Gaming Giant Tencent Shuts Down Team Kaiju - A Strategic Shift or a New Challenge Ahead?
Portfolio Pulse from Anusuya Lahiri
Tencent Holding Ltd has shut down its U.S. video game studio Team Kaiju, which was part of its strategy to expand into the Western gaming market. The closure happened in June, with staff reassigned to other Tencent games. The studio, led by Scott Warner, was developing a high-budget multiplayer game. Warner left the studio in April. Tencent continues to focus on international markets with other projects like 'The Last Sentinel' at Lightspeed LA studio.
December 18, 2023 | 5:37 pm
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Tencent's closure of Team Kaiju may indicate a strategic pivot or cost-saving measure. The impact on Tencent's stock (TCEHY) could be mixed, reflecting both the end of a potential growth avenue and a focus on cost efficiency.
The shutdown of Team Kaiju by Tencent is a significant move, but the company's large portfolio and ongoing projects like 'The Last Sentinel' may mitigate any negative impact. The reassignment of staff suggests cost optimization rather than a large-scale retreat from the gaming sector.
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IMPORTANCE 60
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