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Tencent plans to shut down digital collection business "magic core" to continue to reduce costs and increase efficiency

via:凤凰网     time:2022/7/20 20:01:48     readed:175

Reporter Tang Yitao

On July 20, according to Tencent insiders, Tencent is planning to eliminate the "phantom core" business this week, and this message has been communicated in the phantom core base (Tencent's low-level management).

Unreal Core is Tencent's digital collection platform, which was launched in August 2021, less than a year ago.

Tencent news App also suspended the sale of digital collections on July 2. Less than a month later, the phantom Nucleus met the same fate.

Wang Shimu, who is responsible for the magic core business, was just transferred to THE PCG social platform and application line in May, and is responsible for the innovative business such as the magic core hatched by the team. Previously, he was head of Tencent News.

In essence, the domestic digital collection is not the financial attribute of NFT, there is no closed-loop. But the more direct reason for the magic nucleus to be cut is Tencent's "cost reduction and efficiency increase".

It's a digital collection, not NFT

At the beginning of the magic core online, declared or Tencent's "NFT trading platform". The name change took place in October 2021. Some media found that the word "NFT" had disappeared in the Magic Core App, and all the words were changed to "digital collections".

NFT stands for non-fungible Token, a non-homogeneous currency. It's essentially a unit of data on a blockchain digital ledger, and each token can represent a unique piece of digital data. Because of its uniqueness, NFT can be used to tag digital assets. Globally, the best-known NFT project is the Bored Ape Kennel Club, now valued at $4 billion.

Digital collections can be understood as NFT with Chinese characteristics. They all share the characteristics of blockchain: immutable, indivisible, and not interchangeable. But the essential difference is that the underlying NFT is a public chain, completely decentralized, unregulated and free to buy and sell. Phantom core's digital collections, the bottom of Tencent's Zhixin chain, cannot be traded in the open market, users only have the right to "share and display".

This difference in underlying logic leads to the complete removal of financial attributes from digital collections, but this is where NFT is most valuable. A collection that cannot be bought or sold but can only be viewed has little commercial value.

Ethereum, on which the offshore NFT trading platform is based, is a platform for paid use, and a fee is required to upload works, usually in cryptocurrency. But Chinese regulators have issued a series of regulations and policies that explicitly prohibit pricing and trading with virtual currencies. For example, as early as 2013, five ministries and commissions including the People's Bank of China issued the Notice on Preventing bitcoin Risks, explicitly stipulating that they are not allowed to exchange fiat currencies, tokens or "virtual currencies" with each other, or to buy or sell tokens or "virtual currencies" as central counterparties. Pricing, information intermediary and other services shall not be provided for tokens or "virtual currencies".

The magic core team previously responded to the name change by saying that the digital collection business in the magic core platform adopts the user's full process of real name, the content of the full link review, and does not open the transfer of digital products between users, and resolutely opposes illegal activities related to virtual currency.

Therefore, at the beginning of unreal Core's launch, the first batch of "Thirteen Invitation NFT" limited to 300 copies sold out in one second, but in the past month, a number of digital collections of Unreal Core have been slow to sell. Phantom core issued on June 21 "Hongyi master calligraphy maxim screen digital best" unsalable total of 20245 pieces, on June 17 issued on the wood watermark "ten Bamboo Zhai Painting" series of 8206 pieces unsalable.

As of July 20, 2022, there are no digital collections for sale in the Phantom Nucleus App. The latest digital collection to be released is Italian missionary Giuseppe Castigano's "Habitat of Scallion birds" series, which was launched on July 8. The whole series of 10 works are also not sold out.

Tencent keywords of the year: cost reduction and efficiency increase

In the 2022 Q1 earnings call, Ma huateng said that in the face of industry challenges, the company has implemented cost control measures and adjusted some non-core businesses, which will help achieve a more optimized cost structure in the future.

In Q1 2022, Tencent's net profit was 25.55 billion yuan, down 23% year on year. It was the third consecutive quarter of net profit declines for Tencent.

Meanwhile, Tencent's headcount has ballooned. Tencent had about 116,200 employees in the first quarter of 2022, up 30.2 percent year on year. Total remuneration in the first quarter of 2022 was 29.229 billion yuan, up 43.2% year on year. Employee remuneration, Tencent has been the first major expenditure.

In this context, innovative businesses that have not yet achieved commercial closed loop become the first target for elimination.

According to Jiemian News, a new Gate Review (GR) mechanism has been established within PCG. If a project fails to meet expectations after a certain stage of development, it will be shut down and adjusted. Gosling Was shut down in February 2022 as a result of this mechanism.

Gosling is affiliated with the NBase department of the creative camp, and its director is Wang Shimu, who incubated the phantom nucleus.

Shimu Wang joined Tencent in August 2021 as general Manager of Tencent News, reporting directly to Tencent COO Yuxin Ren.

Prior to that, he was the head of NetEase Cloud Music, which he successfully promoted to become the leading product in the online music market.

After joining Tencent, Wang initiated the personalized recommendation reform of Tencent News, advocating the use of big data and algorithmic recommendation to build Tencent News into a diversified content platform covering videos and communities.

But the transition has not been a success. Tencent news saw its advertising revenue decline by up to 30% in Q1 2022. Under the premise of "cost reduction and efficiency increase", revenue has become an important assessment standard inside Tencent. In the past, the evaluation standard mainly depends on whether the brand of "Tencent News" has been improved, and the team does not need to bear too much revenue pressure.

Now wang is no longer the head of news at Tencent. Before hatching gosling spelling has been shut down, magic nucleus will be cut.

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