On August 9, Sogou search APP officially stopped service, and Bingo APP, which was renamed after Sogou search APP, was also removed from the Apple APP Store.
On August 16, the seven-year-old hotspot APP also announced the closure of its operation. According to public information, Tencent's hotspot APP had 240 million active users at its peak, occupying the top entry position of QQ.
In fact, since the beginning of this year, the speed of Tencent's "abandonment" has been significantly accelerated. According to the incomplete statistics of Helix Lab, up to August this year, nearly 10 well-known products or applications have been officially announced by Tencent to give up, completely become history.
Among them, there are some "Guzao" applications that have been in operation for more than ten years, and some meritorious products that once created huge value for Tencent, but due to various reasons, they no longer have the meaning of existence.
A number of products intensive stop service
Tencent's campaign began in April this year, when QQ Tang, a game that many gamers grew up with, officially ceased operation on April 20, ending the game's more than 17-year run.
On April 30, Gosling, Tencent's social e-commerce project, was officially shut down after just two years of testing the water. According to a Tencent official, Gosling may be one of the e-commerce projects with the largest investment in recent years.
Some of the acquired projects are also facing rapid disposals by Tencent, notably Sogou, which announced last September that it would go private and become an indirect wholly-owned subsidiary of Tencent Holdings.
After joining Tencent, Sogou's many businesses and projects were gradually abandoned, in addition to the aforementioned Sogou search APP, Sogou map has been officially offline in May.
Another example is video editing software VUE, which Tencent bought for $50 million in 2020 as an important complement to short videos. However, on June 30 this year, VUE announced the official suspension of new user registration and member recharge services, and some functions of the client were also closed simultaneously.
As game business of tencent "cash cow", has also been gradually cut some small products, mobile e-sports platform penguin e-sports on June 7th formal termination of operations, before the shutdown, tencent has plans to the pricing to transfer the bettas are $500 million, then dominated and canine teeth selectively merged, but in the end because such plans involving the antitrust red lines and forget about it.
In addition, Tencent's official game community platform handheld WeGame has stopped new user registration since July 5, and will shut down the server at 23:59 on September 8 this year.
Tencent in the flow of the circuit layout of products, also welcomed the fate of the shut down in the summer, but the fall of the products is to let a person feel sorry, because a lot of products from the user activity and the opportunity to "rescue", such as stop operating point on July 18, letters, in the first half of this year, there are still more than 700 per month to live.
But Tencent, with a billion traffic portals, may not care at all about these "micro" user bases.
In addition to these relatively well-known products, tencent in this year and there are many product exit is quiet, for example in the field of play, in the first half of this year have the chop to the fairy, QQ lianliankan, fishing and so on more than 20 game next stop taking, but due to the popularity, the ending of the products did not cause more attention.
Why the end
Perhaps never before in Tencent's 20-plus years of corporate history has it been so decisive in shutting down businesses, which gives the clearest sense that Tencent is abandoning products at a faster rate.
In Tencent's past history, many products are no longer popular, but they are not immediately sentenced to "death". A classic example is that Tencent Weibo, which has been almost forgotten for seven or eight years, managed to officially announce its suspension of service and operation in 2020.
And throughout Tencent this year closed part of the products, in addition to such as QQ Tang "dead" curtain call, more products are not completely destroyed, in the market is still not forgotten by the public.
But why Tencent will resolutely give up these products, in fact, the more reason is from the macro level of consideration, through business closure, focus on the development of key products superior forces.
In fact, the biggest commonality of the products abandoned by Tencent this year is that there are already higher priority products in Tencent territory.
For example, the video clip software plate, Tencent has a second cut, after the shadow of wisdom, has no longer need a VUE only empty shell.
And in the field of game live, Tencent firmly controls Douyu and Huya two oligarchs, Penguin esports of course appears dispensable.
Palm League of Legends to palm WeGame, Tencent news to watch express, in fact, is the same logic.
Sogou's situation is some special, but the essence of the same in fact, in the territory of Tencent, Sogou in addition to input method, browser and other products, some edge business is difficult to maintain independent brand operations, and these businesses have a certain coincidence with Tencent itself, can only turn to become a subsidiary of Tencent products.
Tencent is so dense shut down and turning in non-core business, and may also be "buy buy" for the first two years, in the first half of 2020, tencent VC in the investment and financing market, bagging, on average every three days investment of a company, but then under the influence of some objective factors, the investment tencent did not receive the expected return.
More representative is in the field of online education, Tencent invested in more than 40 education companies in the first half of 2020, covering multiple segments such as K12, preschool education, education informatization, but later affected by the "double reduction" policy, the online education sector has become a major disaster area of market value shrinkage.
Tencent prepares for winter
In the first quarter of 2022, Tencent's net profit was 25.545 billion yuan, down 23% year on year, the third consecutive quarter of decline, the former king of Chinese concept stocks, also need to start thinking about winter.
"In a short-term headwind environment, we will continue to control costs, but the overall goal of cost optimization is for the long term, and Tencent has a clear focus for optimization," Martin Lau, president of Tencent, said during the Q1 earnings call.
The core reason for cost control is the net profit margin. According to the Q1 financial report data of Tencent, the continuous decline in net profit of Tencent mainly comes from three aspects: the slowdown of B-terminal business growth, the decrease of domestic game revenue and the increase of R&D investment.
In addition, according to the relevant reports of 36Kr, some business lines of Tencent also started layoffs in the first half of the year, among which CSIG (cloud and smart industry business group) layoffs proportion or more than 20%, PCG (platform and content business group) also had 10% layoffs.
In this context, some businesses with low value in the short term are doomed to be decisively abandoned, which has resulted in a number of Tencent products discontinued operations recently.
Focusing limited R&D efforts on projects that can continuously generate cash flow is a necessary measure to ensure a stable winter for Tencent. In particular, some overlapping business projects have lost the significance of simultaneous operations.
However, it is worth noting that despite the continuous cost contraction, Tencent did not stop trial and error. For example, when the grass e-commerce project "Goslings" ceased operation, Tencent also internally tested another product with similar functions, "Penguin Huibuy".
After the small Red Book with the fire of grass e-commerce circuit, including Ali, Byte and other big factories in fact are in intensive layout, Tencent naturally does not want to fall behind, but compared with the dozens of products in turn bombing short video circuit scene a few years ago, Tencent has reduced the cost of trial and error to a low point.
At present, online video and To B's enterprise service business are the directions Tencent attaches great importance To, and are also expected To continue To bring positive cash flow for Tencent in the future. Among them, in the long and medium video track, Tencent video has gradually led iQiyi and Youku, wechat video number in this year's rapid growth, also makes Tencent in the short video track has a strategic product.
Although the To B business itself is hard money, but it is recognized as a sunrise track, Tencent has many previous investments, mergers and acquisitions and project incubation are carried out around this field, which may also be Ma Huateng said that "Tencent should do these difficult and right things".
As for the Tencent products that ceased operations this year, it may be only a matter of time before they die, but the external environment Tencent faces this year has accelerated the internal iteration speed. A Tencent person who has worked on e-commerce projects told the media this year: "It's normal to die a project. The entire company is shrinking its cash flow, and Tencent will no longer allow it to burn money on a project with no clear future."