Back in March, Ubisoft announced that it had formed a new subsidiary with Tencent to house its Assassin's Creed, Far Cry, and Rainbow Six franchises. We've had some leaked insight into how this new subsidiary will be structured, but we finally got a more official update on what its focus will be moving forward.
In Ubisoft's earnings report for its 2025 fiscal year, the company said that this new subsidiary will "focus on building brand ecosystems capable of becoming evergreen, billion-euro franchises" by focusing on:
- Improving the quality of narrative-driven solo experiences
- Expanding live service offerings with richer multiplayer features and more frequent content updates
- Significantly enhancing content creation by leveraging Ubisoft's technological stack
- Scaling into underpenetrated markets such as mobile and China
It's not surprising at all that part of this venture with Tencent will be Ubisoft trying to gain some footing in China's game market, or that Ubisoft is hoping to bolster its mobile portfolio. What we still don't know about this new subsidiary is how much it will impact Ubisoft developers.
Ahead of the notes about what this new subsidiary will focus on, Ubisoft's report says that it is "currently working on reshaping its operating model with the objective to better meet player needs, deliver superior game quality and drive disciplined capital allocation. Management targets to announce new organization by the end of the year."
Later on in the report, Ubisoft says it will work to reduce costs through "ongoing targeted restructurings," which all point to more layoffs being announced by Ubisoft, sometime before the end of this year. Continuing the terrible string of mass layoffs that the video game industry has suffered over the last few years, with seemingly no end in sight.
About the author: David has been writing about videogames, technology, and culture since 2020, with a focus on reporting daily news across multiple publications, including GameDaily.Biz, GameSkinny, and PlayStation Universe before joining Wccftech in 2025. David started contributing as Canada/US reporter for Wccftech's gaming section in 2025. Besides being up-to-date on the industry's movements, he loves interviewing developers, reviewing games, and writing intricate essays about the symbolism and layered meanings to be found in rich narratives as he's done for publications like GamesIndustry.Biz, LostInCult, and others. Outside of games he loves movies, music, theatre, his hometown, and his family, though not necessarily in that order.
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