(Yicai Global) April 6 -- Chinese internet giant Tencent Holdings has invested in a second game startup within a month to attract more young users and develop new ultra-popular games such as its Honor of Kings and Game of Peace.

Tencent's investment unit, Guangxi Tencent Venture Capital, bought 7.5 percent of Yuzun Technology's shares, according to corporate data platform Tianyancha. The Hangzhou-based firm was established last year.

The investment follows one on March 17, when Guangxi Tencent bought a 14.3 percent stake in Guangzhou Kuro Technology, also known as Kuro Game, Tianyancha’s information showed.

The two firms are mobile game developers with a different style from companies that make computer games, Zhang Shule, a gaming sector analyst, told Yicai Global. Their youthful teams can easily understand the needs of Gen Z, Zhang noted.

Without a global viral original game, Shenzhen-based Tencent will not be seen as a significant player in the international gaming industry, Zhang said, adding that seeking the potential of others is the best way for the firm to make breakthroughs.

Kuro Game is working on its much-anticipated open-world game Wuthering Waves, receiving 4.2 million reservations across all platforms as of March 27, the firm's website showed. The game will begin a new round of testing on April 20.

The massive success of Genshin Impact, developed by Shanghai-based MiHoYo Network Technology, has inspired Tencent to try and make breakthroughs, Zhang said. Its investment in Kuro Game might be an effort to prevent Wuthering Waves from being canceled, as it can likely rival Genshin Impact, Zhang added.

Tencent focused on investing in major foreign game developers last year, becoming the second largest shareholder of Japan's From Software, the developer of 2022's game of the year Elden Ring. Tencent also invested EUR3 billion (USD3.2 billion) to become the largest investor in renowned French publisher Ubisoft Entertainment SA.

Tencent has different investment strategies, Zhang pointed out. In China, it invests in gaming startups to secure innovative ideas and create new ultra-popular games, while abroad it focuses on major game developers to maintain its core users via super intellectual properties, Zhang said.

Editors: Shi Yi, Martin Kadiev