Ubisoft Launches New Subsidiary to Revitalize Key Franchises
Ubisoft has announced the formation of a new subsidiary dedicated to its flagship franchises, including Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six. This strategic move, revealed on Thursday, comes with a significant investment of €1.16 billion (approximately Rs. 10,694 crore) from Chinese conglomerate Tencent, which will acquire a minority stake in the new entity. The initiative aims to address declining share prices and refocus the company on its most successful intellectual properties.
New Subsidiary Backed by Tencent Investment
The newly established subsidiary, valued at €4 billion (around Rs. 36,878 crore), will be headquartered in France. Tencent’s investment will grant it approximately a 25 percent stake in the subsidiary, while Ubisoft retains full control. This move is expected to bolster Ubisoft’s financial standing by significantly reducing its debt. The company stated that the subsidiary will enhance the quality of narrative-driven solo experiences, expand multiplayer offerings, and introduce free-to-play elements, all while integrating more social features into its games.
Ubisoft plans to utilize this subsidiary to create “evergreen and multi-platform” game ecosystems centered around its most popular franchises. The unit will include teams from various locations, including Montréal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia, and will manage both existing titles and new projects currently in development. Among these projects is the anticipated Assassin’s Creed Hexe, along with several remasters, a mobile title, and more.
This restructuring comes in response to a challenging year for Ubisoft, marked by studio closures, layoffs, and canceled projects. The company’s share price plummeted by 40 percent in 2024 following disappointing launches of major titles like Avatar: Frontiers of Pandora and Star Wars Outlaws, both of which failed to meet sales expectations. Reports indicate that the founding Guillemot family, Ubisoft’s largest shareholder, has been in discussions with Tencent and other investors regarding a potential buyout to maintain control over its franchises.
A Transformative Step for Ubisoft
“Today Ubisoft is opening a new chapter in its history,” stated Yves Guillemot, co-founder and CEO of Ubisoft. He emphasized that this initiative marks a foundational step in transforming the company’s operating model, enabling greater agility and ambition. The focus will be on developing robust game ecosystems that can evolve into high-performing brands while also fostering new intellectual properties powered by cutting-edge technologies.
Guillemot further explained that the creation of this dedicated subsidiary will spearhead the development of three major franchises and solidify the value of Ubisoft’s assets. This strategic move aims to strengthen the company’s balance sheet and create optimal conditions for long-term growth and success of these franchises. With an autonomous leadership team, the subsidiary is set to transform these brands into unique ecosystems that can thrive in the competitive gaming landscape.
The announcement follows the recent launch of Assassin’s Creed Shadows, which Ubisoft has positioned as a key title to revitalize its portfolio after a series of underperforming releases. Despite delays, Shadows has garnered significant attention, attracting over three million players since its release on March 20 for PC, PS5, and Xbox Series S/X. Ubisoft confirmed that Shadows achieved the second-highest day-one sales revenue in the franchise’s history and marked the company’s largest day-one launch on the PlayStation digital store.
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