, focusing on long-term growth and success of its key franchises.
