Tencent has opened a new studio in Los Angeles to focus on developing AAA games for the PS5 and XSX.
The studio is part of the Lightspeed & Quantum Studios Group, which was founded in 2008 and is one of four studios in Tencent's portfolio.
The studio is led by Rockstar Games veteran Steve Martin, who has held key roles in GTA5 and Wildlands 2: Redemption.
Its team includes former employees of Rockstar Games, Respawn, 2K and Insomniac.
Martin, who will serve as the studio's head of game production and executive producer of development, said, "We are creating a new era of gaming, and from day one, we will focus on building games of the highest caliber."
The first game the studio will build will be a 3A world open game, logged on PS5 and XSX.