Tencent Games

Tencent’s bid to create the next FromSoftware and Larian

Tencent Games, through its Interactive Entertainment and Game Global (IEG) division, is actively pursuing a long-term strategy to cultivate category-leading game studios capable of achieving the global success seen by developers like FromSoftware and Larian.

• Tencent is shifting its global strategy to cultivate category-leading studios capable of producing high-quality console and PC titles, modeled after the success of FromSoftware and Larian.
• The company currently manages approximately 20 studios worldwide, utilizing a 'long game' approach that prioritizes creative autonomy and operational support over rigid corporate oversight.
• Tencent is leveraging the global success of Chinese-developed titles like Black Myth: Wukong to bridge the gap between its traditional mobile-centric expertise and the high-end console market.

2026 GDC Trends Report: 5 Insights on the Future of Game Development

The 2026 GDC Trends Report provides a comprehensive analysis of the evolving landscape of the global game development industry.

• Studios are increasingly relying on co-development models to manage the resource and staffing demands required for modern game production.
• Mobile game developers are shifting toward dual monetization strategies, prioritizing long-term user retention over new user acquisition, particularly as the Vietnamese hyper-casual market grows.
• Generative AI has reached a level of maturity where assistive tools are easily accessible, shifting the industry focus from technical feasibility to the ethics and implementation strategies of AI in development workflows.

What Does the EU's AI Transparency Rules Mean for Games

The European Union’s AI Act establishes a rigorous regulatory framework that mandates comprehensive transparency for artificial intelligence applications, including strict requirements for labeling AI-generated content and disclosing user interactions with automated systems.

• The EU AI Act's transparency rules, effective August 2026, mandate labeling of AI-generated content (images, audio, video) with machine-readable metadata, particularly for simulations of real-world people/places (deepfakes), and require informing users when interacting with AI systems.
• Failure to comply with the EU AI Act's transparency obligations can result in fines up to €15 million or 3% of worldwide annual turnover, whichever is higher.
• The EU AI Act defines 'AI' broadly, including systems capable of inference through machine learning or logic/knowledge-based approaches, which can influence physical and virtual environments, and derive models or algorithms from data.

Tencent Games: Revenue by Year [2015 – 2026]

Tencent’s mobile revenue trajectory from 2015 to 2025 illustrates the company’s evolution from a domestic gaming entity into a global digital powerhouse.

• Tencent's mobile revenue reached a record peak of $7.88 billion in 2024, followed by a slight stabilization to $4.61 billion in the first part of 2025.
• Honor of Kings remains the company's primary revenue driver, consistently generating over $1 billion annually for nearly a decade and reaching $1.87 billion in 2024.
• PUBG Mobile has been a critical global asset, peaking at $1.79 billion in 2020 and continuing to contribute over $1 billion in annual revenue through 2025.

Gen.G Launches Gen.G Collegiate Cup for Saudi Arabia and UAE

Gen.G Esports has launched the Gen.G Collegiate Cup, a new competitive initiative targeting university students across Saudi Arabia and the United Arab Emirates.

• Gen.G has launched the Gen.G Collegiate Cup in Saudi Arabia and the UAE, featuring 300 students from 15 universities competing for an $11,000 prize pool.
• The tournament features competition in PUBG Mobile, Honor of Kings, and Valorant, with mobile events utilizing the HONOR Magic7 Pro.
• The initiative is part of Gen.G’s broader 'Road to Gen.G Collegiate Cup' program, which provides students with professional coaching, seminars, and industry education.

OG Esports Joins Honor of Kings Esports Ecosystem as Western Europe Partner Team

OG Esports has officially entered the mobile esports sector by joining the Honor of Kings ecosystem as a partner team for the Western Europe region in 2025.

• OG Esports has established its first mobile esports division by joining the Honor of Kings ecosystem as a partner team for the Western Europe region in 2025.
• The move aligns with OG Esports' strategic plan to expand into emerging titles and the Chinese market, further strengthening the organization's relationship with publisher Tencent.
• OG Esports CEO Daniel Sanders, who previously held leadership roles at Tencent Games and Red Bull, is spearheading this expansion strategy.

OG Esports Appoints Daniel Sanders as CEO

OG Esports has appointed Daniel Sanders as its new Chief Executive Officer, marking a strategic shift for the European organization.

• OG Esports has appointed Daniel Sanders as its new CEO, promoting him from his previous role as Chief Commercial Officer, which he held since 2023.
• Sanders brings extensive industry experience, having previously served as the head of esports and gaming marketing for Red Bull UK and as a senior global marketing lead at Tencent Games.
• The organization plans to prioritize the professionalization of its competitive teams to address a recent lack of success in major esports titles.

Level Infinite and Esports World Cup Join Forces

Level Infinite, the gaming and esports brand owned by Tencent, has entered into a three-year strategic partnership with the Esports World Cup Foundation.

• Level Infinite, the gaming brand owned by Tencent, has entered into a three-year partnership with the Esports World Cup Foundation to expand the competitive presence of Honor of Kings and PUBG Mobile.
• The partnership includes the launch of the PUBG Mobile World Cup, which will feature a $3 million USD prize pool and replace the previous PUBG Mobile World Invitational as a summer event.
• The Honor of Kings Invitational Midseason will also be held at the Esports World Cup, offering a $3 million USD prize pool and qualification paths for the Honor of Kings Invitational Championship later in 2024.

Tencent Games Strategy 2019

Tencent’s strategic pivot in 2019 marks a recovery from the previous year’s regulatory freeze on game licenses, which had triggered the company’s first-ever profit decline.

• Tencent successfully recovered from a 2018 regulatory freeze by migrating 150 million monthly active users from PUBG Mobile to the compliant, self-developed title Peacekeeper Elite, resulting in $5.2 billion in quarterly gaming revenue.
• The company is mitigating domestic regulatory risks through aggressive international expansion, including the acquisition of Western studios like Sharkmob and licensing major IP such as Call of Duty and Street Fighter.
• Tencent is diversifying beyond mobile free-to-play models by growing its WeGame platform to 70 million monthly active users and securing an exclusive partnership to distribute the Nintendo Switch in China.

DeNA Q2 FY2018 Earnings Results: Summary of Key Questions and Answers

This summary outlines the key strategic discussions from DeNA’s Q2 FY2018 earnings briefing, held on November 8, 2018.

Ubisoft Appoints New Leaders to Advance Its Creative Houses Operating Model

Ubisoft is advancing its organizational transformation by appointing new leadership to oversee its Creative Houses operating model.

• Ubisoft is restructuring its development teams into five distinct Creative Houses, each granted greater autonomy and accountability for specific brand portfolios.
• The new organizational model aims to streamline production by aligning studios based on shared player experiences and genre-specific expertise.
• Julien Bares, formerly of Tencent Games Global and 2K China, has been appointed General Manager of Creative Houses 3 and 5, overseeing live service titles like The Crew and For Honor, as well as casual and mobile brands like Just Dance.