Asia
Tencent’s next level up: fewer big foreign franchise games, more in-house

In a sea change at China’s Tencent (0700.HK), opens new tab, an easy-to-play game of cute characters tackling obstacle courses has taken precedence over developing a big-budget sophisticated foreign franchise for smartphones.
Since late last year, the world’s largest video games company has, according to sources, redeployed hundreds of people from the team developing “Assassin’s Creed Jade” for mobile – a multi-year project with France’s Ubisoft (UBIP.PA)
They are now working on recently launched “DreamStar” – Tencent’s answer to rival NetEase’s (9999.HK), hit “Eggy Party” and the company’s most high-profile attempt to date at the so-called party game genre which offers simple gameplay, minigames and encourages players to hang out and chat.
As a result, “Assassin’s Creed Jade” – an action-adventure game set in ancient China that has been under development for mobile for at least four years – will likely be released in 2025 instead of this year, according to three sources familiar with the matter. They were not authorised to speak to media and declined to be identified.
The redeployment of resources highlights the trends forcing a strategic pivot at Tencent. Firstly, developing big-name Western franchises for mobile phones tends to yield thin margins.
At the same time, rivals have had breakout hits with ostensibly niche products that offer new takes on gaming such as as NetEase’s “Eggy Party” and miHoYo’s anime-style fantasy game “Genshin Impact”. Moreover, the games were developed in-house so their profits are all their own.
Tencent had, for years, great success by developing for smartphones international hits like Activision Blizzard’s shooter game “Call of Duty” and the battle royale game “PUBG” by South Korea’s Krafton (259960.KS).
But such franchise games – called IP (intellectual property) games – are costly to make. Royalty fees of 15% to 20% of sales are typical, Apple’s (AAPL.O), opens new tab App Store takes a 30% cut while marketing and user acquisition expenses can cost another 30% to 40%, the sources said.
After a string of IP game setbacks, Tencent plans to be more selective. “We’re focusing on fewer bigger budget games. Typically, we’re seeking to make the biggest bets around games that either iterate on a successful IP … or games that are iterating around proven gameplay success within a niche and taking those to a more mass market,” Tencent Chief Strategy Officer James Mitchell told an earnings call on Wednesday.
Tencent is now also pushing for royalty fees to fall to under 10% of sales in some negotiations, according to one person with direct knowledge of the matter. “That would have been almost unthinkable just a few years ago. Tencent used to be far more generous,” the person said.
Tencent declined to comment on details of its strategic shift.
SETBACKS AND BAMBOO SHOOTS
On Wednesday, Tencent reported a slight decline in fourth-quarter gaming sales and also flagged that overall gaming revenue this quarter would be soft compared with the same period last year when gaming sales surged as pandemic restrictions were lifted.
Pony Ma, Tencent’s founder and chief executive, has been blunt that the company’s video game division – which last year generated 180 billion yuan ($25 billion) in sales or around 30%of overall revenue – needs to do better.
Competitors have continued to create new products, “leaving us feeling we have achieved nothing,” he told a stadium of employees in Shenzhen at the company’s annual meeting in January, according to a separate source with direct knowledge of the event.
That month, Tencent also launched its “Spring Bamboo Shoots Project”, aiming to incubate in-house games with novel gameplay and offering budgets of up to 300 million yuan ($42 million) per game. While that is much less than budgets of 1 billion yuan for a major franchise, the initiative signals Tencent is willing to take more risks on non-conventional game design, the sources said.
Some major setbacks have only increased the sense of urgency for change.
Last year, Electronic Arts (EA.O), discontinued “Apex Legends Mobile”, a game developed by Tencent, with executives at the U.S. firm saying it had fallen short of expected quality.
In December, Tencent axed development of a mobile game based on the “Nier” franchise from Japan’s Square Enix (9684.T), in part because the Chinese firm struggled to find a compelling monetisation model given its expensive development costs and franchise rights, sources have said.
“Mobile games studios have learned that IP is not the magic bullet for user acquisition it once was,” says Serkan Toto, founder of game industry consultancy Kantan Games.
Tencent has also seen a key in-house game bomb. “Undawn”, a zombie apocalypse shooting game that Hollywood star Will Smith was hired to endorse, flopped spectacularly despite having a budget of close to 1 billion yuan with more than 300 developers, according to two of the sources.
Last month, one year since its launch, “Undawn” brought in revenue of just $287,000, according to research firm Appmagic.
