Ubisoft has announced the creation of a new subsidiary company centered around its renowned Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six franchises, backed by a €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. The announcement follows a challenging period for Ubisoft, marked by several high-profile flops, layoffs, studio closures, and game cancellations. With the company's share price at a historic low, there is significant pressure on Assassin's Creed Shadows to perform well.
The newly established subsidiary, valued at €4 billion (about $4.3 billion) and headquartered in France, is set to focus on "building game ecosystems designed to become truly evergreen and multi-platform." Tencent will hold a 25% stake in this venture. Ubisoft aims to enhance the quality of narrative solo experiences, expand multiplayer offerings with more frequent content updates, introduce free-to-play elements, and incorporate more social features into their games.
Ubisoft's plans also include a focus on developing its Ghost Recon and The Division franchises while continuing to grow its top-performing games. Yves Guillemot, Ubisoft's co-founder and CEO, emphasized the significance of this new chapter in the company's history. He stated, "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 the goal of creating strong, evergreen game ecosystems, growing high-performing brands, and developing new IPs 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. It will also manage Ubisoft's back-catalog and any new games currently in development or planned for the future, suggesting that existing projects are secure. There has been no mention of additional layoffs related to this restructuring.
The transaction is slated to be finalized by the end of 2025. This development signals Ubisoft's commitment to revitalizing and expanding its key franchises while leveraging Tencent's investment to strengthen its financial position and drive long-term growth.
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