"The output value of arcade machines has exceeded 12 billion US dollars in three quarters, and can it reach 15 billion yuan for the whole year?" Zheng Danrui asked with a shocked face when he heard this number.

Converting US$15 billion into Hong Kong dollars at the latest exchange rate is nearly 100 billion. Who would have thought that an inconspicuous game console could create such a huge industry!

"I may have made some slips of the tongue before!" Li Xuan didn't feel any nervousness, but his words were a little off, so he immediately corrected, "In the first three quarters of this year, the total output value of arcade machines in the American market was 6.2 billion US dollars, and the global market was 8.5 billion US dollars!"

The 8 billion and 12 billion I mentioned earlier are estimates for the whole year. The last quarter is often the peak sales season, because there are intensive holidays such as Thanksgiving, Christmas, and New Year at the end of the year, so this year's total industry output value in the United States and the world exceeded 8 billion and 12 billion US dollars respectively, which is not a problem at all!"

"Oh!" Zheng Danruirui was a little disappointed, and he quickly asked again, "Oriental Game Company is known as the new king of the arcade industry, how much market share can you occupy?"

The director's face behind the camera gradually became a little ugly, and he found that Zheng Danrui was a little off-topic. These questions were not listed in the program script, he was afraid that Li Xuan would feel unhappy, so he immediately reached out to Zheng Danrui and gave a secret message, asking him not to make his own decisions.

Li Xuan didn't think it was inappropriate, and there was no need to keep these numbers secret. He said indifferently: "We are ashamed to be the king, but Oriental Games has indeed grown into one of the most important arcade production companies in the world. In the first three quarters of this year, we sold more than 300,000 arcade machines, accounting for 15% of the global market share!"

Li Xuan's flat tone revealed a hint of arrogance that looked down on the world. It took less than two years for Oriental Games. It has been promoted to the world's second largest street machine manufacturer, second only to Sega in terms of sales.

But the Oriental Games Company from last year to now. The total number of arcade games launched is less than ten, and Sega has already launched dozens of arcade games this year alone. Sega's sales are piled up by the number of games. This will also greatly increase the cost of game development.

"In other words, with the arcade alone, Oriental Game Company has created an output value of 1.25 billion US dollars!" Zheng Danrui's voice trembled slightly.

For example, our latest arcade game "Kung Fu" has a terminal retail price of up to $4,000 in the United States. But our ex-factory price is much lower than this price, and we need to give enough profit margins to the distributors in the intermediate links!" Li Xuan shook his head and said.

"Even a big manufacturer like Oriental Games can only account for 15% of the market share, does it mean that the arcade industry is very competitive?" Zheng Danrui continued.

"Yes, there are more than 100 companies that produce arcade machines in Japan alone. But they are also the same as the arcade companies in Hong Kong, most of which can't come up with good enough products. It's going to go out of business. But the huge profits in this industry continue to attract new companies to join!

In the United States, it takes $1 million to develop an arcade game, and the cost in Hong Kong is slightly lower, but it also requires at least two or three million Hong Kong dollars! This means that after a Hong Kong company develops a game, it will have to sell at least 1,000 units before it can return to its original cost!

It is impossible for other game companies in Hong Kong to have such a complete global sales system as Oriental Game Company. The local market is too small, and they can only explore the markets in Taiwan and Southeast Asia to survive.

But the market in these places is far less lucrative than the European and American markets. If the game isn't engaging enough, sales are often not enough to recoup the cost of development. This is also the reason why many arcade companies have been closing down recently!" Li Xuan said with a sigh.

In fact, there is another important reason that Li Xuan did not mention. Making an arcade game requires a sufficient technical foundation, for example, the game programmer must be at least proficient in assembly language. The total number of computer science graduates at HKU, CUHK and the Polytechnic is less than 100 each year. Most of them are pocketed by various companies under Dongfang Electronics, and it is difficult for other companies to recruit real talents.

"Starting a business is not an easy task. As Li Sheng, you just said, it is very important to find the right entry point, such as the successful Mingyao Game Company!" Zheng Danrui said in a timely manner.

"The Gameboy console has been on the market since last year. The total sales volume has exceeded 30 million units, accounting for more than 80% of the entire handheld game console market. And most of the gamers who buy Gameboy consoles. It is impossible to play just one game. No matter how interesting the game is, if you play it every day, you will quickly get bored!

Therefore, Oriental Games Company will launch 3 to 5 new games every month for players to choose from. That's it. At least 40 new games are released every year on the Gameboy handheld platform! In addition to our own development, we also support third-party games to be sold on Gameboy!

