Tencent is taking a more assertive approach with companies such as Techland, Funcom, and Sumo

Tencent, the prominent Chinese technology and entertainment corporation, is taking a more active role in shaping the strategy of its subsidiaries, including Techland, Funcom, and Sumo Group.

Bloomberg reported insights from Michelle Liu, head of Tencent's gaming division, revealing numerous examples of the company's increased influence over its owned entities' strategic directions.

In one scenario involving Polish studio Techland, acquired by Tencent in 2024 for $1.6 billion, Liu directed the integration of Tencent staff within Techland to aid operations. A strategic meeting with Techland's founder, Pawel Marchewka, at Tencent's Shenzhen headquarters was held to decide the pricing for "Dying Light: The Beast," leading to its release as a premium-priced game.

According to Marchewka, "We can always count on an extra point of view that helps us to improve the game."

Liu emphasized her flexible approach, stating, "I fundamentally don't care who's calling the shots. Whatever makes the most sense for our projects to succeed, that's the way to do it."

Similarly, Tencent has guided Norwegian studio Funcom to prioritize "Dune: Awakening" over other projects. Funcom's CEO, Rui Casais, noted the firm suggested, "You're spreading your attention. You have a great IP that you've secured, you should really focus on that and drop other things." Resulting actions included staff reductions and closing The Outsiders in October.

For the Sumo Group, Tencent advised against pursuing original IPs, redirecting efforts toward its expertise in contract work for other developers. This strategy led to successful collaboration with Digital Extremes, developing seasonal content for "Warframe," which boosted sales of the long-standing online game.

Juno Shin, on Liu's team, clarified, "It is not a push, it's a pull. We 100% stay away from creative intervention. However, creative people do not always know how to do finance or production or hiring."

These strategies echo earlier statements by Tencent's VP of business operations, Yong-yi Zhu, as reported by GamesIndustry.biz, regarding the support provided to Sumo Group and Funcom.

Zhu highlighted Tencent's role, saying they aided Sumo Group with strategic decisions on budgeting and trend analysis, and helped Funcom with managing large-scale releases like "Dune: Awakening," including technical support and global audience engagement strategies.