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Ubisoft‘s financial crisis has come to a boiling point, and the French video game company is taking drastic measures to keep its head above water.
After reporting losses to the tune of $177.9 million in 2024-2025, Ubisoft has announced it is restructuring the company and has created a new “creative house” that will focus on the development of three of its most successful games: Assassin’s Creed, Far Cry, and Rainbow Six.
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This new subsidiary was made possible by a 1.25 billion dollar investment from the Chinese tech giant Tencent, which will claim a 25% cut of the new Ubisoft venture. While Assassin’s Creed: Shadows had strong sales, it wasn’t enough to carry the company out of the hole, and the new subsidiary could potentially be make-or-break for Ubisoft as we know it.
Shorter Content May Be Part Of The Game Plan
Ubisoft has appointed Christophe Derennes and Charlie Guillemot as Co-CEOs of the new Tencent-backed subsidiary, with Derennes set to lead development and production, while Guillemot manages the brand and vision.
“I’m excited about the clear goals we have and the freedom to change things whilst building on what already works well. To be clear, the idea is not to start over from scratch, but rather to evolve our organization and ways of working to get back on the path to success.” Said Guillemot.
With a track record of occasionally producing games that feel copy-and-pasted in what gamers have dubbed “The Ubisoft Formula”, Charlie Guillemot’s comments about shorter content and A.I. may be concerning to some.
Generative AI and cloud are likely to revolutionize game creation and the player experience in the long term, but what really matters today is standing out. That means being able to offer high-quality content, and sometimes that means shorter content, speaking to new generations that consume content in a different way. I’m convinced the industry will face new tech disruptions we can’t fully predict yet. And Ubisoft intends to play an active role in shaping that future.
Artificial Intelligence is altering the landscape of video game creation at an alarming rate, as thousands of employees lose their jobs, studios close, and companies continue to choose profit over people. Mentioning generative AI, shorter content, and imminent tech disruptions all at once may be a little unnerving, but it’s too early to tell how this will all play out.
Our long-term objective with this new subsidiary is to grow these iconic brands — while remaining loyal to their DNA — into experiences that are constantly enriching and surprising to our players.
—Christophe Derennes
“This subsidiary is part of Ubisoft’s broader reorganization, which we will structure into Creative Houses. It is the first in a new organizational ecosystem,” said Ubisoft CEO Yves Guillemot.
Fans of Assassin’s Creed, Far Cry, and Rainbow Six may be in for a treat as Ubisoft looks to secure some big wins and get back on the right path.
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Ubisoft CEO Wants Yet More Live-Service And Open-World Games
Looks like Yves Guillemot wants to keep the money printer rolling
