Chinese media giant Tencent is reportedly reassessing its holdings in multiple Japanese video game studios, among them Rune Factory and Marvelous—the company behind Monster Hunter Stories.
Bloomberg’s recent reporting says Tencent Holdings is currently in talks about reducing its positions in several Japanese gaming companies. The move is tied to a broader review of its portfolio as the industry grapples with a continuing economic downturn.
In these conversations, Bloomberg’s sources add that Tencent is considering selling portions of its stake back to the original leadership, in some cases even at a loss. That points to a willingness to redirect capital quickly toward other prospects.
Marvelous is reportedly among the studios being discussed for Tencent’s share sale, while other Tencent-backed companies—such as Platinum Games and FromSoftware (as well as its parent, Kadokawa)—are said to be outside the scope of these talks.
Tencent took on a stake in Marvelous in 2020, but what’s driven such a major shift in its approach? The company has been deepening co-development partnerships with international studios. In the past year, Tencent and Ubisoft teamed up to form Vantage Studios, a subsidiary that now houses many of Ubisoft’s most prominent franchises—an example of the scale Tencent believes can still generate momentum (and strong revenue).
Tencent is also staying involved in more casual forms of gaming, particularly experiences that highlight user-generated content. Tencent continues its partnership with Roblox and has helped drive the game’s rise in China.
What this means for Japanese studios like Marvelous remains unclear, but with the traditional gaming sector still under strain from the cost-of-living crisis and other pressures—such as component pricing—this is a tough period for developers to navigate.