Ubisoft has recently established a new subsidiary focused on its flagship franchises—Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six—with a significant €1.16 billion (approximately $1.25 billion) investment from Tencent, the Chinese tech giant. This news arrives shortly after the successful launch of Assassin's Creed Shadows, which has already surpassed the 3 million player milestone. Ubisoft's recent challenges, including several high-profile flops, layoffs, studio closures, and game cancellations, have heightened the pressure on Assassin's Creed Shadows to perform well, especially following a historic low in the company's share price.

This newly formed subsidiary, valued at €4 billion (around $4.3 billion) and headquartered in France, aims to develop "game ecosystems designed to become truly evergreen and multi-platform." Tencent will hold a 25% stake in this venture. According to Ubisoft, this new entity will benefit from increased investment and enhanced creative capabilities, leading to improved narrative solo experiences, expanded multiplayer offerings with more frequent content updates, the introduction of free-to-play elements, and the integration of more social features.

Ubisoft also plans to concentrate on developing its Ghost Recon and The Division franchises while continuing to expand its top-performing games. Yves Guillemot, Ubisoft's co-founder and CEO, stated, "Today Ubisoft is opening a new chapter in its history. As we accelerate the company’s transformation, this is a foundational step in changing Ubisoft’s operating model that will enable us to be both agile and ambitious."

Guillemot further emphasized the company's commitment to building robust game ecosystems that will remain evergreen, fostering high-performing brands, and pioneering new IPs with advanced technologies. The creation of this subsidiary, along with Tencent's investment, aims to solidify the value of Ubisoft's assets, bolster its financial standing, and set the stage for long-term growth and success of the three key franchises. The subsidiary will operate with an autonomous leadership team dedicated to evolving these brands into comprehensive ecosystems.

The subsidiary will encompass the development teams working on Rainbow Six, Assassin’s Creed, and Far Cry across locations in Montréal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia. It will also include Ubisoft's back-catalog and any new games currently in development or planned for the future. This suggests that ongoing projects are secure, with no immediate announcements regarding further layoffs.

The deal is expected to be finalized by the end of 2025. As developments continue, Ubisoft remains focused on refining its organizational structure, empowering its teams to elevate its brands, accelerate the growth of emerging franchises, and lead innovations in next-generation technologies and services, all with the aim of delivering exceptional gaming experiences that exceed player expectations and create substantial value for shareholders and stakeholders.