What's Happening?
Ubisoft has announced that its three major franchises—Assassin's Creed, Far Cry, and Rainbow Six—are now operated by Vantage Studios, a newly formed business entity with a 25% stake from Tencent. Vantage Studios, dubbed as Ubisoft's first 'Creative House,' will have full autonomy over creative direction and business plans for these franchises. The studio is led by co-CEOs Christophe Derennes and Charlie Guillemot. This move comes as Ubisoft prepares to finalize a €1.16 billion deal with Tencent. The decision follows a challenging period for Ubisoft, marked by several high-profile flops, layoffs, and studio closures, despite the successful launch of Assassin's Creed Shadows.
Why It's Important?
The establishment of Vantage Studios represents a significant shift in Ubisoft's strategy, potentially revitalizing its major franchises with fresh creative and business approaches. This move could impact the gaming industry by setting a precedent for how major franchises are managed and developed. The partnership with Tencent, a major player in the global gaming market, may provide Ubisoft with the financial backing and strategic support needed to overcome recent challenges. Success for Vantage Studios could lead to increased investor confidence and a rebound in Ubisoft's share price, which has recently hit historic lows.
What's Next?
As Vantage Studios begins operations, the gaming community and investors will be closely watching for announcements regarding new game releases and expansions. The studio's autonomy may lead to innovative developments within the Assassin's Creed, Far Cry, and Rainbow Six franchises. Additionally, the completion of the deal with Tencent could bring further strategic collaborations and investments. Stakeholders will be keen to see how Vantage Studios navigates the competitive gaming landscape and addresses past criticisms of Ubisoft's management.
