Tencent Closes Key US Gaming Studio, Altering Its Westward Expansion

In a surprising move, Chinese tech company Tencent recently called it quits with Team Kaiju, one of its American video game studios, which was integral in Tencent’s strategy for global expansion. Particularly, the studio was a significant step toward Tencent’s efforts to create a solid foothold in the Western gaming market, according to an insider privy to the situation. The studio was working on a big-budget multiplayer game before closure. Despite this setback, Tencent’s employees have been reassigned to other projects within the company.

Team Kaiju was led by veteran game designer Scott Warner, who left in April. Tencent’s decision follows its recent push to create games aimed at overseas markets, as evidenced by the unveiling of its ambitious console game, “The Last Sentinel,” developed at Lightspeed LA studio. Known for popular mobile games like “PUBG Mobile,” Tencent’s recent maneuvers suggest a strategic shift toward more high-budget games and penetration into international markets.

The official confirmation from Tencent is yet to surface, but there’s been some online chatter that seems to support the closure. One interesting piece of evidence comes from a LinkedIn post by an individual claiming to be a former Team Kaiju employee. The post mentions that the official Team Kaiju website, kaiju.gg, now leads to a standard 404 error page. Additionally, a futile search for the studio’s LinkedIn listing adds fuel to the fire, ending in an error message.

The “ex-employee” stated, “Team Kaiju doesn’t appear to exist anymore.” This developer also wished the best for their former colleagues, describing them as a group of incredible talent. Further online detective work by the gaming community, specifically by a reputed gaming researcher known as Kurakasis, revealed no active employees listed under Team Kaiju on LinkedIn.

In the wake of these Team Kaiju closure reports, Tencent has been spotted making some moves in the European market. The company has recently filed a trademark for a new entity known as “Team Jade.” While speculation is rife, there are no clear indications as to why or when exactly the studio was shuttered. It’s a hasty move from Team Kaiju to Team Jade — undoubtedly, the gaming community is observing Tencent’s next steps closely.