Chapter 418: Change Your Mind
Originally, it was generally believed in the industry that after Sega acquired Atari, it was likely to issue a strong challenge to Oriental Games in the field of home game consoles. However, with the hot sales of the FC-2 game console after its launch, everyone began to look down on Sega's unreleased game consoles!
Of course, Sega is not going to stop the development of new consoles because of this, but will only spend more energy to try to beat the current FC-2 consoles. For its competitor Sega to enter the home console market, Oriental Games Company is actually happy to see it.
If the FC series of consoles really dominates the entire home console market 100%, many third-party game companies will have reason to sue the Eastern Bloc for monopoly. Therefore, from the perspective of its own interests, Oriental Game Company also needs to retain one or two competitors.
For example, in the field of handheld computers, Oriental Games Company even provided a lot of support to Seiko Epson. Japan's Seiko Epson Company is one of Li Xuan's earliest partners. At the beginning, Dongfang Electronics made the first batch of arcade machine game motherboards, which were produced from Seiko Epson's printer motherboard production line.
Seiko Epson is an important manufacturer of electronic watches and electronic calculators, and the technical threshold for handheld game consoles is not much higher than that of electronic calculators. Seiko Epson's production efficiency and quality control are only higher than those of the early Dongfang Electronics, and its biggest shortcoming is in game development.
Although with the rapid rise of the Eastern Bloc in recent years, the balance of power between the two sides has been completely reversed. Seiko Epson, which needed Li Xuan to go to Japan in person to find a way to convince, is now a dispensable partner for the Oriental Group.
But Li Xuan still remembered a little bit of old feelings. Seiko Epson is the only company to license the handheld of the two classic games, "Hong Kong Cubes" and "Tank Battles". This makes Seiko Epson's handheld also have a certain sales volume around the world.
The reason why Oriental Games does this. The main reason is to prevent the GameBoy handheld from forming a complete market monopoly. And the reason why Seiko Epson is cultivated as a competitor is because its industrial focus has always been on the field of watches and printers. Consoles are just a non-core business for it.
In addition to the Japanese domestic market, Seiko Epson even directly entrusted the overseas market of handheld products to Oriental Commercial Company to be responsible for the development. In this way, Seiko Epson's handheld is naturally unlikely to pose any threat to the GameBoy.
However, as the old saying goes, if people have no long-term concerns, they must have near-term worries! Behind the prosperity of the Oriental Game Company, there are also some hidden crises. If you don't plan ahead, you may be in a lot of trouble in the future!
After the rapid rise of Oriental game companies, it was the Japanese game industry that was suppressed and damaged the most. For example, Nintendo, which could have grown into a big demon in the industry. Under Li Xuan's overt or covert suppression, he was on the verge of bankruptcy, and it is said that he has been acquired by other companies.
And companies like Taidong and Namco, which could have made a big difference in the golden age of arcades, have also developed very unsatisfactorily under the impact of classic arcade machines one after another by Oriental Game Company. It turned out that Sega Company, the overlord of the arcade industry, was directly kicked off the throne by Li Xuan.
And because of the GameBoy handheld and FC game consoles, they have almost monopolized the market for handheld and home consoles, so that all third-party game companies in Japan must be subject to Oriental game companies.
Therefore, in the domestic game industry, there has always been a voice of opposition to Oriental game companies. Although the Eastern Bloc has also adopted a series of means such as mergers and horizontals. For example, strategies such as supporting a group of third-party game companies that tend to be themselves can minimize this opposition.
But after all, Japan is not the home of the Eastern Bloc, and the Japanese market is far more xenophobic than the United States and Europe. The only thing that made Li Xuan feel fortunate was that. The game industry is an emerging industry, and these game companies in Japan are not strong enough in their own strengths and backgrounds.
However, with the continuous expansion of the scale of the game industry, it will eventually attract the entry of predators. For example, Sony Corporation, which later became the Mitsui Foundation. It later developed the PS series of consoles, which were among the most successful consoles of all time.
And the influence and wrist of these predators. Far from being comparable to companies like Sega. Once they join the competition, they are more than capable of operating through the shadows. Let the Japanese government issue several regulations to directly block the products of the Eastern Bloc from Japan.
