Ubisoft

Origins and first decade

By the 1980s, the Guillemot family had established themselves as a support business for farmers in the Brittany province of France and other regions, including into the United Kingdom. The five sons of the family – Christian, Claude, Gérard, Michel, and Yves – helped with the company's sales, distribution, accounting, and management with their parents before university. All 5 gained business experience while at university, which they brought back to the family business after graduating. The brothers came up with the idea of diversification to sell other products of use to farmers; Claude began with selling CD audio media. Later, the brothers expanded to computers and additional software that included video games. In the 1980s, they saw that the costs of buying computers and software from a French supplier was more expensive than buying the same materials in the United Kingdom and shipping to France, and came upon the idea of a mail-order business around computers and software. Their mother said they could start their own business this way as long as they managed it themselves and equally split its shares among the 5 of them. Their first business was Guillemot Informatique, founded in 1984. They originally only sold through mail order, and then were getting orders from French retailers, since they were able to undercut other suppliers by up to 50% of the cost of some titles. By 1986, this company was earning about 40 million French francs . In 1985, the brothers established Guillemot Corporation for similar distribution of computer hardware. As demand continued, the brothers recognised that video game software was becoming a lucrative property and decided that they needed to get into the industry's development side, already having insight on the publication and distribution side. Ubi Soft was founded by the brothers on 28 March 1986. The name "Ubi Soft" was selected to represent "ubiquitous" software.Ubi Soft initially operated out of offices in Paris, moving to Créteil by June 1986. The brothers used the chateau in Brittany as the primary space for development, hoping the setting would lure developers, as well as to have a better way to manage expectations of their developers. The company hired Nathalie Saloud as manager, Sylvie Hugonnier as director of marketing and public relations, and programmers, though Hugonnier had left the company by May 1986 to join Elite Software. Games published by Ubi Soft in 1986 include Zombi, Ciné Clap, Fer et Flamme, Masque, and Graphic City, a sprite editing programme. As their first game, Zombi had sold 5,000 copies by January 1987. Ubi Soft also entered into distribution partnerships for the game to be released in Spain and West Germany. Ubi Soft started importing products from abroad for distribution in France, with 1987 releases including Elite Software's Commando and Ikari Warriors, the former of which sold 15,000 copies by January 1987. In 1988, Yves Guillemot was appointed as Ubi Soft's chief executive officer.By 1988, the company had about 6 developers working from the chateau. These included Michel Ancel, a teenager at the time noted for his animation skills, and Serge Hascoët, who applied to be a video game tester for the company. The costs of maintaining the chateau became more expensive, and the developers were given the option to relocate to Paris. Ancel's family which had moved to Brittany for his job could not afford the cost of living in Paris and returned to Montpellier in southern France. The Guillemot brothers told Ancel to keep them abreast of anything he might come up with there. Ancel returned with Frédéric Houde with a prototype of a game with animated features that caught the brothers' interest. Michel Guillemot decided to make the project a key one for the company, establishing a studio in Montreuil to house over 100 developers in 1994, and targeting a line of 5th generation consoles such as the Atari Jaguar and PlayStation. Their game, Rayman, was released in 1995. Yves managed Guillemot Informatique, making deals with Electronic Arts, Sierra On-Line and MicroProse to distribute their games in France. Guillemot Informatique began expanding to other markets, including the United States, the United Kingdom, and Germany. They entered the video game distribution and wholesale markets and by 1993 had become the "largest" distributor of video games in France.

Worldwide growth

In 1996, Ubi Soft listed its initial public offering and raised over US$80 million in funds to help them to expand the company. Within 2 years, the company established worldwide studios in Annecy , Shanghai , Montreal , and Milan .

A difficulty that the brothers found was the lack of an intellectual property that would have a foothold in the United States market. When "widespread growth" of the Internet arrived around 1999, the brothers decided to take advantage of this by founding game studios aimed at online free-to-play titles, including GameLoft; this allowed them to license the rights to Ubi Soft properties to these companies, increasing the share value of Ubi Soft five-fold. With the extra infusion of €170 million, they were able to then purchase Red Storm Entertainment in 2000, giving them access to the Tom Clancy's series of stealth and spy games. Ubi Soft helped with Red Storm to continue to expand the series, bringing titles like Tom Clancy's Ghost Recon and Tom Clancy's Rainbow Six series. The company got a foothold in the United States when it worked with Microsoft to develop Tom Clancy's Splinter Cell, an Xbox-exclusive title released in 2002 to challenge the PlayStation-exclusive Metal Gear Solid series, by combining elements of Tom Clancy's series with elements of an in-house developed game called The Drift.In March 2001, Gores Technology Group sold The Learning Company's entertainment division to them. The sale included the rights to intellectual properties such as the Myst and Prince of Persia series. Ubisoft Montreal developed the Prince of Persia title into Prince of Persia: The Sands of Time released in 2003. At the same time, Ubi Soft released Beyond Good & Evil, Ancel's project after Rayman; it was one of Ubi Soft's first commercial "flop" at its release alongside a 2003 release market and which since has gained a cult following.Around 2001, Ubi Soft established its editorial department headed by Hascoët, initially named as editor in chief and later known as the company's Chief Content Officer. Hascoët had worked alongside Ancel on Rayman in 1995 to help refine the game, and saw the opportunity to apply that across all of Ubi Soft's games. Until 2019, most games published by Ubisoft was reviewed through the editorial department and personally by Hascoët.

