Ubisoft has announced plans to establish a new subsidiary focused on its key intellectual properties, including Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six, a move aimed at revitalizing the company’s operational framework. The initiative will be supported by a significant investment of €1.16 billion (approximately Rs. 10,694 crore) from Chinese multinational Tencent, which will acquire a minority stake in the subsidiary. This strategy comes in response to a decline in share prices, attributed to a series of underperforming game releases, and reflects Ubisoft’s commitment to prioritizing its most recognized franchises.
Establishment of the New Subsidiary
The newly formed unit, which carries a valuation of EUR 4 billion (around Rs. 36,878 crore), will be headquartered in France. Tencent’s investment will account for roughly 25 percent ownership in the subsidiary, according to Ubisoft. This establishment is poised to boost Ubisoft’s finances by significantly alleviating its debt. Despite the investment, Ubisoft will maintain exclusive control and oversight of the subsidiary.
In a press release, Ubisoft expressed its optimism, stating that the enhanced funding and creative resources would lead to improved quality in narrative-driven games, enhanced multiplayer experiences, and a more robust schedule of content releases. The company aims to integrate free-to-play elements and social features through this new structure, focusing on the creation of sustainable and multi-platform game ecosystems centered around its flagship franchises.
The subsidiary will consist of Ubisoft teams dedicated to the development of Rainbow Six, Assassin’s Creed, and Far Cry, located in cities including Montréal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia. Additionally, it will curate Ubisoft’s portfolio of existing titles and oversee any new games currently in the pipeline, including multiple projects under the Assassin’s Creed banner such as the upcoming Assassin’s Creed Hexe, several remasters, a mobile game, and more.
This strategic shift follows a challenging period for Ubisoft, marked by studio closures, workforce reductions, and the cancellation of various projects. The company experienced a 40 percent drop in its share price in 2024, largely due to disappointing launches of high-profile games like Avatar: Frontiers of Pandora and Star Wars Outlaws. During this downturn, the Guillemot family, Ubisoft’s founding members and largest shareholders, reportedly engaged in discussions with Tencent and other potential investors regarding a buyout plan aimed at preserving their control over the company’s franchises.
‘A New Chapter’
“Today marks the beginning of a new chapter in Ubisoft’s journey,” stated Yves Guillemot, co-founder and CEO of Ubisoft. He emphasized that this initiative serves as a pivotal step towards transforming the company’s operational model, allowing for greater agility and ambition. The goal is to cultivate robust game ecosystems that evolve into enduring, high-performing brands while also fostering new intellectual properties driven by innovative technologies.
Guillemot added, “By creating a dedicated subsidiary to lead development for our three major franchises and bringing Tencent on board as a minority investor, we are solidifying the value of our assets, bolstering our financial stability, and establishing optimal conditions for the long-term growth and success of these franchises. This specialized team will be instrumental in turning these three brands into distinctive ecosystems.”
The announcement of this new subsidiary follows the recent release of Assassin’s Creed Shadows, a title that Ubisoft hopes will regain momentum after previous releases fell short of their commercial potential. Delayed on two occasions before its launch on March 20 for PC, PS5, and Xbox Series S/X, Assassin’s Creed Shadows has reportedly attracted over three million players since its release.
Ubisoft also highlighted that Shadows achieved the second highest day-one sales revenue in the history of the Assassin’s Creed franchise, marking the company’s largest day-one launch on the PlayStation digital platform.
