Ubisoft has recently announced the creation of a new subsidiary focused on its major franchises—Assassin’s Creed, Far Cry, and Tom Clancy's Rainbow Six. This move comes with a significant €1.16 billion (approximately $1.25 billion) investment from Tencent, valuing the new entity at €4 billion (about $4.3 billion). The subsidiary, based in France, will aim to develop "game ecosystems designed to become truly evergreen and multi-platform," with Tencent holding a 25% stake.
This announcement follows the successful launch of Assassin's Creed Shadows, which has already surpassed 3 million players. The game's success is crucial for Ubisoft, which has faced challenges including high-profile flops, layoffs, studio closures, and game cancellations, leading to a historic low in its share price.
Ubisoft's new subsidiary will not only focus on enhancing the quality of narrative solo experiences but also expand multiplayer offerings, increase the frequency of content releases, introduce free-to-play elements, and integrate more social features. The company plans to further develop its Ghost Recon and The Division franchises while growing its top-performing games.
Yves Guillemot, Ubisoft's co-founder and CEO, emphasized that this move marks a new chapter for the company, aiming to transform its operating model to be more agile and ambitious. The subsidiary will be led by a dedicated and autonomous team, focusing on turning the three major franchises into unique ecosystems. Guillemot highlighted the commitment to building a sharper, more focused organization that will elevate its brands, accelerate the growth of emerging franchises, and lead innovation in next-generation technologies and services.
The new subsidiary will include development teams from Montréal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia, covering the back-catalog and any new games in development or planned for the future. This suggests that existing projects are secure, with no immediate plans for further layoffs. The transaction is expected to be completed by the end of 2025.
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