Tencent breaks down its method to IP growth

Between Tencent inviting Recreation Developer to fulfill with its VP of enterprise operations, Yong-yi Zhu, at Gamescom 2025 and the second we really sat down for our interview on the present ground, the Chinese language conglomerate was accused of cloning PlayStation’s in style Horizon franchise in a scathing lawsuit filed by Sony. Considerably coincidentally, Tencent had really reached out to see whether or not we be interested by discussing how the corporate is making an attempt to create authentic franchises with international enchantment. 

It was a compelling pitch. Tencent, in spite of everything, has acquired and invested in a litany of main studios similar to Riot Video games, Supercell, Frontier Developments, Paradox Interactive, Ubisoft, Epic Video games, Treatment Leisure, and extra—however the firm is evidently eager to begin producing extra well known titles in-house. 

The corporate’s Tencent Video games division, which shelters its publishing arm and inside studios, debuted quite a lot of authentic tasks at Gamescom itself together with Delta Pressure, Destiny Set off, Honor of Kings: World, and Undertaking Spectrum. Tencent hopes these titles and others will coalesce to create an authentic catalog that permits its inside groups to work on tasks they’re furiously obsessed with whereas catering to totally different participant communities around the globe. 

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It is an method that sounds stable on paper, however how is Tencent actively working to show that imaginative and prescient into actuality—and, maybe extra pertinently within the wake of Sony’s lawsuit, guarantee its authentic franchises really innovate? 

Tencent exec says inside studios do not harbor ambitions of making”spinoff” titles

Based on Zhu, who oversees operations, technique, and compliance throughout Tencent’s international portfolio of studios, Tencent believes it’s important to match builders to tasks they really care about. “I believe one of many issues we have a look at loads is, not simply the IP itself, however extra the expertise throughout the studio,” explains Zhu. “For us we ask ‘what are they in a position to do and what are they obsessed with?’ One of many massive issues we glance to do is ensure the studio and the scope and ambition of the venture matches inside he context of what [the team] is ready to do. 

“Take studios like Sharkmob with Exoborne. It is a comparatively newly-formed studio, however they’ve launched a recreation beforehand and so for us the ambition is kind of massive. Additionally, we imagine the market is there for the taking—and they’re obsessed with making first-person shooters.” 

Ardour, in fact, might be the one useful resource that continues to be plentiful throughout the recreation trade. In an period of studio closures, financing woes, and widespread layoffs, changing ardour right into a tangible merchandise that may ship sustainable returns stays an enormous problem. To attenuate the inherent threat that comes with making video video games in 2025, Zhu explains Tencent has adopted a data-driven method that makes an attempt to interrupt down market tendencies and participant expectations.

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“We help [our teams] with information,” he continues, explaining that Tencent pulls info from a “bunch of various locations” together with online game information platform Newzoo. “We consolidate all of that after which we internally have information scientists that work with us to do some predictive modelling to supply an understanding of the place the market and tendencies are. We even have a gaggle inside Tencent that appears at recreation analysis. They’re consultants on video games. They have a look at tendencies and what persons are interested by. So, there’s the sport half, the info half, after which the viewers half that we’re constructing in as effectively—which is ‘how can we interact with participant bases earlier on to check an thought?'”

Zhu says connecting with audiences prematurely, nonetheless, might be “harmful.” Particularly when a studio is attempting to create one thing new. It may be secure to convey gamers into the loop early should you’re seeking to make inroads into a longtime style or market, but when a studio is raring to stray from the well-trodden path that suggestions may develop into much less beneficial. 

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On that be aware, we ask Zhu how Tencent distinguishes between inspiration and imitation? We acknowledge Tencent cannot touch upon Sony’s ongoing lawsuit, however really feel its necessary to grasp how the corporate is working to marry its data-driven method to franchise developments with its need to create actually authentic titles that resonate. 

“I believe a lot of the builders that we work with are assured of their skills,” says Zhu in response. “They’re at all times seeking to create one thing new and totally different. Their first ideas will not be ‘what’s spinoff?’ Actually, I believe a few of the analysis that we give them covers […] options or UI which might be a bit extra technical or particular, versus IP itself. I do not assume we, and quite a lot of the studios that I work with personally, have that ambition of ‘we wish to create a spinoff IP from one thing else.'”

Tencent believes mitigating threat is about “matching the pitch to the market”

Taking massive swings additionally requires monetary threat. Tencent evidently has loads within the coffers, however Zhu explains the conglomerate is strict about moderating its funding stage to make sure these dangers really feel sustainable. “When there are massive challenges and unknowns on a venture, we management our funding stage. We reply all the [pressing] questions first earlier than going massive,” he continues, noting how Tencent works to garner a deep understanding of gameplay components, narrative beats, and the potential for enjoyable (which seems like the large one) earlier than pulling the set off. 

Zhu feels threat mitigation can also be about “matching the pitch to the market.” Sure genres, he explains, are at all times going to be extra dangerous. “In case you have a look at an open-world recreation, the funding into that earlier than you even get to a minute of gameplay goes to be a lot larger than should you have been to have a look at a PvP shooter the place you possibly can shortly iterate,” he provides. “The bar for investing into several types of video games goes to be totally different, and the variety of video games we greenlight in sure genres versus others goes to be proportional to the chance stage.”

These tasks that do make it via the manufacturing slalom at Tencent are anticipated to ship. Zhu explains the last word aim is “evergreen” progress, and whereas that phrase will undoubtedly imply various things relying on the scale and scale of particular person titles, the corporate’s goal is to domesticate franchises able to matching its personal long-term imaginative and prescient. 

“Once you discuss progress […] I believe our final aim is evergreen, proper? You have a look at League of Legends, you have a look at PUBG Cell, you have a look at even Fortnite. These are long-sustaining merchandise which might be at all times within the ecosystem,” he says. “That does not imply it would restrict progress, although, as a result of that creates alternatives to construct out different issues. Have a look at League of Legends and the way its gone into Arcane and different genres. I believe that is one instance, and we’re undoubtedly look to do the identical factor.”

As for the tasks that fail to succeed in these heights, Zhu claims any cancellation is the results of an intensive vetting course of versus knee-jerk reactions. “We take our time [when making those calls]. It is years. It relies on the sport, relies on the staff, and relies on the style—however in the end we give the groups the chance to return out to the participant base and take a look at once more, and repeatedly try this, to grasp how we’re course correcting in direction of that north star. 

“Some concepts you already know early on. You are like ‘this does not make sense’ and also you most likely must kill that concept and transfer onto the following one. That does not imply that dev groups haven’t got a ton of different issues within the pipeline. Different video games, you do must make powerful choices as a result of, even with video games in growth, since you really feel they will perhaps by no means attain the extent of ambition that we now have. However for probably the most half we greenlight video games as a result of we actually imagine in these groups.”

Recreation Developer attended Gamescom 2025 through the Gamescom Media Ambassador Program, which coated flights and lodging.