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Is the economy bad? Seems fine to me. In general a “bad economy” seems entirely made up. It’s not like the money just disappears. I think it’s a concept invente

Is the economy bad? Seems fine to me. In general a “bad economy” seems entirely made up. It’s not like the money just disappears. I think it’s a concept invented to facilitate wealth transfers.

akira2501 3y ago
> It’s not like the money just disappears. Tencent has lost a lot of value in the past few months and has had a terrible year overall. The value has disappeared. > I think it’s a concept invented to facilitate wealth transfers. Well, if you transfer a bunch of wealth upwards, it's going to have negative consequences that travel downwards. Those who receive them may describe the economy as "bad." Which not only describes a current state, but probably mostly encodes their lack of hope for any type of future mobility that may change their circumstances.
- gamblor956 3y ago
  Tencent lost a lot of value because China decided to crack down on a number of Asian business video game business models last year, and this directly affected a large portion of Tencent's portfolio. However, according to their Q3 filings (Q4 has not been filed yet), their video game revenue is actually up and they specifically cite the performance of Valorant. So the issue for Tencent wasn't Riot Games, it was its Chinese developers.
  - akira2501 3y ago
    More recent news shows that the "government official" in charge of introducing this new rule was fired and the rulemaking abandoned. Their total value loss has occurred solidly throughout 2023. No part of the year was particularly good for them, and the regulator news doesn't seem to have had any unique impact, at least looking at their OTC chart.
    - gamblor956 3y ago
      The announcement of the rule caused an 12.7% drop in stock price from which Tencent has still not recovered.
    - meheleventyone 3y ago
      They fired the person that announced the rule not any of the people that actually came up with it! AFAIK whilst there’s going to be changes the rules will be along similar lines.
devjab 3y ago
Well it depends on how you look at it. We’ve had to say no to several projects due to high interests rates and global supply lines, and we’re hardly the only company to be in that situation. So on one hand it’s not like we’re not still making money, we’re just making around 90% less than we could’ve done if the supply lines were still capable of delivering the stuff we need and if we were capable of doing projects where a good part were funded by loans on top of investor money. The net result is that we’re around 2000 fewer people than we planned to be in 2025. Again, not that we aren’t generating money, because we’re still on black books, but far, far, less than what we wanted and it’s not likely to change in the foreseeable future. One of the major reasons the job market is still doing just fine is because the larger generations are being replaced by much smaller generations, so there are simply fewer workers in the total pool. If there weren’t things wouldn’t look this bright.

akira2501 3y ago

> It’s not like the money just disappears. Tencent has lost a lot of value in the past few months and has had a terrible year overall. The value has disappeared. > I think it’s a concept invented to facilitate wealth transfers. Well, if you transfer a bunch of wealth upwards, it's going to have negative consequences that travel downwards. Those who receive them may describe the economy as "bad." Which not only describes a current state, but probably mostly encodes their lack of hope for any type of future mobility that may change their circumstances.

gamblor956 3y ago
Tencent lost a lot of value because China decided to crack down on a number of Asian business video game business models last year, and this directly affected a large portion of Tencent's portfolio. However, according to their Q3 filings (Q4 has not been filed yet), their video game revenue is actually up and they specifically cite the performance of Valorant. So the issue for Tencent wasn't Riot Games, it was its Chinese developers.
- akira2501 3y ago
  More recent news shows that the "government official" in charge of introducing this new rule was fired and the rulemaking abandoned. Their total value loss has occurred solidly throughout 2023. No part of the year was particularly good for them, and the regulator news doesn't seem to have had any unique impact, at least looking at their OTC chart.
  - gamblor956 3y ago
    The announcement of the rule caused an 12.7% drop in stock price from which Tencent has still not recovered.
  - meheleventyone 3y ago
    They fired the person that announced the rule not any of the people that actually came up with it! AFAIK whilst there’s going to be changes the rules will be along similar lines.

devjab 3y ago

Well it depends on how you look at it. We’ve had to say no to several projects due to high interests rates and global supply lines, and we’re hardly the only company to be in that situation. So on one hand it’s not like we’re not still making money, we’re just making around 90% less than we could’ve done if the supply lines were still capable of delivering the stuff we need and if we were capable of doing projects where a good part were funded by loans on top of investor money. The net result is that we’re around 2000 fewer people than we planned to be in 2025. Again, not that we aren’t generating money, because we’re still on black books, but far, far, less than what we wanted and it’s not likely to change in the foreseeable future. One of the major reasons the job market is still doing just fine is because the larger generations are being replaced by much smaller generations, so there are simply fewer workers in the total pool. If there weren’t things wouldn’t look this bright.