Tencent’s strategic roadmap is built around three pillars: live‑service experiences, advanced AI tooling, and evergreen intellectual property that can sustain player 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 the company balances these elements while navigating the challenges of a rapidly shifting global market.
### Live‑Service as a Core Objective, Not a Sole Focus Zhu described live‑service as the "holy grail" for Tencent, pointing to the company’s DNA—titles such as *Honor of Kings*, *League of Legends* and *Valorant*—which have evolved into platforms that keep players engaged day after day. These games generate recurring revenue, foster robust online communities, and transform a simple pastime into a lifestyle. However, Zhu was careful to note that live‑service is only one component of a broader strategy. The firm’s portfolio includes a mix of single‑player and multiplayer experiences, many of which live primarily on mobile devices, but all share the goal of building lasting, sustainable communities.
### A Dynamic Portfolio and Selective Partnerships Since the last interview a year ago, Tencent has reshaped its studio landscape. UK‑based developers Splash Damage and Bulkhead have been spun out as independent entities, following earlier separations of The Chinese Room and Secret Mode in 2025.
Zhu declined to detail the rationale but emphasized a partnership‑first mindset: a collaboration only proceeds when both sides bring clear value. When synergy is lacking—whether due to misaligned strategic goals or cultural mismatches—the studios may thrive better on their own.
This pragmatic approach acknowledges that not every acquisition will be a "slam dunk" and that market conditions can complicate integration. ### Evergreen IP and Community Longevity Beyond live‑service, Zhu highlighted the importance of evergreen IP—games that can be refreshed and expanded over time. He cited *Call of Duty* as an example of a franchise that, while releasing new installments, maintains a consistent brand identity that keeps players returning.
For Tencent, the aim is to nurture titles that can evolve, adding new content, events, and features that keep the community vibrant. This stability contrasts with the boom‑and‑bust cycles seen in some premium releases, where a single hit can be followed by layoffs and studio closures. ### Talent, Synergy, and Global Support Networks Investing in high‑quality talent remains a cornerstone of Tencent’s plan.
Zhu oversees roughly 20 studios worldwide, including Miniclip, Sumo Digital, Funcom, Fat Shark, Sharkmob, 10 Chambers, Stunlock Studios, Digital Extremes, and Grinding Gear Games. Rather than dictating creative direction, Tencent offers a suite of backend services—regional publishing, technical assistance, testing, analytics, and infrastructure support—drawn from its domestic expertise and adapted for global markets. A concrete illustration is the assistance provided to Funcom on *Dune Awakening*, where engineers from China and Europe worked side‑by‑side with the studio, sometimes transitioning to permanent staff when the collaboration proved successful.
### Flexibility in Scale and Scope When asked about the size of projects Tencent pursues, Zhu refuted the notion that the company only backs multi‑hundred‑million‑dollar ventures. While some executives have suggested a minimum threshold of £50 million, Zhu explained that the decision matrix is more nuanced. The firm evaluates where a studio sits on its development journey, its long‑term vision, and whether Tencent’s resources can help it scale. Smaller games do exist in the portfolio, and Tencent looks for studios that excel in their craft, whether that means delivering a premium single‑player experience or a live‑service title.
### Cross‑Studio Knowledge Transfer and Outsourcing Models Zhu acknowledged that the initial ambition to tightly integrate Chinese and Western support teams has faced logistical hurdles, especially across time zones. Consequently, the focus has shifted toward disseminating best practices across the network. The company is experimenting with hybrid development models where a core internal team is augmented by external specialists—a method that proved effective for *Star Wars: Galactic Racer* and is being examined for upcoming projects like *Expedition 33*. Geographic considerations play a role: European studios may receive support from nearby partners such as Sumo Digital, while cost‑effective outsourcing is evaluated on a case‑by‑case basis.
### The Rise of Chinese Studios on the Global Stage The recent Gamescom Opening Night Live showcased a wave of polished titles from Chinese developers, prompting speculation about a power shift from Western to Eastern studios. Zhu expressed optimism, noting that successes like *Black Myth: Wukong* have raised the bar for console and PC quality in China. Historically, many Chinese studios focused on mobile games and art outsourcing, but they now possess the tools and ambition to compete on high‑end platforms.
### AI as an Enabler, Not a Replacement Artificial intelligence features prominently in Tencent’s vision for the future. Zhu emphasized that AI is a productivity booster rather than a substitute for human talent.
Developers can leverage AI for concept art, rigging, motion matching, code review, and even project management bots that streamline routine tasks. The company encourages its studios to experiment with AI, while also being mindful of copyright and data‑ownership concerns. Tencent ensures that AI tools are trained on proprietary assets, keeping the generated content within the company’s IP ecosystem and preventing inadvertent leakage of external material. ### Balancing Innovation with Ethical Considerations While AI adoption is accelerating, Zhu acknowledged the ethical debates surrounding generative technologies—particularly regarding ownership of AI‑created assets.
Tencent works closely with tool providers to guarantee that training data remains confined to internal libraries, mitigating the risk of cross‑contamination with third‑party content. This cautious stance reflects a broader industry conversation about how to responsibly integrate AI into creative pipelines. ### Looking Ahead: Engagement as the North Star Ultimately, Zhu’s guiding principle is simple: keep players engaged and happy. Whether through live‑service updates, evergreen franchises, or cutting‑edge AI tools, every initiative is measured against its ability to sustain long‑term player interest.
In Zhu’s own words, "the more people love your game, the more they're going to play your game," a mantra that directly ties community health to the bottom line. Tencent’s vast resources allow it to experiment at scale, backing both large‑budget AAA projects and niche indie endeavors. Recent moves—including the spin‑off of Bulkhead and Splash Damage, the redirection of Lightspeed, and a minority investment in W4, the commercial arm of the Godot engine—demonstrate a willingness to adapt and explore new avenues. As the company prepares for the next Gamescom, Zhu is likely to reveal additional projects that continue to blend live‑service ambition, AI‑driven efficiency, and the cultivation of timeless gaming experiences.