Unveiling the Inner Workings of Tencent

As one of the world's largest video-game companies, Tencent operates numerous studios in China and owns a significant stake in various game companies globally, including Riot Games, Funcom, and Epic Games. However, the company has often been viewed as secretive. In a rare interview, Yong-yi Zhu, VP and head of business operations, strategy, and compliance at Tencent Games, discusses the company's efforts to become more open and transparent. Zhu notes that this shift is partly driven by the need to attract top talent, as the company's secretive nature has sometimes made it difficult for potential employees to understand its culture and values. Tencent's aggressive acquisition strategy has also raised concerns in the West, but Zhu emphasizes that the company's image is very different in China, where it is seen as a supportive and innovative force in the gaming industry. Zhu himself has a unique perspective, having joined Tencent from Activision and having family ties to China. He believes that Tencent's Western studios, such as Sumo Group and Funcom, have a high degree of autonomy, with the company providing support and guidance as needed. Zhu also sees opportunities for growth in China, particularly on Steam, and believes that the company can learn from its experiences in the West to drive innovation in the Chinese market. In terms of live service games, Zhu notes that Tencent is cautious and only pursues this model when a studio has the necessary expertise and experience. He also highlights the potential of AI in game development, particularly in the early stages of project development, and emphasizes the need for developers to stay up-to-date with the latest AI tools and technologies. Ultimately, Zhu believes that the gaming industry will continue to evolve, with a focus on creating games that can run on lower-spec devices and reaching growing audiences in regions like Southeast Asia and Latin America.