Tencent Holdings CEO, Pony Ma, addressed concerns about the company’s gaming business facing significant challenges from competitors while highlighting advancements in artificial intelligence (AI) development at the company’s annual meeting in Shenzhen. The CEO admitted that Tencent’s video games business has been under pressure due to the emergence of new hits from competitors, with recent releases falling short of expectations compared to rivals such as miHoYo and NetEase, creators of popular titles like “Genshin Impact” and “Eggy Party.”
Despite the challenges in the gaming sector, Ma emphasized the company’s progress in AI development, stating that Tencent has caught up with leading firms. He stressed the importance of integrating Tencent’s “Hunyuan” AI model into various business scenarios to enhance efficiency, rather than rushing to introduce AI products. However, Ma expressed caution regarding the future of AI applications, predicting that major AI-native applications may not emerge within the next one or two years.
In addition to gaming and AI, Ma also discussed Tencent’s efforts to evolve WeChat into a platform similar to ByteDance’s Douyin, particularly in the realm of live-streaming e-commerce. He highlighted the challenge of rejuvenating WeChat, a 12-year-old platform, and finding new growth opportunities within its ecosystem.
Ma’s remarks underscore Tencent’s ongoing efforts to navigate challenges in gaming while leveraging advancements in AI and exploring opportunities in live-streaming e-commerce through WeChat. The CEO’s insights shed light on the company’s strategies for the future, emphasizing the importance of adapting to evolving technologies and competition in the tech industry.
Opinion: It is clear that Tencent is facing challenges in the gaming sector, but the company’s focus on advancements in AI and exploration of opportunities in live-streaming e-commerce through WeChat demonstrates a strategic approach to overcoming these challenges. By emphasizing the importance of integrating AI into various business scenarios and finding new growth opportunities within the company’s ecosystem, Tencent is positioning itself for continued success amidst intensifying competition and evolving technologies.