Ubisoft has been riding a wave of success with the release of Assassin’s Creed Shadows, racking up millions in sales and generating a largely positive buzz around its latest open-world RPG. However, the company has been navigating some choppy waters lately. Before Shadows hit the market, Ubisoft dealt with a series of setbacks including the underwhelming performances of games like XDefiant and Skull and Bones. The company’s stock also took a hit, prompting a critical review of its business operations to turn things around.
In a bold move, Ubisoft has announced the formation of a new subsidiary that will focus on three of its most prominent franchises, with significant backing from Chinese tech giant Tencent, which is set to pump over a billion dollars into the endeavor. Though rumors have been swirling about Ubisoft possibly spinning off or selling some of its prized assets, the veil has finally been lifted on their strategy. This new entity, yet to be named, will serve as the umbrella for all development studios behind the Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six series. Not only will it encompass classics and new entries like Assassin’s Creed Shadows and live games such as Rainbow Six Siege, but all existing titles and future projects in these franchises will be under its purview. Interestingly, other Tom Clancy titles—like Ghost Recon and The Division—will not transition to this new company.
According to a press release from Ubisoft, the new subsidiary will concentrate on creating enduring, multi-platform gaming ecosystems. Enhanced investments and creative assets are expected to boost the quality of narrative-driven experiences, expand multiplayer options with more frequent content updates, introduce free-to-play elements, and incorporate additional social features.
Yves Guillemot, the co-founder and CEO of Ubisoft, sees this as “a new chapter” for the company. He argues that this decision will foster “the best conditions for these franchises’ long-term growth and success.”
As part of this plan, Tencent is set to invest €1.16 billion, which is approximately $1.25 billion or £966 million at the current exchange rates. This investment will grant Tencent a minority stake in the subsidiary, which is valued at around 4 billion euros, while Ubisoft will still maintain overarching control.
What remains to be seen is whether any restructuring will occur within the teams shifting to this new setup. With such a substantial financial influx from Tencent, one can only hope for stability. This strategic pivot by Ubisoft is bound to have a significant impact, and it’s fascinating to imagine how it will shape the future of these iconic game franchises.
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