Tencent explores exits from Japanese game studio investments amid portfolio review

• The company is reassessing investments as it balances games industry challenges with growing AI ambitions.
• Investments in PlatinumGames, FromSoftware and Kadokawa are reportedly not affected.
• Tencent is shifting toward closer co-development partnerships with portfolio studios.

Tencent is reportedly exploring exits from several game studio investments in Japan as the company reassesses its global games portfolio.

As reported by Bloomberg, the Chinese firm is reviewing minority investments across multiple studios and is considering selling stakes back to management teams even if doing so results in a loss.

Sources said Marvelous is among the holdings now under review, alongside other Japanese investments considered to be underperforming.

However, Tencent's investments in PlatinumGames, FromSoftware and parent company Kadokawa Corporation are not expected to be affected. The company said games remain central to its business and reiterated its commitment to investee companies.

Strategic moves

The move comes as Tencent navigates a prolonged slowdown in the games industry while increasing its focus on artificial intelligence, where it is competing with rivals such as Alibaba and ByteDance.

The company is evaluating which investments continue to offer strong growth potential and where strategic synergies remain intact. 

Tencent's Japanese investments attracted attention around 2020 when it acquired minority stakes in a number of studios it viewed as undervalued. 

The company is also refining its investment strategy, increasingly working alongside portfolio studios as a co-development partner rather than acting solely as a passive investor.

Earlier this month, Tencent revealed it was planning a major user-generated content (UGC) initiative for Delta Force, with a recruitment listing outlining plans for creation tools and monetisation features.