Chapter 086: Go to Japan Again
The plane slowly landed on the runway of Tokyo International Airport, which was Li Xuan's second visit to Japan. The previous time he was still a little apprehensive, and he wasn't very sure if he could convince Seiko Epson to OEM arcade motherboards. But now, Li Xuan is in high spirits. Dongfang Electronics has just set up a branch in Japan and is ready to fully enter the Japanese market.
"Let's go!" Li Xuan took Zhong Chuhong's hand and said with a smile.
"Hmm!" This is Zhong Chuhong's first time on a plane and the first time she has gone abroad, and she is a little excited.
At the pick-up gate, Suzuki Ichi, the person in charge of Dongfang Electronics Japan Branch, was already waiting there respectfully, and as soon as he saw Li Xuan come out, he bowed enthusiastically to Li Xuan.
"Your Excellency, I have booked a luxurious room in the Imperial Hotel for you!"
Li Xuan and Zhong Chuhong, accompanied by Suzuki Ichi, left the airport and headed for the Tokyo Imperial Hotel in Ginza. Built in 1890 and located near the Imperial Palace, this luxury hotel is known as the symbol of Japanese hotels, as a hotel where the Japanese Imperial Family held their weddings. The luxurious suite that Suzuki has booked for Li Xuan is located on the 14th floor, and you can overlook the Japanese Imperial Palace from the window.
Previously, Dongfang Electronics licensed the Japanese production and sales of the two arcade machines of Hong Kong Square and Tank Battle to Seiko Epson, so it did not enter the Japanese market for the first time.
However, after Dongfang Electronics got on the right track, the newly appointed CEO Han Peng immediately began to lay out Japan's second largest game market. Suzuki is a general recruited by Han Peng from Sega's Japanese branch, and is fully responsible for presiding over the preparation of the Japanese branch.
Dongfang Electronics' first handheld gameboy has been developed and will be unveiled at the upcoming Akihabara Electronics Show. Li Xuan flew to Japan this time to come and sit in charge in person.
Before Li Xuan arrived in Japan, the Japanese branch presided over by Suzuki had already opened a large-scale market development work. The company's marketing director, Ye Chengkang, also flew to Japan a week ago to arrange the relevant work of the Akihabara Electronics Exhibition. This is his first tough battle after joining Dongfang Electronics, and he is only allowed to win but not lose.
"Xuan Shao, won't the price of 5,000 yen be too low, so we really don't have much profit at all!"
Not long after Li Xuan arrived at the Imperial Hotel, Ye Chengkang came to knock on the door, wanting to make a final persuasion. Originally, the price of the Gameboy in Japan was set at 5,500 yen, but Li Xuan suddenly decided to lower it to 5,000 yen three days ago.
"The 5,000 yen price cannot be changed, and we set the price lower, which is conducive to the rapid promotion of the game console. As long as the player buys our console, stickiness will be generated, and it will be easier to sell game cards later. ”
Li Xuan said with a smile, "That's why I decided to raise the game card from 2,500 yen to 3,000 yen, and the profits we lost on the game console can be completely made up for by the game card!"
"But there's no need to make the price so low!" Ye Chengkang shook his head and said, "We have done market research, and the price of 5,500 yen is low enough! A game company called Nintendo just launched a handheld similar to ours last week." This game console called gamewatchball, can only play a simple catch game, the price is also 5800 yen, the sales situation is very good these days! The quality of the handheld game we launched this time is higher than it, the price is 5500 yen, it is absolutely able to sweep the market, there is no need to lose 500 yen more profits!"
Recently, the U.S. dollar has been trading at 1:250 against the Japanese yen, and the retail price of 5,000 yen set by Gameboy is equivalent to 20 U.S. dollars in U.S. dollars. Since the retail price has been lowered, the ex-factory price of Dongfang Electronics must also be lowered, and the company finally set a ex-factory price of $10 for the Gameboy.
