Tencent to ramp up European games investment

Tencent to ramp up European games investment

Chinese tech and entertainment giant Tencent is set to increase its overseas games investments.

That's according to the FT, which reports that the Chinese behemoth is primarily interested in European studios.  Unsurprisingly, this is due to the more stringent business environment it is experiencing in its native China. 

This news comes in the wake of Tencent slightly reigning in its investment strategy, which has left it without a blockbuster in its stable. 

“We weren’t aggressive in our capital deployment towards the end of last year given macroeconomic uncertainty in Europe and the political situation with the US,” one source told the FT.

There is some anxiety over whether this overseas investment will result in greater regulatory oversight. 

“It’s only a matter of time before regulators begin reviewing and scrutinising overseas investment portfolios,” a Tencent source said. 

While Tencent has historically been no stranger to the games industry outside of China, historically it has preferred to invest in developers and publishers rather than outright buying them. There are exceptions, of course, such as League of Legends maker Riot Games.

Tencent isn't the only company to feel the pressure to expand outside its native China. Games rival NetEase has set up a number of studios in the United States, Europe and Japan in the last few years.

PCGamesInsider Contributing Editor

Alex Calvin is a freelance journalist who writes about the business of games. He started out at UK trade paper MCV in 2013 and left as deputy editor over three years later. In June 2017, he joined Steel Media as the editor for new site In October 2019 he left this full-time position at the company but still contributes to the site on a daily basis. He has also written for, VGC, Games London, The Observer/Guardian and Esquire UK.