Ubisoft and Tencent Form New Subsidiary Amid Leaked Memo Panic – Employees Fear for Their Jobs
Today is becoming quite the day of Ubisoft being in the news. First, their marketing team pushes on social media that everything is going great and Assassin's Creed: Shadows has over 3 million players, and only a few hours later, we hear that everything is on the verge of collapse.
In a major shake-up that’s raising eyebrows across the gaming industry, Ubisoft has officially partnered with Chinese tech giant Tencent to form a new subsidiary company focused on key franchises like Assassin’s Creed, Far Cry, and Rainbow Six. I spoke about the potential of this happening a few days ago and here we are.
That was... fast.
While Ubisoft’s leadership is of course touting the move as an “exciting opportunity,” anyone who's anyone knows better, and a leaked internal memo from CEO Yves Guillemot now tells that different story—one that has employees deeply concerned about their future- or lack thereof.
The Tencent Deal That Changes Everything
The partnership between Ubisoft and Tencent was supposed to be positioned as a strategic alliance to streamline development and boost production on Ubisoft’s most recognizable franchises. But the timing and tone of the internal communications paints a much grimmer picture.
According to an exclusive report from Tom Henderson at Insider Gaming, Guillemot’s (above) memo caused quite the... immediate stir within the company, prompting a follow-up email from Ubisoft’s Chief Studios & Portfolio Officer, Marie-Sophie de Waubert, aimed at calming fears.
Nothing to see here folks!
Internal Emails Spark Panic
In her email addressed to studios in Montreal, Quebec City, Sherbrooke, Saguenay, Barcelona, and Sofia, de Waubert described the formation of the new Tencent-backed business unit as “a powerful enabler” that would “accelerate our evolution.”
But hold up. Are they going to change and be honest for once and tell their employees the truth? Haha. Nah. This is Ubisoft. Let's be real.
She continued on, and praised teams working on Ubisoft’s core IPs and insisted that this new structure would benefit the entire company, even those not directly tied to the big-name franchises! Great news! /s
But between the lines, the message was loud and clear: if you're not working on Ubisoft's marquee titles, your place in the new Ubisoft hierarchy is... uncertain, to put it nicely.
“Of course, this brings some uncertainty and questions,” de Waubert admitted. “Right now, we may not have all the detailed answers, but we are committed to communicating with you transparently and regularly.”
Translation? Ubisoft leadership is already bracing for backlash—and possibly worse. Hold on to your butts.
Employee Anxiety at an All-Time High
Despite the spin from upper management, staff reaction has been anything but enthusiastic. Henderson noted in his piece that employees are of course understandably nervous, with many fearing this move is a prelude to layoffs, restructuring, or outright consolidation of studios that fall outside the new subsidiary’s scope. The lack of concrete answers and the vagueness of leadership's reassurances only served to amplify the anxiety floating around.
While Ubisoft insists that this is not a death knell for its other IPs or teams, history suggests otherwise... Tencent’s involvement often comes with significant restructuring, tighter production pipelines, and a much greater emphasis on return-on-investment metrics—something Ubisoft has struggled with in recent years. Many of the employees are in for a rude awakening.
A Dangerous Precedent for the Industry?
The broader implications of Tencent’s deeper foothold in Western gaming can’t be ignored. It's concerning to see China take up so much land in the game space, but to be honest, the way Canada has been going woke with their approach to gaming in recent years - this was the only natural course for the evolution to go. Survival of the fittest. Making games for no audience and fighting against your paying customers isn't a winning strategy.
Hiring activists instead of gamers rots a corporation from the inside out - even when there may be some great star employees that DO care already existing. While Ubisoft frames the partnership as a vote of confidence, many fans and industry analysts see it as a straight up surrender—another Western studio giving up creative control in exchange for cash and "focus." It’s the latest in a growing list of publishers leaning into consolidation rather than innovation. Let's be honest - Ubisoft did this to themselves.
Conclusion: Ubisoft’s New Chapter, or Final Countdown?
Ubisoft may be calling this “the beginning of a new chapter,” but for many of its developers, it feels more like a ticking clock... and I can't blame them. As the dust settles, it remains to be seen how much of Ubisoft’s identity—and workforce—will survive the Tencent transition (if any).
Credit to Tom Henderson at Insider Gaming for the scoop and access to the internal memo that brought this story to light. This situation is WILD! ~Smash
