Ubisoft’s latest partnership with Tencent has left more questions than answers as the French video game publisher admits that it currently has no clear plan or roadmap for the deal.
The announcement for a new subsidiary has sparked rumors about the future of Ubisoft’s core franchises and corporate structure.
An internal memo from Zone 1 Managing Director Christophe Derennes, obtained by Insider Gaming, highlights the ambiguity surrounding the deal. “I’m sure you have many questions for which we have no answers yet,” Derennes wrote.
He stated that the next few months would be dedicated to developing a transition plan, with substantive details only expected by summer.
Key uncertainties remain, particularly regarding leadership, the structural split between Ubisoft’s existing organization and the new entity, and the long-term implications for some of the company’s flagship game series.
According to Derennes, Quebec, Saguenay, and Sherbrooke studios will fully transition to the new subsidiary, while Montreal project teams will be divided. Meanwhile, Ubisoft studios in Toronto, Winnipeg, Red Storm, and Blue Mammoth will remain within the current framework.
The market response to the announcement has been harsh. After the news, Ubisoft’s stock plummeted over 15%, which erased recent gains. It also shows investor unease over the company’s future direction.
Some analysts raised concerns that the lack of transparency can erode investors’ confidence in the company. However, Ubisoft executives have promised to provide updates as decisions are made.
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