Tencent’s overarching vision for its games empire is built around three interconnected pillars: live‑service experiences that become part of players’ daily routines, the strategic use of artificial‑intelligence tools to boost productivity, and a portfolio of evergreen intellectual properties that can sustain long‑term community engagement. 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 balances ambition with pragmatism, why some acquisitions are spun off, and how the firm supports its worldwide studio network. ### 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*—as proof that games that evolve over time generate stable revenue streams and foster deep‑rooted player communities.
These games are more than one‑off experiences; they become lifestyle platforms that keep users returning day after day. However, Zhu was quick to qualify this ambition. Live‑service is only one piece of a broader strategy that also values single‑player experiences, especially those that thrive on mobile platforms, and it is not pursued at the expense of other viable business models.
### The Reality of Acquisitions and Studio Independence Since the last time GamesIndustry.biz spoke with Zhu, Tencent’s global footprint has shifted. UK studios Splash Damage and Bulkhead have become independent, following earlier exits by The Chinese Room and Secret Mode in 2025.
Zhu declined to disclose the precise reasons, but emphasized a simple principle: a partnership must bring mutual benefit. If a studio’s direction does not align with Tencent’s long‑term goals, or if a better opportunity exists outside the Tencent umbrella, the company prefers to let the studio flourish on its own. He admitted that cultural differences and market conditions sometimes make integration difficult, and not every acquisition will be a "slam dunk." ### Building Sustainable Communities Through Evergreen IP Evergreen titles—games that can be refreshed, expanded, and re‑imagined over many years—are another cornerstone of Tencent’s plan. Whether a single‑player adventure or a multiplayer arena, the aim is to nurture a community that stays engaged for the long haul.
Zhu cited *Call of Duty* as an example of an evergreen franchise that continually iterates on a core concept, delivering new versions while retaining a loyal fan base. The goal, he explained, is consistency: avoiding the boom‑and‑bust cycles that force studios to lay off staff after a single hit, and instead providing a stable environment where developers can focus on quality and longevity. ### Talent, Synergy, and Global Support Investing in high‑quality talent remains essential.
Zhu stressed that any collaboration must be synergistic: Tencent supplies resources, expertise, and market reach, while the developer contributes creative vision and technical know‑how. His division oversees roughly twenty studios across Europe, North America, and Oceania, including Miniclip, Sumo Digital, Funcom, Fat Shark, Sharkmob, 10 Chambers, Stunlock Studios, Digital Extremes, and Grinding Gear Games. The support model is pragmatic—Tencent offers regional publishing, backend services, testing, analytics, and technical assistance, but leaves core artistic and design decisions to the studios themselves. A concrete illustration of this model is the assistance provided to Funcom on *Dune Awakening*.
Experts from Tencent’s Chinese and European teams worked side‑by‑side with Funcom developers, troubleshooting engine issues and, in some cases, transitioning temporary consultants into permanent staff. Similar support is extended for common challenges, such as optimizing Unreal Engine pipelines or navigating publishing hurdles in the MENA region and Southeast Asia.
### Size Doesn’t Dictate Viability When asked whether Tencent only backs large‑budget projects, Zhu refuted the notion that a £50 million threshold defines the company’s interest. He said the firm evaluates games of all scales, focusing instead on where a studio sits in its development journey and what its ultimate destination might be.
Smaller titles do exist in Tencent’s portfolio, and the company looks to help them grow when the cultural and technical fit is right. Larian Studios and FromSoftware, both minority‑stake partners, serve as "north stars"—they have built a series of purposeful, audience‑building games over time, demonstrating that success does not always require blockbuster budgets. ### Outsourcing, Regional Hubs, and the Future of Development Teams Zhu highlighted a hybrid development model that blends a core internal team with external specialists. This approach, successful on projects like *Star Wars: Galactic Racer* and the upcoming *Expedition 33*, allows studios to scale resources up or down based on the task at hand—whether they need high‑precision artists in a specific location or broader outsourcing partners in a more cost‑effective time zone.
Geographic considerations are crucial: a UK‑based support hub may offer proximity for European studios but comes with higher operating costs, prompting Tencent to weigh trade‑offs carefully. The broader industry trend, noted by Amir Satvat at Gamescom Dev, shows development headcount migrating from expensive regions such as California to emerging hubs across Asia. Zhu agreed, observing that North America is becoming increasingly challenging for studios without a tightly knit, long‑standing team. While creative talent remains valuable, supporting functions—quality assurance, community management, and certain engineering tasks—can be more efficiently placed in lower‑cost locales without sacrificing quality.
### Chinese Studios Gaining Global Recognition Gamescom’s Opening Night Live showcased a wave of polished titles from Chinese developers, prompting speculation about a power shift from West to East. Zhu expressed optimism, noting that high‑profile releases like *Black Myth: Wukong* have raised the bar for console and PC quality, inspiring other Chinese studios to aim higher. Historically, many Chinese teams focused on mobile or outsourced art production, but today they possess the tools and ambition to compete on premium platforms. ### AI as an Enabler, Not a Replacement Artificial intelligence occupies a central place in Tencent’s development philosophy.
Zhu described AI as a productivity enhancer—similar to the internet’s transformative impact—rather than a substitute for human creativity. Developers can leverage AI for concept art, rigging, motion‑matching, code reviews, and even project‑management bots that remind team members of tasks. The company encourages experimentation, provided the tools are used responsibly and ethically. Zhu acknowledged ongoing challenges around copyright and data ownership in generative AI.
Tencent mitigates risk by restricting AI training data to its own libraries and negotiating agreements with tool providers to keep proprietary assets confined within the studio environment. This safeguards against inadvertent leakage of Tencent’s IP into external projects. ### Looking Ahead: Investment, Experimentation, and Engagement Backed by its massive parent corporation, Tencent Games can afford to place bets across a spectrum of scales—from modest indie projects to AAA collaborations.
While recent strategic moves have seen the company divest from Bulkhead and Splash Damage and redirect resources toward other studios, it also announced a minority investment in W4, the commercial partner behind the open‑source Godot engine. Zhu hinted that future Gamescom conversations will feature new initiatives, but the constant thread remains engagement: whether through live‑service updates, evergreen franchises, or cutting‑edge AI tools, the ultimate metric is how many players stay entertained and invested. In Zhu’s own words, "I sit in games, which is part of a bigger Tencent ecosystem, and my purview is always about how do we keep people engaged, make sure that they're having fun. Because, to put it bluntly, the more people love your game, the more they’ll play it, and that translates directly to the bottom line."