Ubisoft has taken a significant step by establishing a new subsidiary dedicated to its renowned Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six brands, backed by a €1.16 billion (approximately $1.25 billion) investment from the Chinese tech giant Tencent. This move follows closely on the heels of the successful launch of Assassin's Creed Shadows, which has already surpassed 3 million players. The backdrop to this launch included a series of challenges for Ubisoft, including high-profile flops, layoffs, studio closures, and game cancellations, placing immense pressure on Assassin's Creed Shadows to perform well, especially after the company's share price reached an historic low.
The newly formed subsidiary, valued at €4 billion (about $4.3 billion) and headquartered in France, aims to create game ecosystems that are "truly evergreen and multi-platform." Tencent's investment equates to a 25% stake in the subsidiary. Ubisoft's vision for this new entity includes enhancing the quality of narrative solo experiences, expanding multiplayer offerings with more frequent content updates, introducing free-to-play elements, and integrating more social features.
Ubisoft has also announced plans to concentrate on the development of its Ghost Recon and The Division franchises while continuing to bolster its top-performing games.
Yves Guillemot, Ubisoft's co-founder and CEO, remarked, “Today Ubisoft is opening a new chapter in its history.” He emphasized the company's transformation and the strategic importance of the new subsidiary in enabling Ubisoft to be agile and ambitious. The goal is to build strong, enduring game ecosystems, grow high-performing brands, and innovate with cutting-edge and emerging 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 any new games in development. This suggests that current projects are secure, with no immediate plans for further layoffs.
The transaction is slated to be finalized by the end of 2025, marking a pivotal moment in Ubisoft's ongoing evolution and strategic direction.
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