An internal memo obtained by Insider Gaming reveals how Ubisoft plans to restructure its biggest franchises under a new subsidiary partly owned by Tencent—but clarity remains in short supply.

The new joint venture between Ubisoft and Tencent was officially announced on March 27, yet the specifics of this partnership remain frustratingly vague. While it’s known that select Ubisoft teams and key intellectual properties will be transferred to the new subsidiary, the wider implications for future projects, corporate structure, and staff remain unclear.

Investor confidence appears to have taken a serious hit, with Ubisoft’s stock dropping by 19% following the announcement. One investor, speaking anonymously, attributed the plunge to uncertainty: “Nobody knows how this new structure will operate, or what Tencent’s role will really mean for Ubisoft’s trajectory.” Another investor was similarly skeptical, stating: “This change alone won’t move the needle in the long run unless more substantial reforms follow.”

Employees directly affected by the shift aren’t feeling reassured either. Over half a dozen team members cited a lack of transparent communication, with most updates limited to company-wide emails. Several workers speculated that the deal might have been rushed—perhaps to leverage the positive momentum from the success of Assassin’s Creed Shadows—but no one seems to know exactly when the agreement was finalized.

Unpacking Christophe Derennes’ Message

The general atmosphere of uncertainty is reinforced by an internal email sent by Christophe Derennes, Ubisoft’s Managing Director for Zone 1. The memo, obtained in full by Insider Gaming, sheds some light on the reorganization—but also confirms that much remains undecided.

In short, Ubisoft does not appear to have a concrete strategy yet.

“Hello all –

By now, you’ve read Yves’ message about the new subsidiary that will house Ubisoft’s three most iconic franchises: Rainbow Six, Assassin’s Creed, and Far Cry. This new venture will stay within the Ubisoft ecosystem, with Tencent as a minority shareholder. This marks a pivotal shift for us after several challenging years and is an opportunity to rebuild a stronger Ubisoft.

So what does this mean for us in Zone 1? We can expect major organizational and structural changes, given that these three franchises represent a large segment of our workforce. For now, we can confirm that our Quebec, Saguenay, and Sherbrooke studios will be fully integrated into the new entity, while our Montreal teams will be split between the current organization and the new one. Studios in Toronto, Winnipeg, Red Storm, and Blue Mammoth will remain in the current structure.

It’s still early days, and I understand that many of you have questions. The short answer to “what comes next” is: we don’t yet know. The next few months will be dedicated to shaping a transition plan.

Step one was this announcement—our formal kickoff of the planning phase.

Step two, which will run through the summer, involves figuring out how the new and existing structures will support each other. A series of discussions and consultations will be held in the coming months, with leadership involved to ensure both Ubisoft and the new entity are set up for long-term success.

Step three will be the actual rollout of the new structure. This transition will take time. Many key aspects are still up in the air: who will lead the new entity, what becomes of the current Zone structure, and how studios will be affected. What I can assure you is that Ubisoft remains committed to creating world-class games—and that your creativity and drive are still central to our success.

I realize many of your questions remain unanswered. Your MDs were only recently briefed as well, and they don’t have more information than I do. Still, we’ll keep you updated on progress and share decisions as soon as they’re made. In the meantime, focus on what you do best: making amazing games that resonate with players around the world. I’m grateful for your dedication during this important transition.

Christophe
Managing Director, Zone 1

source: Insider Gaming