Continued expansion

On 9 September 2003, Ubi Soft announced that it would change its name to Ubisoft, and introduced a new logo known as "the swirl". In December 2004, gaming corporation Electronic Arts purchased a 19.9% stake in the firm. Ubisoft referred to the purchase as "hostile" on EA's part. Ubisoft's brothers recognised they had not considered themselves within a competitive market, and employees had feared that an EA takeover would drastically alter the environment within Ubisoft. EA's CEO at the time, John Riccitiello, assured Ubisoft the purchase was not meant as a hostile manoeuvre, and EA ended up selling the shares in 2010.In February 2005, Ubisoft acquired the NHL Rivals, NFL Fever, NBA Inside Drive and MLB Inside Pitch franchises from Microsoft Game Studios.Ubisoft established another IP, Assassin's Creed, first launched in 2007; Assassin's Creed was originally developed by Ubisoft Montreal as a sequel to Prince of Persia: The Sands of Time and instead transitioned to a story about Assassins and the Templar Knights. In July 2006, Ubisoft bought the Driver franchise from Atari for a sum of €19 million in cash for the franchise, technology rights, and most assets. Within 2008, Ubisoft made a deal with Tom Clancy for perpetual use of his name and intellectual property for video games and other auxiliary media. In July 2008, Ubisoft made the acquisition of Hybride Technologies, a Piedmont-based studio. In November 2008, Ubisoft acquired Massive Entertainment from Activision. In January 2013, Ubisoft acquired South Park: The Stick of Truth from THQ for $3.265 million.

Ubisoft announced plans in 2013 to invest $373 million into its Quebec operations over 7 years. The publisher is investing in the expansion of its motion capture technologies and consolidating its online games operations and infrastructure in Montreal. By 2020, the company would employ more than 3,500 staff at its studios in Montreal and Quebec City.In July 2013, Ubisoft announced a breach in its network resulting in the potential exposure of up to 58 million accounts including usernames, email address, and encrypted passwords. The firm denied any credit/debit card information could have been compromised, issued directives to all registered users to change their account passwords, and recommended updating passwords on any other website or service where a same or similar password had been used. All the users who registered were emailed by the Ubisoft company about the breach and a password change request. Ubisoft promised to keep the information safe.In March 2015, the company set up a Consumer Relationship Centre in Newcastle-upon-Tyne. The centre is intended to integrate consumer support teams and community managers. Consumer Support and Community Management teams at the CRC are operational 7 days a week.

Attempted takeover by Vivendi

Since around 2015, the French mass media company Vivendi has been seeking to expand its media properties through acquisitions and other business deals. In addition to advertising firm Havas, Ubisoft was one of the first target properties identified by Vivendi, which as of September 2017 has an estimated valuation of $6.4 billion. Vivendi, in two actions during October 2015, bought shares in Ubisoft stock, giving them a 10.4% stake in Ubisoft, an action that Yves Guillemot considered "unwelcome" and feared a hostile takeover. In a presentation during the Electronic Entertainment Expo 2016, Yves Guillemot stressed the importance that Ubisoft remain an independent company to maintain its creative freedom. Guillemot later described the need to fight off the takeover: "...when you're attacked with a company that has a different philosophy, you know it can affect what you've been creating from scratch. So you fight with a lot of energy to make sure it can't be destroyed." Vice-President of Live Operations, Anne Blondel-Jouin, expressed similar sentiment in an interview with PCGamesN, stating that Ubisoft's success was partly due to "...being super independent, being very autonomous."Vivendi acquired stake in mobile game publisher Gameloft, owned by the Guillemots, and started acquiring Ubisoft shares. In the following February, Vivendi acquired €500 million worth of shares in Gameloft, gaining more than 30% of the shares and requiring the company under French law to make a public tender offer; this action enabled Vivendi to complete the takeover of Gameloft by June 2016. Following Vivendi's actions with Gameloft in February 2016, the Guillemots asked for more Canadian investors in the following February to fend off a similar Vivendi takeover; by this point, Vivendi had increased their share in Ubisoft to 15%, exceeding the estimated 9% that the Guillemots owned. By June 2016, Vivendi had increased its shares to 20.1% and denied it was in the process of a takeover.By the time of Ubisoft's annual board meeting in September 2016, Vivendi had gained 23% of the shares, while the Guillemots were able to increase their voting share to 20%. A request was made at the board meeting to place Vivendi representatives on Ubisoft's board, given the size of their shareholdings. The Guillemots argued against this, reiterating that Vivendi should be seen as a competitor, and succeeded in swaying other voting members to deny any board seats to Vivendi.Vivendi continued to buy shares in Ubisoft, approaching the 30% mark that could trigger a takeover; as of December 2016, Vivendi held a 25.15% stake in Ubisoft. Reuters reported in April 2017 that Vivendi's takeover of Ubisoft would likely happen that year and Bloomberg Businessweek observed that some of Vivendi's shares would reach the 2-year holding mark, which would grant them double voting power, and would likely meet or exceed the 30% threshold. The Guillemot family has since raised its stake in Ubisoft; as of June 2017, the family held 13.6% of Ubisoft's share capital, and 20.02% of the company's voting rights. In October 2017, Ubisoft announced it reached a deal with an "investment services provider" to help them purchase back 4 million shares by the end of the year, preventing others, specifically Vivendi, from buying these.In the week before Vivendi would gain double-voting rights for previously purchased shares, the company, in quarterly results published in November 2017, announced that it had no plans to acquire Ubisoft for the next 6 months, nor would seek board positions due to the shares they held during that time, and that it "would ensure that its interest in Ubisoft would not exceed the threshold of 30% through the doubling of its voting rights." Vivendi remained committed to expanding in the video game sector, identifying that their investment in Ubisoft could represent a capital gain of over 1 billion euros.On 20 March 2018, Ubisoft and Vivendi struck a deal ending any potential takeover, with Vivendi agreeing to sell all of its shares, over 30 million, to other parties and agreeing to not buy any Ubisoft shares for 5 years. Some of those shares were sold to Tencent, which after the transaction held about 5.6 million shares of Ubisoft . The same day, Ubisoft announced a partnership with Tencent to help bring their games into the Chinese market. Vivendi completely divested its shares in Ubisoft by March 2019.

