Ubisoft Signs major deal that will focus on three game franchises (19459000)
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Ubisoft announced that it has made a significant change in its organizational structure as they look to the future. The company created a brand new organization. “dedicated subsidiary” Focused on three major franchises: Far Cry and Rainbow Six. Tencent invests EUR1.16 billion (USD1.25 billion) for a 25% minority stake in the new subsidiary.
Ubisoft has said that the development of new IP and parts of their business not covered by this entity will be continued in parallel. This includes The Division, Ghost Recon as well as certain other areas of its company. It’s not known to what degree these changes may result in layoffs and studio closures.
“This new subsidiary will focus on building game ecosystems designed to become truly evergreen and multi-platform. Backed by greater investment and boosted creative capacities, it 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,” Ubisoft said.
Tencent was the clear winner after a “competitive process” Ubisoft considers different categories “strategic options.” Microsoft and EA have been reported to be involved in some way.
Ubisoft announced that it would be launching a new company to support this announcement. “focus on nurturing” Ubisoft will continue to develop its online services and game engine technology, as well as its Ghost Recon franchise. Ubisoft will be sharing more details “at a later stage.”
Yves Guillemot, co-founder of Ubisoft and its CEO said that this is a significant moment for the company. “new chapter” In Ubisoft’s history, referring to this as a “game” is not a new concept. “foundational step in changing Ubisoft’s operating model.”
“With the creation of a dedicated subsidiary that will spearhead development for three of our largest franchises and the onboarding of Tencent as a minority investor, we are crystalizing the value of our assets, strengthening our balance sheet, and creating the best conditions for these franchises’ long-term growth and success,” Guillemot said.
Tencent president Martin Lau said, “We see the immense potential for these franchises to evolve into long-term evergreen game platforms and create engaging new experiences for gamers.”
The new subsidiary will include the teams that are working on Rainbow Six and Assassin’s Creed in Montreal and Quebec as well as the Sherbrooke and Saguenay development teams, Barcelona and Sofia. Ubisoft also said that it includes all future games and any current or upcoming titles in these places, as well as back catalogue titles. In exchange for a royalty that has not been specified, this new subsidiary will get the rights to Rainbow Six, Far Cry, Assassin’s Creed and a number of other franchises.
Even before this announcement, Ubisoft had a turbulent year. The company has been attempting to cut costs by mass-firing employees, closing studios and shutting down XDefiant.
Ubisoft’s Assassin’s Creed Shadows was released on 20 March and quickly reached 3 million users. It also received positive reviews.
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