Ubisoft, a family-centric company with nearly 40 years of history, is continuing its tradition with the launch of a new subsidiary. This recently spun-off entity, partially funded by Tencent, will be co-led by Charlie Guillemot, son of Ubisoft CEO Yves Guillemot, and Christophe Derennes, a veteran of Ubisoft Montreal. They will both serve as co-CEOs.
The primary objective of this new division is to accelerate the growth of Ubisoft`s flagship franchises: Assassin`s Creed, Rainbow Six, and Far Cry.
Charlie Guillemot began his gaming career in 2014 at Owlient, a studio later acquired by Ubisoft. He departed Ubisoft in 2021 before rejoining earlier this year, leading to his current promotion. Christophe Derennes, meanwhile, co-founded Ubisoft Montreal in 1997 and most recently held the position of managing director for Ubisoft`s North American operations.
Addressing concerns about potential nepotism, Charlie Guillemot stated he “completely” understands such issues. “Yes, I`m Yves` son. That`s not something I hide from. But my appointment isn`t only about family ties; it`s about what Ubisoft needs at this moment,” he clarified in an interview with Variety.
Within the new structure, Charlie Guillemot will be responsible for the vision, direction, content development, and marketing of Ubisoft`s main franchises. Christophe Derennes, on the other hand, will oversee production, co-development, and technology.
Generative AI and the Future of Gaming
Charlie Guillemot is confident that generative AI and cloud technologies will “revolutionize” game development and player experiences. He noted this might lead to “shorter content, speaking to new generations that consume content in a different way.” He is convinced that the industry will face new technological disruptions that are not yet fully predictable, and Ubisoft intends to play an active role in shaping that future.
Charlie`s comments on AI are likely to spark debate, given developers` ongoing concerns regarding the role of generative AI in game creation and potential job losses. While a recent report indicated that a majority of game developers worldwide use AI, anxieties persist. Just this week, laid-off developers at Microsoft`s Candy Crush studio claimed that AI tools they helped create are effectively replacing them. Ubisoft, however, has been a strong proponent of generative AI for years.
Christophe Derennes added that video game franchises are no longer “just” games; they have evolved into full-fledged “universes” and are “integral parts of pop culture.” He emphasized their aim to expand the reach, cultural impact, and relevance of the Far Cry, Assassin`s Creed, and Rainbow Six franchises to new audiences.
Subsidiary Formation and Tencent`s Investment
The appointments of Charlie Guillemot and Christophe Derennes represent the first phase in a series of announcements related to the new subsidiary. “Together with Charlie, we will be working on building the leadership team of this new structure, defining roles and governance. Change is ongoing and it is very much a collective effort. While we`re happy to be able to share this milestone today, we still have some work ahead of us before the new organization is operational,” Derennes stated.
In March, Ubisoft announced the creation of this “dedicated subsidiary,” focused on Assassin`s Creed, Far Cry, and Rainbow Six. Tencent invested over $1 billion to acquire a stake. Ubisoft clarified that other parts of its business, including The Division and Ghost Recon, along with the development of certain new IPs, will continue in parallel.
Tencent emerged as the winner following a “competitive process” where Ubisoft considered various “strategic options.” Earlier reports suggested that Microsoft and EA were also contenders.
The past year has been challenging for Ubisoft even before these developments, with the company`s cost-cutting efforts including mass layoffs, studio closures, and the shutdown of XDefiant.