Tencent’s strategic roadmap is anchored in three interlocking pillars: the pursuit of live‑service experiences, the integration of advanced AI tools, and the cultivation of evergreen intellectual property. While the industry has seen mixed results from the live‑service model—Sony’s high‑profile missteps and Capcom’s steadier performance—Tencent remains convinced that the model offers a sustainable revenue stream and a deeper connection with players. Yong‑yi Zhu, Vice‑President and head of operations, strategy and compliance at Tencent Games, summed up the company’s philosophy: “Our holy grail is live service.
Look at our DNA—Honor of Kings, League of Legends, Valorant—these titles evolve over time, creating stable communities and turning games into lifestyles rather than one‑off experiences.” This perspective underscores why Tencent continues to invest heavily in live‑service projects despite recent setbacks, such as the cancellation of Highguard, a title reportedly backed by TiMi Studio Group. Zhu clarified that live service is only one facet of a broader, more nuanced plan.
Over the past year, Tencent has re‑evaluated several of its Western acquisitions. Studios like Splash Damage and Bulkhead have been spun out, following earlier separations of The Chinese Room and Secret Mode. Zhu explained that the company looks for partnerships that generate mutual value; when a studio’s direction diverges from Tencent’s long‑term goals, a split can be the most beneficial outcome for both parties. Integration challenges are inevitable.
Zhu admitted that cultural differences and market conditions sometimes hinder smooth assimilation of new studios. “Not every acquisition will be a slam dunk,” he said, noting that the firm’s approach is pragmatic rather than dogmatic. A cornerstone of Tencent’s strategy is the development of evergreen titles—games that retain relevance and player interest over many years. This includes both single‑player experiences, which are well‑represented in Tencent’s mobile portfolio, and multiplayer services that foster ongoing community interaction.
Zhu cited Call of Duty as an example of an evergreen IP that evolves through successive releases while maintaining a loyal fan base. Stability is a recurring theme.
Zhu contrasted the volatile cycles of many premium games—where a hit title can be followed by layoffs—with Tencent’s aim to provide a more consistent employment environment for its studios. This stability is reinforced by the company’s emphasis on recruiting high‑quality talent that aligns synergistically with Tencent’s objectives. 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 can include regional publishing expertise, technical assistance, backend infrastructure, and data analytics—areas where Tencent has deep domestic experience and now seeks to apply globally.
A concrete illustration of this collaborative model is the assistance provided to Funcom on the live‑service title Dune Awakening. Engineers from China and Europe worked side‑by‑side with Funcom’s team, troubleshooting issues in real time.
When a problem persisted, Tencent sometimes offered to place its specialists permanently within the studio, turning short‑term aid into long‑term talent acquisition. Creative direction, however, largely remains with the individual studios. Tencent steps in only when there are cross‑studio technical challenges, such as optimizing Unreal Engine pipelines or navigating regional publishing hurdles in markets like the Middle East, North Africa, or Southeast Asia.
The question of scale also arises. While some observers claim Tencent only backs projects exceeding £50 million, Zhu disputed this, emphasizing that the company evaluates games of all sizes based on a studio’s stage of development and its ultimate aspirations. He highlighted Larian Studios and FromSoftware—both minority‑owned by Tencent—as exemplars of studios that have built enduring franchises through purposeful, incremental growth rather than blockbuster budgets alone. Outsourcing and hybrid development models are another area of focus.
Tencent is experimenting with core internal teams supplemented by external vendors, a strategy that proved effective for titles like Star Wars: Galactic Racer. The decision on how many staff to retain in‑house versus outsource depends on the need for specialized expertise and the geographic considerations of time zones and cost. Zhu acknowledged the shifting landscape of talent distribution. As Amir Satvat noted at Gamescom, development headcount is moving from expensive hubs such as California to more cost‑effective regions across Asia.
Zhu agreed, noting that while North America still houses high‑performing, tightly knit teams, support functions are better situated in locations with lower overhead. The rise of Chinese studios on the global stage was evident at Gamescom’s Opening Night Live, featuring a slate of polished titles that suggest a power shift toward the East.
Zhu expressed optimism, noting that successes like Black Myth: Wukong have raised the bar for Chinese developers, who are now applying their mobile‑game expertise to console and PC experiences. Improved tooling, especially AI‑driven solutions, is helping bridge the quality gap. AI, in particular, is framed as an enhancer rather than a replacement. Zhu described AI as a productivity multiplier that assists with concept art, rigging, motion matching, code review, and even project‑management bots in communication platforms.
He stressed that Tencent encourages developers to experiment with AI, while also being mindful of copyright and data‑ownership concerns. Tencent ensures that AI tools are trained on proprietary libraries to avoid infringing on external IP, and it negotiates strict data‑use agreements with tool providers. In summary, Tencent’s overarching goal is to keep players engaged across a spectrum of experiences—whether through live‑service ecosystems, evergreen franchises, or innovative AI‑augmented workflows.
By fostering stable, well‑supported studios and embracing both large‑scale and boutique projects, Tencent aims to create a resilient, globally integrated gaming portfolio that can adapt to evolving market dynamics while delivering consistent value to both creators and consumers.