"Li Sheng, our company's current operation is very healthy, and there is no shortage of money at all, is there really a need to go public?" Du Wenqiang asked very puzzled.
Li Xuan is not ready to let Oriental Games go public, which is almost a well-known thing within the Oriental Group. It is precisely because of this that game companies have always allowed employees to exchange their equity for shares of other companies in the group when carrying out internal equity incentives, so that they can be better discounted.
But Li Xuan suddenly told Du Wenqiang today that he should draw up a medium and long-term plan for going public in the United States. This naturally made Du Wenqiang feel very surprised and incomprehensible.
"Sometimes, the purpose of a company's listing is not to raise money, but to expand its own influence! You have also read the report just now, and there are quite a few voices opposing us in the domestic game industry in Japan! The market is always limited, and the more we eat, the less others can eat!
As early as a few years ago, when our Kung Fu arcade was released in Japan, someone attacked us through newspapers under the pretext that the game was bloody and would have a detrimental effect on the minds and minds of teenagers!
In the end, we decisively recruited a group of game companies and established an industry self-discipline association. In the name of the association, he promised to take the initiative to rate each game, which resolved the crisis. However, it was proposed at the beginning that they wanted to censor imported games. And this time, some people have brought up the old things again, and the target is naturally self-evident!" Li Xuan sighed and said.
"It will not be easy for Sega to convince the Japanese government to introduce relevant policies! Not to mention that there are many forces in the Japanese game industry that support us, and we will not sit idly by!" Du Wenqiang said disapprovingly.
Based on information collected in Japan by Oriental Trading Co., Ltd. Recently, there has been a murmur that there is a desire to strengthen the review of foreign games entering the Japanese market. And according to the investigation of Oriental Trading. This time, it was Sega that took the lead in making waves behind the scenes.
"Sega really doesn't have this ability, but what if there is a more powerful force to make a move?" Li Xuan said meaningfully.
"Other forces?" Du Wenqiang asked with a frown.
"The size of the gaming industry is expanding rapidly. In the home game console business alone, our company's sales in the Japanese market reached $1.5 billion last year! Such a figure, even Japan's local electronics giants such as Hitachi, Sony, and NEC will not remain indifferent, and there will always be people who can't help but join the competition!
And the strength of these companies is far from being comparable to that of Sega, not to mention that there are still greater forces standing behind them. For example, Hitachi belongs to the Fuji Consortium, Sony belongs to the Mitsui Foundation, and NEC belongs to the Sumitomo Foundation. And the real ruler of Japan. It's Mitsubishi, Mitsui, Fuji, Sumitomo, Sanwa, and Quanyin!" Li Xuan patiently explained.
"What does this have to do with the game company going public in the United States?" Du Wenqiang still didn't quite understand.
"Because the Hong Kong government can't give us enough support, once our competitors really use some special means to exclude us from the Japanese market, we have no effective countermeasures at all!
However, if Oriental Games is listed in the United States, then any unfair competition against Oriental Games will be an infringement of the interests of American shareholders. We have enough reasons to persuade the U.S. government to come forward and help us retaliate against Japanese companies!" Li Xuan said.
The U.S. market is the largest overseas market for the Eastern Bloc, and it is also the most important overseas market for most Japanese companies. For example, sales in North America by companies like Sega. It's also higher than in Japan. Its competition with Oriental Games in the North American market is even more fierce than in Japan.
And the U.S. government has always been willing to stand out for its own businesses, whether it was the television industry in the sixties and seventies or the semiconductor industry today. The U.S. government has come out to put pressure on the Japanese government. For example, the Japan-US Semiconductor Agreement, which was signed just last year, is the latest achievement of the US government.
Unfortunately, none of these results will be able to achieve much practical results in the end, and the most important reason for this is that American companies are unable to open up the Japanese domestic market. Even if the Japan-US semiconductor agreement can force Japanese companies. The company has raised the minimum selling price of its semiconductor products such as memory in overseas markets to maintain the competitiveness of U.S. companies.
But as the saying goes, there are policies and countermeasures. There are countless ways for Japanese companies to make this paper agreement a mere formality. The only punitive measure that the U.S. government can take is to impose punitive tariffs on Japanese semiconductor products imported into the United States. But for other markets outside the United States. The U.S. government can't do anything about it.
