FromSoftware and Platinum are not apparently affected.

Image credit: Eurogamer/Capcom

Huge Chinese multimedia conglomerate Tencent is reportedly re-considering its stakes in several Japanese video game developers, including Rune Factory and Monster Hunter Stories creator Marvelous.

In a new report by Bloomberg, Tencent Holdings is currently negotiating exits from a number of its Japanese games companies as part of a global re-assessment of its portfolio while the industry remains in the midst of an economical slump.

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As part of these negotiations, Bloomberg sources claim that Tencent is considering selling some of its stakes back to the original management, in some cases at a loss. It's an indication the Chinese giant is keen to reinvest quickly elsewhere.

Marvelous is reportedly one of the studios where Tencent's stake is being negotiated, but other Tencent-backed studios Platinum Games and FromSoftware (plus its parent company Kadokawa) are not part of these negotiations.

With a stake in Marvelous bought in 2020, how has Tencent's strategy shifted to warrant such a change? Well, the company has been increasing its co-development ventures with foreign studios. Last year, Tencent and Ubisoft partnered to create Vantage Studios, a subsidiary that now holds many of Ubisoft's biggest franchises, and offers the sort of scope Tencent believes growth (and healthy revenue) can still come from.

Tencent also remains invested in more casual games, including those with a focus on user-created content. Tencent retains a partnership with Roblox and has allowed the hugely popular game to flourish in China.

What this means for the Japanese studios like Marvelous remains to be seen, but with the traditional game market continuing to struggle with the cost of living crisis and other factors such as component pricing hampering the industry, it's a daunting time for such developers.

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