Chapter 251: Niang Xipi
"Mother's hope, Nintendo's home game console sales have exceeded 3 million. Lin Qi saw this result and wanted to hit someone.
"It's not that the brothers don't work hard, but the price of Nintendo is low. Gao Tian also felt incredible and said, "Little Japan is really ruthless, the price war with bayonets is bloody, and the Europeans and Americans can't afford to change it." ”
"What's even more speechless is that the script is wrong, we occupy the big city, and small Japan has fallen into the countryside to surround the city!" Lin Qi looked at the market distribution of Nintendo's FC and NES, and the markets of developed countries such as Europe and the United States.
However, in markets such as Southeast Asia, South America, Eastern Europe, Africa, and India, FC has an absolute advantage. In these markets, Atari's sales in the past were not too ideal, after all, the price of $199 is still too expensive for most areas.
However, Nintendo's FC console is priced at around $40 in markets around the world, and at present, there is no other home game console on the market that is lower than the FC and NES consoles.
At present, Nintendo's monthly shipments are as high as five or six hundred thousand units, and it is gradually not losing to the Pangu console.
Although both are home game consoles, there is little market intersection. Basically, consumers who buy Pangu consoles are dismissive of FC or NES consoles, but many players who can't afford Pangu consoles think that FC is fun enough, and there is no need to make the game console configuration the same as expensive computers.
Historically, shouldn't Japanese manufacturers capture the markets of developed countries, and then, Chinese companies will rise from the underdeveloped markets of the third world and achieve the middle and high-end from the low-end?
Now how Nintendo has an absolute advantage, occupying the low-end market.
This is also because Lin Qi is too focused on the future, thinking that 16-bit computers are the future development direction. The idea is completely correct, after all, the early launch of 16-bit computers is conducive to long-term development.
Historically, a few years later, Sega began to realize that it was difficult to make a breakthrough in 8-bit computers, so in 88 it began to launch the classic MD model, which was crushed by the performance of 16-bit computers relative to 8-bit computers, so it once had the upper hand in the developed markets of Europe and the United States. It wasn't until Nintendo later launched a 16-bit console to deal with it, that it gradually relied on the capital, channels and game content accumulated in the 8-bit era to achieve a leading position in the market again.
As for the markets of some economically underdeveloped countries, Nintendo relies on the FC cheap strategy to almost beat the invincible opponents all over the world. Even after Nintendo announced the discontinuation of FC in the early 90s, there are still a large number of companies that rely on imitation FC and use the large number of game resources accumulated by the FC platform to make a big profit.
If from the perspective of occupying the most lucrative first-tier developed country market, Lin Qi's strategy is not the slightest mistake, on the contrary, this kind of selling consoles at a loss and letting home game consoles enter the 16-bit era in advance can be described as a wonderful move.
This strategy is not only hurtful to others, but also has huge technical barriers. Because, no competitor can make a model that is not inferior to the Pangu console, and at the same time, the price is not more expensive than the Pangu console. In essence, after deducting the hardware cost, plus the channel cost, and a reasonable profit, the price of Pangu is $1,000, which is a more suitable price.
But Lin Qi set the price to an unprofitable $398 one, this kind of bold pricing, the new venture electronics company itself is unprofitable, however, the channel of selling Pangu hosts, but can earn a profit of about $30 per unit, this sales gross profit is not high, however, it is very popular. And, after selling the whole machine, dealers can also continue to sell game software, which can bring long-term benefits, which naturally makes many dealers favored.
At the same time, selling cheaply does not mean that the technical threshold is low, in fact, just the CPU of the Pangu host, there are no more than 10 companies in the world that can imitate it. Moreover, these companies are all well-known, have not obtained technology licenses, and are not guilty of infringing on the production of other people's CPUs. After all, it may be difficult to find a pirated VCD factory, the technical threshold for this thing is not high, but there are only a few factories that can manufacture CPUs, as long as you find that there are imitation CPUs in the market, investigate one a little, you will know which one does it, and after that, you can use legal weapons. It is precisely for this reason that it is difficult to eradicate piracy and infringement of clothing, video discs, software, books, etc. all over the world. Perhaps, it is possible to copy a few lines of your code and architecture, but it is almost impossible to completely build a production line and produce unauthorized CPUs.
