Embattled Ubisoft Forms Subsidiary for IPs Like Assassin's Creed, Far Cry and Rainbow Six With the Help of €1.16 Billion Tencent Investment

Ubisoft has recently established a new subsidiary dedicated to its flagship brands—Assassin’s Creed, Far Cry, and Tom Clancy's Rainbow Six—backed by a significant €1.16 billion (approximately $1.25 billion) investment from Tencent, the Chinese tech giant. This move follows the successful launch of Assassin's Creed Shadows, which has already surpassed 3 million players. The timing is critical for Ubisoft, which has faced numerous challenges including high-profile flops, layoffs, studio closures, and game cancellations. These setbacks led to the company's share price reaching an all-time low, placing immense pressure on Assassin's Creed Shadows to perform well.

The newly formed subsidiary, valued at €4 billion (about $4.3 billion) and headquartered in France, aims to create "game ecosystems designed to become truly evergreen and multi-platform." Tencent will hold a 25% stake in this venture. Ubisoft has outlined plans 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.

In addition to these three major franchises, Ubisoft will continue to develop its Ghost Recon and The Division series, while also focusing on growing its top-performing titles. Yves Guillemot, Ubisoft's co-founder and CEO, stated that this initiative marks a new chapter for the company, emphasizing a shift towards a more agile and ambitious operating model. The goal is to build robust game ecosystems that can sustain long-term growth and success, leveraging cutting-edge and emerging technologies.

The subsidiary will encompass development teams from Montréal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia, and will include Ubisoft's existing back-catalog and any future projects. This suggests that current projects are secure, with no immediate plans for further layoffs. The deal is set to be finalized by the end of 2025.

Developing...