Shift Up, the South Korean studio behind the highly successful Stellar Blade, has garnered attention not only for its impressive growth but also for its deepening ties with Tencent, the Chinese tech giant. Shift Up, which made the transition from mobile games to a AAA action title, seems poised for a bright future with a confirmed sequel and continued success in the mobile game space that originally helped build the company. 
However, some investors are raising concerns about the studio’s long-term independence.
Reports from the South Korean publication Global Economic suggest that Shift Up’s investors are wary of Tencent’s increasing stake in the company. Currently, CEO Hyung-Tae Kim holds a 39% share, while Tencent owns just under 35%. The fear is that Tencent could eventually surpass Kim, gaining more influence over the studio, which might limit Shift Up’s ability to make independent decisions. This is especially troubling given that Tencent also serves as the publisher for Shift Up’s mobile games, contributing significantly to the studio’s revenue.
Tencent’s strategy of acquiring stakes in numerous gaming companies has been well-documented, with the company involved in everything from Ubisoft and Remedy to Epic Games and Kadokawa, the parent company of FromSoftware. In some cases, like with Riot Games, Tencent has outright bought controlling shares. While it’s too soon to say whether Shift Up is headed in that direction, the proximity of Tencent’s stake to Kim’s ownership raises eyebrows, as the company could eventually become the largest shareholder, leading to questions about the studio’s autonomy.
Although the situation may not yet warrant alarm, the growing influence of Tencent in the global gaming industry is undeniable. The studio’s success, which helped propel South Korea’s gaming development push, might be at risk of being overshadowed by Tencent’s increasing presence.