Rayman creator Michel Ancel has formed a new studio called Wild Sheep, reports Game Informer.
Ancel will, however, remain working with Ubisoft on a number of projects including the much-anticipated sequel to 2003 classic Beyond Good & Evil.
"Ubisoft Montpellier is a hotbed for artistic game development, including great games like Rayman, Beyond Good and Evil, and Valiant Hearts," commented said Ubisoft Annecy, Paris, and Montpellier managing director Xavier Poix in a statement to the site.
"We are fortunate to have some of the industry's finest talents, including Michel Ancel, working with us at our studio. In addition to spending some of his time on this new venture, Michel is leading the creative development of select projects at Ubisoft Montpellier, including an extremely ambitious new title that is very close to his and the team's heart."
While there's no word on what these 'new ventures' entail, a Ubisoft spokesperson has confirmed to Eurogamer that Ancel will continue work on a long-teased but still unrevealed Beyond Good & Evil sequel.
"It's still far too early to give many details about this new title, but what we can say is that while Michel and the team at Ubisoft Montpellier are working with the core tenets of BG&E, they're developing something that aspires to push past the boundaries of a proverbial sequel and leverages next-gen technologies to deliver a truly surprising, innovative and exceptional game," said the rep.
"The entire team is excited about the direction this extremely ambitious project is taking, and we'll have more to share later, as it progresses."
Info on the sequel has been slim, with the most recent glimpse of BG&E 2 offered to players in April when Ancel briefly showed new concept art for heroine Jade during a Rayman Legends livestream.
Ancel told press last year that Beyond Good & Evil 2 has ideas that are too big in scale for last-gen consoles to handle, alluding to a new-gen-only release.