In a significant organizational change, Ubisoft has announced the creation of a dedicated subsidiary aimed at three key franchises: Assassin’s Creed, Far Cry, and Rainbow Six. This move comes with an investment of €1.16 billion (USD 1.25 billion) from Tencent, which will acquire about 25% of the new entity.
The company stated that franchises not included in this new subsidiary, such as The Division and Ghost Recon, will still operate alongside it. However, potential layoffs or studio closures related to these changes remain uncertain.
“This new subsidiary will focus on building game ecosystems designed to become truly evergreen and multi-platform,” Ubisoft explained. The increased investment aims to improve narrative experiences and expand multiplayer content availability while incorporating free-to-play elements and more social features into their games.
Tencent’s involvement followed a competitive selection process where various strategic options were evaluated. Reports indicated that other companies like Microsoft and EA were also considered during discussions.
Ubisoft’s co-founder and CEO, Yves Guillemot, described this as “a new chapter” in the company’s history—a foundational step toward changing its operating model. “With the creation of a dedicated subsidiary that will spearhead development for three of our largest franchises…,” he noted, emphasizing how this aligns with strengthening their balance sheet for long-term success.
Tencent president Martin Lau added that these franchises have immense potential to evolve into long-lasting gaming platforms offering engaging experiences for players.
The newly formed subsidiary consolidates development teams working on titles in Montreal, Quebec; Sherbrooke; Saguenay; Barcelona; and Sofia. This includes rights to current developments under these teams and any future projects linked to those franchises through an unspecified royalty arrangement.
This announcement follows a turbulent period for Ubisoft, which cost-cutting measures, including recent layoffs and studio closures, have marked. Notably, they recently shut down the title XDefiant amid ongoing restructuring efforts.
The franchise’s latest addition, Assassin’s Creed Shadows, launched on March 20 and quickly gained traction among players. Shortly after release, it reached 3 million users and received positive critical acclaim.
