Ubisoft has announced the creation of a new subsidiary company, focused on its major franchises—Assassin’s Creed, Far Cry, and Tom Clancy's Rainbow Six. This move comes with a significant investment of €1.16 billion (approximately $1.25 billion) from the Chinese conglomerate Tencent. The new entity, valued at €4 billion (around $4.3 billion), will be headquartered in France and aims to develop "evergreen and multi-platform game ecosystems." Tencent will hold a 25% stake in the subsidiary.
This news follows the successful launch of Assassin's Creed Shadows, which has already attracted over 3 million players. The launch is particularly crucial for Ubisoft, as the company has faced numerous challenges, including high-profile flops, layoffs, studio closures, and game cancellations, leading to its share price hitting an all-time low. The pressure is on for Assassin's Creed Shadows to perform well.
Ubisoft has outlined that the new subsidiary will enhance the quality of narrative solo experiences, expand multiplayer offerings with more frequent content releases, introduce free-to-play elements, and incorporate more social features. The company also plans to concentrate on developing its Ghost Recon and The Division franchises, alongside growing its top-performing games.
Yves Guillemot, Ubisoft's co-founder and CEO, described this move as a "new chapter" in the company's history, aimed at transforming its operating model to be more agile and ambitious. He emphasized the subsidiary's role in developing strong, evergreen game ecosystems and growing high-performing brands, while also innovating with new IPs using cutting-edge technologies.
The new subsidiary will include the development teams in Montréal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia, covering the Rainbow Six, Assassin’s Creed, and Far Cry franchises, as well as Ubisoft’s back-catalog and future projects. There have been no announcements regarding additional layoffs, suggesting that existing projects are secure.
The transaction is slated to be completed by the end of 2025. As developments continue, more details are expected to emerge about the future of these beloved franchises and Ubisoft's strategic direction.
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