In a significant turn of events at Tencent in China, a game featuring cute characters navigating obstacle courses has taken precedence over the development of a high-budget foreign franchise for smartphones.
Reportedly, since late last year, Tencent, the world’s largest video game company, has reassigned hundreds of staff members from the team working on “Assassin’s Creed Jade” for mobile – a project in collaboration with France’s Ubisoft.
These personnel are now focused on “DreamStar,” Tencent’s response to NetEase’s successful “Eggy Party.” “DreamStar” marks Tencent’s most ambitious foray into the party game genre, offering simple gameplay and encouraging social interaction among players.
As a consequence, “Assassin’s Creed Jade,” an action-adventure set in ancient China, may face a delay in its release to 2025, according to sources familiar with the matter.
This shift in resources underscores Tencent’s strategic repositioning. Developing major Western franchises for mobile often yields low profit margins, while competitors thrive with niche products developed in-house, such as NetEase’s “Eggy Party” and miHoYo’s “Genshin Impact.”
Tencent’s success in the past was built on international hits like “Call of Duty” and “PUBG,” but such IP games are costly to produce and maintain. Consequently, Tencent plans to become more discerning in its investments.
Tencent’s Chief Strategy Officer, James Mitchell, highlighted this shift, stating a focus on fewer, larger-budget games, either building on successful IPs or innovating within niche markets.
Moreover, Tencent aims to negotiate lower royalty fees, a strategy previously unthinkable for the company.
However, Tencent faces challenges, with a decline in gaming revenue and increasing competition. To counter this, Tencent launched the “Spring Bamboo Shoots Project,” investing in unconventional game designs with smaller budgets.
Recent setbacks, including the discontinuation of “Apex Legends Mobile” and the failure of “Undawn,” underscore the need for innovation and risk-taking.
Despite these challenges, Tencent remains a dominant force in the gaming industry, but its strategic evolution marks a significant departure from its previous reliance on big franchises and signals a new era of in-house innovation.
