Tencent’s strategic roadmap is built around three pillars: live‑service games, cutting‑edge AI utilities, and evergreen intellectual property that can sustain player communities for years. In a recent, in‑depth interview, Yong‑yi Zhu, Vice President and head of operations, strategy and compliance for Tencent Games, painted a nuanced picture of how the Chinese tech giant balances ambition with practicality.
For many industry observers, the push toward live‑service models has seemed like a gamble. Sony’s missteps with certain service‑oriented titles and the collapse of projects such as Highguard—once linked to Tencent’s TiMi Studio Group—have fed skepticism. Yet Zhu insists that live service remains the "holy grail" for Tencent.
He points to the company’s DNA: flagship titles like *Honor of Kings*, *League of Legends*, and *Valorant* are all built on a foundation of continuous updates, community interaction, and recurring revenue streams. "These games evolve with their players, turning a simple pastime into a lifestyle," he explained.
Live service, however, is only one strand of a broader tapestry. Over the past year, Tencent has reshaped its global studio portfolio.
Notable Western studios such as Splash Damage and Bulkhead have been spun out as independent entities, echoing earlier separations of The Chinese Room and Secret Mode in 2025. Zhu declined to reveal the exact motivations, but emphasized a simple principle: partnerships must be mutually beneficial.
"If a studio can thrive on its own, sometimes it’s better for them to go solo," he said, noting that misaligned visions or cultural mismatches can make integration difficult. The company’s acquisition strategy acknowledges that not every deal will be a home run. Market conditions, regional nuances, and differing corporate cultures can hinder smooth assimilation.
Zhu admits that some studios have proven challenging to integrate, but he remains optimistic that the overall portfolio will continue to grow in value. Evergreen titles—whether single‑player experiences or multiplayer ecosystems—are another cornerstone of Tencent’s plan.
While many of its mobile games fall into the single‑player category, the overarching goal is to nurture long‑lasting communities that keep players engaged over extended periods. Zhu cites *Call of Duty* as an example of an evergreen IP that, despite being released as successive installments, maintains a consistent player base and revenue flow. Stability is a recurring theme in Zhu’s narrative.
He contrasts the boom‑and‑bust cycles of many premium releases with Tencent’s desire for consistent, predictable performance. By investing in high‑quality talent and ensuring that each studio receives the right mix of support—regional publishing expertise, technical assistance, testing, backend infrastructure, and data analytics—Tencent hopes to mitigate the volatility that plagues the industry. Zhu oversees roughly twenty studios worldwide, ranging from European powerhouses like Miniclip, Sumo Digital, Funcom, Fat Shark, Sharkmob, 10 Chambers, and Stunlock Studios, to North American and Oceania players such as Digital Extremes and Grinding Gear Games. His focus is less about geographic expansion and more about guaranteeing that each studio has the resources it needs to launch successful titles.
For instance, when Funcom was developing *Dune Awakening*, experts from both China and Europe were embedded on‑site to troubleshoot technical issues and share best practices. In some cases, these consultants transition into permanent staff if the collaboration proves fruitful. Creative direction largely stays with the individual studios, but Tencent steps in when common challenges arise—whether it’s optimizing Unreal Engine pipelines or navigating publishing hurdles in regions like the Middle East, North Africa, or Southeast Asia.
This hybrid model allows studios to retain artistic autonomy while benefiting from Tencent’s global infrastructure. The question of scale also surfaces in the conversation. While some critics claim Tencent only backs projects exceeding £50 million, Zhu refutes that notion.
He stresses that the company evaluates games of all sizes based on the studio’s stage of development and long‑term aspirations. Small‑scale titles do exist within Tencent’s portfolio, and the firm is open to nurturing them if the partnership aligns with its strategic objectives. Zhu highlights Larian Studios and FromSoftware as “north stars” for Tencent’s investment philosophy. Though Tencent holds minority stakes, both studios have demonstrated how a steady, purposeful approach to game development can build dedicated audiences without relying on blockbuster budgets.
Their success underscores the idea that size is not the sole determinant of value. On the operational front, Tencent’s earlier ambition to fuse its Chinese and Western divisions through joint support teams has encountered logistical obstacles, especially time‑zone differences. The focus has therefore shifted toward cross‑studio knowledge transfer.
Zhu envisions a future where small, core development teams are supplemented by external specialists—a model that proved effective for *Star Wars: Galactic Racer* and is being considered for upcoming projects like *Expedition 33*. Outsourcing decisions are heavily influenced by geography. Proximity can reduce latency and improve collaboration, but cost considerations remain pivotal. For example, Sumo Digital may support European studios due to its location, even though operating from the UK carries higher expenses.
This balancing act reflects broader industry trends highlighted by Amir Satvat at Gamescom Dev, where talent migration from high‑cost regions such as California to more affordable Asian hubs is accelerating. The conversation also turned to the rising prominence of Chinese studios on the global stage. Zhu expressed optimism that high‑quality console and PC titles from China—exemplified by *Black Myth: Wukong*—are raising the bar for worldwide standards. He noted that Chinese developers, traditionally known for mobile expertise, are now leveraging sophisticated tools and pipelines to produce AAA‑level experiences.
Artificial intelligence is a key enabler in this transformation. Zhu emphasizes that AI is not intended to replace human creators but to augment their capabilities. From concept art generation and rigging to code review and production management bots, AI tools are being integrated across the development pipeline.
Tencent encourages its partners to adopt these technologies, while remaining vigilant about intellectual‑property concerns. The company insists that AI models should be trained exclusively on internally owned assets to avoid copyright infringements, and it negotiates strict data‑use agreements with tool providers to keep proprietary information confined within its ecosystem. In summary, Tencent’s long‑term strategy weaves together live‑service ambition, evergreen IP cultivation, talent acquisition, and AI‑driven efficiency.
By providing studios with tailored support—whether through technical expertise, regional publishing channels, or strategic investment—Tencent aims to keep players engaged and, ultimately, drive sustainable revenue growth. As Zhu succinctly put it, "We sit in games, which are part of a larger Tencent ecosystem, and our job is to make sure people keep having fun.
The more they love the game, the better it is for the bottom line."