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In January 1987, the annual report of the new venture electronics company was released. In the past year, the company's revenue grew to a new high of $41.7 billion. At the same time, the net profit exceeded 3.5 billion US dollars.

Revenue and profits continued to grow, which was not unexpected by Lin Qi. Because, in the past year, the company not only continued to grow the sales of Pangu consoles, but also steadily increased the average amount paid by consumers as the hardware configuration continued to upgrade. Even so, the computers of the new entrepreneurship department still have an absolute cost-effective advantage.

So much so that IBM, the boss of the PC camp, regretted a little why he rashly adopted Intel's X86 architecture CPU as the core. If IBM has a little patience, it can develop its own R&D, or acquire one of the R&D teams of the reduced instruction set architecture, so that the performance of the PC is not weaker than that of Pangu.

It's a pity that the PC has been on the market for more than 6 years, and more than 70 million units have been sold, including compatible phones. Hardware and software manufacturers have developed a large number of applications for X86 architecture microcomputers. This has caused the vested interests of the PC camp to throw themselves into the mouse, knowing that the X86 chip is congenitally deficient and cannot compete with the chip with the reduced instruction set.

However, major manufacturers can only open their eyes and talk nonsense, pointing out that chips with reduced instruction set architectures, including XRM chips, have a bunch of flaws, such as poor compatibility......

This makes many people in the industry laugh from the bottom of their hearts, what does it mean that compatibility is not good? The so-called compatibility is just that mainstream technology companies are willing to develop software and hardware for them and take the initiative to be compatible with them. This kind of two-sided hit and off thing depends more on the influence of the technology platform.

For example, when IBM first launched the PC, it was already the world's most well-known computer manufacturer, and the mainframe computers and minicomputers it manufactured have always been the vane of the industry's technology. U.S. government agencies and companies may be questioned by others when they buy products from other companies, whether they buy expensive or cheap, but few people will question the purchase of IBM's products.

This influence, so that the PC as soon as it was launched, and, IBM announced the opening of technology, it didn't take long for the PC to quickly become the mainstream microcomputer, the European and American governments, large enterprises and universities, many have chosen IBM's PC as an office computer.

Like Apple, it was earlier to lay out microcomputers, and once became the absolute hegemon of the microcomputer industry. It also quickly lost to the PC. The main reason is that PCs can obtain a large number of government procurement and large enterprise purchase orders.

Because Xinchuang Electronics knows that it is competing with IBM in the hottest office market in this era, I am afraid it will not be its opponent. Therefore, in the early days, the Pangu console was in the name of game consoles to capture the individual consumer market and avoid short-term contact with the PC. After the user base of Pangu console continues to grow, it naturally has a large number of application software related to office and production, not just game consoles for entertainment purposes. Today's Pangu has shifted from defense to attacking the core market of the PC camp. Of course, the PC camp has also countered by developing some high-performance gaming PCs to attack the gaming market.

Basically, PC and Pangu, you grab my market, and I also grab yours. In the end, it will take time to answer who will win and who will lose.

Over the course of '86, the PC camp sold roughly more than 26 million computers. But that's the combined sales performance of hundreds of PC brands. As for IBM, although it occupies the lion's share of sales, it only sells 10 million PCs.

The Pangu computer of Xinye Electronics has a cumulative annual sales volume of more than 21 million units, and the gap with the PC camp has been further shortened. At the same time, all sales were the result of a single start-up electronics company. Therefore, Xinchuang Electronics can be called the world's No. 1 microcomputer manufacturer.

At the same time, Xinchuang Electronics used to only buy the main engine, not the monitor, but since 86 years it has been sold with the display. The sales volume of displays alone is as high as 17 million units throughout the year, which is also an important driving force for the performance growth of Xinchuang Electronics in 86 years.

"In the past year, our new venture electronics group has continued to maintain a rapid and stable growth trend. After reviewing the presentation of the annual financial statements, Lin Qi said, "However, I noticed that most of the sales growth for the whole year was contributed by hardware sales. After deducting the hardware growth part, our software business and intellectual patent licensing business, etc., the growth rate cannot even keep pace with the growth of the hardware segment...... The software business, including the game business, contributed $8 billion in revenue, but the growth rate was less than 20%, far behind the average growth rate of the market.

"Boss, the growth rate of the software sector has slowed down, but it has contributed most of the net profit. In terms of net profit alone, the annual net profit of software tax revenue reached 2.5 billion US dollars, which was close to the total profit of our group company last year. Revenue growth has slowed down, but profits have been released more than expected!" Zhang Ru said, holding a document, "and the slowdown in the growth of the software business is mainly due to the rise of third-party game developers and application software vendors on the Pangu platform." In terms of the Japanese market alone, the current Japanese market, the game and software market size of the Pangu platform is close to 6 billion US dollars, but 70% of them are developed by third-party manufacturers, and we can only get a maximum of 3 billion US dollars in revenue through platform patent sharing and agent sales. In other words, we can take half of the revenue from the software purchased by Japanese consumers on the Pangu platform. The second largest market, the U.S. market, although the total software sales of the Pangu platform in the U.S. market are close to $5 billion, because the legal rules in the U.S. are more complex than those in Japan, in order to circumvent the antitrust law, we can't monopolize the channel, so we only get $1.5 billion in revenue from the $5 billion software sales in the U.S. market. At the same time, the rise of a large number of third-party game manufacturers is also the main reason, and the annual sales of game software on our Pangu platform are more than 10 billion US dollars. But our self-developed games only earned $3 billion in total sales. The remaining 70% of the market is taken by third-party game developers!"

At this moment, Lin Qi finally understood why IBM would rather fall out with his younger brother Intel, and was also ready to overthrow the PC platform, regroup and create a new platform. This is mainly because IBM is seeing companies such as compatible machine manufacturers and Intel taking more and more market share.

In the beginning, more than 90% of the PC market was owned by IBM, and when the PC business had not yet become IBM's main business, it was possible to look at PC compatible machine manufacturers with tolerance. However, as the market share of compatible machine manufacturers has increased year by year, and even since the beginning of 85, compatible machine manufacturers have approached IBM's PC market share. By 86 years, the sales volume of compatible machine manufacturers had surpassed that of IBM by relying on 386, and the entire PC market size had reached tens of billions of dollars, which was much higher than the total amount of IBM's traditional business! These could have been exclusively enjoyed by IBM, but now they have been stolen by a large number of compatible machine manufacturers. Just think about it, how can IBM put up with it?

The Pangu platform is in a similar situation, but the hardware platform is completely monopolized by Xinchuang Electronics. However, the most profitable software business is occupied by a large number of third-party vendors. This has made the new venture electronics less than $10 billion in revenue and billions of dollars in profits.

Of course, Lin Qi can't forget his roots, if it weren't for the efforts of so many third-party game manufacturers, the Pangu platform would not have developed to the point it is now. If, at this time, shouting and killing third-party manufacturers are forced to change their doors and develop games for the PC platform to a certain extent, then the advantages of the Pangu platform will continue to be lost.

Therefore, Lin Qi thought for a while and said: "For the third-party game development companies that perform more prominently in the world's major markets, we should appropriately acquire some to increase our market share." In the future, 25% market share is my bottom line. In the future, we should not be less than 25% of the market share of Pangu application software and games! If the red line of 25% is in jeopardy, then it is necessary to increase independent research and development efforts or acquire existing high-quality development teams!"