If you can develop a good game, you only need to attract 10% of gameboy consoles to buy it, and the sales of new game cards can reach 3 million copies! Mingyao Games Company has only developed two new games, and the company that originally invested 300,000 yuan to start up is now valued at 15 million!"

Li Xuan's words were very inflammatory, and it seemed that success was within reach. In fact, the actual situation is far from so easy, and Oriental Game Company has very strict regulations on the standards for launching new games on the two game platforms of Gameboy and FC.

The rating of the quality of the game must reach more than 3 stars, and this rating standard is determined by Oriental Game Company, and third-party manufacturers can only choose to obey. In order to ensure the quality of new games on the platform, Oriental Games will refuse to put games with a rating of less than 3 stars on the shelves. Once the game does not meet the three standards, all the energy invested by the third-party company in the early stage becomes useless.

Oriental Games has signed third-party game development agreements with dozens of game companies. But there aren't many new games that actually reach more than 3 stars and are approved to be put on the shelves. Among the several third-party developers in Hong Kong, only two new games from Ming Yao Games received 3 and 3.5 stars, respectively.

In fact, Mingyao has developed 2 other games before, but they are only 2.5 stars and 2 stars respectively. If it weren't for the fact that the quality of the new games developed this time has improved by leaps and bounds, and all of a sudden they have reached the standard of sales on the shelves, but they are still the same failure as the previous time, the only thing waiting for the two founders is bankruptcy and closure.

After all, with an initial start-up capital of 300,000 yuan, it is a miracle that Mingyao Games can maintain it for a year. Huo Yaoliang and Tan Jiaming are still students, and their families will give them living expenses every month, so there is no pressure to survive. In order to save money, the two have never received a penny of salary in the company, and the other employees of the company are also classmates who they have been pulled from the school to work as part-time technicians.

But even so, the 300,000 funds were completely exhausted after a year, but fortunately they managed to redeem themselves before the death line and developed two qualified Gameboy games. This has made them newspaper start-up heroes now, making a lot of real money just by waiting for the game to hit the market.

These behind-the-scenes risks, Li Xuan naturally would not say it on live TV. He needed to use the new entrepreneurial role model of Mingyao Games, which was being hyped in the newspapers, to attract more people to join the ranks of third-party game development.

In this way, a steady stream of good games will be delivered to Gameboy handheld consoles and FC game consoles. Only by consistently launching a large number of high-quality games can we continue to maintain the vigorous sales life of a game console.

"Xu Sheng, it is said that the enterprises in the incubator have received meticulous help, you not only provide very complete logistics services, but also give entrepreneurial guidance from time to time! So what does the incubator rely on to make a profit?" Zheng Danrui glanced at the outline and asked Xu Yu'an according to the script.

"Hehe, the services we provide for the enterprises in the incubator park are as low as possible to reduce everyone's entrepreneurial costs. But as the saying goes, the hustle and bustle of the world is all for profit! We are not a charity, but a profit-seeking enterprise!

The young enterprises that join the incubator are not free to accept our high-quality and cheap services, they need to pay an additional part of the equity! We are actually the same as those venture capitalists, we are making money by vision! The incubator park accepts enterprises to enter the park is not without thresholds, only we think that there is a certain development prospect of the project, the incubator will be willing to absorb it!

For example, the aforementioned Mingyao Game Company, before accepting venture capital funds, its valuation was 15 million Hong Kong dollars. Among them, the Oriental Incubation Park accounts for 20% of the shares, and this part of the equity is now worth 3 million Hong Kong dollars, and there is room for further appreciation in the future!" Xu Yu'an explained with a smile.

After that, Li Xuan talked about the first time he went to Japan to negotiate with Epson, and asked them to agree to OEM arcade version, the first time he went to the United States to participate in the electronics show, and fought wits and courage with American arcade agents, these are all entrepreneurial stories that are not known to everyone.

The next day, the episode aired on ATV. "God of Wealth Li" appeared on TV for the first time and told the story of his own business, and this gimmick made the ratings of this issue of "Qiang Qiang Threesome" soar by two times at once, setting a new ratings record since the launch of the column.

This episode also further heated up the topic of entrepreneurship. No longer being a wage earner, making a lot of money as your own boss, has become a new idea for many people who are unwilling to be ordinary. The venture capital industry boom that Li Xuan has just spawned just provides strong financial support for these bursts of entrepreneurial enthusiasm.

Every day, Oriental Ventures' office in Central welcomes dozens of entrepreneurs with entrepreneurial dreams. Other new venture capital firms have sprung up in the vicinity of Oriental Ventures, so much so that over the years the surrounding area has become one of the most famous VC firms in Asia. (To be continued......)

ps: There are a lot of things in the company today, and the second chapter is being written, if it can't be finished before twelve o'clock, it will be sent tomorrow morning