Tencent Expresses Concerns Over Future Projections

There has been a rough patch in the gaming industry this past year. We’ve seen several studios face layoffs, game productions killed, and even the entire closure of their company. Just this year, we also saw Microsoft unveil that they were doing mass layoffs in their gaming division, and even Embracer Group reportedly killed off a Deus Ex title while also laying more of their staff off. But now it seems that Tencent is concerned that they, too, will start to feel the downward slope as their current video games don’t hit the strides Tencent had initially hoped.

Tencent is a massive company and also happens to be one of the largest companies in the video game industry. A ton of money is generated through Tencent, and we’ve seen plenty of game releases that the company helped publish. However, the CEO seems not too pleased with where the company currently stands. Thanks to a report from Insider Gaming, we’re finding out that the CEO, Pony Ma, has expressed new concerns that they may no longer be on top of their game. This comes from a comment that was reported by Reuters, which was present during Tencent’s annual meeting. 

Pony Ma went on to state that while gaming is their flagship business, their past year was met with plenty of challenges. Furthermore, they have felt Tencent has become a loss compared to its competitors. Their latest games might not have hit their intended projections, but some of their staple titles, such as PUBG Mobile, continue to do well. So the question is just where we might see the studio pivot to this year if they feel the need to make significant changes in order to stay on top. 

Gaming is our flagship business…But in the past year, we have faced significant challenges. We have found ourselves at a loss, as our competitors continue to produce new products, leaving us feeling having achieved nothing.

Pony Ma – Reuters

At any rate, we’ll have to continue to monitor and see what the future holds for Tencent. So far, since the CEO of Tencent made the speech, there have been no further comments provided. 2023 certainly was a year filled with big game releases, but again, behind the scenes, we’ve seen far too many layoffs and closures. So we’re certainly hopeful that this year will make a notable positive change within the industry. We’ll continue to monitor if any further statements are provided and if there are new developments from the folks over at Tencent.