In a bold declaration that’s sending shockwaves through the gaming industry, Ubisoft CEO Yves Guillemot recently proclaimed that generative AI represents a revolution “as big as the shift to 3D” for gaming. This ambitious statement comes as the French gaming giant reveals impressive financial results, with the Assassin’s Creed franchise exceeding expectations and major strategic partnerships reshaping the company’s future.
The AI Revolution: Ubisoft’s Grand Vision
During Ubisoft’s latest earnings call, Guillemot didn’t mince words about the company’s commitment to artificial intelligence. “We are making great strides in applying Gen AI to high-value use cases that bring tangible benefits to our players and teams,” he stated. “It’s as big as a revolution for our industry as the shift to 3D. And we have everything to lead on this front.”
This isn’t just corporate rhetoric—Ubisoft is backing up these words with concrete action. The company has already advanced from AI prototyping to what they call “player reality,” with multiple studios actively exploring AI applications in programming, art, and overall game quality.
Teammates: Ubisoft’s Playable AI Experiment
The most tangible evidence of Ubisoft’s AI ambitions comes in the form of “Teammates,” an R&D experiment that showcases how generative AI can transform gaming experiences. Built by a team of 80 people using Ubisoft’s proprietary Snowdrop engine, Teammates introduces players to AI companions that respond to natural voice commands in real-time.
The experiment features three AI-driven characters:
- Jaspar: An AI voice assistant that can highlight enemies, provide lore details, alter game settings, and even pause the game through simple vocal instructions
- Pablo and Sofia: NPC squadmates who can be directed to assist with combat, puzzle-solving, and tactical positioning
What makes Teammates revolutionary is its use of Google Gemini combined with Ubisoft’s in-house middleware. The system uses behavior trees enhanced with large language models, allowing NPCs to understand context and adapt their responses accordingly. As Xavier Manzanares, Ubisoft’s director of generative AI gameplay, explains: “We use behavior trees, like we did in our games in the past, and then we add a layer with our LLM to take decisions based on this. So, we control design-wise what they can say and do, but then it’s up to the LLM to decide based on the context how it should be done.”
Assassin’s Creed: A Franchise Exceeding All Expectations
While Ubisoft pushes forward with AI innovation, their flagship Assassin’s Creed franchise continues to deliver outstanding results. The company announced that the entire franchise is “over-performing,” with several key milestones achieved:
Assassin’s Creed Mirage Reaches New Heights
The 2023 release Assassin’s Creed Mirage has surpassed an impressive 10 million players, thanks in part to its recent “Valley of Memory” expansion. This Saudi Arabia-funded free update received “very positive” feedback from fans, demonstrating the enduring appeal of the series’ return to a more focused, city-based adventure format.
Assassin’s Creed Shadows: Performance and Potential
Although Ubisoft hasn’t released specific sales figures for this year’s blockbuster Assassin’s Creed Shadows, the company confirmed it has “benefited” from the launch of its New Game+ mode and recent Claws of Awaji expansion. Back in July, Ubisoft announced that Shadows had surpassed 5 million players, with performance “in line with expectations.”
Looking ahead, Ubisoft plans to release Shadows on the upcoming Switch 2 platform, which they believe will help the game “reach a broader audience.” This strategic move could significantly boost the title’s long-term sales potential.
The Black Flag Remake: Gaming’s Most Anticipated Return?
Rumors are swirling about a potential Assassin’s Creed IV: Black Flag remake, with Insider Gaming reporting that it could be Ubisoft’s “unannounced title” scheduled for release before April 2026. The remake is said to feature overhauled game systems and incorporate more of the open-world RPG elements that have defined recent entries in the franchise.
Matt Ryan, the voice of Black Flag protagonist Edward Kenway, fueled speculation earlier this year by teasing the remake at a fan convention. Given the massive success of recent remasters like The Elder Scrolls IV: Oblivion, Ubisoft is likely hoping to capture similar nostalgic enthusiasm for one of the most beloved entries in the Assassin’s Creed series.
Financial Performance: Strong Results Amid Strategic Transformation
Ubisoft’s latest financial results paint a picture of a company in transition but performing well above expectations. The company reported net bookings of €491 million ($567 million) for the July-September quarter, representing a 39% year-on-year increase and beating guidance by approximately €40 million.
The Earnings Delay Mystery Solved
The gaming community was abuzz last week when Ubisoft delayed its earnings report mere minutes before its scheduled release. Speculation ran rampant, with theories ranging from a company sale to a collapsed deal with Chinese conglomerate Tencent. The reality, however, was far more mundane: Ubisoft had appointed new auditors over the summer, who determined that money from various business partnerships needed to be recognized differently in the company’s accounting.
