Monster Hunter Stories studio Marvelous in trouble as Tencent reportedly seeks to back away from Japanese studio investments

Tencent, the world’s largest gaming company, is reportedly in talks to exit its minority investments in several Japanese game development studios as part of a sweeping global portfolio reassessment. According to Bloomberg sources, the Chinese conglomerate is prepared to sell stakes back to studio management teams, even at a financial loss.

Marvelous, the Tokyo-based developer behind Monster Hunter Stories, Rune Factory, Story of Seasons, and Daemon x Machina, is specifically named as one studio Tencent is looking to divest from. Tencent currently owns approximately 20% of Marvelous.

The reported divestments come as the video games industry faces an economic downturn and Tencent seeks to refocus its portfolio around user-generated content platforms and experiences like Minecraft and Roblox. The company also appears focused on catching up in the AI space.

Tencent, which has invested in over 800 developers worldwide since 2020, is not divesting from all Japanese studios uniformly. Sources indicate that FromSoftware and PlatinumGames—known for titles like Elden Ring and Bayonetta—are reportedly not affected by these negotiations.

The move highlights Tencent’s significant role as a global investor in gaming, with stakes in major companies including Epic Games, Larian, Krafton, Ubisoft, Riot Games, and Supercell, among many others.