Chinese conglomerate Tencent is reportedly reconsidering its investments in a number of Japanese video game studios, including Marvelous, the developer behind the Rune Factory and Monster Hunter Stories series. This strategic shift is part of a broader global reassessment of Tencent's portfolio, driven by an ongoing economic downturn affecting the video game industry.
According to a Bloomberg report citing sources familiar with the matter, Tencent is in negotiations to exit stakes in several Japanese companies. In some instances, the company is considering selling its shares back to the original management, even if it means taking a financial loss. This suggests Tencent aims to redeploy capital into new ventures.
Marvelous, in which Tencent acquired a stake in 2020, is identified as one of the studios involved in these discussions. However, other Japanese developers where Tencent holds investments, such as Platinum Games and FromSoftware (and its parent company Kadokawa), are reportedly not part of these specific divestment talks.
Tencent's apparent change in strategy coincides with an increase in its co-development initiatives. The company recently partnered with Ubisoft to establish Vantage Studios, a subsidiary intended to leverage major franchises and pursue growth opportunities. Tencent also maintains its focus on more casual gaming markets and user-generated content, exemplified by its continued partnership with Roblox in China.
The implications for Japanese studios like Marvelous remain uncertain. The traditional games market is currently facing significant challenges, including the cost of living crisis and rising component prices, creating a difficult environment for developers.