** Shares in French videogame maker Ubisoft UBIP.PA fall further on Tuesday as plans to set up a new unit housing three of its most popular franchises continue to weigh

** Stock down 3.6% at 0905 GMT, extending Monday's losses when it shed 12%

** It was trading between 12% up and 6% down on Friday, the first trading day after Ubisoft announced the plan, ultimately closing 2% lower

** Some investors fear that most of the value will end up in the new subsidiary, while the capital increase also raises concerns over the group's cost control, Midcap analyst Charles-Louis Planade says

** Cantor Fitzgerald analyst Edward James says Ubisoft shareholders will now be getting less economic value of the only reason why they would buy the shares - the best three franchises

** James adds the core underlying outlook for the company has not changed, with the same management running things

** Both analysts also point to underperformance of Ubisoft's newest game, "Assassin's Creed Shadows", as sales struggle to offset R&D expenses

(Reporting by Alban Kacher, Anna Pruchnicka)

((alban.kacher@thomsonreuters.com ; +48 58 769 65 87))