Ubisoft carves up business into Creative Houses, each to focus on specific franchises & genres

Ubisoft will now carve up its business into various Creative Houses, new operational divisions that will each handle games based on specific genres, including action, adventure, first-person shooter, etc.

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Ubisoft's latest Q1 results outline the future of the company. The group will be organized into what Ubisoft is calling 'Creative Houses,' which are basically segments with teams of people who work on specific franchises. The first Creative House will oversee most of the video game maker's most prized franchises.

Ubisoft has confirmed the initial Creative House will be its new Tencent-backed subsidiary. This means that one Creative House division will handle Assassin's Creed, Far Cry, and Rainbow Six--the three most valuable IPs that Ubisoft has. The deal was a layered attempt at thwarting a hostile takeover while raising funds; Tencent invested $1.2 billion into Ubisoft in exchange for a 25% stake in the new subsidiary.

Here's a snippet from the report:

Ubisoft to reorganize into Creative Houses. These business units will enhance quality, focus, autonomy and accountability while fostering closer connections with players. The first Creative House is the new subsidiary announced in March with a recently appointed dedicated leadership. Closing of the transaction with Tencent is progressing well and, subject to regulatory approval, continues to be expected by the end of 2025.

The Group will reorganize into autonomous Creative Houses - agile business units designed to reflect the diverse types of gaming experiences they offer. Each of them will have its dedicated leadership team, objectives and roadmap. This change aims to enhance quality, focus, autonomy and accountability while fostering closer connections with players and driving disciplined capital allocation. The new organization will be announced by the end of the year.

"These units will reflect our diverse types of gaming experiences and will allow for enhanced quality, focus, autonomy and accountability. Over time, each of these Creative Houses will boost creative vision and business performance," Ubisoft CEO Yves Guillemot said.

Ubisoft management has said that it expects the Tencent deal to close by the end of the year.