adminThe Tencent games strategy brings together live-service games, long-lasting intellectual property and support for studios across its global portfolio. Yong-yi Zhu, Tencent Games’ vice president and head of operations, strategy and compliance, says the goal is to help games keep engaging players over time. Live service is important, but it is not the only route: studio strengths, game scale and sustainable communities also shape the company’s approach.
Tencent games strategy: live service and evergreen titles
Zhu points to games such as Honor of Kings, League of Legends and Valorant as examples of titles that develop over time and build dedicated communities. In his view, games can become part of players’ routines rather than brief entertainment. That long-term connection can also give studios greater continuity.
However, Tencent does not treat live service as a requirement for every studio. Its broader aim is to support games that continue to attract players, whether they are multiplayer experiences, single-player releases or an established series. Zhu describes Call of Duty as an evergreen intellectual property, even though it continues through successive releases.
For readers assessing a live-service game, a practical distinction is whether it has a clear plan for ongoing content and community engagement. A long-running franchise can also retain an audience without using the same release model as a continuously updated game.
Partnerships and studio independence
Tencent’s portfolio has changed as some studios have become independent, including Splash Damage and Bulkhead. Earlier in 2025, The Chinese Room and Secret Mode also separated from their former corporate arrangements. Zhu says the central question is whether a partnership benefits both the developer and Tencent. If the strategic fit or working relationship is limited, a studio may be better positioned on its own.
He also acknowledges that acquisitions do not always integrate smoothly. Market conditions and cultural differences can make collaboration difficult, so not every deal produces the expected result. The company’s stated priority is to invest in strong creative teams when their goals and Tencent’s capabilities complement one another.
That approach does not rule out smaller projects. Zhu says Tencent considers games at different scales, looking at a studio’s development path and whether the company can offer useful support. He cites Larian Studios and FromSoftware as examples of developers that have built audiences and skills over time; Tencent has minority stakes in both.
Sharing expertise across a global portfolio
Zhu oversees operations and strategy for Tencent’s global games business, including around 20 studios. The portfolio includes Miniclip, Sumo Digital, Funcom, Fat Shark, Sharkmob, 10 Chambers, Stunlock Studios, Digital Extremes and Grinding Gear Games.
Support can include regional publishing, technical expertise, testing, backend services and analysis. The intention is to make knowledge gained in Tencent’s domestic operations useful to teams working in international markets, while leaving creative and artistic decisions largely with each studio.
For example, specialists from China and Europe worked alongside Funcom developers on Dune: Awakening. Tencent may also help studios tackle shared technical challenges, such as issues involving Unreal Engine, or navigate publishing in regions including the Middle East and North Africa and Southeast Asia. For developers, this kind of assistance can be most useful when it addresses a specific production or market need without taking creative control away from the team.
Different studios need different game scales
Funcom’s experience includes the long-running live-service game Conan Exiles, released in 2018. Tencent acquired Funcom in 2020. Zhu says live service is already part of the studio’s approach, so Tencent supports that existing direction. Other teams have found that premium games suit their strengths better.
This means the company does not apply one production model across its entire portfolio. Funcom reduced staff last October and closed The Outsiders, the studio behind Metal: Hellsinger, while focusing resources on additional content and improvements for Dune: Awakening. The broader lesson for studios is to match a project’s scale and business model to the team’s experience, rather than assuming every game should be built as a large live-service title.
External development and location
Tencent is also considering production models in which a smaller core team works with external developers. Zhu sees potential in this approach, pointing to Star Wars: Galactic Racer and the development of Expedition 33 as examples discussed in relation to external support.
The right balance depends on the work. Tasks requiring close collaboration or highly specialized craft may call for a team working together in one place. Other production needs can be handled by external partners. Time zones, location and cost all affect the decision; Sumo could potentially support European studios, although operating in the UK may not be the least expensive option.
Zhu also notes that North America can be a challenging location for development teams, particularly without an established group that has delivered projects together. For support functions, he says, the high cost of some regions may make other locations more practical. Studios weighing outsourcing should compare not just rates, but also communication needs, expertise and how closely external contributors must work with the core team.
AI as a development tool
Zhu sees AI as a way to help developers work more efficiently, not as a substitute for creative teams. He says smaller groups may use tools to explore ideas, iterate faster and produce more polished work while keeping the close-knit structure they prefer.
Potential uses extend across the development pipeline. Zhu mentions concept art, rigging, motion matching, code review and production management as areas where AI tools may assist. He also describes production tools that can prompt team members for updates. These examples represent different kinds of support, so studios should assess each tool according to its task, limitations and effect on existing workflows.
Copyright and data handling remain important concerns, especially when generative systems use material from outside a studio. Zhu says Tencent examines these issues and works with providers to keep studio data from being exposed beyond the organization. Using a studio’s own approved libraries can offer a clearer basis for experimentation, but teams still need to review provider agreements and establish safeguards before adopting a tool.
A long-term focus on player engagement
Tencent’s investments cover a wide range of studios and projects, including a minority investment in W4, a commercial development partner for the Godot engine. The company’s portfolio continues to evolve, but Zhu describes sustained player engagement as the connecting idea—whether a game relies on live updates, a premium release model or a long-running intellectual property.
Ultimately, the Tencent games strategy is not simply a bet on live service or large-scale production. It combines enduring games, studio-specific support, flexible development models and AI tools, with the stated aim of helping developers make games people want to keep playing.
