Tencent’s overarching plan for the future of gaming is built around three pillars: live‑service experiences, advanced AI tools, and the cultivation of evergreen titles that can thrive for years. In a recent, in‑depth conversation with Yong‑yi Zhu, Vice President and head of operations, strategy and compliance for Tencent Games, the company’s nuanced approach became clear.
While the allure of live‑service games—titles that evolve continuously and keep players engaged over long periods—remains a central focus, Zhu emphasized that this is only one component of a broader, multi‑faceted strategy. Live‑service as a “holy grail” Zhu described live‑service games as the "holy grail" for Tencent, pointing to the company’s own DNA: blockbuster franchises such as *Honor of Kings*, *League of Legends* and *Valorant*. These games are not one‑off releases; they are platforms that expand, introduce new content, and nurture communities that become part of players’ daily lives. The stability that such ecosystems provide to studios is a key advantage, allowing developers to shift from short, campaign‑style releases to products that become lifestyle choices for millions.
However, Zhu was quick to note that live‑service is not a blanket solution for every studio or every genre. The company evaluates each partnership on whether it adds mutual value and aligns with long‑term strategic goals.
Strategic divestments and studio autonomy Since the last interview a year ago, Tencent has let several of its Western studios—Splash Damage, Bulkhead, The Chinese Room and Secret Mode—go independent. Zhu explained that these moves were not driven by financial distress but by a strategic assessment of fit. "If the partnership doesn’t amplify the game or if there’s a lack of synergy with our long‑term vision, we may decide the studio is better off standing on its own," he said. This pragmatic stance acknowledges that not every acquisition will integrate smoothly due to market conditions, cultural differences, or divergent creative directions.
Evergreen titles and community building Beyond live‑service, Zhu highlighted the importance of evergreen IPs—games that maintain relevance over many years, whether through regular updates or sequels that build on a solid foundation. He cited *Call of Duty* as an example of an evergreen franchise that, despite being released as a series of distinct titles, retains a consistent player base and brand identity. For Tencent, evergreen titles can exist across single‑player and multiplayer spaces, with a particular emphasis on mobile games where the company already commands a massive audience.
Support infrastructure for global studios Zhu oversees roughly twenty studios worldwide, including Miniclip, Sumo Digital, Funcom, Fat Shark, Sharkmob, 10 Chambers, Stunlock Studios, Digital Extremes and Grinding Gear Games. His role is less about dictating creative direction and more about ensuring each studio receives the backing it needs to launch and sustain its products. This support spans regional publishing, technical assistance, testing, backend services, and data analytics.
A concrete example is the collaboration on *Dune Awakening*, where experts from both China and Europe worked side‑by‑side with Funcom’s developers to troubleshoot engine issues and streamline production pipelines. In some cases, these external specialists transition into permanent roles within the studio, further cementing the partnership. Tailored approaches for different studios Zhu stressed that the level of Tencent’s involvement varies by studio.
Studios with a strong live‑service DNA, such as Funcom—already managing *Conan Exiles*—receive focused support to expand those ongoing experiences. Other studios that attempted live‑service but found it misaligned with their strengths have pivoted toward premium, single‑player experiences, which remain their core competency. The company’s goal is to help each studio become “best in class” within its chosen niche, whether that is large‑scale live‑service, high‑budget AAA, or smaller, craft‑focused titles.
Size does not dictate interest Contrary to rumors that Tencent only pursues projects exceeding £50 million, Zhu clarified that the firm evaluates games of all scales. The decisive factor is the studio’s stage in its development journey and the potential for mutual growth. Small‑scale projects are present in Tencent’s portfolio, and the company looks for opportunities where its expertise—be it in publishing, technology, or community management—can accelerate a studio’s ambitions.
Cross‑studio learning and outsourcing models Zhu described an evolving model where core teams are supplemented by external talent, a practice that proved successful for titles like *Star Wars: Galactic Racer*. The balance between in‑house staff and outsourced specialists is determined by the specific needs of a project, such as the requirement for high‑precision work in a particular location. Geographic considerations also play a role; for example, Sumo Digital may support European studios due to proximity, while cost‑effectiveness drives decisions about where to locate support functions.
The shifting geography of game development The conversation touched on broader industry trends, noting a migration of development headcount from high‑cost regions like California to more affordable locations across Asia. Zhu agreed that North America is becoming increasingly challenging for large teams, especially for support functions that do not require proximity to the core creative hub. This realignment mirrors observations from industry leaders such as Amir Satvat, who highlighted the rise of development hubs outside traditional Western centers. Rise of Chinese studios on the global stage At this year’s Gamescom Opening Night Live, a noticeable presence of polished Chinese titles signaled a potential power shift.
Zhu expressed optimism, pointing to games like *Black Myth: Wukong* that have raised the bar for console and PC quality in China. He noted that Chinese developers, historically known for high‑quality mobile experiences, are now mastering the standards expected of AAA console games, aided by improved tooling and a cultural embrace of AI.
AI as an empowerment tool, not a replacement AI features prominently in Tencent’s vision for the future of game creation. Zhu framed AI as a productivity enhancer rather than a substitute for human talent.
By integrating AI into concept art generation, rigging, motion matching, code review, and even production management (e.g., AI bots in Slack), development teams can achieve higher output with smaller, tightly‑knit groups. He emphasized that AI should be used responsibly, ensuring that generated content derives from the company’s own libraries to avoid copyright complications.
Tencent therefore negotiates strict data‑use agreements with AI providers to keep intellectual property confined within its ecosystem. Balancing innovation with ethical considerations While enthusiastic about AI’s potential, Zhu acknowledged ongoing challenges, particularly around the legal status of AI‑generated assets and the need for clear industry guidelines.
The company’s stance is to leverage AI where it adds value—such as automating repetitive tasks—while maintaining human oversight for creative decisions and ensuring that any AI‑produced material respects existing IP rights. Conclusion: engagement above all Ultimately, Zhu’s message distilled to a single principle: sustained player engagement drives everything else. Whether through live‑service ecosystems, evergreen franchises, or cutting‑edge AI tools, Tencent’s strategy aims to keep gamers invested and entertained, which in turn fuels the company’s financial health. By fostering strong community ties, supporting studios with tailored resources, and embracing technological innovation responsibly, Tencent positions itself to remain a dominant force in the global gaming landscape for years to come.