Tencent plans to abolish the phantom nuclear business.

It is said that Tencent plans to abolish the magic core business, which is Tencent's digital collection platform. On July 2, Tencent News App also suspended the sales service of digital collections. In less than a month, the magic core also faced the same fate. Tencent plans to abolish the phantom nuclear business.

It is said that Tencent plans to abolish the magic core business 1 According to insiders of Tencent, Tencent is planning to abolish the "magic core" business this week, and this news has been conveyed among the backbone of the magic core (Tencent's internal low-level management personnel).

It is understood that Magic Core is Tencent's digital collection platform. It was launched in August, 20021year, and it has been less than one year. In the early days, it provided technical support from alliance chain to letter chain, and then Tencent blockchain became one of its technical support. At the beginning of 2022, the Magic Nucleus team revealed that it was developing a new online virtual space and further moving towards the meta-universe.

Domestic Internet giants including Ali, Tencent and JD.COM have tried digital collection business. With the first-Mover advantage and the blessing of Tencent system, Magic Core has become one of the largest digital collection platforms in China. In Tencent's ecology, including QQ Music and Tencent News, digital collections have been tested, among which Magic Core is the most prominent one.

It is reported that the series of "Master Hongyi's Calligraphy Motto Screen Digital Products" released by Magic Core on June 2 1 day, only the first and seventh series of covers were sold out, and the remaining nine models were unsalable * * * 20245 pieces; On June 17, 8206 pieces of * * * series were unsalable. On the afternoon of June 23, Magic Core has locked a large number of unsalable two collections and closed the transaction. Unlike the "sold out/collected" mark in other digital collection details pages, the unsalable collections are marked as "closed".

It is worth mentioning that on July 2, Tencent News App announced the adjustment of digital collection business and announced the suspension of sales service of digital collection. Now the magic core is facing the same fate. For Tencent Ecology, Magic Core is only one of its projects, but from the perspective of the industry, the departure of Magic Core will undoubtedly bring a certain blow to the development of digital collection and distribution platform.

Analysts said that in the first quarter of 2022, Tencent's net profit fell by more than 20%, which has been declining for three consecutive quarters. In this context, the innovative business that has not yet achieved closed-loop business has become the first object to be abolished. This time, the phantom nuclear business was cancelled or to continue to reduce costs and increase efficiency.

It is said that Tencent plans to abolish the magic nuclear business. On July 20 th, according to insiders of Tencent, Tencent is planning to abolish the "Magic Core" business this week. This news has been conveyed in the backbone of Magic Core (low-level managers inside Tencent).

Magic Core is a digital collection platform owned by Tencent. It was launched in August 20021year, and it has been less than one year.

On July 2, Tencent News App also suspended the sales service of digital collections. In less than a month, the magic core also faced the same fate.

Wang Shimu, who is in charge of the magic core business, just transferred to PCG social platform and application line in May to take charge of innovative businesses such as magic core, which he led to incubate. Previously, he was the head of Tencent News.

In essence, domestic digital collection is not the financial attribute of NFT, so there is no closed loop. However, the more direct reason for the abolition of Magic Core lies in Tencent's "reducing costs and increasing efficiency".

This is a digital collection, not an NFT.

At the beginning of the launch of Magic Core, Tencent's "NFT Trading Platform" was announced. Renaming occurred on 202 1 and 10. Some media found that the word "NFT" disappeared in the magic core application, and all of them were changed to "digital collection".

The full name of NFT is irreplaceable token, which is a heterogeneous currency. Its essence is the data unit on the blockchain digital general ledger, and each token can represent a unique digital data. Because of its uniqueness, NFT can be used to mark digital assets. Globally, the most famous NFT project is Bored Ape Kennel Club, with a current valuation of 4 billion US dollars (about 26.7 billion yuan).

Digital collection can be understood as NFT with China characteristics. They all have the characteristics of blockchain: they cannot be tampered with, cannot be separated, and cannot be replaced by each other. But the essential difference is that the bottom of NFT is the public chain, which is completely decentralized, unregulated and free to buy and sell. The bottom of Magic Core's digital collection is Tencent's letter chain, which 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 also the most valuable place of NFT. A collection that can't be bought or sold, but can only be viewed, has basically no commercial value.

Ethereum, supported by overseas NFT trading platform, is a payment platform, and works need to pay corresponding fees, usually virtual currency. However, the relevant regulatory authorities in China have issued a series of laws and policies, which explicitly prohibit the use of virtual currency for pricing and trading.

