Reports surfaced last month via Bloomberg indicating that Tencent was considering divesting from several Japanese gaming studios, among them Marvelous, the developer behind the Rune Factory and Monster Hunter Stories series. On July 31, Marvelous formally announced the termination of its capital and business collaboration with Tencent Group’s subsidiary, Image Frame Investment.
Citing GameBiz, the six-year business partnership concluded as Image Frame Investment signaled its intent to liquidate its Marvelous stock holdings. This decision followed a reevaluation of Tencent’s investment strategy and a subsequent adjustment to its capital allocation framework.
As a result, Tencent and its associated entities will relinquish their status as a primary shareholder. It is anticipated that Hayao Nakayama, the former Sega president and current head of Amuse Capital, will ascend to the position of Marvelous’ top shareholder, trailed by the company’s CEO, Haruki Nakayama. Image Frame Investment is set to distribute its 12.17 million shares among Marvelous, SBI Securities, and an additional Japanese enterprise.
Moreover, Tencent Group has indicated plans to halt development on a specific Story of Seasons mobile title, for which a licensing pact was established in 2019. The rationale provided is “business environment and profitability” concerns. Nevertheless, the licensing agreement remains in effect, implying that Tencent and Marvelous will retain some level of business ties.
According to GameBiz, Tencent’s pivot toward prioritizing “capital efficiency” and “shareholder stability” is a response to recent shifts in China’s market dynamics. Given Tencent’s extensive investments in Japanese gaming firms around 2020, Marvelous may not be the sole entity impacted by the corporation’s revised investment approach.