Report: Tencent May Divest Shares in Several Japanese Game Studios

Tencent is reportedly preparing to divest some of its gaming assets in Japan, according to a report by Bloomberg citing sources familiar with the matter. The Chinese company is currently in talks to exit several Japanese studios as part of an effort to improve its position in the gaming market. When deciding which teams to leave, Tencent evaluates how much revenue they generate and whether synergy remains between the specific studio and the rest of its portfolio.

While the full list of affected companies has not been disclosed publicly, Bloomberg assumes that Marvelous is included among them. Tencent originally acquired a 20 percent stake in Marvelous in 2020 for $65 million. Marvelous is known as the creator of the Rune Factory and Daemon x Machina series. In certain cases, Tencent is prepared to sell its shares back to original management teams even if doing so results in a financial loss.

Despite these potential divestments, Tencent plans to maintain several major partnerships in the region. Bloomberg reports that Tencent will keep its stakes in FromSoftware and PlatinumGames in its portfolio. A Tencent representative provided a comment to Bloomberg that neither confirmed nor denied the rumors outright, stating instead that video games remain a key business area and the company intends to maintain a strong presence in the Japanese gaming market over the long term.