Tencent’s overarching game‑development blueprint is built around three pillars: live‑service experiences, artificial‑intelligence‑enhanced tools, and evergreen intellectual property that can thrive across platforms and years. In a recent, in‑depth interview, Yong‑yi Zhu—Vice President and head of Operations, Strategy and Compliance for Tencent Games—laid out how the company is weaving these elements together, while also navigating the inevitable setbacks that come with a portfolio the size of Tencent’s.
### Live Service as a Core Objective, Not a Sole Focus Zhu opened the conversation by calling live service the "holy grail" for Tencent. He pointed to the company’s DNA—titles such as *Honor of Kings*, *League of Legends* and *Valorant*—which have evolved into ecosystems that keep players engaged for months and even years.
"These games build on themselves, creating stable revenue streams and vibrant communities," he said. The goal, according to Zhu, is to turn a game from a single‑player experience into a lifestyle that players weave into their daily routines.
However, Zhu was quick to stress that live service is only one facet of a broader strategy. While Tencent continues to back ambitious live‑service projects, it also acknowledges that not every title will succeed in that model. The recent collapse of *Highguard*, a game reportedly supported by Tencent’s TiMi Studio Group, illustrates that even well‑funded projects can falter. Yet, rather than retreating from the live‑service promise, Tencent is refining its approach, seeking partnerships where both sides bring clear value.
### Strategic Partnerships and Studio Autonomy Over the past year, several of Tencent’s Western studios—Splash Damage, Bulkhead, The Chinese Room and Secret Mode—have spun out as independent entities. Zhu declined to detail the negotiations but explained that Tencent evaluates each relationship on synergy and strategic fit. "If a studio can thrive better on its own, we support that decision," he noted, adding that sometimes cultural differences or market conditions make integration difficult. The company’s philosophy is to nurture studios that can contribute to long‑term community building, whether they remain under Tencent’s umbrella or operate independently.
### Evergreen IPs and Sustainable Communities Beyond live service, evergreen titles—games that retain relevance over many years—are central to Tencent’s plan. This includes both single‑player experiences, which dominate the mobile segment, and multiplayer franchises that can evolve through expansions and seasonal content.
Zhu cited *Call of Duty* as an example of an evergreen IP that persists through iterative releases, demonstrating how a strong brand can sustain engagement without relying solely on a live‑service framework. ### Global Studio Network and Support Infrastructure Zhu oversees roughly twenty studios worldwide, ranging from Miniclip and Sumo Digital in Europe to Digital Extremes in North America and Grinding Gear Games in New Zealand. His focus is less on geographic expansion and more on ensuring each studio has the resources needed for successful launches. This support includes regional publishing expertise, technical assistance, backend services, and data‑driven analysis.
For instance, when Funcom worked on *Dune Awakening*, experts from China and Europe collaborated on‑site, providing hands‑on problem solving and, in some cases, transitioning temporary consultants into permanent staff. Creative direction largely stays with the individual studios, but Tencent steps in on cross‑cutting challenges such as Unreal Engine optimization or regional publishing logistics in markets like MENA and Southeast Asia.
This hybrid model allows studios to retain artistic autonomy while benefiting from Tencent’s scale and operational know‑how. ### Balancing Large‑Scale and Small‑Scale Projects When asked whether Tencent favors big live‑service titles over smaller projects, Zhu emphasized that the decision hinges on each studio’s DNA and market positioning. Funcom, for example, had already been operating *Conan Exiles* as a live service before Tencent’s acquisition, making it a natural fit for continued support. Conversely, other studios that experimented with live service and found it unsuitable have pivoted back to premium, single‑player experiences—areas where they have historically excelled.
Contrary to rumors that Tencent only backs games with budgets exceeding £50 million, Zhu clarified that the company evaluates projects of all scales. The key factor is the studio’s stage in its development journey and the potential for growth. Smaller titles do exist in Tencent’s portfolio, and the firm looks for opportunities to help them scale, provided there is cultural and strategic alignment.
### Talent Investment and Knowledge Transfer A recurring theme in Zhu’s remarks is the importance of high‑quality talent and the exchange of best practices across the group. By fostering a collaborative environment, Tencent aims to lift the overall craft of its studios. He highlighted Larian Studios and FromSoftware—both minority‑owned by Tencent—as “north stars” that exemplify how incremental, purpose‑driven development can build lasting audiences. ### The Role of AI as an Enabler, Not a Replacement AI tools feature prominently in Tencent’s vision for the future of game development.
Zhu stressed that AI is meant to augment human creators, making them more efficient rather than substituting them. Applications range from concept‑art generation and rigging to code review, motion matching, and even automated project‑management bots in communication platforms like Slack.
He pointed out that Chinese developers, having grown up with AI as a standard utility, are especially adept at integrating these tools into their pipelines. In the West, Zhu observed a more cautious attitude toward AI due to concerns over ethics, copyright, and player perception. Nevertheless, he urged developers to view AI as a legitimate instrument, akin to the internet’s impact on society.
"People should not be afraid of AI; it’s just another technology that can boost productivity," he said. ### Navigating Copyright and Data Security The proliferation of generative AI raises complex intellectual‑property questions. Tencent mitigates risk by ensuring that AI models are trained exclusively on internal assets, preventing external data from contaminating proprietary content. Contracts with AI vendors explicitly forbid the leakage of Tencent’s data, safeguarding the company’s creative output from unintended duplication in other products.
### Outlook and Future Investments With backing from its massive parent corporation, Tencent Games can experiment across a spectrum of bets—from large AAA collaborations to niche indie projects. While recent moves include divesting from Bulkhead and Splash Damage and redirecting resources toward Lightspeed, the company also announced a minority stake in W4, the commercial partner behind the open‑source Godot engine. Zhu hinted that upcoming Gamescom showcases will likely feature new initiatives that blend live‑service mechanics, AI‑driven workflows, and evergreen IP development. In summary, Tencent’s long‑term strategy is a balanced tapestry of live‑service ambition, evergreen franchise cultivation, AI‑enhanced production, and a global network of studios supported by shared expertise.
By focusing on sustainable community engagement and leveraging technology as a productivity catalyst, Tencent aims to keep players invested, thereby translating enthusiasm into lasting financial success.