Tencent is reportedly in talks to sell its shares in some Japanese studios, even if that means taking a loss

Tencent, the world’s largest gaming powerhouse, is reportedly negotiating to divest from several of its earlier stakes in Japanese game studios.

With a portfolio that spans over 800 developers across the globe, Tencent’s holdings include major shares in Epic Games, Larian, Krafton, Ubisoft, and ownership of Riot Games and Supercell.

Bloomberg’s latest report reveals that the company is actively seeking to withdraw from a number of these investments, particularly those tied to Japanese firms.

Among the studios slated for potential exit is Marvelous, the Tokyo-based developer renowned for titles such as Monster Hunter Stories, Rune Factory, and Story of Seasons.

Tencent is reportedly reassessing its minority stakes in a number of studios, and in certain cases is even willing to divest those shares back to the original management teams—even if that means accepting a loss.

That said, the company is not planning a complete exit from the Japanese video‑game market; it remains focused on identifying which of its investments still promise strong returns.

The report also confirms that Tencent’s holdings in marquee studios such as PlatinumGames, FromSoftware, and their parent company Kadokawa are unaffected by this review.

In addition, Tencent appears to be moving toward a more active partnership model, aiming to co‑produce titles with foreign studios rather than simply providing capital and standing back.

“Video games are the cornerstone of Tencent’s business strategy,” the conglomerate declared in a recent statement to the publication. “We remain fully committed to partnering with our investees and sustaining a robust presence in the Japanese gaming market for the long haul.”

Tencent’s expansive investment portfolio has sparked unease beyond China’s borders. Earlier this year, reports surfaced that the Trump administration was weighing the possibility of compelling the Chinese gaming behemoth to relinquish its stakes in various video‑game enterprises.

The Financial Times detailed that U.S. officials convened to assess whether Tencent’s holdings in American gaming firms could pose a national security threat.