#Tencent

Funcom lays off staff and pivots to Conan Exiles and Dune: Awakening only, CEO to leave at year end

Funcom has begun a restructuring and will focus solely on long-term live operations for Conan Exiles and Dune: Awakening, with the number of affected staff undisclosed. CEO Rui Casais will leave the Tencent-owned Norwegian developer at the end of the year and be succeeded by Chief Product Officer Scott Junior, who has been at the company 25 years and served as executive producer on Dune: Awakening. Funcom said it will not share further details until the process concludes and that it remains committed to supporting and expanding both games and their communities.

Dune: Awakening Creative Director: In the Game Industry, the Only Constant Is Change

Funcom CCO Joel Bylos said the Dune: Awakening team submits content to Legendary Pictures for approval via Jira, with a highly simplified IP oversight process, and that director Denis Villeneuve once worried the game's name was too similar to Star Wars: The Force Awakens. Bylos said the biggest change in the game's update is the addition of a single-player mode, plus difficulty options, and the console version uses the DualSense controller's haptic feedback and adaptive triggers. He noted most of Funcom is still working on Dune: Awakening and the studio is not ready to develop a new game, arguing stylized art will matter more than photorealism.

Yoozoo AI Red Coast Lab's Yu Huasong: How AI Agents Reshape Game Creation and Interaction

Yu Huasong, head of Yoozoo Network's AI Innovation Institute Red Coast Lab, shared at the 2026 China Metaverse Conference that AI Agents have three major game applications: multimodal content generation, intelligent NPCs with memory and decision-making, and one-click game creation from an idea. He said AI now covers all six major scenarios and over 100 sub-scenarios within Yoozoo, and presented the content production system YOOLab and the development collaboration platform YOOSpark.

September Global Mobile Game Revenue and Downloads Top 10: ROBLOX Ranks in Global Revenue Top 5

Sensor Tower data shows Honor of Kings remained the top-grossing mobile game worldwide in September 2026, while ROBLOX entered the global revenue top five and also topped both the revenue growth and download charts. Global mobile game spending reached $6.13 billion in September, down 7% month-over-month, with the US leading at 28.7% of revenue, while downloads totaled 3.56 billion, down 5.2%, led by India at 576 million. Tencent's Honor of Kings Chess ranked 7th on the revenue growth chart and 2nd on the download growth chart.

ARC Raiders hits 185,000 concurrents on Steam after 2.0 update as Embark moves to twice-yearly updates

ARC Raiders' 2.0 update, Frost Trail, launched on October 8 alongside a free-to-play period, and Steam concurrent players rose from about 10,000 in September to 185,000. The update adds the Pendora Pass map, the Outpost home system, tier-5 weapon upgrade paths and a reworked skill tree, while Embark drops monthly updates for twice-yearly deep updates. The article notes the free period as one driver and points to the October 13-20 PvE test, with Tencent's China server still in testing.

Apple Releases China App Store Ecosystem Report, Citing miHoYo and NetEase as Web Payment Cases

Apple published a China-only report on October 8 titled "China App Store Ecosystem — 2025 Developer and User Value Study," authored by antitrust experts Ju Heng and Markus von Wartburg. The report says the China App Store ecosystem generates about 4 trillion yuan annually with over 95% exempt from commission, and names miHoYo and NetEase as examples of developers using web stores and DTC channels to bypass Apple Pay. It also states Chinese apps accounted for 98% of domestic App Store revenue in 2025, with 52% of Chinese developers' App Store revenue coming from overseas.

Aream & Co: games M&A totals $57.8bn in Q3, including EA's $55bn leveraged buyout

Investment bank Aream & Co reports 54 games industry M&A deals worth $57.8 billion in the third quarter, including the $55 billion leveraged buyout of Electronic Arts completed on August 5. Content-focused M&A accelerated, with 18 control deals for developers and publishers above $100 million year-to-date, concentrated in Asia, including Alibaba's sale of Lingxi Games to Trustar Capital, Netmarble founder Bang Jun-hyuk's $270 million purchase of Tencent's stake, and Sony Music Entertainment's $180 million minority stake in GungHo. Public market revenue rose 122% year-on-year to $1.3 billion across 13 deals, while console revenue fell 12% to $14.1 billion, with Nintendo down 18%, Xbox 10% and PlayStation 9%.

The Division 2 China server to shut down on December 14

Tencent announced that The Division 2's mainland China server will officially shut down at 11:00 on December 14, citing a change in business strategy after talks with Ubisoft. Recharges and new user registrations stop at 11:00 on October 12, and forums and dedicated customer support close at 11:00 on December 22. Users who recharged before 11:00 on October 12 and still hold tokens in their accounts can claim gift packs for PUBG Mobile, Battle of Golden Spatula, Valorant, CrossFire and Honor of Kings during the compensation period.

From Top-Grossing Genre to Halved Revenue: Why MMO Mobile Games Collapsed

MMO mobile game in-app purchase revenue fell from $5.3 billion in 2021 to $2.8 billion in 2025, a 47% drop that far outpaced the RPG genre's 38% decline and the broader mobile market's 1% dip, according to an analysis by Naavik. Downloads also dropped 40%, from 345 million to 206 million, and revenue fell another 27% year-over-year from January to September 2026. The report attributes the structural collapse to engagement fatigue, spending fatigue and gameplay homogenization, compounded by open-world adventure RPGs like Genshin Impact raising the bar.

