Tencent, one of the world’s largest video game companies, has closed TiMi Montréal, a studio it established five years ago with ambitions to create large-scale, open-world games. The closure, which occurred on Friday, February 20th, 2026, marks another shift in Tencent’s strategy regarding its western development efforts and adds to a growing trend of contraction within the gaming industry. The news of the TiMi Montréal shutdown was first reported by Game File, following warnings from sources familiar with the situation.
TiMi Montréal was perhaps most notably led by Ashraf Ismail, a former creative director at Ubisoft known for his work on the Assassin’s Creed franchise. Ismail joined Tencent after being dismissed from Ubisoft in 2020 following allegations of misconduct. His hiring signaled Tencent’s intent to bring experienced Western talent into its fold to bolster its game development capabilities. The studio’s closure raises questions about the future of similar initiatives by the Chinese gaming giant.
The decision to shutter TiMi Montréal wasn’t entirely unexpected, according to those familiar with the studio’s operations. A senior gameplay programmer at the studio shared on LinkedIn that while the team “had been aware this was coming for some time, it doesn’t make the reality any easier.” A senior designer echoed this sentiment, stating that the team was “exceptional not just in talent, but also in camaraderie” and that being part of it was a “privilege.” These comments highlight the human cost of such decisions within the industry.
From Jade Studio to Mobile Focus
TiMi Montréal evolved from Jade Studio, which Tencent acquired in 2020. While initially aiming to develop “AAA open-world multi-platform games,” the studio’s work largely centered around projects inherited from its predecessor and mobile titles. These included popular games like Pokémon Unite and Call of Duty: Mobile, a separate entity from the mobile Warzone game that is slated to shut down in April. This shift in focus reflects a broader trend within Tencent, which has seen significant success in the mobile gaming market.
The closure of TiMi Montréal is part of a larger pattern of Western studios being scaled back or shut down by Tencent. The company has been reassessing its investments in overseas game development, particularly as the initial boom fueled by the pandemic has subsided. This retrenchment follows a similar move by NetEase, which reportedly began pulling funding from several Western studios approximately a year ago, according to industry reports.
A Wider Trend of Studio Closures
The gaming industry as a whole has been experiencing a period of consolidation and layoffs in recent months. Several factors contribute to this trend, including economic uncertainty, rising development costs, and a more cautious approach to investment from major publishers. The shuttering of TiMi Montréal underscores the challenges faced by companies attempting to establish a foothold in new markets and the difficulties of sustaining long-term growth in a rapidly evolving industry.
Despite the closure of TiMi Montréal, Tencent remains a massive player in the global gaming landscape. According to its LinkedIn profile, the TiMi Group as a whole employs between 5,000 and 10,000 people. The company continues to invest in other studios and projects, but appears to be adopting a more selective approach to its Western expansion efforts.
The impact of this closure extends beyond the immediate loss of jobs at TiMi Montréal. It also raises questions about the future of Western game development and the role of Chinese companies in shaping the industry. The studio’s failure to release a major AAA title in five years suggests the complexities of integrating Western creative talent and development practices within a large, multinational organization.
Tencent has not yet commented publicly on the reasons for the closure. Representatives contacted by Game File did not provide a statement. The company’s next steps regarding its Western development strategy remain unclear, but industry observers will be closely watching for further announcements.
The situation at TiMi Montréal serves as a reminder of the volatile nature of the video game industry and the challenges faced by both large corporations and individual developers. As the industry continues to evolve, it will be crucial for companies to adapt to changing market conditions and prioritize sustainable growth.
Further updates regarding Tencent’s overall strategy and any potential restructuring within its global operations are expected to be shared during the company’s next quarterly earnings call. Readers interested in following this story are encouraged to monitor official Tencent announcements and reputable industry news sources.
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