Ubisoft, one of the world's largest video game publishers, will be opening a major studio in Toronto, a move that will generate 800 jobs in Ontario, Premier Dalton McGuinty said Monday.

The studio is slated to begin operations by the end of the year.

The province is chipping in $263 million over 10 years to help set up the studio, while Ubisoft is investing more than $500 million.

"Our world is one where you can borrow capital, you can copy technology and you can buy natural resources," said McGuinty at a Toronto news conference Monday afternoon. "But to build a high wage and a high standard of living you need talent. By investing in Ubisoft we're building Ontario's economy now and for the future."

UbiSoft Montreal CEO Yannis Mallat said the announcement marks "an exciting milestone" for the French firm.

The company, which already has a studio in Montreal and employs more than 2,200 in Quebec, also set up a presence in Vancouver earlier this year.

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

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.

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

With files from The Canadian Press