Tencent Games is the gaming division of Tencent Holdings, and by revenue, it’s the largest gaming company on Earth. The Shenzhen-based operation generates tens of billions of dollars annually and has stakes in an enormous number of gaming companies worldwide.
The investment portfolio reads like a who’s who of gaming. Tencent wholly owns Riot Games (League of Legends, Valorant). It holds a controlling 81.4% stake in Supercell (Clash of Clans). It owns 40% of Epic Games (Fortnite, Unreal Engine). It has significant minority stakes in companies including Ubisoft, Activision Blizzard (pre-Microsoft), PlatinumGames, Dontnod, Klei Entertainment, and Grinding Gear Games (Path of Exile). In total, Tencent has invested in over 100 gaming companies.
In China, Tencent dominates through its own titles. Honor of Kings (Arena of Valor internationally) is the highest-grossing mobile game in the world, regularly generating over $200 million per month in China alone. PUBG Mobile (published by Tencent as Game for Peace in China) has been downloaded over a billion times globally. WeChat’s gaming mini-programs add another massive layer to Tencent’s mobile gaming reach.
Tencent’s gaming ambitions have been shaped by Chinese government regulations. In 2021, China imposed strict limits on gaming time for minors (three hours per week, only on weekends) and slowed the approval of new game licenses. These restrictions forced Tencent to lean more heavily on international markets and its portfolio of overseas investments.
The company has been building more internal development capacity outside China, with studios in Los Angeles, Montreal, and other cities working on original AAA titles. Tencent’s Level Infinite publishing label handles global distribution for the company’s Chinese-developed games.
Tencent Holdings is publicly traded on the Hong Kong Stock Exchange with a market capitalization that regularly exceeds $400 billion.
