Tencent-backed TiMi Montreal has closed its doors less than five years after its founding, without releasing a single game. The shutdown highlights a growing trend of Chinese publishers scaling back investment in North American AAA development, driven in part by high production costs and shifting market priorities.
The closure first surfaced through reports on Game File and was later corroborated through LinkedIn posts from former employees. One programmer described the news as heartbreaking, emphasizing that the talent and dedication within the studio had been exceptional, even if the public would never see the results.
A Brief History of TiMi Montreal
TiMi Montreal was established in 2021 as the third North American branch of TiMi Studio Group, joining studios in Los Angeles and Seattle. The Montreal office was intended to develop AAA open-world games for multiple platforms, expanding Tencent’s reach beyond mobile titles such as Honor of Kings and Arena of Valor.
Montreal was seen as an ideal location to access experienced talent from major local studios, including Ubisoft, which operates multiple teams known for large open-world projects. Among TiMi Montreal’s notable hires was Ashraf Ismail, former creative director of Assassin’s Creed Valhalla, who joined the studio in 2022. Despite these efforts, the studio never publicly revealed any games or co-development contributions to existing projects.
Industry-Wide Retrenchment in North America
TiMi Montreal’s closure follows a similar pattern in Tencent’s North American operations. Its Los Angeles-based studio, Team Kaiju, which had drawn leadership from major franchises such as Halo and Battlefield, shut down in 2023. Rising development costs, long production cycles, and market uncertainties have prompted several Chinese publishers, including NetEase, to scale back overseas studio investments.
The closures illustrate the challenges of managing large-scale AAA projects outside established domestic markets. While Tencent continues to be a global leader in gaming, its approach to North American studio management appears to be shifting toward more cautious and strategic investments.
Looking Forward
The end of TiMi Montreal signals both the risks and realities of international AAA development. Talented teams can be assembled, but without clear project milestones or market-ready titles, even well-funded studios face uncertainty. The industry will be watching how Tencent and other Chinese publishers adjust their North American strategies in the coming years, balancing ambition with financial and operational constraints.
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Frequently Asked Questions (FAQs)
Why did TiMi Montreal close?
The studio closed due to a combination of factors, including high development costs in North America, strategic shifts in Tencent’s overseas investment, and challenges associated with producing large-scale AAA games.
Did TiMi Montreal release any games?
No, the studio did not release any titles during its operation and did not publicly announce any projects.
Who were some notable hires at TiMi Montreal?
One of the most notable hires was Ashraf Ismail, former creative director of Assassin’s Creed Valhalla. The studio also recruited experienced developers from major North American franchises.
Is Tencent scaling back all North American studios?
Tencent has reduced investment in multiple North American studios, including its Los Angeles-based Team Kaiju, reflecting a cautious approach rather than a complete withdrawal.
What does this mean for the AAA open-world gaming market?
The closure highlights the financial and operational challenges of AAA development in high-cost regions, suggesting that international publishers may focus more on risk-managed projects or co-development partnerships.
What happened to other TiMi Studio Group locations?
TiMi Los Angeles and TiMi Seattle have also faced restructuring, with Team Kaiju in Los Angeles closing in 2023. Remaining TiMi studios continue to operate but with a more cautious expansion strategy.