In addition, the CD drive of the Pangu host is also a high technical threshold, and at present, manufacturers who have the ability to produce optical drive equipment do not have to have the ability to manufacture 16-bit CPU manufacturers.
The combination of so many advantages has made the Pangu console the biggest vested interest after the collapse of the Atari empire, and the absolute hegemon of the home game console market. Of course, in the low-to-mid-end market, it's still the world of cheap 8-bit game consoles.
After all, even if the Pangu host is sold at a loss, many countries with relatively low per capita income cannot afford to buy the Pangu host.
For example, at this time, it was the Chinese mainland market, and the Pangu host was sold as a microcomputer for office, scientific research, and teaching purposes. As a microcomputer compared with PC, Pangu host computer of course has an absolute advantage in cost performance.
The Pangu console, which is currently priced at 1,999 yuan in the mainland market, can already beat PCs priced at more than 10,000 yuan. However, at present, there are very few individual players in the mainland market who buy Pangu consoles exclusively for playing games.
Of course, it is an open secret that in the spare time in the office, I use the unit's computer to play games and relax. Many units, it is precisely because the Pangu host can play games, so it is very popular with young people.
The Pangu computer in the mainland market is the true form of the Pangu console, which is not only a general production tool, but also an entertainment tool. This is also in line with the direction of the future of personal computers, which will be developed in the direction of universal tools.
Originally, Lin Qi regarded PC as his biggest opponent, and he shouldn't be too serious with FC, but ...... It's still a little uncomfortable to see Nintendo's development so smoothly.
Therefore, Lin Qi pondered for a while and said: "Now we are developing an 8-bit cheap game console with X8 chips, how low can the cost be at the minimum?"
"Under $30!" Gao Tian thought for a moment and said, "It doesn't come with a mouse or keyboard, only a gamepad." Also, you can only play games with ROM cartridges attached!"
"That's it......" Lin Qi thought for a while and said, "The fastest launch of an X8 host, the price of $30 on the market, buy a four-in-one cassette." Four games in a package, packed in one cassette!"
"You're ruthless!" Gao Tian glanced at Lin Qi and said, "As for it?"
"Of course!" Lin Qi said, "To be merciful to the enemy is to be cruel to yourself!" After a while, Lin Qi thought for a while and said, "The low-cost version of the X8 console is not yet on the market, and it should be a higher-end version than the Pangu console." ”
"How high-end is the higher-end version?" Gao Tian wondered.
"Dual-core processors. Lin Qi said slyly.
"Okay!" Gao Tian felt that Lin Qi was bored doing this, the performance of the dual-core was not as much as he imagined compared to the single-core, at most three or four percent. For most of the day-to-day work, dual-core processors only run with a single core.
"Okay, last 128MB hard drive. Lin Qi thought for a while and said, "The memory and graphics card capacity are also taken care of." On the basis of compatibility with Pangu hosting, the configuration is higher, and the price is of course more expensive, and the price is tentatively $998!"
In fact, as a consumer electronics company, Xinchuang Electronics must continue to launch new products, even if it is like squeezing toothpaste, squeezing out new products little by little, it also needs to continue to innovate.
The cheap version is about to refresh the market price to a new low, and the price butcher is to kill the market with a river of blood.
The high-configuration version pursues the same cost-effectiveness, Lin Qi is not ready to engage in luxury goods, but continues to popularize the truth of rational consumption to consumers, before buying a computer, you must look at the configuration. In this way, consumers will have a sense of superiority that is cost-effective and cost-effective. I chose the right cost-effective machine, and I felt that those little whites who bought high-priced garbage configurations were too stupid, and naturally there was a kind of IQ pleasure. This worship of the concept of "rational" consumption will also produce a large number of loyal fans. This group of fans will be moved by the configuration and cost performance, and in the end, they will be converted into loyal fans.