08-09-2018, 01:08 PM
Minors ain't their main income stream (I hope). This is a great move by Tencent, still a dire situation for Tencent in general (the decision that the Chinese government is going to clamp down on online gaming addiction), at least in the short term.
That said, gaming will continue to have an increasing importance in the world in general. But competition of internet companies to get people addicted to their platform is not sustainable.
Online entertainment companies like Tencent, needs to shift away from a model that optimize user to spend more time on their platform, to a business model that maximize quality of users' time spent on their platform.
Investors looking to invest in Tencent today, need to have confidence that Tencent is able to make that shift, in the medium to long term. Especially in China.
(vested; but Tencent is starting to look pricey due to the limited growth potential in the short term)
That said, gaming will continue to have an increasing importance in the world in general. But competition of internet companies to get people addicted to their platform is not sustainable.
Online entertainment companies like Tencent, needs to shift away from a model that optimize user to spend more time on their platform, to a business model that maximize quality of users' time spent on their platform.
Investors looking to invest in Tencent today, need to have confidence that Tencent is able to make that shift, in the medium to long term. Especially in China.
(vested; but Tencent is starting to look pricey due to the limited growth potential in the short term)