Tencent's Gaming Strategy Aims to Recapture Success with 'Palworld' Style Titles

Tencent is banking on its top creative studios, Timi and Lightspeed, to develop mobile games inspired by the viral sensation Palworld, signaling a strategic shift to revitalize its core gaming business.

Sources reveal that both Timi and Lightspeed are independently working on games resembling Palworld, featuring pet companions and stylized violence, in a bid to replicate the success of titles like Honor of Kings.

While Tencent anticipates the China release of Nexon's Dungeon & Fighter Mobile for immediate growth, internal game development remains crucial for sustained profitability, especially amidst a 2% decline in games revenue.

Facing competition and stagnation, Tencent is fostering internal competition among projects to drive innovation and results, drawing from past successes like Honor of Kings and Peacekeeper Elite.

Palworld's rapid rise in popularity highlights the potential for quick development and monetization, bolstered by Tencent's extensive resources and promotional capabilities.

Despite requests for comment, Tencent representatives remained silent on the matter.