Tencent’s Studio Closures Signal a Shift in Western Game Development
Tencent has recently shuttered TiMi Montréal, its five-year-old studio focused on AAA open-world games. This closure adds to a growing trend of Chinese gaming giants reassessing their investments in Western development studios. The move, reported by Eurogamer and Game File, highlights a strategic shift as companies like Tencent and NetEase navigate a changing global gaming landscape.
The Rise and Fall of Western Expansion
The initial surge in establishing Western studios was fueled by the pandemic-era gaming boom and significant investor interest. Companies like Tencent and NetEase, already dominant in the Asian market and mobile gaming, sought to expand their reach into console and PC gaming by acquiring talent and establishing a foothold in North America and Europe. TiMi Montréal, announced in July 2021, was part of this expansion, aiming to create large-scale, multi-platform titles.
A Talent Grab and a Change of Course
TiMi Montréal notably recruited Ashraf Ismail, the former creative director of Assassin’s Creed Valhalla, after his departure from Ubisoft in 2020. Ismail’s hiring signaled Tencent’s ambition to attract top-tier talent from established Western developers. However, the studio ultimately didn’t release a single game during its existence, focusing instead on projects inherited from Jade Studio (TiMi’s previous name) and mobile titles like Pokémon Unite and Call of Duty: Mobile.
Why the Retreat?
The closures of studios like TiMi Montréal and, previously, Bluepoint, suggest a recalibration of strategy. The initial wave of expansion proved more challenging than anticipated. Few substantial games emerged from these Western outposts and the return on investment appears to have fallen short of expectations. Game File reported that Tencent had been signaling a potential closure for weeks, indicating a deliberate decision rather than a sudden crisis.
The Impact on Talent
The closure has understandably impacted the team at TiMi Montréal. A senior gameplay programmer expressed heartbreak on LinkedIn, noting the team’s potential was never realized. A senior designer praised the team’s camaraderie and talent, highlighting the personal cost of these strategic shifts. These closures contribute to ongoing contraction within the game industry.
What Does This Mean for the Future?
Tencent’s move suggests a potential trend towards consolidating resources and focusing on core strengths. Instead of broadly expanding into Western development, companies may prioritize supporting existing studios or investing in specific projects with a clearer path to profitability. This doesn’t necessarily signal a complete abandonment of Western studios, but rather a more cautious and selective approach.
Mobile Remains a Key Focus
Despite the closure, TiMi Group as a whole remains a significant player, employing between 5,000 and 10,000 people. The continued success of mobile titles like Call of Duty: Mobile demonstrates Tencent’s strength in this sector. Future investments may lean more heavily towards mobile development and co-production models with existing Western studios.
FAQ
Q: What happened to TiMi Montréal?
A: Tencent closed TiMi Montréal on February 20th, 2026, after five years of operation without releasing a major AAA title.
Q: Who was leading TiMi Montréal?
A: Ashraf Ismail, former creative director of Assassin’s Creed Valhalla, led the studio.
Q: What games did TiMi Montréal work on?
A: The studio primarily worked on titles inherited from Jade Studio and mobile spin-offs like Pokémon Unite and Call of Duty: Mobile.
Q: Is Tencent abandoning Western studios altogether?
A: Not necessarily, but they appear to be reassessing their strategy and becoming more selective with investments.
Did you grasp? Tencent’s TiMi Group employs between 5,000 and 10,000 people globally, demonstrating its continued scale in the gaming industry.
Pro Tip: Preserve an eye on industry news and financial reports from major gaming companies to stay informed about emerging trends and potential shifts in strategy.
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