Ubisoft has recently established a new subsidiary focused on 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 move comes shortly after the successful launch of Assassin's Creed Shadows, which has already surpassed 3 million players. Ubisoft faced numerous challenges leading up to this release, including several high-profile flops, layoffs, studio closures, and game cancellations, placing immense pressure on Assassin's Creed Shadows to perform well, especially as the company's share price reached a historic low.
The newly formed subsidiary, valued at €4 billion (approximately $4.3 billion) and headquartered in France, aims to create robust, evergreen, and multi-platform game ecosystems. Tencent will hold a 25% stake in this venture. Ubisoft's goal with this subsidiary is to enhance the quality of its narrative-driven solo experiences, expand multiplayer offerings with more frequent content updates, introduce free-to-play elements, and incorporate more social features into their games.
In addition, Ubisoft plans to concentrate on further developing its Ghost Recon and The Division franchises while also aiming to grow its top-performing games. Yves Guillemot, Ubisoft’s co-founder and CEO, highlighted this move as a pivotal moment in the company’s history, emphasizing a strategic shift towards a more agile and ambitious operating model. This approach is designed to build strong, lasting game ecosystems, elevate high-performing brands, and foster new intellectual properties using cutting-edge technologies.
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, along with Ubisoft’s back-catalog and future projects. This suggests that existing projects are secure, and there are no immediate plans for additional layoffs. The deal is set to be finalized by the end of 2025.
This strategic partnership with Tencent and the formation of the new subsidiary are poised to strengthen Ubisoft's financial position and support the long-term growth and success of its key franchises. Guillemot's vision is to create 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 delivering exceptional gaming experiences that meet and exceed player expectations while generating significant value for shareholders and stakeholders alike.
