Reports from Bloomberg last month indicated that Tencent was considering divesting from several Japanese game developers, including Marvelous, the studio behind the Rune Factory and Monster Hunter Stories franchises. On July 31, Marvelous officially announced the termination of its capital and business collaboration with Tencent Group’s subsidiary, Image Frame Investment.
According to GameBiz, the six-year partnership came to an end after Image Frame Investment signaled its intention to sell its Marvelous stock, following adjustments to Tencent’s investment strategy and capital allocation policies.
As a result, Tencent and its associated entities will no longer hold major shareholder status. Former Sega president and current Amuse Capital CEO Hayao Nakayama is poised to become Marvelous’ top shareholder, with the company’s CEO Haruki Nakayama following closely behind. Image Frame Investment will distribute its 12.17 million shares among Marvelous, SBI Securities, and another Japanese business entity.
Furthermore, Tencent Group has decided to halt development of a specific Story of Seasons mobile title, for which a licensing deal was established in 2019. The decision cites “business conditions and profitability” as the motivating factors. However, since the licensing agreement remains valid, Tencent and Marvelous will maintain some level of business ties.
As detailed by GameBiz, Tencent’s pivot toward prioritizing “capital efficiency” and “shareholder stability” reflects recent shifts in China’s market conditions. Given the company’s extensive investments in Japanese game firms around 2020, Marvelous may not be the sole studio impacted by Tencent’s updated investment approach.