For example, as early as 20 13, five ministries and commissions, including the People's Bank of China, issued the Notice on Preventing Bitcoin Risks, which clearly stipulated that they should not engage in the exchange business between legal tender, tokens and "virtual currency", should not buy or sell tokens or "virtual currency" as central counterparties, and should not provide services such as pricing and information intermediary for tokens or "virtual currency".

The Magic Core team previously responded to the name change, saying that the digital collection business in the Magic Core platform adopts the full-process real name and full-link review of users, does not open the transfer of digital products between users, and resolutely resists illegal activities related to virtual currency.

Therefore, at the beginning of the launch of Magic Core, the first batch of 300 "Thirteen Invitation Vinyl Records NFT" were sold out within 1 second, but in the past month, many digital collections of Magic Core were unsalable. On June 2 1 day, Magic Core released 20,245 pieces of "Master Hongyi's Calligraphy Motto Screen Digital Products" and 8,206 pieces of "Ten Bamboo Paintings" series on June 17.

As of July 20, 2022, there are no digital collections available for sale in the Magic Core application. The latest digital collection is the series "Birds with Branches and Onions" by Italian missionary Lang Shining, which was launched on July 8th, and 65,438+00 works of the whole series have not been sold out.

Tencent's annual keywords: reducing costs and increasing efficiency

At the earnings conference call of Q 1 in 2022, Ma once said that in the face of industry challenges, the company has implemented cost control measures and adjusted some non-core businesses, which will help to achieve a more optimized cost structure in the future.

In fiscal year 2022, Q 1, Tencent's net profit was 25.55 billion yuan, down 23% year-on-year. This is Tencent's net profit decline for three consecutive quarters.

At the same time, the number of employees of Tencent is also expanding. In the first quarter of 2022, Tencent had about 1 16200 employees, a year-on-year increase of 30.2%. In the first quarter of 2022, the total salary was 29.229 billion yuan, a year-on-year increase of 43.2%. Employee compensation is already Tencent's biggest expenditure item.

In this context, the innovative business that has not yet achieved closed-loop business has become the first object to be abolished.

According to the interface news report, a new GR(Gate Review) mechanism has been established within PCG. If the project fails to meet expectations after a certain stage of development, it will stop work and adjust. In February, 2022, the publication of Goose Fight was the product of this mechanism.

The Goose Curse belongs to the NBase department of the Creative Camp, and the person in charge is Wang Shimu, who hatched the magic core.

Wang Shimu joined Tencent in August, 20021as the general manager of Tencent News, reporting directly to Ren Yuxin, the chief operating officer of Tencent.

Prior to this, he was the head of Netease Cloud Music and successfully promoted it to become the head product of the online music market.

After joining Tencent, Wang Shimu initiated the personalized recommendation reform of Tencent News, and advocated using big data and algorithm recommendation to make Tencent News a diversified content platform covering videos and communities.

But this transformation is far from successful. In 2022, the advertising revenue of Q 1 Tencent News dropped by as much as 30%. Under the premise of "reducing costs and increasing efficiency", revenue has become an important internal assessment standard for Tencent. In the past, the assessment criteria mainly looked at whether the brand Tencent News had any income, and the team did not need to bear too much revenue pressure.

Now, Wang Shimu is no longer the head of Tencent News. The previously hatched goslings have been shut down and the magic nucleus is about to be abolished.

It is said that Tencent plans to abolish the magic nuclear business. According to Sina Technology, Tencent insiders revealed that Tencent is planning to abolish the "Magic Core" business this week. This news has been conveyed in the core backbone of Magic Capital (low-level managers inside Tencent). Now the interface news has also learned from an insider that this matter is basically true, and the business outside the magic check has stopped as early as July.

Magic Core is a digital collection platform owned by Tencent. It was launched in August 20021year, and it has been less than one year. It is worth mentioning that on July 2, Tencent News App suspended the sales service of digital collections.

Domestic Internet giants including Ant, Tencent and JD.COM have tried digital collection business. With the first-Mover advantage and the blessing of Tencent system, Magic Core has become one of the largest digital collection platforms in China.

Digital collection originated from the concept of NFT abroad. NFT is an irreplaceable token and a heterogeneous currency. Essentially, it is a data unit on the blockchain digital general ledger, and each token can represent a unique digital data. Because of its uniqueness, NFT can be used to mark digital assets. It is worth mentioning that, because China has always banned virtual currency speculation, digital collections have shielded the financial attributes of NFT and restricted secondary transactions with the support of alliance chain technology.

Analysts said that in the first quarter of 2022, Tencent's net profit fell by more than 20%, and Tencent's net profit fell for three consecutive quarters. Tencent recently implemented cost control measures and adjusted some non-core businesses. This time, the cancellation of the "Magic Core" business will continue to reduce costs and increase efficiency.

Tencent has not yet responded to this.