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Tencent’s next level up: fewer big foreign franchise games, more in-house
In a sea change at China’s Tencent (0700.HK), opens new tab, an easy-to-play game of cute characters tackling obstacle courses has taken precedence over developing a big-budget sophisticated foreign franchise for smartphones.
Since late last year, the world’s largest video games company has, according to sources, redeployed hundreds of people from the team developing “Assassin’s Creed Jade” for mobile – a multi-year project with France’s Ubisoft (UBIP.PA)
They are now working on recently launched “DreamStar” – Tencent’s answer to rival NetEase’s (9999.HK), hit “Eggy Party” and the company’s most high-profile attempt to date at the so-called party game genre which offers simple gameplay, minigames and encourages players to hang out and chat.
As a result, “Assassin’s Creed Jade” – an action-adventure game set in ancient China that has been under development for mobile for at least four years – will likely be released in 2025 instead of this year, according to three sources familiar with the matter. They were not authorised to speak to media and declined to be identified.
The redeployment of resources highlights the trends forcing a strategic pivot at Tencent. Firstly, developing big-name Western franchises for mobile phones tends to yield thin margins.
At the same time, rivals have had breakout hits with ostensibly niche products that offer new takes on gaming such as as NetEase’s “Eggy Party” and miHoYo’s anime-style fantasy game “Genshin Impact”. Moreover, the games were developed in-house so their profits are all their own.
Tencent had, for years, great success by developing for smartphones international hits like Activision Blizzard’s shooter game “Call of Duty” and the battle royale game “PUBG” by South Korea’s Krafton (259960.KS).
But such franchise games – called IP (intellectual property) games – are costly to make. Royalty fees of 15% to 20% of sales are typical, Apple’s (AAPL.O), opens new tab App Store takes a 30% cut while marketing and user acquisition expenses can cost another 30% to 40%, the sources said.
After a string of IP game setbacks, Tencent plans to be more selective. “We’re focusing on fewer bigger budget games. Typically, we’re seeking to make the biggest bets around games that either iterate on a successful IP … or games that are iterating around proven gameplay success within a niche and taking those to a more mass market,” Tencent Chief Strategy Officer James Mitchell told an earnings call on Wednesday.
Tencent is now also pushing for royalty fees to fall to under 10% of sales in some negotiations, according to one person with direct knowledge of the matter. “That would have been almost unthinkable just a few years ago. Tencent used to be far more generous,” the person said.
Tencent declined to comment on details of its strategic shift.
SETBACKS AND BAMBOO SHOOTS
On Wednesday, Tencent reported a slight decline in fourth-quarter gaming sales and also flagged that overall gaming revenue this quarter would be soft compared with the same period last year when gaming sales surged as pandemic restrictions were lifted.
Pony Ma, Tencent’s founder and chief executive, has been blunt that the company’s video game division – which last year generated 180 billion yuan ($25 billion) in sales or around 30%of overall revenue – needs to do better.
Competitors have continued to create new products, “leaving us feeling we have achieved nothing,” he told a stadium of employees in Shenzhen at the company’s annual meeting in January, according to a separate source with direct knowledge of the event.
That month, Tencent also launched its “Spring Bamboo Shoots Project”, aiming to incubate in-house games with novel gameplay and offering budgets of up to 300 million yuan ($42 million) per game. While that is much less than budgets of 1 billion yuan for a major franchise, the initiative signals Tencent is willing to take more risks on non-conventional game design, the sources said.
Some major setbacks have only increased the sense of urgency for change.
Last year, Electronic Arts (EA.O), discontinued “Apex Legends Mobile”, a game developed by Tencent, with executives at the U.S. firm saying it had fallen short of expected quality.
In December, Tencent axed development of a mobile game based on the “Nier” franchise from Japan’s Square Enix (9684.T), in part because the Chinese firm struggled to find a compelling monetisation model given its expensive development costs and franchise rights, sources have said.
“Mobile games studios have learned that IP is not the magic bullet for user acquisition it once was,” says Serkan Toto, founder of game industry consultancy Kantan Games.
Tencent has also seen a key in-house game bomb. “Undawn”, a zombie apocalypse shooting game that Hollywood star Will Smith was hired to endorse, flopped spectacularly despite having a budget of close to 1 billion yuan with more than 300 developers, according to two of the sources.
Last month, one year since its launch, “Undawn” brought in revenue of just $287,000, according to research firm Appmagic.
