Ubisoft launches its new Tencent-backed subsidiary

Ubisoft Launches Vantage Studios, Its New Tencent-Backed Subsidiary

Ubisoft has officially announced the launch of its new subsidiary, Vantage Studios, which is backed by a significant investment from Tencent. This marks the first of several planned "creative houses" as part of the company’s reorganization strategy. Vantage Studios will manage some of Ubisoft's flagship franchises, including the renowned titles: Assassin's Creed, Far Cry, and Rainbow Six.

Investment and Leadership Changes

This announcement follows Ubisoft’s earlier revelation in March regarding a €1.16 billion ($1.36 billion) investment from Tencent, which acquired a minority stake in the new subsidiary. The studio's co-CEOs, Christophe Derennes and Charlie Guillemot, were announced in July.

Guillemot emphasized the shift in Ubisoft’s operational model, stating, “Our focus is on evolving Ubisoft's operating model to bring more focus, more autonomy, and more accountability to the teams so they can stay closely attuned to our players. Decision-making will be quicker, and it will also be easier to pivot when we need to change course.”

Goals and Structure of Vantage Studios

The mission of Vantage Studios is clear: to provide developers with a greater level of autonomy while facilitating a more efficient connection between player feedback and game development. This new structure aims to enable faster responses to player demands and trends.

While Vantage is the first creative house to be unveiled, Ubisoft plans to establish additional studios in the future, although details about their specific functions remain undisclosed. For now, Vantage will harness Ubisoft’s core franchises to drive its initiatives forward.

Geographical Reach

The team at Vantage Studios will be composed of talent from multiple Ubisoft locations, including Montréal, Quebec City, Sherbrooke, Saguenay, Barcelona, and Sofia. According to various gaming publications, including GamesIndustry.biz, Vantage Studios commenced operations today. Interestingly, the name "Vantage Studios" was selected through a vote involving 2,300 of Ubisoft’s employees.

Tencent's Role in the New Subsidiary

As part of the investment agreement with Tencent, the Chinese tech giant is expected to take on an advisory role. However, the co-CEOs of Vantage Studios will retain the authority to make final decisions regarding the studio's direction and operations.

A Company in Transition

Ubisoft has faced scrutiny in recent months, grappling with significant challenges including high-profile game flops, studio closures, and workforce layoffs. Despite these setbacks, the company has seen some successes, such as the positive reception of Assassin's Creed: Shadows, which has been met with a favorable response from players.

Gaming Industry Developments

In related news, Ubisoft's flagship titles — Assassin's Creed, Far Cry, and Rainbow Six — were recently added to Game Pass. This move comes amid Microsoft’s controversial decision to increase the price of its subscription service by 50 percent, in an effort to cushion the blow of this price hike with the addition of popular titles.

As Ubisoft embarks on this new chapter with Vantage Studios, the gaming community will undoubtedly be watching closely to see how these changes influence the future of the company's flagship franchises.

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