This accounting adjustment temporarily put Ubisoft in breach of its “leverage covenant ratio”—essentially having too much debt relative to income. However, the company plans to use the recent €1.16 billion investment from Tencent to pay down debt and secure more favorable financing terms.
The Tencent-Vantage Studios Partnership
Speaking of Tencent, the Chinese tech giant’s investment in Ubisoft’s new Vantage Studios subsidiary represents a major strategic shift for the company. The deal values Vantage at €3.8 billion ($4.37 billion) and gives Tencent a 26.32% economic interest in the new entity, which will control Ubisoft’s most valuable franchises including Assassin’s Creed, Far Cry, and Rainbow Six.
Key terms of the agreement include:
- Ubisoft retains exclusive control of Vantage Studios
- Tencent must hold its stake for five years unless Ubisoft loses majority interest
- Ubisoft is required to maintain control for at least two years
- The deal provides Ubisoft with crucial capital to support its “strategic ambitions”
This partnership is part of a broader transformation Ubisoft calls its “Creative Houses” initiative, which aims to concentrate decision-making in franchise-based business units for “stronger creative vision, greater focus, efficiency, autonomy and accountability.”
Rainbow Six Siege: Success Amid Challenges
Not all of Ubisoft’s franchises are sailing smoothly, however. Rainbow Six Siege, while remaining one of the company’s most popular titles, has faced significant challenges with cheating issues that have temporarily impacted “activity and player spending versus expectations.”
Despite these headwinds, Rainbow Six Siege saw a substantial player spike over the summer, demonstrating the game’s enduring appeal. Ubisoft has confirmed that the company has “identified the main issues and is actively addressing them with a robust plan,” suggesting that improvements are on the horizon.
The Road Ahead: What’s Next for Ubisoft?
Ubisoft has outlined an ambitious slate of releases for the coming months, with four games planned for Q1 2026:
- Rainbow Six Siege Mobile: Bringing the popular tactical shooter to mobile devices
- The Division Resurgence: A mobile entry in the Division franchise
- Prince of Persia: The Sands of Time Remake: Long-awaited remake of the classic action-adventure game
- Unannounced Title: Potentially the Assassin’s Creed IV: Black Flag remake
Beyond these confirmed titles, Ubisoft continues to work on several highly anticipated sequels that have faced development challenges, including Far Cry 7, a new Ghost Recon installment, and the long-delayed Beyond Good & Evil 2.
Balancing Innovation and Tradition
Ubisoft’s aggressive push into AI technology hasn’t been without controversy. The company recently issued a statement addressing the use of AI art in Anno 117: Pax Romana, joining other publishers like Activision (with Call of Duty: Black Ops 7) and Krafton (with Subnautica 2) in navigating the complex debate around AI-generated content in games.
However, Ubisoft is positioning its AI initiatives as enhancing rather than replacing human creativity. As Virginie Mosser, Narrative Director on the Teammates project, explains: “It’s the exact opposite of removing the human from the process. I still write the story and character personalities, but instead of fixed lines, we create these kinds of fences that let NPCs improvise within the world but stay within the boundaries of the lore and motivations we have given them.”
This approach suggests that Ubisoft is attempting to strike a balance between technological innovation and the human touch that has made their franchises successful for decades.
Expert Perspectives: What Industry Analysts Are Saying
Industry observers have mixed reactions to Ubisoft’s AI ambitions. While some praise the company for embracing cutting-edge technology, others remain skeptical about the practical applications and potential return on investment.
The comparison to the “shift to 3D” is particularly noteworthy, as that transition fundamentally changed gaming in the late 1990s and early 2000s. If Ubisoft’s vision proves correct, we could be on the cusp of similarly transformative changes in how games are developed and experienced.
However, as PC Gamer pointed out in their coverage, the “starry-eyed language of a new industrial revolution” around AI may be losing some of its luster as the industry grapples with the reality of implementing these technologies in meaningful ways.
Conclusion: A Pivotal Moment for Ubisoft
Ubisoft finds itself at a fascinating crossroads. The company is leveraging its strong franchise performance, particularly with Assassin’s Creed, to fund ambitious technological initiatives while navigating complex financial restructuring and industry-wide debates about AI’s role in game development.
The success of this dual strategy—honoring beloved franchises while pushing technological boundaries—will likely determine Ubisoft’s position in the gaming industry for years to come. With the Tencent partnership providing financial stability and the Creative Houses initiative promising more focused development, Ubisoft appears well-positioned to execute its vision.
Whether AI truly represents the next great revolution in gaming remains to be seen, but one thing is certain: Ubisoft is all-in on this bet, and the gaming world will be watching closely to see how it plays out.