Facing financial headwinds following a series of underperforming releases, Ubisoft has taken a significant step by creating a new subsidiary.  This new entity, backed by Chinese gaming giant Tencent, will be responsible for managing some of Ubisoft's most valuable franchises, including the highly successful Assassin's Creed series.

Despite boasting a portfolio of iconic and long-standing brands like Splinter Cell and Prince of Persia, Ubisoft has encountered financial difficulties, partly due to escalating development costs and disappointing sales figures for major titles.  2024 proved particularly challenging, with games like Star Wars Outlaws, Skull and Bones, and XDefiant falling short of sales expectations. This resulted in a decline in share value and overall revenue. While the successful launch of Assassin's Creed Shadows in 2025 offered a positive start to the year, it hasn't altered Ubisoft's strategy to restructure its portfolio and entrust some of its IPs to this newly formed subsidiary.

The new subsidiary, announced on March 27th, will acquire the licenses for Assassin's Creed, Far Cry, and Rainbow Six, paying royalties back to Ubisoft.  Valued at €4 billion (USD 4.3 billion), the venture will see Tencent invest €1.16 billion (USD 1.25 billion) for a 25% stake before the end of 2025. This announcement follows earlier reports suggesting a potential Ubisoft-Tencent partnership. Ubisoft Co-Founder and CEO Yves Guillemot stated that this move will bolster the company's financial standing and create optimal conditions for the long-term success of these three key franchises.

This new subsidiary's leadership will be in charge of the future direction of Assassin's Creed, Far Cry, and Rainbow Six. The subsidiary will draw talent from Ubisoft's studios in Barcelona, Montreal, Quebec, Saguenay, Sherbrooke, and Sofia. The Tencent-backed company will also manage existing games within these franchises, as well as those currently under development.

The decision to spin off these popular brands into an independent subsidiary is a significant move, potentially reshaping the future of these IPs.  With a streamlined portfolio, it will be intriguing to observe which franchises Ubisoft prioritizes next, particularly after dedicating significant resources to Assassin's Creed for nearly two decades.