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 titles that can sustain player engagement over years. While many industry observers have critiqued the company’s heavy emphasis on live‑service models—citing examples like Sony’s costly missteps and the recent collapse of Highguard, a title linked to Tencent’s TiMi Studio Group—Tencent remains confident that the live‑service approach is a cornerstone of its future growth.
Yong‑yi Zhu, Vice‑President and Head of Operations, Strategy and Compliance for Tencent Games, summed up the philosophy succinctly: “Our holy grail is live service. Look at our DNA—Honor of Kings, League of Legends, Valorant—games that evolve continuously, foster stable communities, and become part of players’ daily lives.” Zhu stresses that the objective is not merely short‑term excitement but the creation of lasting ecosystems where games become lifestyle choices. However, Zhu’s recent interview reveals that live‑service is only one facet of a broader, more nuanced plan.
Since the last conversation with GamesIndustry.biz, Tencent has undergone notable restructuring. UK studios Splash Damage and Bulkhead have spun out as independent entities, echoing earlier separations of The Chinese Room and Secret Mode in 2025. Zhu declined to detail the exact reasons but hinted at a strategic calculus: “We assess whether a partnership adds value to both sides. If the fit isn’t right—whether due to misaligned goals or better opportunities elsewhere—we may decide the studio thrives better on its own.” The executive acknowledges that not every acquisition will be a slam‑ dunk.
Market conditions, cultural differences, and integration challenges can impede the seamless merging of new studios. Yet, these setbacks do not derail the overarching ambition to build sustainable, long‑term communities around both single‑player and multiplayer experiences. Zhu points to evergreen IPs—titles that can be refreshed, expanded, and re‑released over time—as essential to this vision. He cites Call of Duty as an example of an evergreen franchise that, despite being a series of successive releases, maintains a consistent player base and brand identity.
Stability is a recurring theme. Zhu contrasts the volatile cycles of premium games—where a single hit can be followed by layoffs—with Tencent’s aim to smooth out those peaks and troughs. By fostering a portfolio of reliable, recurring revenue streams, the company hopes to provide a steadier employment landscape for its developers.
Talent acquisition and synergy are also critical. Zhu emphasizes that Tencent seeks “high‑quality talent” that can mesh well with the company’s resources and culture. His division oversees roughly twenty studios worldwide, including Miniclip, Sumo Digital, Funcom, Fat Shark, Sharkmob, 10 Chambers, Stunlock Studios, Digital Extremes, and Grinding Gear Games.
The focus, he explains, is less about geographic expansion and more about ensuring each studio has the support it needs to launch successfully. This support can range from regional publishing expertise and technical assistance to backend services and data analytics. A concrete illustration of this collaborative model comes from the development of Dune Awakening.
Experts from Tencent’s Chinese and European teams embedded themselves alongside Funcom’s developers, tackling technical hurdles in real time. When issues persisted, Tencent sometimes offered the external specialist a permanent position at the studio, turning short‑term assistance into long‑term talent acquisition. Creative direction, however, remains largely in the hands of the individual studios.
Tencent intervenes mainly on cross‑studio challenges—such as optimizing Unreal Engine pipelines or navigating regional publishing requirements in the Middle East, North Africa, or Southeast Asia. This balance allows studios to retain artistic autonomy while benefitting from Tencent’s global infrastructure. The conversation also touched on the fate of smaller projects.
While some commentators claim Tencent only backs games exceeding £50 million, Zhu disputes that notion. He argues that the company evaluates games of all scales, focusing instead on a studio’s developmental stage and potential trajectory. “We have small games in our portfolio,” he says, citing Larian Studios and FromSoftware as “north stars” whose incremental, purposeful releases have built dedicated audiences over time. Outsourcing and hybrid development models feature prominently in Tencent’s operational playbook.
The company experiments with core internal teams complemented by external vendors—a strategy that proved effective for titles like Star Wars: Galactic Racer and the upcoming Expedition 33. Decisions about staffing levels versus outsourced expertise depend on the specific needs of each project, such as the requirement for high‑precision work that benefits from co‑location. Geography influences these choices.
While the UK offers proximity for European collaborations, its higher cost base prompts Tencent to weigh trade‑offs carefully. The broader industry trend, highlighted in Amir Satvat’s Gamescom Dev keynote, shows development talent shifting from expensive hubs like California to more cost‑effective regions across Asia. Zhu concurs, noting that North America is becoming increasingly challenging for studios without a tightly knit, long‑standing team.
The rise of Chinese studios on the global stage is another focal point. Recent Gamescom showcases featured polished console and PC titles from Chinese developers, signaling a potential power shift.
Zhu expresses optimism, crediting games like Black Myth: Wukong for raising the bar and demonstrating that Chinese teams can produce world‑class console experiences. He adds that the industry’s rapid adoption of sophisticated tools—particularly AI—has accelerated this evolution. AI, in Zhu’s view, is not a replacement for human creativity but a catalyst for efficiency.
He likens AI to the early internet: an enabling technology that, once mastered, can dramatically enhance productivity. Tencent encourages its developers to experiment with AI across the pipeline—concept art generation, rigging, motion matching, code review, and even project management bots in Slack. While the company embraces AI for development, Zhu acknowledges that generative AI’s role in content creation raises complex copyright questions.
Tencent mitigates risk by restricting AI training data to its own proprietary libraries and securing agreements with tool providers to prevent data leakage. In summary, Tencent’s long‑term strategy is a multi‑layered approach that blends live‑service ambition, evergreen IP cultivation, strategic talent partnerships, and thoughtful AI integration.
The company is willing to let studios spin out when the fit isn’t optimal, yet it remains committed to providing robust support—technical, publishing, and analytical—to those that align with its vision. By focusing on sustained community engagement rather than one‑off blockbuster hits, Tencent aims to create a resilient ecosystem where games can thrive, developers can grow, and players remain invested for the long haul.