Tencent Takes Hands-On Role to Reshape $10B Global Games Business

Tencent Holdings has shifted to a more hands-on approach in its international games business, helping it generate about $10 billion USD in global gaming revenue over the past year, despite an industry slowdown. The strategy, led by Tencent Games Global chief executive Michelle Liu, marks a clear break from the company’s long-standing role as a largely passive overseas investor. Record sales were driven by a slate of international releases that outperformed many rivals.

Tencent’s gaming unit delivered its strongest year as competitors struggled with post-pandemic saturation and rising development costs. 

In the September quarter alone, the company reported 63.6 billion yuan ($11.7B) in game revenue, with overseas sales growing 43%. That performance stands out in a $190B global games market where publishers such as Microsoft and Amazon have scaled back game operations to fund AI investments.

Tencent Global Games Strategy Shifts From Passive Stakes to Active Support

Under Liu, Tencent has become more assertive in guiding studios it owns or controls, including Techland, Funcom, and Grinding Gear Games. Rather than directing creative choices, the company embeds teams to support production discipline, data analysis, hiring, and distribution. “If they could already achieve everything on their own, what would they need me for?” Liu said, explaining Tencent’s role in adding operational value rather than replacing studio leadership.

The approach has coincided with several high-profile releases, including Path of Exile 2, which sold 6.8M copies ahead of its final version. Funcom’s Dune: Awakening and Techland’s Dying Light: The Beast each sold around 2M copies, according to Sensor Tower. All three reflect Tencent’s focus on established intellectual property and so-called evergreen games designed to retain players through regular updates.

Tencent’s more involved overseas strategy mirrors how it operates in China, where it leverages the reach of WeChat and WeChat Pay to support major launches and applies strict benchmarks to internal studios. 

Titles such as Honor of Kings have remained among the world’s highest-grossing games under that model. Internationally, Tencent had historically allowed studios far more autonomy, even after major acquisitions.

That stance has evolved as overseas growth became essential following tighter game approvals in China. Liu, who joined Tencent in 2013 and took charge of global expansion in 2018, accelerated changes after acquisitions such as Techland, deploying internal teams to improve development processes and data-driven decision-making.

Tencent has also encouraged collaboration across its portfolio. It recently redirected UK-based Sumo Group away from original development to support Digital Extremes on Warframe, a move that increased content output and supported sales growth.

As the global games industry continues to consolidate, Tencent’s shift from investor to active operator positions it as an outlier. The company’s ability to scale international hits while maintaining studio autonomy could influence how large publishers approach acquisitions and long-term franchise development.