Tencent is preparing to sell stakes in several Japanese game studios acquired during its 2020-2022 expansion phase, with Marvelous — the publisher behind Rune Factory and Daemon x Machina — among the companies on the divestment list, Bloomberg reported Monday.

The Chinese conglomerate acquired 20% of Marvelous in 2020 for $65 million. Bloomberg, citing unnamed sources, did not publish a complete list of studios Tencent is looking to exit, but identified Marvelous as the leading candidate based on the structure of ongoing discussions.

Marvelous has continued to ship during the period of Tencent's stake, including Rune Factory: Guardians of Azuma and entries in the long-running Story of Seasons series.

Which studios are on the list?

Beyond Marvelous, Bloomberg withheld the names of other studios Tencent is looking to divest. People familiar with the talks told the outlet that in some cases the Chinese owner is prepared to sell shares back to original management teams, even when doing so results in a loss on the original investment.

That concession signals Tencent is prioritizing portfolio simplification over maximizing per-deal returns, at least for assets where buyback terms can be agreed.

Why is Tencent pulling back?

According to Bloomberg, Tencent weighs two operational factors when evaluating each Japanese studio: remaining synergy with the rest of its gaming portfolio, and the revenue each team currently generates. Studios failing either test become candidates for divestment.

The current review marks a reversal from the 2020-2022 acquisition cycle, when Tencent deployed capital across a wide spread of Japanese and Korean developers to secure global pipeline.

What stays in the portfolio?

Bloomberg reported that stakes in PlatinumGames and FromSoftware will remain in Tencent's holdings. The retention of both studios contrasts directly with the divestment posture elsewhere, indicating Tencent is drawing a sharper line between assets it wants to keep and those it is willing to exit.

FromSoftware, the developer of Elden Ring and the Dark Souls series, and PlatinumGames, the Bayonetta developer, represent two of the most commercially successful Japanese studios in Tencent's portfolio. Keeping both signals Tencent still views premium single-player and action IP as core to its long-term Japanese strategy.

How has Tencent responded?

A Tencent spokesperson, asked by Bloomberg about the report, neither confirmed nor denied individual divestments. The representative said video games remain a "key business area" for Tencent and that the company "intends to maintain a strong presence in the Japanese gaming market in the long term."

That phrasing leaves Tencent room to characterize any future Marvelous sale as a routine portfolio adjustment rather than a strategic retreat from Japan.

What changes for studios and teams?

For developers in the divestment pipeline, the most likely buyer in several cases is internal — the original founders or management, with Tencent accepting a smaller exit price to close the deal quickly. That outcome preserves operational continuity but reduces the cash the acquiring team has available for development.

For Marvelous specifically, a return to founder-led ownership would unwind the five-year-old strategic alignment with Tencent, ending any ongoing commercial coordination that supported the original investment thesis.

What to watch next

Bloomberg's sources did not name a closing date for any of the negotiations. Watch for a Japanese regulatory filing from Marvelous disclosing a change in major shareholders as the next concrete signal that a deal has closed.