Western companies have also started to shift away from outsourcing mobile game development to Chinese companies like Tencent. Microsoft’s (MSFT.O), Activision Blizzard, for example, has just launched “Call of Duty Warzone Mobile” which will compete directly with Tencent’s “Call of Duty Mobile”.
Adding salt to the wound, Tencent’s top two games saw revenue slide during the week-long Lunar New Year holidays in February. “Honor of Kings” and “PUBG Mobile”, which are nine and seven years old respectively, suffered 7% and 30% drops compared to the holiday period last year, according to one of the sources who was briefed on the matter.
Source: Reuters
The post Tencent’s next level up: fewer big foreign franchise games, more in-house appeared first on European Gaming Industry News.
Asia
AA Gaming Announce the Rajasthan State Esports Championship (RSEC) with Youth Affairs & Sports Department, Govt. Of Rajasthan
-
Open Qualifiers
-
Inter-College Knockout Rounds
-
Semifinals
-
Grand Finals – which will be live-streamed and culminate in a prestigious awards ceremony.
-
Gaming techniques and strategic play
-
Game development fundamentals
-
Esports career pathways
-
Mental health and well-being for athletes
-
Team-building and communication
-
Professional conduct in esports
-
In-depth game analysis and review
The post AA Gaming Announce the Rajasthan State Esports Championship (RSEC) with Youth Affairs & Sports Department, Govt. Of Rajasthan appeared first on European Gaming Industry News.
Asia
GEG Title-Sponsors the “Alphabets & Friends” Literary and Cultural Festival

Galaxy Entertainment Group (GEG) has been actively supporting cultural and artistic exchanges between China and Portuguese-speaking countries, and advancing the establishment of Macau as “a base for exchange and cooperation where Chinese culture is the mainstream and diverse cultures coexist”. Spanning over 30 activities from April 4 to May 6, the “Galaxy Entertainment Group Presents: Literary and Cultural Festival for Parents and Children ‘Alphabet & Friends’ 2025” (the Festival) was jointly organised by the Portuguese Institute of the Orient (IPOR) and the Consulate-General of Portugal in Macau and Hong Kong and title-sponsored by GEG. As part of the Festival, GEG hosted an exclusive parent-child story creation session at the Galaxy Kidz Edutainment Centre, inviting over 30 local children and parents from the Associação Promotora da Instrução dos Macaenses to participate. Together, they created and read Portuguese-language stories, deepening their understanding and interest in Portuguese culture through relaxed and interesting interactions. Since its inception in 2021, GEG has supported the Festival for five consecutive years, facilitating cultural exchanges within Macau’s Chinese-Portuguese community. Including this year’s activities, the Festival has drawn participation from 40 local schools and institutions, totaling over 10,000 participants.
During the parent-child story creation session at the Galaxy Kidz Edutainment Centre, Ms. Catarina Mesquita, founder of Macau’s first trilingual children’s book publishing company, Mandarina Books, inspired the creativity of children in an educational and entertaining way, guiding them to use different Portuguese phrases and vocabularies to create unique stories based on everyday life. Portuguese cartoonist, Mr. Rodrigo de Matos, also attended the event and vividly illustrated the children’s ingenious ideas on canvas. The children and their parents added colorful stickers to their works afterwards in a warm and lively atmosphere. Additionally, Ms. Mesquita brought her books, published in Chinese, English and Portuguese, for the participating families to read together, allowing them to experience the joy of cross-cultural communication.
Mr. Mário Herculano Fernandes Estorninho, a representative from the Associação Promotora da Instrução dos Macaenses, said: “We sincerely thank GEG and all the organizers for providing this rich cultural experience. The event not only sparked children’s creativity and imagination through engaging activities, but also fostered their interest in storytelling, improved their expression and comprehension skills in the Portuguese language, and deepened their understanding of Portuguese culture.”
For the first time, the series of activities in this year’s Festival were the “reading points” of the “Reading Month in the City of Macao 2025” organised by the Cultural Affairs Bureau of the Macau SAR Government (ICM). The Festival was linked to a number of related initiatives, such as International Children’s Book Day, World Book Day and World Portuguese Language Day, with various activities ranging from concerts, theater performances, parent-child workshops, children’s book fairs and book launches around the theme of “Artificial Intelligence in Education – The Robot and I” held to the enthusiastic response of different sectors. Furthermore, at the “Mini Library”, one of the key events of the Festival, IPOR, the Consulate-General of Portugal in Macau and Hong Kong and GEG jointly donated a collection of nearly 400 books by Portuguese-language authors, including some bilingual editions released during the Festival, to nearly 40 non-tertiary local schools that include Portuguese in their curriculum in hopes of enhancing local youth’s interest in reading and deepening their understanding of the Portuguese culture through high-quality bilingual learning materials.