Since 2018

Since 2018, Ubisoft's studios have continued to focus on some franchises, including Assassin's Creed, Tom Clancy's, Far Cry, and Watch Dogs. As reported by Bloomberg Businessweek, while Ubisoft as a whole had nearly 16,000 developers by mid-2019, larger than some of its competitors, and producing 5 to 6 major AAA releases each year compared to the 2 or 3 from the others, the net revenue earned per employee was the lowest of the 4 due to generally lower sales of its games. Bloomberg Business attributed this partially due to spending trends by video game consumers purchasing fewer games with long playtimes, as most of Ubisoft's major releases tend to be. To counter this, Ubisoft in October 2019 postponed 3 of the 6 titles it had planned in 2019 to 2020 or later, as to help place more effort on improving the quality of the existing and released games. Due to overall weak sales in 2019, Ubisoft stated in January 2020 that it would be reorganizing its editorial board to provide a more comprehensive look at its game portfolio and devise greater variation in its games which Ubisoft's management said had fallen stagnant, too uniform and had contributed to weak sales.

Stemming from a wave of sexual misconduct accusations of the #MeToo movement in June and July 2020, Ubisoft had a number of employees accused of misconduct from both internal and external sources. Between Ubisoft's internal investigation and a study by the newspaper Libération, employees had been found to have records of sexual misconduct and troubling behaviour, going back up to 10 years, which had been dismissed by the human resources departments. As a result, some Ubisoft staff either quit or were fired, including Hascoët, Maxime Béland, the co-founder of Ubisoft Toronto, and Yannis Mallat, the managing director of Ubisoft's Canadian studios. Yves Guillemot implemented changes in the company to address these issues as it further investigated the extent of the misconduct claims.In 2020, they announced that they would be making an open world Star Wars game. The deal marked an end to EA's exclusive rights to make Star Wars titles.Ubisoft stated in its end of 2020 fiscal year investor call in February 2021 that the company will start to make AAA game releases less of a focus and put more focus on mobile and freemium games following fiscal year 2022. CFO Frederick Duguet stated to investors that "we see that we are progressively, continuously moving from a model that used to be only focused on AAA releases to a model where we have a combination of strong releases from AAA and strong back catalog dynamics, but also complimenting our program of new releases with free-to-play and other premium experiences." Later that year, the company announced it would start branding games developed by its 1st-party developers as "Ubisoft Originals".In October 2021, Ubisoft participated in a round of financing in Animoca Brands.After earlier stating their intent to explore blockchain games, Ubisoft announced its Ubisoft Quartz blockchain program in December 2021, allowing players to buy uniquely identified customization items for games and then sell and trade them based on the Tezos currency, which Ubisoft claimed was an energy efficient cryptocurrency. This marked the first "AAA" effort into blockchain games.Tencent invested another €300 million into Guillemot Brothers Limited, the company that holds part of the Guillemots' ownership of Ubisoft, in September 2022. This gave Tencent 49.9% ownership in this holding company and increased the Guillemots' share of voting rights within Ubisoft to about 30%. Yves Guillemot said that Tencent would be working closely with Ubisoft, helping to bring their games into China while assisting in paying off Ubisoft's debts and preventing the company from potential buyouts.