Ubisoft opening up a new studio in Toronto.

Video game developer Ubisoft is coming to Toronto as part of a deal with the Ontario government that will create 800 jobs over 10 years.

Premier Dalton McGuinty and Ubisoft Montreal CEO Yannis Mallat say Ubisoft will establish a major video game studio in the city with the help of a $263-million investment over 10 years from the provincial government.

Ubisoft will itself invest more than $500 million in the new studio, set to begin operations before the end of the year.

Ontario has been trying to attract tech-based, creative industries as part of its plan to offset the loss of jobs in the manufacturing sector.

In May, pop superstar Elton John jointed McGuinty to announce a $23-million investment by the province in Toronto's Starz Animation Studio, which specializes in high-end computer-animated films.

French-based Ubisoft, which employs 2,200 people in Quebec and has more than half its global video game production workforce in that province, is one of the world's largest video game publishers.

It established a presence in Vancouver earlier this year.

Ubisoft has created games such as Tom Clancy's "Rainbow Six" and "Prince of Persia."

Ontario has a digital media industry that generates about $1 billion a year.