The factory cost of this handheld computer is about 8 US dollars, which means that the gross profit of Dongfang Electronics is about 2 US dollars, and the actual profit will be lower after deducting a series of costs such as sales expenses and publicity and promotion expenses.
But Li Xuan was not swayed by Ye Chengkang's persuasion, and Li Xuan made an arbitrary decision to adjust the price after reading the information of competitors collected by the Japanese branch a few days ago. Nintendo's GameWatchball, which was considered by the Japanese branch, was the main competitor of Game after the launch of the Boy.
This is a very simple ball game in which the player uses two keys to control the left and right hands of the character, constantly bouncing the falling ball back into the sky. Over time, the balls will fall faster and faster, and the player will lose the game if they fail to catch any of the balls and fall to the ground.
The owners of Dongfang Electronics Company did not pay much attention to this company called Nintendo. Although their GameWatchball game sold quite well after it was released, this is because GameBoy has not yet been released. It's easy to wait for Gameboy to bring the handheld version of the game card of Hong Kong Cubes and Tank Wars to the world, and sweep each other.
But Li Xuan never dared to underestimate the three words Nintendo. If he's not mistaken, GameWatch has sold tens of millions of copies in the first few years since it was launched, which is definitely a money-absorbing weapon. If there is no handheld of Dongfang Electronics to disrupt the game, although the playability of Nintendo's ball game is very average, it has been greatly improved compared to other handhelds that use light-emitting diodes on the market.
And the information that Li Xuan has in hand clearly shows that Nintendo's current financial situation is not ideal, with debts as high as 1 billion yen. As early as 1978, after the space invaders of Taito Corporation detonated the arcade craze, Nintendo's chairman Yamauchi Pu decided to enter the arcade industry. But Nintendo's successive consoles were not successful, and instead accumulated a lot of debt.
Taking advantage of people's illness, they want people's lives! Li Xuan was keenly aware that now was the perfect opportunity to completely defeat Nintendo. The price advantage of the 5500 yen Gameboy against the 5800 yen Gamewatch is not obvious, but if Dongfang Electronics pushes the price to 5000 yen, and relies on the Hong Kong Cubes and Tank Wars, the two arcade games that have become popular all over Japan, it can completely bring a fatal blow to the gamewatch that has just been listed.
The gameboy launched by Dongfang Electronics comes with Hong Kong block game cards, and at the same time launches four game cards: tank battle, snake, highway, and backgammon. The handheld is priced at 5,000 yen, and the game card is priced at 3,000 yen.
The price of the Gameboy is much lower than Nintendo's GameWatch, and there are several game cards to choose from, each game is very fun, and there is almost no suspense about what choice players will make.
If Nintendo's GameWatch fails again, their company will have a harder time. Li Xuan felt that he could go to Yamauchi Pu to talk to him at that time to see if there was a chance to directly take Nintendo into his pocket.
Since there is a chance to kill Nintendo before it starts, Li Xuan will never be relentless. He won't be bored enough to watch his competitors grow, and then have a battle for Yuliang, his head has never been caught in the door, he won't do such a stupid thing, Nintendo, which is controlled by Dongfang Electronics, is the cutest Nintendo.
This is because in this way, Li Xuan can give up part of Gameboy's profits without hesitation. If GameWatch also chooses to reduce the price under the pressure of Dongfang Electronics, Li Xuan will also snicker. The manufacturing cost of the Gameboy has been compressed to the limit by Dongfang Electronics.
For example, the procurement of handheld displays, due to the price war between Sharp and Casio in LCD screens in recent years, Epson, as one of the top LCD screen suppliers in Japan, was also forced to get involved in the war.
On the basis of promising to purchase at least five million display screens, Li Xuan reluctantly agreed to give Epson a jump price. He didn't believe that with Nintendo's current strength, he could get cheaper parts from Japan than Dongfang Electronics, so Li Xuan was not afraid of a price war at all.