Ubisoft has announced the formation of a new subsidiary focused on its Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six brands, with a significant €1.16 billion (approximately $1.25 billion) investment from Tencent, the Chinese tech giant. This news follows closely on the heels of the successful launch of Assassin's Creed Shadows, which has already surpassed 3 million players. Amidst a backdrop of recent challenges including high-profile flops, layoffs, studio closures, and game cancellations, Ubisoft's latest venture is seen as a critical move to bolster its standing in the gaming industry, especially after its share price reached an all-time low.
The new 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 new entity. Ubisoft's strategy involves enhancing narrative solo experiences, expanding multiplayer offerings with more frequent content updates, introducing free-to-play elements, and integrating social features into its games.
In addition to the new subsidiary, Ubisoft plans to concentrate on the growth of its Ghost Recon and The Division franchises, as well as nurturing its top-performing games. Yves Guillemot, Ubisoft's co-founder and CEO, described this move as a pivotal moment in the company’s history, emphasizing a transformation aimed at agility and ambition. The goal is to build strong, enduring game ecosystems, expand successful brands, and innovate with new IPs using cutting-edge technologies.
The new subsidiary will include development teams from Montréal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia, covering the Rainbow Six, Assassin’s Creed, and Far Cry franchises, along with Ubisoft’s back-catalog and future projects. This suggests that existing projects will remain secure, and no further layoffs are currently planned.
The transaction is slated to be finalized by the end of 2025. Ubisoft's partnership with Tencent and the creation of this dedicated subsidiary are steps towards strengthening its balance sheet and ensuring the long-term growth and success of its key franchises, while also focusing on innovation and delivering exceptional gaming experiences.
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