Not blindly optimistic, but maintain industry confidence.
Editor’s note: This article is from the WeChat public account “The mobile game is something” ( ID: sykong_com) , author MoRA, Rust, reproduced with permission.
Today (February 16th), the fourth issue of 2020, Qiushi magazine published an important article from the highest level of the country, “Study on the response to the new coronavirus pneumonia epidemic at the Standing Committee of the Political Bureau of the Central Committee” “Speech at Work”, which mentioned the need to “accelerate the release of emerging consumer potential” and focused on consumption in e-commerce, online education, and online entertainment.
During the epidemic, online industries represented by e-commerce, games, etc., have contributed to ensuring the normal needs of the people. At the same time, with the epidemic as an opportunity, people have also been exposed to more diversified online industries, which has also accelerated the transformation of people’s consumption patterns. Today, the state has also released signs of encouragement for the digital economy. In the next period of time, the online industry will definitely face the challenges brought by the increase and upgrade of consumer demand, and also face the challenge of shouldering more social functions and responsibilities.
I. Qiushi Magazine published important articles at the highest level to accelerate the release of emerging consumer potential
The economic impact of the epidemic is clear. The article “Speech at the Standing Committee Meeting of the Political Bureau of the People’s Republic of China to Study and Work on the New Coronavirus Pneumonia Epidemic Situation” mentioned: “At present, the epidemic situation has affected macroeconomic operations, and some service industries have been greatly affected during the Spring Festival. The epidemic situation has affected economic operations. The impact will continue, mainly in terms of aggravating the production and operation difficulties of industrial enterprises, especially small and medium-sized enterprises, delaying the construction of investment projects, inhibiting domestic and foreign business and economic activities, and increasing employment pressure. “
(screenshot of article)
Facing these real problems and potential impacts, how to deal with shocks and achieve new growth will become the next important proposition. The article mentioned that, in addition to measures to actively promote the resumption of production and production of enterprises and the start of construction of major projects, efforts to stabilize household consumption are also a top priority.
“Expanding consumption is one of the important points of focus on the impact of hedging. It is necessary to accelerate the release of emerging consumer potential, actively enrich 5G technology application scenarios, drive terminal consumption such as 5G mobile phones, and promote increased consumption in e-commerce, e-government, online education, and online entertainment. It is necessary to better meet the needs of residents ‘healthy living consumption, take this epidemic response as an opportunity, further cultivate residents’ healthy living habits, and guide enterprises to increase the supply of related products and services. “
During the epidemic, the digital economy segments, such as e-commerce, online office, online education, Internet healthcare, and games, provided assistance to the normal operation of the people’s daily life. It is believed that in the next “epidemic situation and post-epidemic economic development”, these emerging consumer industries will also contribute to driving the economy. (Click “Read the original text” at the end of the article to view the full text of the highest-level article published in Qiushi.)
Second, the game version number is continuously approved to provide momentum for the development of the industry
Specifically to the game industry, on February 10, the General Administration of Press, Publication, Radio, Film and Television issued the third batch of domestic game version numbers in 2020, with a total of 53. In the special period, the competent authority did not stop issuing the version numbers. The version numbers and familiar quantities that came on schedule have brought a lot of boost to the industry.
It is worth noting that the approval date of this batch of version numbers is also February 10, which means that this is the version number approved after the outbreak and after the holiday, and will be issued simultaneously on the day of approval.
It is not difficult to see that at the current key nodes, the rhythm of the competent authority’s normal release of the version number also shows the state’s attention and encouragement to online entertainment to a certain extent. Coupled with the stability of the industry environment and the favorable traffic, game companies have more opportunities, and also provide a guarantee for games to create greater value in special times.
Third, the capital market is relatively optimistic, and the stock prices of Hong Kong and US head companies have rebounded significantly.
The excavation of the value of the “home economy” has also boosted the gaming industry in which it is located. In addition to the increase in downloads and turnover of some games, the capital market’s attitude towards games has also changed.
In terms of the A-share market, from February 3 to February 14, there were six game companies with a cumulative increase of more than 10%, of which Kunlun Wanwei rose 28%; Century Huatong, Palmtech And five companies including Gigabit rose more than 10%.
In terms of the Hong Kong stock market, Tencent’s stock price has risen steadily since the market opened on February 3, with a cumulative increase of more than 11%. Its stock price climbed to HK $ 420 per share on February 14 and hit nearlyA new year high. In addition, Frienstimes rose more than 50% during the period, while the shares of Zenyou Technology, Hometown Interactive, and Xindong Company all rose more than 20%.
The performance of NetEase in the US stock market is also relatively bright. During the period, the company’s stock price rose by more than 10%. In the February 11 session, the company’s stock price reached $ 358.250 per share, a record high in nearly two years. The same period of the U.S. stocks sector also rose more than 33%, as of February 14, the company’s stock price closed at $ 28.690 per share.
It is true that the valuation of the gaming industry plummeted to single digits (8.32x) in 2019, but from June 2019, the valuation of the gaming industry has resumed an upward trend and has returned to the 20x range as of November. The public fund with a keen sense of smell has already been in the media sector in Q4 2019, and the game ratio has increased by 10.41pct to 38.31%, a record high.
Fourth, release the potential of “emerging consumption”-“digital economy” will take more social responsibility
Because of the need for epidemic control, most of the offline industry has moved to online. In contrast, the digital economy including games is less affected by the epidemic and maintains the original development status.
Online entertainment such as games and short videos not only exerted economic value in this epidemic, but also showed more positive social values. For example, online games have become a platform for the public to provide daily entertainment and social networking, thereby reducing personnel mobility and making objective contributions to the prevention and control of the epidemic. At the same time, high-quality digital cultural content can also effectively alleviate public anxiety during the epidemic and help Maintain physical and mental health.
For example, QuestMobile data shows that short videos have become one of the main ways for Internet users to relax during the Spring Festival. They are also an important platform for Internet users to understand the epidemic situation and learn about protection. Users and duration have maintained an upward trend.
Not just the digital content product itself, TencentMajor game companies, such as NetEase, Sanqi Interactive Entertainment, and more Internet companies have also supported the cause of the epidemic. According to statistics from the mobile game, as of January 29, more than 57 game-related companies have aided the epidemic area and took the initiative to assume corporate responsibility and responsibility.
The support of a series of online products during the epidemic also fostered new consumer habits. The article “Speech at the Standing Committee of the Political Bureau of the Central Committee of the People’s Republic of China on the work of responding to the new coronavirus pneumonia epidemic” also mentioned that the epidemic response should be used as an opportunity to further cultivate residents’ healthy living habits. It is believed that in the following “post-epidemic recovery”, the digital economy will add strength to China’s sustained economic growth.
With the development of the Internet including 5G technology, online entertainment is bound to exert more energy. During the epidemic, online entertainment met the spiritual and cultural needs of the people, so in the following economic recovery period, it has already made extensive use of After the people experience the online industry and develop their initial consumption habits, online industries such as e-commerce, games, and short videos may gradually become a part of the daily life of the people, and thus become a new force driving the economy.
At the same time, we must also realize that after the official release of encouragement signals, various industries in the digital economy will inevitably face more social responsibilities. How to maximize the positive value will become an important proposition. For content industries such as games and short videos, the most important thing is to make more good content and provide the best product support for the upgrade of consumer consumption.