Ubisoft has established a new subsidiary focused on its renowned Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six franchises, with a significant €1.16 billion (approximately $1.25 billion) investment from Tencent, the Chinese tech giant. This news follows closely on the heels of the successful launch of Assassin's Creed Shadows, which has already surpassed 3 million players. The release comes after a challenging period for Ubisoft, marked by several high-profile flops, layoffs, studio closures, and game cancellations, which led to the company's share price reaching an all-time low. The pressure is now immense for Assassin's Creed Shadows to perform well.

The newly formed subsidiary, valued at €4 billion (approximately $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. Ubisoft plans to enhance the quality of narrative solo experiences, expand multiplayer offerings with more frequent content updates, introduce free-to-play elements, and incorporate more social features into their games.

Ubisoft also intends to concentrate on the development of its Ghost Recon and The Division franchises while continuing to nurture its top-performing titles. Yves Guillemot, Ubisoft's co-founder and CEO, described this move as a new chapter in the company's history, emphasizing the transformation and agility it brings. He stated that the subsidiary will focus on transforming the three key franchises into unique ecosystems, leveraging dedicated and autonomous leadership to drive long-term growth and success.

The deal encompasses the development teams for Rainbow Six, Assassin’s Creed, and Far Cry, located in Montréal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia, as well as Ubisoft’s back catalog and any new games currently in development or planned for the future. This suggests that existing projects will continue without interruption, and there have been no announcements regarding further layoffs. The transaction is set to be completed by the end of 2025.

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