Western companies have also started to shift away from outsourcing mobile game development to Chinese companies like Tencent. Microsoft’s (MSFT.O), Activision Blizzard, for example, has just launched “Call of Duty Warzone Mobile” which will compete directly with Tencent’s “Call of Duty Mobile”.
Adding salt to the wound, Tencent’s top two games saw revenue slide during the week-long Lunar New Year holidays in February. “Honor of Kings” and “PUBG Mobile”, which are nine and seven years old respectively, suffered 7% and 30% drops compared to the holiday period last year, according to one of the sources who was briefed on the matter.
Source: Reuters
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Summer 2025 Cybersecurity Review with Atlaslive: Phishing Remains a Top Threat
Phishing has once again proven to be the leading cyber threat in 2025. In Q1 alone, the APWG logged 1,003,924 phishing attacks, the highest number since late 2023. Compared to 2023, weekly phishing volumes have jumped 180%, while the use of infostealers distributed through phishing emails rose by 84% in 2024.
The takeaway is clear: phishing is no longer a background issue. It’s a direct path to credential theft, account compromise, and business disruption. Atlaslive’s Information Security Lead, Maksym Shapoval, shares why phishing attacks remain so damaging and what companies can do to defend against them.
Phishing in 2025: The Persistent Threat
Phishing works because it’s simple. Attackers impersonate trusted sources to trick victims into giving away passwords, card details, or personal data. These campaigns now arrive through email, SMS (“smishing”), and even voice calls (“vishing”), and many are indistinguishable from legitimate corporate messages.
Major Incidents This Summer
Recent events illustrate phishing’s reach:
- Google — A phishing chain starting with Salesforce CRM led to data exposure.
- Cisco — Hit by voice phishing that gave attackers access to client data.
- Booking — Targeted by ongoing campaigns since late 2024.
- UK Tax Authority — £47 million lost, with 100,000 people affected.
These cases show that no sector is immune. Phishing remains the universal entry point for cybercrime.
iGaming in the Spotlight
The iGaming industry, already under strict regulation, faced its own high-profile breach in July 2025. One of the largest global betting groups confirmed a cyberattack that exposed 800,000 user records—including IP addresses, emails, and activity logs.
“The incident underscores why iGaming platforms are prime targets,” says Maksym Shapoval, Information Security Lead at Atlaslive. “They operate entirely online, process constant financial transactions, and handle vast volumes of personal data. The risks of social engineering attacks in this industry are significant.”
For operators, phishing protection must be built into platform security, staff awareness, and incident response. Even without stolen payment details, personal information alone can trigger damaging follow-up attacks.
How Businesses Can Defend Themselves: Tips from Atlaslive
Phishing exploits people as much as technology. A strong defense requires multiple layers:
- Authentication and Access Control — Enforce 2FA, limit privileges, use network segmentation, require dual approval for sensitive operations, and run regular audits.
- Email and Domain Security — Deploy DMARC, DKIM, and SPF; monitor lookalike domains; flag external emails.
- Endpoint Protection — Secure devices with MDM/EDR tools, monitor browsing activity.
- Incident Preparedness — Centralize reporting, define clear runbooks, notify staff quickly, and block malicious senders system-wide.
- Awareness and Training — Regular staff training, phishing simulations, and a culture of quick reporting.
- Governance — Make phishing defense a permanent part of company policy and audit it continuously.
Small, consistent measures across these areas drastically reduce both the chance of a successful phishing attack and the damage it can cause.
Conclusion
The summer of 2025 confirmed that phishing is still the launchpad for many of the world’s most serious cyber incidents — from global tech firms to public institutions and iGaming platforms. These attacks are growing sharper, more targeted, and more damaging.
For companies handling sensitive data and transactions, security cannot be treated as optional. Defending against phishing requires layered authentication, email controls, endpoint protection, training, and response plans. The businesses that prioritize resilience today will be the ones best equipped to safeguard their customers, their reputation, and their future.
This document is provided to you for your information and discussion only. This document was based on public sources of information and was created by the Atlaslive team for marketing usage. It is not a solicitation or an offer to buy or sell any gambling-related product. Nothing in this document constitutes legal or business development advice. This document has been prepared from sources Atlaslive believes to be reliable, but we do not guarantee its accuracy or completeness and do not accept liability for any loss arising from its use. Atlaslive reserves the right to remedy any errors that may be present in this document.
About Atlaslive
Atlaslive, formerly known as Atlas-IAC, underwent a rebranding campaign in May 2024. It is a B2B software development company that specializes in creating a multifunctional and automated platform to optimize the workflow of sports betting and casino operators. Key components of the Atlaslive Platform include Sportsbook, Casino, Risk Management and Anti-Fraud Tools, CRM, Bonus Engine, Business Analytics, Payment Systems, and Retail Module. Follow the company on LinkedIn to stay updated with the latest news in iGaming technology.
