Gaming Giant Tencent Shuts Down Team Kaiju - A Strategic Shift or a New Challenge Ahead?

Chinese gaming giant Tencent Holding Ltd AAPL has closed down its U.S. video game studio Team Kaiju, a crucial part of its strategy to expand into the Western gaming market. 

The decision to shut the studio occurred in June, reassigning Team Kaiju's staff to work on another Tencent game, Reuters reports.

Team Kaiju, under the guidance of renowned game designer Scott Warner, was developing a high-budget multiplayer game. 

Warner, known for his work on "Halo 4," joined Tencent in 2020, marking a significant recruitment for the company. 

However, Warner left Team Kaiju in April, as indicated by his LinkedIn profile, and the studio's website is no longer active.

Also Read: Tencent's New Game 'DreamStar' Shakes Up the Gaming Scene: Will it Outshine NetEase's Smash Hit?

This move comes amid Tencent's broader efforts to establish gaming studios overseas and create games targeting international markets. 

Recently, Tencent announced its most ambitious console title, "The Last Sentinel," developed by around 200 people at its Lightspeed LA game studio. 

Known for its popular mobile games like PUBG Mobile, which are wildly successful in China and relatively less expensive to develop, Tencent's decision to shut down Team Kaiju represents a notable shift in its global gaming expansion strategy.

Also Read: Nvidia Faces Fierce Competition in China, Tencent and Huawei Lead the Charge

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo by Chris Yunker via Flickr