Ubisoft Partners with Tencent: A New Era in Gaming
In a surprising development, French game developer Ubisoft has joined forces with the Chinese gaming juggernaut Tencent to establish a new subsidiary. This collaboration comes after Ubisoft has faced a decline in sales and profitability across its gaming portfolio. As part of this partnership, Ubisoft will receive a significant investment of $1.6 billion USD from Tencent, which will also acquire a 25% stake in the new entity.
Reactions from the Gaming Community
The announcement has elicited mixed reactions from fans of both companies. While some express optimism about the potential benefits of the partnership, others worry about the implications of Tencent’s involvement. Critics highlight that this subsidiary not only entitles Tencent to royalties from intellectual properties (IPs) produced under its umbrella but also grants it licensing rights.
Social media users have voiced their thoughts on this groundbreaking alliance. On platform @TheAsianWaldo, remarked:
“Tencent saving Ubisoft was not expected”
For many, this partnership signifies a potential renaissance for Ubisoft’s gaming catalog. As a result, fans are hopeful that the publisher may reinvigorate older IPs with new entries. User @vledermau5 articulated this sentiment:
“I am glad they are still alive and kicking after the Shadows success. Now please give us something on Beyond Good & Evil 2, anything (but a cancellation). Also @Ubisoft please give us new Rayman games.”
Similarly, user @VOTU_D embraced the prospective positive impact of Tencent’s investment:
“Ubisoft’s new subsidiary with Tencent, valued at $4.3B, is a significant move, especially with major IPs like Assassin’s Creed, Far Cry, and Rainbow Six involved. Tencent’s 25% stake could really boost their growth potential.”
Concerns About the Future
Despite the hopeful outlook from some fans, there is also trepidation regarding how this partnership might affect Ubisoft and its workforce. User @LFCDG91 expressed apprehension about the backlash Ubisoft might face due to recent controversies surrounding their latest release, Assassin’s Creed Shadows, which has been criticized heavily:
“Can already tell a certain group of people are gonna be insufferable about this. A poorly managed company that’s been bleeding money for years and people are gonna blame a game that came out 2 weeks ago, despite it being seemingly successful.”
Moreover, there are fears for the employees, as expressed by user @AI_EmeraldApple:
“RIP, all those 18000 employees at Ubisoft. This means a lot of them are getting fired and most are going to get let go. Completely expected outcome of course.”
Analyzing the Impacts of Tencent’s Involvement
Some users, like @HubBandar, raise valid concerns regarding Tencent’s increasing stake in Ubisoft. They argue that with Tencent now holding approximately 34% of Ubisoft and previously owning around 9.99%, this could signify a full takeover. Additionally, they pointedly noted the struggles of Assassin’s Creed Shadows in terms of sales:
“Tencent held ~9.99% of Ubisoft shares, now 34%. Invested €300M in Guillemot Bros Ltd (GBL), owning 49.9% of it. GBL holds part of the Guillemot family’s Ubisoft stake. This is a Full Tencent takeover of Ubisoft. The numbers for AC shadows are abysmal, with no sold copies announced, only players accessed (Ubisoft+ at $17).”
What’s Next for Ubisoft?
The trajectory of this historic collaboration remains uncertain. Ubisoft has struggled with controversies, particularly around Assassin’s Creed Shadows, which has faced backlash over its character representations and themes. In the shadow of allegations of workplace mismanagement and inconsistent development timelines, this new partnership with Tencent may provide the much-needed support to steer Ubisoft toward a more stable and innovative future.