According to a report by Bloomberg, Tencent is undergoing a major overhaul of its video game investment strategy, primarily in Japan. After years of massive acquisitions and investments in studios around the world, the Chinese giant is now reportedly seeking to streamline its portfolio and become more selective.
This shift is driven by several factors:
- The slowdown in the global video game market following the period of strong growth linked to the pandemic.
- The rising development costs, particularly in the AAA sector.
- The desire to devote more resources to artificial intelligence, which has become a strategic priority.
Tencent is reportedly exploring the possibility of divesting certain holdings deemed less strategic, while retaining its most significant and promising investments. For example, it had heavily backed Highguard, which shut down very shortly after its launch.
Despite this refocusing, Tencent remains one of the industry’s most influential players thanks to its stakes in companies such as Epic Games, Riot Games, and Supercell. It is simply shifting from a strategy of aggressive expansion to a more cautious approach to managing its investments.
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Author: 360 Technology Group