AI mini-game platform Astrocade hits 10 million MAU as Tencent, Google and Meta move in

GameLook reports that overseas AI game-creation platform Astrocade announced 10 million monthly active users, double the 5 million MAU four months earlier, with users generating playable content from natural language; it raised 56 million dollars in May from investors including Sequoia, Sea, Google's AI Future Fund and Nvidia. Tencent's Huya listed the AI game generator BinkBink on GooglePlay, Google partnered with Unity on the AI game platform Playground, and Meta unveiled Horizon Create and Horizon Studio at Meta Connect 2026. The article notes none of these platforms has settled on monetization, with Astrocade saying it is focused on user growth and will consider revenue growth sometime next year.

Touch Music Weekly Industry News: China Defends Honor of Kings Gold at Nagoya Asian Games, Delta Force Announces 58 Million DAU

On September 28, China beat Malaysia 4-0 in the Honor of Kings final at the Nagoya Asian Games, defending the gold medal it also won at the Hangzhou Asian Games, with player Yinuo becoming the league's first and only double gold medalist. On October 8, Tencent TiMi's Delta Force announced its China server daily active users surpassed 58 million as the game marked its second anniversary. NetEase also unveiled its extreme sports competitive shooter Extreme Battlefield, with its first test set to begin on October 15.

Ubisoft to shut down Rainbow Six Mobile's international servers as Tencent's Rainbow Six Siege China version stays in testing

Ubisoft Montreal said in an open letter on October 8 that Rainbow Six Mobile's international servers will shut down, staying open until January 15, 2027, with the next season still launching as planned next week and no further content updates after that. The game launched on February 23 this year, running for less than eight months. The piece notes that Tencent's 2024 license covers the multi-platform Rainbow Six Mobile, run domestically by its K9 team, while the PC title Rainbow Six Siege's China version received its license in January 2026 and began a second test round including paid content on September 15.

Delta Force hits 58 million DAU in China as overseas extraction shooters struggle

Delta Force announced on October 8 that its China server DAU passed 58 million, up from the 50 million reported in March. The piece traces its growth since launching in September 2024 and contrasts it with overseas extraction shooters, including KRAFTON ending development of PUBG: Black Budget on October 1 and Arc Raiders falling from a 481,000 concurrent peak to under 50,000 in June before recovering to 131,388 after the Frostline update on October 8. It credits frequent updates, cross-platform play and esports for the game's long-term run while noting a mismatch between overseas preference for PVE and domestic preference for PVP.

Ubisoft announces Rainbow Six Mobile shutdown seven months after global launch

Ubisoft announced that Rainbow Six Mobile is shutting down, with the game playable until January 15, 2027. Ubisoft said the team will move on to other long-term strategic projects, and the game's next season will still launch as planned next week. Announced in 2022 and in development for six and a half years, the title was made by 11 Ubisoft studios with Tencent and had its worldwide rollout on February 23, 2026.

Ubisoft is shutting down Rainbow Six Mobile on January 16, 2027

Ubisoft announced that Rainbow Six Mobile will shut down on January 16, 2027. The game soft-launched in 2023 and fully rolled out in February 2026, giving it less than a year of full availability. The developers will move on to other long-term strategic projects, which Ubisoft did not specify, and more details on the game's final days are promised in the coming weeks.

September WeChat Mini Game Top 100: Churn Rate Falls to 23%, Only Call of Duty Mobile Breaks Into Top 50

The September WeChat mini game bestseller Top 100 saw its churn rate fall from 25% in August to 23%, with only Call of Duty Mobile (No. 43) newly entering the Top 50 — the fewest new Top 50 titles so far in 2026. Zombie Cannon and Crazy Water World held the top two spots, while simulation management took three of the Top 10; among publishers, 37 Interactive Entertainment led with 7 titles, with Tencent Games and Dameng Longtu tied at 5 each.

Bilibili's New Pet-Catching Game Shines! Lumi Hits 50 Million Yuan in First-Week Revenue on App, Expands to Mini Games

Bilibili's self-developed vertical-screen pet-catching game Shines! Lumi generated 50 million yuan in its first week on the app market, entering the iOS top-grossing TOP 20 before climbing into the top ranks of WeChat mini games. The game emphasizes a hand-drawn art style, vertical-screen idle play and automatic pet catching, with a core loop that lets players experience collecting within about five minutes. Bilibili supported the dual-platform launch with in-site promotion, KOL content and holiday ad spending, validating its self-developed game strategy.

Arc Raiders and The Finals are getting film and TV adaptations with Chernin Entertainment

Embark Studios is working with Chernin Entertainment to adapt Arc Raiders and The Finals into films and TV shows. Variety reports several companies competed for the rights, with Chernin winning after its Backrooms horror film became a box office hit this year. Embark CEO Patrick Söderlund said the studio is working closely with Chernin to extend both properties into new formats, and no directors, writers, or cast have been announced yet.

