Tencent Holdings, the Chinese tech giant, has further entrenched itself in the global gaming industry with the acquisition of a 51.4% controlling stake in Kuro Games. Known for its highly anticipated open-world action RPG, Wuthering Waves, Kuro Games is now set to receive significant backing from Tencent, which already boasts one of the most diverse and influential portfolios in the gaming world.
This move comes as Tencent continues its strategic expansion, leveraging both full ownership and partial stakes in game studios worldwide to cement its dominance.
Kuro Games: From Humble Beginnings to Industry Prominence
Founded in 2014 in Zhuhai, China, Kuro Games started with modest projects, including its early mobile game, Twin Tail Battleground. The studio gained traction with the release of Punishing: Gray Raven in 2019, which showcased their knack for engaging gameplay mechanics and narrative depth. The announcement of Wuthering Waves, an ambitious open-world RPG, further propelled Kuro Games into the limelight, earning a dedicated global fanbase eager for the game’s release.
The acquisition was finalized in November 2024, with Tencent purchasing approximately 37% of Kuro Games’ shares from Hero Entertainment. This raised Tencent’s total stake to 51.4%, making it the sole external shareholder. Despite the acquisition, Kuro Games has reassured its employees and fans that it will maintain its creative independence, following a model Tencent successfully employs with other major studios, such as Riot Games and Supercell.
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Tencent’s Growing Gaming Portfolio
Tencent’s influence in the gaming world is unparalleled. Beyond its majority stake in Kuro Games, the company has ownership or partial stakes in a vast array of studios across the globe. Below is an overview of Tencent’s most significant investments:
Fully Owned Studios
- Riot Games (USA): Creator of League of Legends and Valorant.
- Funcom (Norway): Known for Conan Exiles and The Secret World.
- Inflexion Games (Canada): Developer of the upcoming Nightingale.
- Sharkmob (Sweden): Specializes in multiplayer games.
Majority Stake Holdings
- Supercell (Finland): Developer of Clash of Clans and Clash Royale (84% ownership).
- Grinding Gear Games (New Zealand): Creator of Path of Exile (80% ownership).
- Fatshark (Sweden): Known for the Warhammer: Vermintide series.
- Kuro Games (China): Developer of Punishing: Gray Raven and Wuthering Waves (51.4% ownership).
Significant Minority Stakes
- Epic Games (USA): Creator of Fortnite and the Unreal Engine (40% ownership).
- Activision Blizzard (USA): Known for Call of Duty and World of Warcraft (minority stake).
- Ubisoft (France): Developer of Assassin’s Creed and Far Cry franchises (minority stake).
- Bluehole Studio (South Korea): Developer of PUBG.
- FromSoftware (Japan): Creator of the Dark Souls series and Elden Ring (16.25% ownership).
- Krafton (South Korea): Owner of Bluehole and publisher of PUBG.
Other Notable Investments
- PlatinumGames (Japan): Known for Bayonetta and NieR: Automata.
- Paradox Interactive (Sweden): Renowned for grand strategy titles like Crusader Kings.
- Techland (Poland): Creator of the Dying Light series.
- Don’t Nod Entertainment (France): Known for narrative-driven games like Life is Strange.
Implications for Kuro Games and Wuthering Waves
Tencent’s acquisition brings both financial muscle and strategic expertise to Kuro Games. With the resources and support of a global giant, Kuro Games is poised to elevate Wuthering Waves further. The game, already praised for its action-packed combat and immersive storytelling, is expected to see enhancements in both development scale and regular content updates.
This move also demonstrates Tencent’s interest in strengthening its position in the RPG genre. Wuthering Waves could become a major player in Tencent’s portfolio, rivaling other action RPGs in the market.
Tencent’s Broader Strategy
Tencent’s approach to acquisitions and investments is strategic, focusing on diversifying its gaming portfolio and gaining a foothold in multiple genres and markets. In 2020 alone, Tencent closed 31 gaming-related deals, illustrating its aggressive expansion in the industry. Its investments span mobile gaming, console titles, and PC gaming, ensuring its dominance in all major gaming segments.
Conclusion
Tencent’s majority stake in Kuro Games marks another milestone in its relentless expansion. For Tencent, this move strengthens its position as a global gaming powerhouse. For Kuro Games, the partnership provides an opportunity to realize the full potential of Wuthering Waves and future titles.
As Tencent continues to grow its influence, gamers worldwide can anticipate a steady stream of high-quality titles from its vast network of studios, ensuring that Tencent remains a dominant force in shaping the future of gaming.