Over the years, GEG has upheld its philosophy of “What is taken from the community is to be used for the good of the community” by supporting Chinese-Portuguese cultural and artistic events in Macau through diverse ways, hoping to enrich the city’s multicultural landscape. In this March, GEG sponsored the Macau Literary Festival for the 11th time, providing a platform for literary exchange between cultural and artistic advocates from China and Portuguese-speaking countries. Last year, GEG supported the “GEG Lusofonia Festival” for the second consecutive year, serving as one of its organisers for the first time alongside ICM. Since 2021, GEG has partnered with ICM to launch a variety of initiatives under the “Encounter in Macao – Arts and Cultural Festival between China and the Portuguese-speaking Countries”, including supporting the “GEG Traditional Music and Dance Performance in the Community” held at Galaxy Macau integrated resort for two consecutive years. Additionally, GEG has supported the “China and Portuguese-speaking Countries Film Festival” for four consecutive years, co-hosting it twice and providing outdoor screenings at GEG’s revitalisation project – the Lai Chi Vun Shipyards during this past edition.
The post GEG Title-Sponsors the “Alphabets & Friends” Literary and Cultural Festival appeared first on European Gaming Industry News.
Asia
Japanese Authorities Seek to Authorise Two More Integrated Resorts by 2027

Japanese authorities are planning to reopen the application process for integrated resort (IR) developments that include casinos, with the goal of approving up to two additional projects by the end of 2027.
This move would bring the country closer to the maximum of three IR licenses permitted under current legislation.
According to a reports, Japan’s central government is expected to launch the new round of applications by December 2026, giving potential host locations time to develop their IR District Development Plans—a mandatory requirement under the national framework.
While Hokkaido withdrew from the original round of bids in 2019, the northern island’s capital city, Sapporo, has now shown a revived interest in pursuing an IR project. Tokyo has also emerged as a possible candidate, although the capital has yet to make a formal declaration of intent. Interest in the initiative has been spurred by various feasibility studies conducted in recent years, suggesting a growing openness to participation from Japan’s largest urban centre.
To proceed with the updated initiative, the Japanese government plans to solicit public feedback on a proposed cabinet order outlining the application schedule. This consultation period is set to begin in August 2025 and will run through the end of the year, following the House of Councillors election in July.
Currently, Japan has granted only one IR license. The sole approved project, MGM Osaka, is being developed by MGM Resorts International in partnership with Japanese financial group Orix Corp. It is scheduled to open in 2030 and stands as the flagship example of Japan’s ambitions to leverage IRs as a means of boosting tourism and economic growth.
The country’s IR framework, enshrined in law, allows for a total of three resort licenses nationwide. With MGM Osaka already occupying one of those slots, the upcoming application window will determine which two regions—if any—will secure the remaining approvals.
The post Japanese Authorities Seek to Authorise Two More Integrated Resorts by 2027 appeared first on European Gaming Industry News.
-
partnerships4 weeks ago
Octoplay accelerates UK and Irish growth with strategic BoyleSports partnership
-
Asia3 weeks ago
Jetapult Strengthens AI Expertise: Onboards Industry Leaders, Oz Silahtar and Dr. Arjun Jain
-
Latin America4 weeks ago
SOFTSWISS Ignites Brazil with ‘Race Like a Legend’ Experience
-
Balkans4 weeks ago
Playson tightens grip on Croatian market with landmark Hrvatska Lutrija deal
-
Africa4 weeks ago
INCENTIVE GAMES SIGNS EXCLUSIVE DISTRIBUTION DEAL FOR NORTH AMERICA, EUROPE, SOUTH AFRICA AND UK WITH LIGHT & WONDER
-
Press Releases3 weeks ago
Colour the world your way in Supa Crew by Swintt’s Elysium Studios
-
Press Releases2 weeks ago
Swintt stacks up a pyramid of wins in Egypt King Pearl Upgrade
-
Africa2 weeks ago
Association of Gaming Operators in Kenya Announces New Regulations