Tencent’s strategic roadmap is built around three interlocking pillars: the expansion of live‑service games, the deployment of advanced AI tools, and the cultivation of evergreen IPs that can sustain long‑term player engagement. While the industry has seen mixed results from the live‑service model—Sony’s high‑profile missteps and other studios chasing recurring revenue streams only to stumble—Tencent remains convinced that the approach can deliver stability and community growth when executed correctly. Yong‑yi Zhu, Vice‑President and head of operations, strategy, and compliance at Tencent Games, summed up the company’s philosophy: “Our holy grail is live service.
Look at our DNA—Honor of Kings, League of Legends, Valorant—these are titles that evolve over time, fostering robust communities and providing a steady revenue base.” He emphasized that modern games are no longer one‑off experiences; they are becoming lifestyles that players integrate into their daily routines. Live‑service, however, is just one facet of a broader strategy. Over the past year, Tencent has re‑evaluated several of its studio relationships.
Notably, UK‑based 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 negotiations, but he noted that Tencent assesses each partnership against two questions: Does the collaboration add value for both parties, and does the studio’s direction align with Tencent’s long‑term objectives?
When either answer is negative—whether due to strategic mis‑fit or more attractive opportunities—the company may decide the studio is better off standing alone. Zhu is realistic about the challenges of integrating acquisitions.
Market conditions, cultural differences, and divergent development pipelines can impede smooth assimilation, and not every purchase will be a “slam dunk.” Nevertheless, the firm’s focus on evergreen titles—both single‑player and multiplayer—remains unwavering. Evergreen games are those that continue to attract and retain players over years, often through regular content updates, community events, and evolving narratives. Tencent views these titles as the backbone of sustainable community building.
Consistency is a core goal. In the past, many premium developers experienced volatile cycles of blockbuster launches followed by layoffs. Tencent aims to mitigate those swings by fostering a stable ecosystem where studios receive ongoing support, from regional publishing and technical assistance to backend services and data analytics. 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 mandate is less about geographic expansion and more about ensuring each studio has the resources needed for successful launches and long‑term health. A concrete example of this support model is the collaboration on *Dune Awakening*. Tencent dispatched experts from China and Europe to work side‑by‑side with Funcom’s developers, tackling technical hurdles and offering mentorship. When a problem persisted, the specialists sometimes stayed on as permanent staff, illustrating Tencent’s willingness to embed talent where it adds the most value.
Creative direction, however, largely stays with the individual studios. Tencent typically intervenes only on cross‑studio challenges—such as optimizing Unreal Engine pipelines or navigating regional publishing complexities in the MENA region or Southeast Asia. This balance allows studios to retain their artistic identity while benefiting from Tencent’s global infrastructure. The company’s stance on project scale is nuanced.
While some industry observers claim Tencent only backs games with budgets exceeding £50 million, Zhu refutes that notion. He explains that Tencent evaluates opportunities based on a studio’s developmental stage and long‑term aspirations rather than sheer budget size. Smaller titles do exist in the portfolio, and the firm is open to nurturing them if they align with its quality standards and strategic goals.
Tencent’s “north stars” in the investment landscape include minority stakes in Larian Studios and FromSoftware. Both companies have built their reputations on methodical, purpose‑driven releases that gradually expand their audiences. Their success demonstrates that a studio does not need blockbuster budgets to create lasting, high‑quality experiences.
On the operational side, Tencent has experimented with hybrid development models that combine lean internal teams with external outsourcing—a strategy that proved effective for *Star Wars: Galactic Racer* and is being considered for upcoming projects like *Expedition 33*. The decision on staffing levels versus outsourced expertise hinges on the need for precision work, geographic proximity, and cost considerations.
For instance, Sumo Digital may support European studios due to time‑zone alignment, even though the UK’s cost structure is relatively high. Zhu also highlighted a broader industry shift: talent is migrating from expensive hubs such as California to more cost‑effective regions across Asia. This trend aligns with observations from Gamescom Dev keynote speaker Amir Satvat, who noted that headcount is increasingly distributed globally.
Zhu agrees, noting that while established North American teams can maintain high output, supporting functions like QA, localization, and community management are better situated in lower‑cost locales. The rise of Chinese studios at Gamescom’s Opening Night Live sparked speculation about a power shift from West to East. Zhu welcomed this development, citing titles like *Black Myth: Wukong* as proof that Chinese developers now understand the standards of premium console and PC experiences. He attributes this progress to improved tooling, particularly AI‑driven solutions that accelerate iteration and enhance creative output.
AI, according to Zhu, is not a replacement for human talent but a productivity enhancer. Tencent encourages developers to adopt AI for tasks ranging from concept art generation and rigging to code review and production management. AI bots in communication platforms can even handle routine administrative reminders, freeing teams to focus on higher‑level design work.
While the West remains cautious due to ethical, copyright, and player‑perception concerns, Zhu advocates a more open mindset: “People should not be afraid of AI; it’s like the internet—an inevitable tool that can make us more efficient.” Nonetheless, he acknowledges unresolved legal questions surrounding generative AI content. Tencent mitigates risk by ensuring that AI models train exclusively on proprietary assets, avoiding external data that could raise infringement issues. Contracts with AI vendors explicitly forbid data leakage, protecting the company’s intellectual property from unintended distribution. In summary, Tencent’s long‑term game plan blends live‑service ambition with a commitment to evergreen IPs, strategic studio partnerships, and the thoughtful integration of AI tools.
By providing robust backend support, fostering cross‑studio knowledge sharing, and remaining flexible about project scale, Tencent aims to keep players engaged across a diverse portfolio of titles. Ultimately, sustained player enjoyment translates to stronger financial performance—a principle that guides every decision within Tencent’s expansive gaming ecosystem.