Ubisoft has announced that it's creating a new subsidiary that will be dedicated to its most popular franchise. The best example of such games is Rainbow Six, which also includes Far Cry and Assassin's Creed.
Tencent, the parent company behind VALORANT, and Riot Games, the developer behind League of Legends, have also invested in the subsidiary. It invested €1.16bn (~£965m) for a 25% stake in the company. This shows how the world of eSports games is expanding and becoming more prestigious.
The Press Statement
The company has issued a press statement about the new venture. It will be based in France and include the teams from Montréal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia, which are currently working on Tom Clancy's Rainbow Six, Assassin's Creed, and Far Cry.
Yves Guillemot, co-founder and CEO of Ubisoft, said:
"As we accelerate the company's transformation, this is a foundational step in changing Ubisoft's operating model that will enable us to be both agile and ambitious.
We are focused on building strong game ecosystems designed to become evergreen, growing high-performing brands and creating new IPs powered by cutting-edge and emerging technologies."
Tencent and Ubisoft
Tencent is one of the biggest multimedia companies in the world. The company has a huge portfolio of games and eSports features and already owns ten percent of Ubisoft. Tencent and Riot Games also own more than 40% of Epic Games, the developer behind Fortnite. Ubisoft and Tencent are deepening their relationship with this partnership as part of their long-term plans.
Martin Lau, President of Tencent, said:
"We are excited to extend our longstanding partnership with Ubisoft through this investment, which reflects our continued confidence in Ubisoft's creative vision and exceptional talent to drive sustained success in the industry. We see the immense potential for these franchises to evolve into long-term evergreen game platforms and create engaging new experiences for gamers."
The Changing Landscape of eSports
eSports have changed in the recent couple of years, as they've become more popular and more sophisticated. Many players got into following them during COVID-19 when there were no other sports to watch. However, it has caught on since, and now big-name gaming developers are a part of the landscape.
The use of cryptos has also changed the field. For a while, the best Bitcoin poker sites were the first to take advantage of the technology. Now, Bitcoin is widely used to make purchases within eSports games and to make wages on the results. Blockchain is also the backbone of the eSports infrastructure.
Ubisoft Facing Declines
The decision to get into this deal is coming at a time when Ubisoft is facing declines in its profits and sales. The numbers came out at the end of last year, and revenues were down €990 million (down 31.4% year-on-year), while net booking was down €944 million (down 34.8%). At the same time, digital net bookings are down €784 million (down 33.8%).
Despite the fact that net bookings are down 51.8%, Ubisoft has stated that the quarter is within the expectation of €300 million for the period.
Tencent Expands the Team
Tencent announced on Tuesday that it's expanding its team with a huge hiring initiative. They plan to add 28,000 internship positions over the next three years. The interns will focus on AI and technical roles. In 2025, the company will add 10,000 new jobs, 60% of which will be in tech.
In March of 2025, Tencent had 55,000 full-time employees, with more than 40,000 – or 73% – in tech-related roles. More than 27,000 of those work on research and development projects.
Rainbow Six Siege added to the 2025 eSports World Cup.
Rainbow Six Siege has also become the latest title to be added to the eSports World Cup, held in Saudi Arabia this year. The prize pool for the event hasn’t beenrevealed yet, but it's expected to be more than the Rainbow Six Siege tournament held in 2025. It featured a prize pool of $2m (~£1.5m).
It's been a great couple of years for the Rainbow Six Siege ecosystem. In 2024, it recovered viewership and introduced a new eSports revenue program.
Conclusion
Tencent, a Chinese development company behind Fortnite and Epic Games, has partnered with Ubisoft to create a new subsidiary that will work on Rainbow Six, among other games. This happens right at the time when Rainbow Six is being recognized as an important part of the eSports world.
Ubisoft has been facing a bit of a decline, but it's still within its plans and projections, while Tencent is expanding its AI and tech divisions greatly. The new subsidiary will be combining the teams of the two companies working across the globe to develop its most popular intellectual property further.