Tencent’s strategic roadmap is built around three pillars: live‑service experiences, advanced AI tooling, and the cultivation of evergreen titles that can sustain long‑term player communities. In a recent deep‑dive with Yong‑yi Zhu, Vice‑President and Head of Operations, Strategy and Compliance for Tencent Games, the company’s nuanced approach to growth and acquisition was laid out in detail. ### Live Service as a Core Pillar, Not a Sole Focus Zhu acknowledges that live‑service games are often touted as the "holy grail" of modern publishing because they generate recurring revenue and foster persistent player engagement. He points to Tencent’s own DNA—titles such as *Honor of Kings*, *League of Legends* and *Valorant*—as exemplars of games that continually evolve and nurture vibrant ecosystems.
These products provide financial stability for studios and create a lifestyle‑oriented experience for gamers, rather than a fleeting burst of excitement. However, Zhu stresses that live service is only one component of a broader strategy.
While Tencent continues to back ambitious live‑service projects, it also invests heavily in titles that may not fit the traditional service model but still promise lasting community value. The company’s portfolio includes both single‑player and multiplayer evergreen franchises, especially within its mobile segment, where long‑term retention is crucial. ### Selective Partnerships and Studio Autonomy Since the last interview a year ago, Tencent has let several Western studios—Splash Damage, Bulkhead, The Chinese Room, and Secret Mode—spin out as independent entities.
Zhu explains that these separations were driven by a lack of strategic synergy rather than any failure on the part of the studios. "If the partnership doesn’t amplify the game or align with our long‑term goals, it’s often better for the studio to stand on its own," he says. This pragmatic stance acknowledges that not every acquisition will integrate smoothly due to market conditions or cultural differences.
### Building Sustainable Communities Evergreen titles are central to Tencent’s vision of sustainable growth. Whether a game is a massive multiplayer online experience or a narrative‑driven single‑player adventure, the aim is to keep players engaged over years rather than months.
Zhu cites *Call of Duty* as an example of an evergreen IP that evolves through successive releases while maintaining a loyal fan base. The company seeks to replicate this model by nurturing IPs that can be expanded, refreshed, and re‑imagined without losing their core identity. ### Talent, Expertise, and Global Support Another cornerstone of Tencent’s plan is the acquisition and development of high‑quality talent.
Zhu 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 emphasis is on creating a symbiotic relationship where both Tencent and the developer bring valuable resources to the table. The support model extends beyond capital.
Tencent offers regional publishing expertise, technical assistance, backend services, testing, and data analytics. For instance, when Funcom worked on *Dune Awakening*, engineers from both China and Europe collaborated on‑site, sharing knowledge on engine optimisation and live‑ops challenges.
In some cases, these consultants transition into permanent hires if the partnership proves fruitful. ### Balancing Scale: From AAA to Indie When asked about the size of projects Tencent pursues, Zhu refutes the notion that the company only backs multi‑hundred‑million‑dollar ventures. While some executives have suggested a £50 million minimum, Zhu clarifies that the firm evaluates games of all scales based on the studio’s development stage and long‑term potential. Smaller projects are present in the portfolio, and the company looks for studios that can benefit from its expertise, regardless of budget.
Larian Studios and FromSoftware serve as “north stars” for Tencent’s investment philosophy. Both hold minority stakes and have demonstrated a steady, purposeful growth trajectory, producing games that may not always be blockbuster hits but consistently expand their audience and refine their craft. ### Cross‑Regional Collaboration and Outsourcing Zhu admits that attempts to tightly integrate Chinese support teams with Western studios have progressed slower than hoped, largely due to time‑zone challenges. Consequently, the focus has shifted toward disseminating best practices across the global network.
The company also embraces a hybrid staffing model: core internal teams are supplemented by external vendors when specialised skills or geographic proximity are required. For example, Sumo Digital may support European studios, while cost considerations influence decisions about UK‑based outsourcing. This approach mirrors broader industry trends highlighted at Gamescom Dev, where headcount is moving from expensive North‑American hubs to more cost‑effective regions in Asia and Eastern Europe.
Zhu notes that while North America remains a talent‑rich environment, maintaining large support teams there is financially unsustainable for many publishers. ### The Rise of Chinese Studios on the Global Stage The prominence of Chinese developers at recent gaming showcases signals a shifting power balance. Zhu expresses optimism that high‑quality console and PC titles from China—such as *Black Myth: Wukong*—are raising the bar for global standards.
He believes Chinese teams, traditionally strong in mobile, are now mastering the aesthetics and technical polish expected of premium Western releases. ### AI as an Enabler, Not a Replacement Artificial intelligence features heavily in Tencent’s future roadmap. Zhu frames AI as a productivity tool that augments human creators rather than supplanting them.
From concept art generation and rigging to code review and motion‑matching, AI assists developers in iterating faster and achieving higher quality output with smaller teams. He emphasizes that Chinese studios have grown up alongside these tools, making them more receptive to AI integration than some Western counterparts, which may harbour ethical or copyright concerns.
Nevertheless, Zhu acknowledges unresolved legal questions surrounding generative AI, particularly the ownership of content derived from external data sources. Tencent mitigates risk by restricting AI training data to its own proprietary libraries and negotiating strict agreements with tool providers to prevent inadvertent leakage of intellectual property. ### Looking Ahead With the backing of its massive parent corporation, Tencent Games can experiment across a spectrum of investments—from large‑scale live‑service titles to niche indie projects. Recent moves include a minority stake in W4, the commercial partner behind the open‑source Godot engine, indicating an appetite for fostering innovative development ecosystems.
Ultimately, Zhu’s guiding principle remains consistent: keep players engaged and entertained. Whether through a persistent live‑service world, a timeless single‑player saga, or cutting‑edge AI‑driven workflows, the goal is to deliver experiences that resonate with audiences and translate into sustainable revenue for both developers and Tencent’s broader ecosystem.