http://www.next-gen.biz/index.php?option=com_content&task=view&id=9955&Itemid=59

By Tom Ivan

Established in 2006, the studio currently has a team of 120 developers and testers that will initially focus on porting titles to handheld consoles and reinforcing Ubisoft’s testing teams. Ubisoft aims to grow the studio’s headcount to 200 within twelve months time and to 500 in the coming years.

"Following on the recent announcement of our new Singapore studio, this acquisition will reinforce Ubisoft’s presence in Asia and the southeast region in particular,” said Christine Burgess-Quémard, executive director of worldwide studios at Ubisoft.

“India has a promising future in the videogame industry and this is an opportunity for us to establish ourselves in the country."

The agreement is expected to close during the first quarter of the 2008-09 fiscal year.

waste of money imo

Waste of money? In what sense?

Presumably it is cheaper to make games in India than in most other countries, and it will be one of the most important markets in the future due to it's population size and economic growth rate.

On top of that, expansion in to these relatively untapped regions will go some way to breaking the hegemony that Japan has over games development in Asia, and potentially offer more original and culturally diverse games in the process.

I really fail to see a downside.

Expect a Chinese development studio to be acquired too by a famous developer. Chinese market over 2 billion population a huge market to be tapped into.