The post Summer 2025 Cybersecurity Review with Atlaslive: Phishing Remains a Top Threat appeared first on European Gaming Industry News.
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Kaizen Gaming announces Vassilis Gavroglou as its new Chief Human Resources Officer
Kaizen Gaming, one of the biggest and fastest-growing GameTech companies worldwide, announces the appointment of Vassilis Gavroglou as Chief Human Resources Officer. With more than 2,700 people of over 40 nationalities across 19 countries, the new CHRO will be responsible for shaping Kaizen Gaming’s HR strategy during a period of dynamic growth and expansion of the company’s global footprint.
Vassilis Gavroglou is a seasoned executive with more than 20 years of international experience in sectors such as energy, technology, banking and consulting. He has served, among other roles, as Chief Human Resources Officer at Sunlight Group Energy Storage Systems, as HR Executive Director at OTE Group, member of Telekom Group, and Group HR Strategy Director at the National Bank of Greece. He holds degrees from the Athens University of Economics and Business and the London School of Economics.
The CEO of Kaizen Gaming, George Daskalakis, commented: “People have always been at the heart of our company, and we know that long-term success starts with taking care of our own. In less than a decade, Kaizen Gaming has grown from just a few dozen people in Greece to a thousands-strong international brigade while maintaining strong growth every year. This rapid expansion brings both opportunities and challenges, especially as we keep a firm eye on preserving and strengthening our people-first culture across our global footprint. With Vassilis joining as CHRO, a leader with deep expertise in transformation and talent development, I am confident we will enhance our people strategy and further support our international growth ambitions.”
The newly appointed Chief Human Resources Officer, Vassilis Gavroglou, added: “I am excited to join Kaizen Gaming, a company that not only innovates in technology but has been recognised as one of the Best Companies to Work for in Europe and has been certified as a Great Place to Work in many countries. The rapid expansion of the company into new markets creates a unique opportunity to build on a culture that invests in the development of its people and continues to attract the best in a rapidly changing technological backdrop. Further strengthening the high levels of people engagement, talent development and the digitalisation of HR operations are key to supporting Kaizen Gaming’s vision for sustainable innovation and global growth.”
Kaizen Gaming continues to be recognised as one of Europe’s and LATAM`s most attractive employers, being certified as one of Fortune’s 100 Best Companies to Work for™ in Europe 2024 and as Great Place to Work in both European and South American countries, including Brazil and Colombia. The company counts more than 700 software engineers in six technology hubs and over 90 agile teams developing pioneering online gaming products.
With technology and people at its core, Kaizen Gaming is preparing to move to the next stage of its international growth.
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REEVO Announces Strategic Partnership with betFIRST
REEVO, the next-generation B2B content and aggregation provider, has announced a strategic partnership with betFIRST, Belgium’s leading retail and online sports betting operator and part of the Betsson Group. Through this collaboration, REEVO’s extensive portfolio of high-performing, engaging and innovative games will now be available to betFIRST players across Belgium.
This partnership marks another significant step in REEVO’s mission to deliver world-class iGaming content to operators and their players worldwide, strengthening its footprint in Europe and beyond.
Karl Grech, Head of Business Development at REEVO, said: “We are thrilled to partner with betFIRST, a brand synonymous with excellence and leadership in Belgium. At REEVO, our mission is to push the boundaries of iGaming innovation and deliver content that resonates with players everywhere. By joining forces with betFIRST, we’re confident that our games will not only entertain but also drive strong engagement and value for their players.”
Rhianna Binns, Games Delivery Manager at betFIRST, said: “We’re always looking to bring fresh, engaging, and innovative content to our players, and partnering with REEVO allows us to do just that. Their portfolio adds real variety and excitement to our games offering, and we’re confident it will further enhance the entertainment experience that betFIRST is known for in Belgium.”
With REEVO’s expanding library of cutting-edge in-house titles and a rapidly growing aggregation platform featuring content from top-tier third-party studios, betFIRST players will gain access to a diverse range of games designed to enhance engagement and retention.
betFIRST, renowned for its strong online presence and the largest retail network of betting shops in Belgium, will now bring REEVO’s content to its customers, enriching their entertainment experience with premium slot gameplay and innovation-driven mechanics.
The post REEVO Announces Strategic Partnership with betFIRST appeared first on European Gaming Industry News.
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