Ubisoft has recently announced the formation of a new subsidiary dedicated to its flagship franchises: Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six. This strategic move comes with a significant €1.16 billion (approximately $1.25 billion) investment from the Chinese tech giant Tencent. The news follows the successful launch of Assassin's Creed Shadows, which has already surpassed 3 million players. This launch is particularly crucial for Ubisoft, which has faced a series of challenges including high-profile flops, layoffs, studio closures, and game cancellations. With the company's share price at an all-time low, the pressure on Assassin's Creed Shadows to perform well is immense.
The newly established 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 has outlined ambitious plans for the subsidiary, stating it 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.
In addition to these three major franchises, Ubisoft plans to concentrate on the development of its Ghost Recon and The Division series, while also focusing on growing its top-performing games. Yves Guillemot, co-founder and CEO of Ubisoft, emphasized the significance of this new chapter in the company's history, stating, "Today Ubisoft is opening a new chapter in its history."
Guillemot further elaborated on the company's transformation, highlighting the goal to create agile and ambitious operating models. The focus will be on building strong, evergreen game ecosystems, expanding high-performing brands, and developing new IPs using cutting-edge technologies. The new subsidiary, with its dedicated leadership, will drive the transformation of the three key franchises into unique ecosystems, ensuring long-term growth and success.
Ubisoft is committed to creating a more focused organization that empowers talented teams to elevate its brands, accelerate the growth of emerging franchises, and lead innovation in next-generation technologies and services. The ultimate aim is to deliver enriching, memorable games that exceed 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. It will also include Ubisoft’s back-catalog and any new games currently in development or planned for the future. 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. As developments continue, Ubisoft's strategic move with Tencent marks a pivotal moment in its efforts to revitalize and expand its most valuable franchises.
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