Tencent Shuts Down TiMi Montréal Studio After Five Years Without Releasing a Game

Tencent has shuttered its TiMi Montréal game development studio after nearly five years of operation without releasing a single title. The closure, confirmed by industry sources, signals a broader retrenchment among Chinese tech conglomerates scaling back investments in Western gaming ventures amid tightening capital constraints and shifting strategic priorities.

The Montréal studio, established in 2021 as part of Tencent's global expansion strategy, aimed to develop AAA games targeting Western audiences. It recruited over 100 developers from studios like Ubisoft and Electronic Arts, with plans to build new intellectual property. However, the studio failed to advance any projects beyond pre-production despite an estimated $50–$70 million investment.

This shutdown occurs against a backdrop of shrinking financial commitments from Chinese gaming giants. Tencent's gaming revenue declined 3% year-over-year in Q4 2025, while NetEase reported flat growth in its latest earnings. Both companies have reduced overseas studio funding by approximately 40% compared to 2023 levels, according to Niko Partners data. Market pressures include China's tightened capital export controls and diminished ROI from Western gaming acquisitions.

Strategic implications are significant:

• Portfolio rationalization: Tencent now prioritizes monetizing existing franchises over speculative Western projects. Its recent $260 million investment round focused exclusively on mobile gaming studios in Southeast Asia.
• Industry consolidation: Over 17,000 gaming jobs were eliminated globally in 2025. Tencent's retreat may accelerate studio closures among smaller Chinese investors.
• Western studio vulnerability: Mid-sized studios reliant on Chinese funding face existential risk. Montreal's gaming sector, where Chinese firms backed 12% of studios, may see further consolidation.

Tencent retains successful Western holdings like Riot Games (League of Legends) and Funcom (Conan Exiles), but the Montréal closure confirms a decisive pivot toward lower-risk, higher-yield investments in domestic and emerging markets. This realignment leaves Western AAA game development increasingly dependent on traditional publishers and private capital at a time when development costs for AAA titles now exceed $200 million.