Ubisoft Receives Investment From Tencent To Form Subsidiary Dedicated To Its Three Biggest Franchises

Even after the success of Murderer’s Creed Shadows, it seems like Ubisoft goes by means of with its plans for reorganization.

The corporate introduced right this moment in a press launch that it’s “accelerating its transformation” by forming a devoted subsidiary firm that might be centered on the Murderer’s Creed, Far Cry, and Rainbow Six franchises.

This new reorganization has been on the lookout for funding since earlier this 12 months, and after what they name a “aggressive choice course of” they’ve chosen Tencent to take a 25% minority stake within the new subsidiary in alternate for an funding of €1.16 billion, or roughly $1.25 billion USD.

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Ubisoft reportedly beforehand approached EA and Microsoft about probably promoting a few of their IPs, and there have been rumors a couple of enterprise with Tencent as early as final 12 months, in addition to studies of an impending buyout by the Chinese language gaming big.

Different components of Ubisoft’s enterprise, comparable to Ghost Recon, The Division, and some other future IPs they’ve within the works, will proceed in parallel with the brand new subsidiary, which can embrace their studios in Montreal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia, together with each their again catalogs and initiatives at the moment in improvement.

What Does This Imply For Followers?

Ubisoft says that the objective of this new subsidiary is to “give attention to constructing recreation ecosystems” that may turn out to be “actually evergreen and multi-platform.” Extra particularly, they talk about enhancing the standard of their story-driven single-player experiences, rising their multiplayer video games with extra frequent content material releases, including expanded social options, and introducing “free-to-play touchpoints.”

Ubisoft CEO Yves Guillemot describes this new enterprise as “a brand new chapter” within the firm’s historical past.

With the creation of a devoted subsidiary that may spearhead improvement for 3 of our largest franchises and the onboarding of Tencent as a minority investor, we’re crystalizing the worth of our property, strengthening our stability sheet, and creating the most effective circumstances for these franchises’ long-term development and success.

Tencent president Martin Lau expressed his pleasure at this extension of their “longstanding relationship” with Ubisoft, and says Tencent sees “the immense potential for these franchises to evolve into long-term evergreen recreation platforms and create partaking new experiences for avid gamers.”

What precisely all meaning for his or her video games, solely time will inform, together with what this new subsidiary means for folks’s jobs. The corporate has seen not one, however two rounds of layoffs in the previous few months, demonstrating their dire monetary straits, however perhaps this new funding from Tencent might be their likelihood to get their head again above water.