Tencent, a Chinese multimedia giant and the world's largest game publisher, has shut down TiMi Montreal, a studio that never released a single title.
According to Stephen Totilo of Game File, the closure has been expected for weeks. A source confirmed the shutdown last week, and a now-deleted post from a TiMi Montreal programmer expressed heartbreak that the public will never see what the team was working on.
Formed in 2021 under Tencent's subsidiary TiMi Studio Group, the studio was tasked with developing a AAA open-world, service-focused game for multiple platforms. Its creation came during the pandemic, which boosted gaming engagement and drove rapid industry expansion.
However, those inflated engagement levels didn't last, leading to ongoing layoffs and studio closures as companies correct unsustainable growth. TiMi Montreal appears to be a victim of these cutbacks, with Tencent likely deeming the project too expensive or unprofitable.
The canceled game was described as "service-focused," similar to live-service titles that generate long-term revenue through updates. While such games can be highly successful, the market is now saturated, making them risky. For example, Highguard, a live-service PvP shooter Tencent invested in, recently nosedived after launch.
Tencent either chose to avoid that risk or doubted the project's success. Regardless, the closure is unfortunate, and we send best wishes to the affected workers.