Tencent’s strategic roadmap is built around three interlocking pillars: the expansion of live‑service experiences, the integration of advanced AI tools, and the cultivation of evergreen intellectual property that can sustain communities over many years. In a recent, in‑depth interview, Yong‑yi Zhu, Vice‑President and head of Operations, Strategy and Compliance for Tencent Games, explained how these elements combine to create a resilient, future‑proof portfolio. The first pillar, live‑service games, remains the company’s "holy grail." Zhu points to Tencent’s DNA—titles such as *Honor of Kings*, *League of Legends* and *Valorant*—as proof that games which evolve over time, fostering ongoing player interaction, generate stable revenue streams and strong community bonds.
"These games become a lifestyle, not just a one‑off experience," he says. While other publishers have stumbled on the live‑service model—Sony’s missteps and the recent collapse of the Tencent‑backed *Highguard* illustrate the risks—Tencent continues to double down, believing that the long‑term benefits outweigh short‑term volatility.
However, live service is only one facet of a broader strategy. Zhu notes that the company’s portfolio is deliberately diverse, encompassing both multiplayer live‑service titles and single‑player evergreen experiences, especially within its mobile segment. The goal is to build sustainable communities that keep players engaged for years, regardless of whether the product is a constantly updated online world or a narrative‑driven adventure that receives periodic expansions.
The second pillar is talent and partnership synergy. Tencent does not acquire studios indiscriminately; instead, it evaluates whether a collaboration can add value for both parties. Zhu explains that some recent spin‑offs—such as the UK studios Splash Damage and Bulkhead—were allowed to go independent because the fit with Tencent’s long‑term vision was limited.
"If the partnership doesn’t amplify the game or align with our strategic objectives, it may be better for the studio to thrive on its own," he says. This pragmatic approach acknowledges that cultural differences and market conditions can make integration difficult, and that not every acquisition will be a home‑run. Zhu also highlights the importance of supporting studios with Tencent’s global infrastructure.
Whether it’s regional publishing, technical assistance, backend services, or data analytics, the parent company offers a suite of resources that can accelerate a game’s launch and ongoing operation. He cites the example of *Dune Awakening*, where experts from China and Europe worked side‑by‑side with Funcom’s developers to resolve technical challenges, sometimes transitioning into permanent staff when the collaboration proved successful.
The third pillar centers on AI as an enabling technology rather than a replacement for human creativity. Zhu stresses that AI should be viewed as a productivity booster, akin to the internet when it first emerged. Tencent encourages its developers to experiment with AI for tasks such as concept art generation, rigging, motion matching, code review, and even project‑management bots that can automate routine communications.
"AI helps smaller teams produce higher‑quality content without having to expand to massive staff numbers," he explains. While the West remains cautious due to ethical and copyright concerns, Chinese developers are embracing AI tools more readily, seeing them as a way to bridge the gap between mobile‑first expertise and high‑budget console production. Intellectual property stewardship is another critical focus. Zhu cites *Call of Duty* as an example of an evergreen franchise that evolves through successive releases while maintaining a consistent brand identity.
Tencent aims to replicate this model by nurturing IPs that can be expanded over time, whether through new game modes, seasonal events, or cross‑media extensions. The company’s minority stakes in studios like Larian Studios and FromSoftware serve as “north stars,” demonstrating how long‑term investment in quality craftsmanship can yield a portfolio of purposeful, audience‑building titles.
Geographic considerations also shape Tencent’s approach. The company is actively assessing where to locate outsourcing partners, balancing cost, time‑zone alignment, and talent availability. For European studios, the UK‑based Sumo Digital may provide regional support, while Asian partners can offer cost‑effective solutions for certain pipelines. This flexible, global sourcing strategy reflects broader industry trends highlighted at Gamescom, where Chinese studios showcased a surge of high‑polish releases, suggesting a shift of creative power toward the East.
Finally, Zhu underscores the overarching mission: keeping players engaged and happy, which ultimately translates into financial performance. By intertwining live‑service dynamics, AI‑driven efficiencies, and evergreen IP development, Tencent seeks to create a stable, adaptable ecosystem that can weather market fluctuations and technological disruptions. As Zhu puts it, "The more people love your game, the more they’ll play it, and that’s the bottom line for any business." In summary, Tencent’s long‑term plan is not a single‑track obsession with live service, but a multifaceted strategy that leverages its massive resources, global talent network, and emerging AI capabilities to foster lasting player communities, support diverse studio needs, and cultivate timeless game experiences.