The most important reason why Japan's various industries have been able to use price wars to run their American counterparts into bankruptcy is that they have a steady stream of profits from their domestic markets.
Since the late 70s, the number of Japanese tourists who come to Hong Kong to shop has increased exponentially year by year. And most of the products that these Japanese tourists buy are actually made in Japan. The prices of these Japanese-made products in Hong Kong are much cheaper than in Japan.
In addition to the low tax revenue in Hong Kong, another reason is that many Japanese products are sold at high prices in China. The reason for this phenomenon is that Japan is not a fully competitive market at all.
In fact, the economies of Japan and the United States are controlled by a few major conglomerates in their respective countries. However, the control of the US consortium is mainly by financial means, focusing on holding the equity of some key enterprises. The Japanese consortium has all-round control over the entire upstream and downstream industrial chain.
When the entire industry is controlled by one or two consortia, the most likely action they can take is to coordinate with each other to form a tacit understanding, rather than fighting a price war that causes both sides to lose!
In fact, as early as the sixties and seventies, the three major American automobile companies tried to open up the Japanese market. At that time, Toyota, Honda, Nissan, these local car companies had just begun to develop, and they could not compete with the three major American car companies at all. And the Japanese government, under pressure from the American father, does not dare to put up policy obstacles on the surface.
Although the Japanese government has opened up the market and allowed American cars to enter the competition freely, American cars also need local companies to help them distribute and promote them before they can finally appear in front of Japanese consumers.
And these dealers and those Japanese car companies are actually likely to belong to the same consortium. Naturally, they will not be able to do their best to promote American cars, but will only try their best to smear the shortcomings of American cars in front of Japanese consumers.
However, the situation facing the Eastern Group is completely different from that of the three major American car companies. It has completely gained a firm foothold in the Japanese market and has attracted enough common interests that Japanese companies cannot use the same methods used to deal with the three major American car companies to deal with the Eastern Bloc.
In fact, in the personal computer industry, Sony, Toshiba and other companies have tried to squeeze out Aikang computers through government means. But Aikan directly said that the British government came forward to warn that if the Japanese government dared to act against free competition, the British would persuade the entire European community to impose retaliatory sanctions on Japanese companies.
The European Community, the predecessor of the European Union, now has ten member states, including almost all the major countries of Western Europe. If Japanese electronics companies want to play tricks on Aikang, they may pay the price of losing the entire Western European market, which will have to make them fall into the trap.
Unlike London-based iKang, which is listed on the London Stock Exchange, Hong Kong-based Oriental Games is unlikely to be backed by the British government.
Because in a few years, the British Empire will lose this pearl of the Orient. Unless Oriental Games also goes public in London like Aikang, there is no need for Downing Street to make a wedding dress for the Chinese government.
As far as Li Xuan is concerned, since he has to hug his thighs, Britain is naturally not as thick as the thighs of the United States! His methods of handling things over the past few years have become more and more mature. In this world, eating alone is never a pleasant thing!
In fact, it is not only Japan that has a lot of objections, but the United States is also the same. The U.S. Department of Justice has received a number of complaints about the alleged monopoly of Oriental Games, but the Department of Justice did not agree after an investigation.
In the past, Li Xuan had always regarded Oriental Game Company, the most important cash cow in the group, as his own forbidden body, and he was unwilling to let anyone get involved. As Li Xuan continued to become the richest man in the world, the various companies under his name were observed and analyzed under the microscope.
The data of the Oriental Game Company have also been speculated by economic experts. It is precisely because the earning power of Oriental Game Company is so strong that it will attract countless peeping eyes.
This has even directly affected venture capital in Silicon Valley, increasing investment in the gaming industry. It's just that the venture capital of the United States has not yet cultivated an opponent that can challenge the Oriental Game Company in the short term, otherwise the situation that the Oriental Game Company will face will be much more dangerous.
And Li Xuan must prepare in advance, and can't wait until the crisis is about to break out to react! Therefore, giving up part of his interests in exchange for more support is undoubtedly the best choice! (To be continued......