Ubisoft has announced they are partnering with Tencent to create a new subsidiary that will focus on their main pillar IP’s, Assassin’s Creed, Far Cry and Tom Clancy’s Rainbow Six. The purpose of the subsidiary is to allow for a greater “investment and boosted creative capabilities” that will help push each series forward.
We’ve heard many rumors of Ubisoft looking to sell the company and/or their IP’s. There has been a large push from investors to see Ubisoft go private and remove CEO Yves Guillemot from the company altogether. Ubisoft is certainly in some troubled times with failing IP’s and upset investors. Luckily, Assassin’s Creed Shadows seems to be a shining light for the company, but we all know that isn’t enough.
This new subsidiary may be the saving grace Ubisoft needs. The subsidiary valued at €4 billion will see an investment from Tencent of €1.16 billion, which is approximately 25% in minority stakes.
The new subsidiary, backed by Tencent’s investment, “will drive further increases in quality of narrative solo experiences, expand multiplayer offerings with increased frequency of content release, introduce free-to-play touchpoints, and integrate more social features” in a Ubisoft statement.
“The new subsidiary would include the teams developing the Tom Clancy’s Rainbow Six, Assassin’s Creed and Far Cry franchises based in Montréal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia as well as the back catalog and any new games currently under development or to be developed,” it added. Sourced via VGC.
What does this mean for the future of Ubisoft? Hopefully, a brighter future than its current state. BUT, what does this mean for the players? Tencent now technically has a say in the future development of these titles. Though small, it still gives them more power over Ubisoft. Tencent has quickly found themselves with their hands in a lot of studios, making them a juggernaut of a company. Currently, Tencent has stakes in the following companies: Riot Games (League of Legends), Epic Games, Larian Studios, FromSoftware, Krafton, Ubisoft, Activision Blizzard, Grinding Gear Games (Path of Exile), Remedy and many others, just to name a few.
I’m not convinced this is the necessary move needed to help Ubisoft. Only time will tell if this pays off, or will we continue to watch Ubisoft struggle? Though Ubisoft has created this new subsidiary with Tencent, Ubisoft has stated they will continue nurturing the development of iconic franchises, including Tom Clancy’s Ghost Recon and The Division. Oh, Ghost Recon, where are you?
Let us know what you think of Ubisoft bringing in more of Tencent. Will this help save Ubisoft and build a stronger future?