Second RED LAND Opens Today: 160+ IPs Gather on Fuxing Island with World's First Game/Anime Float Parade

RED LAND, Xiaohongshu's open-world adventure island event, opened on October 2 on Fuxing Island in Shanghai's Yangpu district and runs through October 6. The site doubled from 80,000 to 150,000 square meters, with over 160 game and anime IPs and the world's first large-scale game and anime float parade featuring about 150 community-registered users. Official figures say all five ticket rounds sold out in an average of 20.6 seconds each, and 80% of ticket buyers came from outside Shanghai.

Ubisoft's Creative House 2 Rebranded as Massive Entertainment, Sharing Name With Its Own Studio

Ubisoft has rebranded Creative House 2 as Massive Entertainment, the branch responsible for nearly all Tom Clancy-branded games, with teams in Montreal, Paris, Sweden, and Toronto now operating under that brand. The Massive Entertainment studio will still exist within the Creative House and continues work on projects like The Division 3. The move follows Creative House 1's rebranding as Vantage Studios, with Ubisoft now operating five Creative Houses and one Creative Network.

Ubisoft Unites Splinter Cell, The Division and Ghost Recon Teams Under Star Wars Outlaws Studio Massive Entertainment

Ubisoft is renaming Creative House 2 as Massive Entertainment and placing its Paris, Montreal and Toronto studios along with Massive itself under that brand. The group will handle most Tom Clancy titles including The Division, Ghost Recon and Splinter Cell, plus the MOBA March of Giants bought from Amazon and unannounced new original IP, but not Rainbow Six. Ubisoft's remaining games are spread across five other creative houses, including the Ubisoft-Tencent joint venture Vantage Studios.

Massive becomes the global brand in charge of Splinter Cell and Ghost Recon, plus a new Ubisoft dieselpunk MOBA

Ubisoft announced that The Division studio Massive Entertainment is now the global brand for series including Ghost Recon and Splinter Cell, taking over the subsidiary previously known as creative house 2, with former Amazon and 2K executive Christoph Hartmann as general manager. Development teams for these franchises in Montreal, Paris, Sweden and Toronto will operate under the Massive Entertainment brand, though Ubisoft did not say what this means for developers on affected teams. The move continues Ubisoft's reorganisation into creative houses after Tencent's March 2025 investment, a restructuring that has brought layoffs, closures and cancellations.

Ubisoft renames its Creative House 2 label as "Massive Entertainment"

Ubisoft Montreal employees launch collective action to preserve hybrid work schedule

Ubisoft Montreal workers in the Ubisoft Workers of Montreal union have launched a petition to preserve hybrid work, gathering more than 300 signatures from Ubisoft employees as of Wednesday. Ubisoft announced in January that it was calling all employees back to the office five days per week alongside layoffs, delays, and studio closures, shortly after securing a $1.25 billion investment from Tencent. Paris-based employees went on strike in response, and Montreal team lead David Michaud-Cromp was put on unpaid leave and fired a week later after commenting publicly on the policy.

Tencent Leads $25 Million Series A for Turkey's Circle Games

Turkish mobile studio Circle Games has raised $25 million in a Series A round led by Tencent, bringing its total funding to $32.25 million. The new funds will be used to bring its newly launched Jelly Escape to more markets, grow Sort Express globally, and double its staff. Sort Express, a merge-elimination puzzle game, currently generates about 15 million yuan in monthly revenue.

Wardogs studio chief Brammer insists he isn't "pro crunch, I am pro hard work"

Bulkhead CEO Joe Brammer has clarified his remarks on crunch, saying he is not "pro crunch" but "pro hard work." This follows his earlier statement that the studio would not hire people who "constantly tweet anti-crunch messaging," after which he told Eurogamer that staff worked an extra two hours per week Monday-to-Thursday for four weeks while the studio operates a four-day week. Bulkhead was spun out of Tencent in December 2025, and its military shooter Wardogs has sold over three million copies in its first 18 days.

Secret Mode Bets on Two Pillars: Pure Indie and Higher-Budget Games

UK publisher Secret Mode, now independent from Sumo Digital, is targeting two pillars: pure indie titles and higher-budget games like Star Wars: Galactic Racer, due out on October 6. Chief publishing officer James Schall says the company has seen phenomenal growth over the past 18 months. Secret Mode has also taken on publishing and ongoing development for Escape the Backrooms and Chained Together, and opened its own internal studio in Sheffield.

Team17 owner Everplay increases stake in Wardogs developer Bulkhead, touts strong FY26 outlook

Team17 owner Everplay has increased its shareholding in Wardogs developer Bulkhead after the game surpassed one million copies following its September 10 early access launch. Everplay expects strong full-year results, with Bulkhead's Wardogs and Expression Games' Hell Let Loose: Vietnam outperforming expectations. For the six months ended June 30, 2026, Everplay reported an 8% revenue decline to £66.9 million and a 29% profit drop to £23.9 million.

"A true world model must be a structured, interactive simulator"

"We’re pushing the boundary of how AI can be adopted in games"