BG3 and Elden Ring guide Tencent’s gaming investments
Tencent’s Quest for the Next Gaming Giant: Chasing the Legends of RPGs and Action
In an industry constantly searching for its next legendary title, a major player is adopting a unique strategy: focusing on cultivating game studios capable of delivering generational hits. Tencent Games, a colossal force in the global gaming landscape, is setting its sights on creating developers who can produce masterpieces comparable to titles like Baldur’s Gate 3 or Elden Ring.
This ambition stems from a focus on artistic vision rather than regional trends. Tencent’s strategy, as articulated by Yong-yi Zhu, VP and head of operations, strategy, and compliance, centers on identifying and nurturing talent that possesses a highly specific, unique vision. For the company, the “North Stars” guiding this search are studios like Larian and FromSoftware, recognized for their mastery and dedication to iterating within specific, deep genres.
The inspiration drawn from these giants is more than just imitation; it is a methodology. For instance, the development of Baldur’s Gate 3, while rooted in Dungeons & Dragons, shared stylistic and mechanical DNA with Larian’s Divinity series. Similarly, Elden Ring emerged from the extensive testing and evolution of the action RPG framework pioneered by FromSoftware, demonstrating a deep understanding of genre evolution.
Tencent’s commitment extends beyond investment; it involves a long-game approach to partnerships. The company holds minority stakes in both Larian and FromSoftware owner Kadokawa, having increased its ownership in Kadokawa following increased stakes taken by other entities, illustrating a sustained faith in these creative powerhouses. This commitment is designed to foster long-term development, believing that sustained support allows studios to achieve monumental success.
The key distinction in Tencent’s approach lies in its risk mitigation strategy. Unlike models that rely on huge, sporadic peaks and dips from single, premium releases, Tencent favors “evergreen live service titles.” This consistent release schedule provides stability against the volatile waves of the broader industry. Furthermore, the company recognizes that smaller, focused teams often prove more resilient. By scaling down development efforts during the early concepting and pre-production phases, Tencent seeks to minimize exposure to risk, favoring leaner structures over frequent, high-stakes changes.
This philosophy has positioned Tencent uniquely amidst current industry contraction. While the global gaming sector faces turmoil, including studio layoffs and the backing out of major deals, Tencent’s long-term, genre-focused strategy allows it to maintain a steady, sustainable approach. By prioritizing the development of deeply ingrained, high-quality experiences, the company aims not only to capture the next big hit but also to secure a stable and enduring position at the forefront of game development.
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