Tencent CEO warns of gaming business challenges, highlights AI progress

Pony Ma, the CEO and co-founder of Tencent Holdings, addressed concerns about the company's gaming business facing significant challenges from competitors while highlighting advancements in artificial intelligence (AI) development.

Speaking at Tencent's annual meeting in Shenzhen on Monday, Ma admitted that the company's video games business has been under pressure due to the emergence of new hits from competitors. 

Video games contribute over 30 per cent of Tencent's revenue.

While Ma's speech emphasized concerns over Tencent's ability to maintain its position as China's leading tech company amidst intensifying competition and evolving technologies, the company did not respond to requests for comment.

Ma noted that Tencent has faced challenges in launching successful new games, 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.”

On the AI front, Ma highlighted Tencent's progress, stating that the company has caught up with leading firms. 

However, 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.

Regarding the future of AI applications, Ma expressed caution, predicting that major AI-native applications may not emerge within the next one or two years.

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.

Overall, 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.

(With Reuters Inputs)