When you boot up League of Legends, you’re playing a Tencent game. When you fire up Valorant, you’re playing a Tencent game. When you log into Clash of Clans — Tencent. Path of Exile? Tencent. Epic Games? Tencent owns 40%. FromSoftware? Tencent owns 16.5%. Ubisoft? Tencent owns 11%.
Tencent is the largest gaming company in the world by revenue, and most Western gamers have no idea how deep the rabbit hole goes.
The Portfolio: What Tencent Owns
Tencent’s gaming empire operates on three levels:
Full Ownership
Studios where Tencent owns a controlling stake (50%+):
- Riot Games (100%) — League of Legends, Valorant, Teamfight Tactics
- Supercell (81.4%) — Clash of Clans, Clash Royale, Brawl Stars
- TiMi Studio Group (100%) — Call of Duty Mobile, Pokémon UNITE, Honor of Kings
- Lightyear Studios (100%) — Mobile development, AAA ambitions
Strategic Minority Stakes
Companies where Tencent holds a significant but non-controlling stake:
- Epic Games (40%) — Fortnite, Unreal Engine
- FromSoftware (16.5%) — Elden Ring, Dark Souls, Bloodborne
- Ubisoft (11%) — Assassin’s Creed, Far Cry
- Bluehole/ Krafton (13.6%) — PUBG, PUBG Mobile
- Frontier Developments (9%) — Elite Dangerous, Planet Zoo
- Don’t Nod Entertainment (10.6%) — Life is Strange
Publishing Partnerships
Tencent also acts as the exclusive publisher of Western games in China, giving it enormous influence over which games succeed in the world’s largest gaming market:
- Bungie’s Destiny 2 (China publishing rights)
- Niantic’s Pokémon GO (China, through Niantic partnership)
- Nintendo Switch (online services in China through partnership)
Why Tencent’s Strategy Works
Tencent’s approach is uniquely hands-off. Unlike Microsoft’s acquisition strategy, which brings studios under the Xbox umbrella, Tencent leaves its minority-stake companies alone. Riot Games operates autonomously. Epic Games operates autonomously. FromSoftware operates autonomously. Tencent provides capital, access to the Chinese market, and mobile development expertise — and takes a share of revenue.
This strategy has made Tencent the most successful gaming investor in history. The company’s gaming revenue in 2025 was $32 billion — more than Sony, Microsoft, and Nintendo combined.
The China Problem
Tencent’s dominance comes with complications. The Chinese government’s crackdown on gaming — restrictions on minors’ playtime, freeze on new game approvals, and pressure on monetization — has forced Tencent to look outward. International revenue now accounts for 30% of Tencent’s gaming revenue, up from 9% in 2019.
There’s also a geopolitical dimension. The US government’s scrutiny of Chinese tech companies has led to concerns about Tencent’s stakes in US gaming companies. The Committee on Foreign Investment in the United States (CFIUS) has reportedly reviewed Tencent’s investments in Epic Games and Riot Games, though no action has been taken.
The Future
Tencent’s next moves are ambitious:
- AAA console development — Lightyear Studios is hiring Western developers for a flagship AAA project targeting PS5, Xbox, and PC
- Cloud gaming — Tencent Cloud Gaming is live in China and expanding to Southeast Asia
- AI in gaming — Tencent AI Lab is developing NPCs powered by large language models for future games
- Esports — Tencent owns or operates the competitive leagues for League of Legends, Valorant, PUBG Mobile, and Honor of Kings
Tencent’s gaming empire is often described as a “shadow” over the industry. But it’s more accurate to call it the industry’s infrastructure. Tencent doesn’t make your favorite games — it funds the studios that make them, publishes them in the world’s biggest market, and builds the platforms they run on.
Whether that’s a good thing depends on your perspective. But one thing is certain: there has never been a gaming company with this much reach, this much revenue, and this much influence. Tencent isn’t just the biggest player in gaming — in many ways, it is gaming.