The Tencent boss announced a threat to the gaming business

The Tencent boss announced a threat to the gaming business – he sees salvation in AI

Pony Ma, CEO and co-founder of Tencent Holdings, said the company’s gaming direction faces serious threats from competitors, but the development of artificial intelligence will help make up for lost time, he writes Reuters referring to the Chinese publication Jiemian and its own sources.

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Speaking at Tencent’s annual meeting at the stadium in Shenzhen, Ma said the company was resting on its gaming laurels while competitors released new hits – 30% of Tencent’s revenue comes from video games. Executives at the world’s largest gaming company and operator of China’s largest social platform WeChat are concerned about whether the company can maintain its status as the most powerful technology provider amid growing competition and the emergence of new disruptive technologies.

“Games are our main business. <..> But last year we faced serious problems. We suffered losses and our competitors launched new products, so we felt like we had achieved nothing.”said the head of Tencent. According to him, the company’s new games did not perform as well as hoped. Other Chinese developers have managed to overshadow Tencent with hits like Genshin Impact and Eggy Party. Previous hits, including Honor of Kings and PUBG Mobile, continue to generate strong sales, but newer products have fallen short of expectations.

But the company is still doing well in the AI ​​space. “We can finally keep up with the pace of the world-class companies. We don’t think we’re leaders, but at least we’re not too far behind.”, Ma admitted. Tencent has the Hunyuan AI model in its arsenal, and the company should now focus on integrating it into various business scenarios to improve efficiency. However, AI should not be quickly translated into market-ready products. “In the short term, in the next year or two, I don’t think there will be mass adoption of AI yet.”says the head of Tencent.

He sees another promising area in online transmissions in the e-commerce segment. In recent years, Tencent has tried to make WeChat more similar to ByteDance’s short-video platform Douyin (the Chinese arm of TikTok), which has generated huge sales in the segment. “WeChat is our most trusted platform in terms of ecosystem and daily users. But she is already 12 years old. <..> Now the big question for us is how to find new shoots on an old tree.”Pony Ma concluded.


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Alan Foster

Alan Foster covers computers and games and all the news in the gaming industry.

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