Ubisoft Spins Off Major Franchises Far Cry and Assassin’s Creed into New Subsidiary

Ubisoft recently hit a high note with the successful release of Assassin’s Creed Shadows, achieving millions in sales and enjoying positive reviews for their new open-world RPG. However, recent times haven’t been all smooth sailing for the gaming giant. They’ve faced a wave of underperforming titles, including XDefiant and Skull and Bones, which led to a slump in their stock price and a necessary introspection on business strategies. In a strategic shift, Ubisoft is establishing a new subsidiary for some of its flagship series, while securing a hefty investment of over one billion dollars from Tencent, a leading Chinese corporation.

For weeks, speculation was rife that Ubisoft might offload or restructure some of its prime content. Now, they’ve clarified their plans. Although this fresh subsidiary doesn’t have an official name yet, it’s set to become the main hub for the teams developing the Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six franchises. This means all existing and upcoming installations of these series, including hits like Assassin’s Creed Shadows and live-service games like Rainbow Six Siege, as well as cherished classics, will fall under this new umbrella. However, other Tom Clancy games such as Ghost Recon or The Division will remain with Ubisoft’s main entity.

According to an Ubisoft press release, the goal for this subsidiary is to craft enduring and multi-platform gaming ecosystems. With the boost from increased investments and enhanced creative capabilities, they aim to enhance the narrative quality of solo campaigns, broaden multiplayer content, introduce more free-to-play access points, and incorporate richer social elements.

For Ubisoft, this marks “a new chapter,” as stated by co-founder and CEO Yves Guillemot. He believes this move sets “the best conditions for long-term growth and success” for these prominent franchises.

Profound changes are on the horizon, especially with the enormous fortune from Tencent’s investment. Ubisoft disclosed that the investment amounts to €1.16 billion, translating to roughly $1.25 billion or £966 million at current exchange rates. Consequently, Tencent will acquire a minority stake in the new entity, appraised at around 4 billion euros. Yet, Ubisoft retains ownership and control.

What remains to be seen is whether the teams transitioning to this subsidiary will undergo restructuring. With such a substantial financial boost from Tencent, one would hope operations remain smooth. This strategic shake-up by Ubisoft is significant; watching these three cornerstone franchises adapt will be truly intriguing.

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