Tencent Closes Game Studios In The US, Global Expansion Plan Fails

Tencent, has closed one of its game studios in the United States (photo: x @ChannelNewsAsia)

JAKARTA - Chinese tech giant Tencent has closed one of its game studios in the United States which is considered a key part of its global expansion plan to become a competitive game developer in the Western market.

The Shenzhen-based company withdrew from the US gaming studio, Team Kaiju, in June, and its staff have been diverted to work in another game under the banner of Tencent, a source said, who declined to be named because the information had not yet been announced.

Team Kaiju worked on a large-cost multiplayer game under the leadership of experienced game designer Scott Warner before closing. Tencent recruited Warner in 2020, which at the time was considered a major signing because Warner was director of hits like "Hello 4".

Warner left Team Kaiju in April, according to its LinkedIn account. Team Kaiju's website is also no longer active. Tencent declined to comment.

The dissolution comes as the Chinese company is making impetus to build a studio overseas and develop games aimed at international markets.

Tencent recently announced its most ambitious title for a console called "The Last Sentinel", developed by about 200 people in its LA Lightspeed game studio.

Tencent is widely known for developing popular mobile games such as PUBG Mobile which is popular among Chinese players and cheaper to develop.Eurogamer.net first reported on the closure of Team Kaiju.