Chapter 030: Finding an Alliance
There are significant differences between European and American manufacturers and Japanese manufacturers in terms of business methods.
The business ideas of European and American companies are more focused on focus and focus on their core business. For example, Intel, even if its microprocessor products are alone in the global market, has never wanted to extend the downstream of the industrial chain and develop its own computer products.
However, Japanese companies have a completely different idea, they are more focused on the systematization of the industrial chain, and have built a complete industrial structure and technical barriers. Then, through the optimization and integration of the entire industrial chain, the cost of the product is reduced to the extreme, so as to obtain a price advantage in the fierce competition.
Of course, there are not no large and comprehensive enterprises in the United States, such as RCA, whose full name is Radio America. This famous company, which started with radio and radio in the early twenties, was the first to develop the first television set.
Today, RCA companies include the manufacture of consumer electronics such as televisions and radios, RCA records in the music field, NBC, one of the three major public broadcasters in the United States, semiconductor business, aerospace business, and even blanket production business.
However, his core business, television manufacturing, has been forced into a desperate situation by Japanese companies step by step since the beginning of 60 years. Of course, compared to other American television factories that have long been bankrupt, he can at least barely hold on.
The main reason for this is that American workers will never be able to treat factories as hard as their Japanese counterparts and treat factories as their second home. Powerful guilds will use strikes and votes to bring factory owners to their knees again and again, and constantly raise wages, thereby driving up production costs and reducing the market competitiveness of American goods.
It is precisely because of this that American companies have had to divest their non-core businesses, which they believe to have low profit margins, and devote all their energy to the core business, and use their technological leadership to defend against price competition from Japanese companies.
Seiko Epson and other large Japanese companies have the same business philosophy. His core product is the printing equipment, and the processing core of the printing equipment needs to be controlled by the CPU, so it has built its own wafer factory. Of course, the reason for supporting Epson's decision to build a factory, in addition to the consideration of reducing the cost of printer parts, is also the main reason why the decision-makers are optimistic about the future development of the semiconductor industry.
However, now the competition in the Japanese chip market, especially the memory market, is very fierce, and it is precisely because Intel cannot resist the price war of Japanese semiconductor companies in memory products that it will transform to produce microprocessors in two or three years.
Epson has just entered the field without any foundation, and it is easy to imagine how difficult the situation of its fab is now. When Li Xuan contacted the Japanese company before, the reason for the negotiation was that he wanted to purchase a batch of MOS6502 processors produced by Epson, and asked to go to Japan for an inspection in person.
As a result, his small company, which had just been established for more than a month, quickly got a reply from Seiko Epson, who welcomed him to Japan for inspection, and would arrange a special person to receive him throughout the process.
Li Xuan also judged that the actual operating rate of Epson's newly put into operation should be very low. If their production schedule is full, they simply ignore a small company like him that has not yet established any goodwill.
"Xuan Shao, our goal this time has almost been reached, all that remains is to sign the contract!" On the way back to the hotel, Du Wenqiang said with a smile.
In the past month, he, the newly appointed head of the software development department, did not dare to relax for a moment, and the pressure was greater than Li Xuan, urging his subordinates to work overtime every day, which made everyone in the software department complain. As a result, Li Xuan originally planned to develop the game in three months, but he took a month to complete it.
"It's not certain whether we can sign a contract or not, but at least the potential we show is enough to attract the attention of the other party!" Li Xuan didn't dare to say too much.
"Xuan Shao, you are not afraid that Epson will kick us away after seeing our game ideas and produce game consoles by himself!" Liang Ning showed calmness after entering the company, which was completely similar to the two of them in the previous interview, which made Li Xuan feel like he had picked up a treasure.
"We've applied for patents, and Epson isn't a game company, so it's going to take a lawsuit to enter a new field that they're completely unfamiliar with, and how much stake does it take to make that choice.
And by the time they started from scratch and developed similar games, we had already found other partners. So as long as their president's head wasn't kicked by a donkey, he wouldn't have made such a choice!
On the other hand, if it's a game giant like Sega, I'm really worried! Even if we produce a game console, they can kill us with just a phone call to the distributor before it sells well.
And their ability to do the market is not at all comparable to a new company like ours without any foundation. If they really plagiarized the idea, they could make a similar game in minutes.
At that time, what was the use of going to court to sue them? The meat had already been eaten in their mouths, and even if they won the lawsuit, the compensation they would get was at most a little broth. What's more, this kind of lawsuit often drags on for a long time, and maybe before the case is over, I will already be bankrupt!"
Li Xuan explained a little bit, patents are not a panacea, just add an extra layer of insurance to yourself. Otherwise, there wouldn't be so many space invaders on the market.
And this kind of thing exists in almost all industries, and the big companies are just showing what they can do if they infringe on your intellectual property. As long as the benefits earned can be more than the litigation costs, they are not afraid that you will go to the court to sue, and the first trial will drag on for a year or two, and even if you lose the case and file an appeal, the retrial can drag on for another year or two. In the end, the first to give in must be the victim, this kind of story Li Xuan had heard many times in Silicon Valley in his previous life.
The value of Hong Kong cubes and tank battles in the eyes of Epson and Sega is completely different. Something that wasn't worth the risk for Epson, Sega could see its true value. It is precisely because of this that Li Xuan is reluctant to contact those game giants before his game console is produced.
"I'm afraid I'm afraid that the decision-makers at Epson are underestimating the value of our two games. If they think that our Hong Kong Cube and Tank Wars will only sell a few thousand units, do you think they can afford to customize a gaming motherboard for us? I guess this profit is not enough for them to adjust the production line!"
Li Xuan had already thought about giving up some of his interests before coming to Japan, and compared with the Japanese market, the larger American market is the key to the rapid rise of Dongfang Electronics.
He sighed and continued, "I'm really not afraid of them opening their mouths, and if the price is right, even if I license the production of these two games in the Japanese market, I can license them to do so!"
In fact, Seiko Epson has very mature conditions for manufacturing arcade machines, and they originally had a production line for printer motherboards, which can be used to make arcade motherboards with a little adjustment.
With Li Xuan in charge of providing game content, and then solving the most critical game motherboard problem of manufacturing arcade machines, producing its own arcade machine is a matter of course for Seiko Epson. This is also in line with the development idea of Japanese companies striving to extend to the upstream and downstream of the industry.
If he can turn Epson into his ally, Li Xuan's Dongfang Electronics will instantly have the strength to challenge game giants such as Sega, Taidong, and Namco. If you want to occupy a place in the video game console market, developing a good game is naturally a prerequisite, but after opening up market channels, it is also important to be able to explode production capacity at critical moments.
The arcade market is ultimately determined by the player's choice. As long as your game is fun enough and players are willing to put in a steady stream of coins, arcade agents will be waving bills to place orders.
For the quality of the games developed by his own company, Li Xuan has absolute confidence. At least Dongfang Electronics has developed a 1979 version of the Hong Kong Block and Tank Battle, which is no worse than the version he played in his previous life.
But when you get the order, whether you can produce it or not is another matter. If you move slowly, other companies will soon come out, and then you will make a wedding dress for someone else.
And this is precisely the weakness of Dongfang Electronics, the current arcade industry is not a mature market, frames, hand sticks, CRT display screen accessories are easy to purchase on a large scale in the market, the only problem lies in the highest technical content, the most critical game console motherboard.
At present, there is no special substrate factory to support a company like Li Xuan. Li Xuan himself didn't have the time and capital to build a special arcade factory for the time being, so the best way now was to give up some interests and find an alliance.
ps: During the new book period, I need the most vote support from readers, thank you!