Quebec is cutting back on $500 million in subsidiary bonuses, La Press reported, which will cost Ubisoft Montreal and Ubisoft Quebec large quantities of government-funded production dollars. Ubisoft Montreal CEO Yannis Mallat told IGN, "I think we need to analyze with this means for us. Then once the analysis is done, we’ll be able to decide what the next stage is for us."

Eidos Montreal and WB Montreal will also be affected by the cuts, which Develop confirmed as "slashed to as low as 24% on games produced in English." Ubisoft was founded on government funding , and continued to receive benefits since 1997. In 2005, it received $19 million to create 1000 new employment positions for the Montreal studio."I think what Quebec has become over the years in terms of video game development, it’s not a hotbed," Mallat said. "So obviously this tax program was here to help build that environment. So we see this program as an important reason for the growth of the sector in Quebec."Ubisoft Montreal has grown substantially in recent years, with the acquisition of THQ Montreal offering a new building with hundreds of new employees. I asked Mallat if Quebec's cuts would affect continued growth for the company, and whether or not this could contribute to layoffs."We value the knowledge-building of our developers, and we’re still embarked to reach the numbers, but that’s not our principal goal," Mallat said. "People always say, ‘Oh wow, you can become the biggest studio in the world.’"This is the purpose of Ubisoft Montreal, he said. "The point is to make sure that we make the best games. So this environment is the one thing that keeps me awake at night, in terms of making sure that we stay creative and that we stay close to our people. I think we have a pretty good structure that is delivering year after year. I think we’re good."

Mitch Dyer is an associate editor at IGN. He's trying to read 50 books in 2014. These are the 50 . Talk to Mitch about books and other stuff on Twitter at @MitchyD and subscribe to MitchyD on Twitch