For several months now, amidst a financial crisis, Ubisoft is reportedly exploring various options to avoid closure. According to Bloomberg and its investigative journalist Jason Schreier, the Guillemot family is considering establishing a new structure with Chinese giant Tencent, aiming to recover some of its assets, whether certain licenses or studios. However, China does not appear to be the only country that could assist the French publisher in regaining financial health. Indeed, according to the journal Les Echos, which disclosed this information, Ubisoft has entered into an agreement with Saudi Arabia for funding and even to initiate production on an expansion for Assassin’s Creed Mirage. This announcement was found surprising by many media outlets and industry analysts.
According to information from Les Echos, Emmanuel Macron is scheduled to make a state visit to Saudi Arabia from December 2 to 4, 2024. The President was accompanied by approximately fifty French business leaders with the goal of deepening cooperation in strategic areas such as defense and security, energy transition, and connectivity, as well as fostering economic partnerships between French companies and their counterparts in Saudi Arabia. According to Les Echos, Yves Guillemot, CEO of Ubisoft, was among these 50 entrepreneurs and reportedly met with Savvy Games, a company owned by the Public Investment Fund (PIF) of Saudi Arabia, chaired by Prince Mohammed bin Salman. This meeting allegedly facilitated funding for the development of an expansion for Assassin’s Creed Mirage, which was released in October 2023.
It is noteworthy that, according to Stéphane Boudon, Creative Director on Assassin’s Creed Mirage, no DLC was planned for the game. Initially conceived as an extension of Assassin’s Creed Valhalla, Ubisoft transformed it into a full game and marketed it as a return to its roots in terms of gameplay. The partnership between Ubisoft and the Savvy Games group may result in more than just financial support for the game’s development. As Ubisoft navigates through an unprecedented crisis, all avenues are evidently being explored to secure financial backing. It is well-known that Saudi Arabia has expressed a desire to establish itself in the video game industry as well as pop culture, particularly in relation to Japanese influences. For example, one recalls the announcement of a Dragon Ball theme park currently under construction and the Goldorak statue situated proudly in Riyadh, the capital of Saudi Arabia, which stands as the largest life-size statue ever created.
At 39, Prince Mohammed bin Salman, the heir apparent to the Saudi Arabian throne, has openly expressed his enthusiasm for video games, manga, and Japanese anime. During the 1980s, when he was growing up, the Middle East was also influenced by Japanese pop culture. A significant fan of video games, particularly the NeoGeo console—referred to as the Rolls Royce of consoles in the 1990s—he acquired a controlling stake of 96.18% in SNK for 522 billion won ($430 million) through his MISK foundation in February 2022. This acquisition was followed by an even more ambitious move: Saudi Arabia announced its intent to invest at least $37.8 billion in the video game sector in September 2022. This initiative is being pursued through Savvy Gaming Group, a company owned by Saudi Arabia’s Public Investment Fund (PIF), under the direction of Prince Mohammed bin Salman.
In detail, it is indicated that $18.6 billion will be invested in minority stakes in video game development studios and publishers. The country recently acquired an 8.3% stake in Nintendo after filing a dossier with Japan’s Ministry of Finance through the Saudi Arabian fund PIF. Nintendo is not the only target; other publishers such as Activision Blizzard, Electronic Arts, Nexon, Capcom, KOEI TECMO, and Take-Two Interactive are also being pursued, with the country increasing its shareholdings recently. As a result, Mohammed Bin Salman now owns 5.8% of Electronic Arts (up from 5.1% previously) and 6.8% of Take-Two Interactive (up from 5.3% recently), after purchasing 2 million and 3 million shares respectively at the end of 2022. Additionally, $13.3 billion will be allocated to acquiring a leading game publisher, possibly against their will. The specific prestigious video game publisher targeted by Mohammed Bin Salman remains undisclosed. Meanwhile, Saudi Arabia continues to support young talents in the eSports field, aiding their career development.
In all cases, Yves Guillemot is prepared to take whatever measures are necessary to save his company, even seeking funds from countries that are controversial in the West. Ubisoft’s CEO is preparing stakeholders (and employees) for significant changes, including potential alliances and a possible acquisition, as stated in a public statement released at the beginning of January: “Leading advisors have been mandated to study and pursue various transformative strategic and capital options to extract the best possible value for stakeholders.” As they say, business is business.
