http://www.marketwatch.com/story/mirage-of-the-new-economy-2014-03-26?link=MW_home_latest_news
Online gaming and social network have been the major sources of the economy for china and numbers of countries. However it is true that productivity might not be achieved via gaming or social networking. They do not "produce" anything. However it is a great factor of boosting benefits or in general, for profit, since internet has been dominant and not only computers, but even mobiles have internet. Social networks such as Facebook has been phenomenal over the several years. However relying on these online economy is probably not a very wise idea, as they are somewhat a fad. For example, MSN was widely used before. Now, hotmail has ended its services. Since it may not be a permanent, or so to speak, a steady seller, reliance on online gaming and social network businesses is risky.
Online gaming and social network have been the major sources of the economy for china and numbers of countries. However it is true that productivity might not be achieved via gaming or social networking. They do not "produce" anything. However it is a great factor of boosting benefits or in general, for profit, since internet has been dominant and not only computers, but even mobiles have internet. Social networks such as Facebook has been phenomenal over the several years. However relying on these online economy is probably not a very wise idea, as they are somewhat a fad. For example, MSN was widely used before. Now, hotmail has ended its services. Since it may not be a permanent, or so to speak, a steady seller, reliance on online gaming and social network businesses is risky.
It is very interesting to see that such an online economy does exist. I would have to agree that online advertising may not be the most effective way to push your message across to others. Whenever I am on MSN or AOL I often scroll post the advertisements, not paying any attention to them. I also choose to skip past advertisements when I go on Forbes. Social networking and gaming serve their purposes of online social engagement. I however do not think that they are the best ways of advertisement, at least not yet.
ReplyDeleteNo one is "relying" on anything. Perhaps it is risky, but investing in Facebook stock is ones own choice. Yes there are trends in technology (Microsoft stock has remained stagnant in the past ten years) but do not underestimate the impact of Facebook or like products. They connect the world. Not only are they providing good for the public, but they give the public more perfect information on how to make purchases, and companies better information on how to target their advertising. Point, these products are just as significant, if not more significant than anything in the economy.
ReplyDeleteWhile there are certainly phases online, I think it wouldn't be a bad idea to invest in something large like Facebook. It's worldwide, and is extremely well known. Companies like this have enough funds to buy acquire other companies and expand. An example of this is the Acquisition of Whatsapp by Facebook. If Whatsapp is successful, and Facebook continues to expand, I think it could be a decent investment.
ReplyDeleteI disagree with others that social media and online gaming do not produce anything useful. Similar to many other services that are productive, they provide entertainment to a large consumer market that is interested in this type of entertainment. We wouldn't say that companies like Sony do not produce anything productive because they produce entertainment services such as the PS3. Instead, this type of entertainment provided online has a high demand. It is illogical to assume that just because these companies do not provide any physical goods, that their services should not be highly valued. Social media also provides the opportunity for people to connect with friends, and it is more convenient for people to communicate with each other, because communicating on social media is faster and makes it easier to organize events. This is a great service that a lot of people value.
ReplyDeleteThe life cycle of different social media sites is normally pretty fast like myspace and other ones. It would be hard to get me to invest in a social media page for the long run due to that quick turnover, you never know what is going to be the next big thing.
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