In June 1995, the three core hardware manufacturers of the Pangu camp, Xinchuangxin, Lishan Semiconductor and AMD, successively lowered the price of CPU chips.

Affected by the sharp reduction in hardware prices, the retail price of personal computers has further dropped to the price of cabbage.

For example, entry-level Pangu computers can be as low as $100, and have all the basic functions, and the configuration is not less than the flagship of 4 years ago.

For example, the best-selling model in the Chinese market is mainly 2000 yuan, the host and the display are sent together, the configuration is equivalent to the level of the Pangu 6th generation, and the display is an old CRT. This kind of host monitor package is inexpensive and has almost become the mainstream of the market. In the Chinese market, four or five million of these entry-level models can be sold a year.

Don't look at the Pangu 6th generation performance is outdated, but in fact, there are still a large number of old versions of the application software support, so the functions are still very rich.

The price of computers of the same level as the Pangu 7th generation computer configuration has been lowered to between 200~300 US dollars. The compatible machine with a similar configuration to the Pangu 8th generation is the main market between 300~500 US dollars.

With the collective price reduction of consoles in the Pangu camp, the share of the personal computer market gradually stabilized in June, not as sharp as the decline in April and May. Compared with PC, the market share is still dominant, but the market share of PC has gradually rebounded to 42% driven by popular CPUs and consoles.

Although the Pangu computer camp still maintains a market share of about 57%, it is still very obvious that the market share is still growing and waning.

Even in the Chinese market, it is difficult for PCs to gain a market share of more than 5% despite all their efforts. However, in terms of the global market, the PC is overwhelming.

In the high-end market, the new generation of PCs emphasizes flagship performance, leading the Pangu 9th generation. And in the mid-range model, the main focus is on cost performance. The top-of-the-line chips represented by the high-frequency and low-frequency versions of the Pentium 2 chip, coupled with the low price that it is not like Intel's style, is like a sharp knife inserted into the soft underbelly of the Pangu computer camp!

Even though there is a certain gap in game software, IBM and Intel have announced subsidies for game software manufacturers, with a subsidy of no less than $1 for each sale of exclusive games on the PC platform. In this case, game manufacturers not only earn money from players, but also earn subsidies from Changshan for computer hardware, which is a good thing, which naturally makes the number of new games on the PC platform skyrocket by more than 300%, of course, most of the manufacturers attracted by PC are small and medium-sized manufacturers with a low share of the Pangu platform. The average quality of these manufacturers is not high, mainly because of the subsidies for the PC, and even so, it has brought a large number of new games to the PC market and made up for the weakness of the PC in terms of game software.

The Pangu platform, on the other hand, is a rebate for game manufacturers. At present, New Venture Electronics Group has the world's widest game distribution channels, and is the largest game publisher in Europe, the United States, Japan and China. Moreover, there are not only offline distribution channels, but also online e-commerce distribution channels. and, online download distribution channels,. The Pangu Game Store alone generates more than 100,000 downloads of genuine games every day, and sells more than 40 million copies of genuine games a year, with an amount of no less than $500 million. Combined with other channels, the game distribution channel controlled by the new venture department alone can sell more than $6 billion in game software a year, of which only one-third are developed by themselves. Nearly $4 billion, it is the game copyright commissioned by other game developers. In the new entrepreneurship department, the commission for game software ranges from 10%~30%, and the average commission can reach about 20%. Just publishing this piece can earn more than $1 billion a year, which is more profitable than developing your own games.

Therefore, the new entrepreneurship department does not need additional subsidies, and only withdraws rebate rewards. If you sell more than 10,000 copies, you will get 0.5% rebate, and if you sell more than 100,000 popular games, you will get 1% rebate. For popular games with a sales share of more than 1 million copies, an additional 3% rebate will be given as a reward for making high-quality games.

These rebates alone are enough for the first-line game manufacturers of the Pangu platform to firmly pledge their allegiance to the Pangu platform.

What's more, even if there are no rebates, as long as the game sells well, game developers can basically make huge profits. The main reason why game manufacturers will lose money is not that the share ratio is not high enough, but that games are not popular in the market!

All kinds of light and dark confrontations, the unit price of Pangu computers and PC computers continues to fall, consumers are addicted, and they only hope that the two camps will always face off and fight, and there will never be a situation where one is dominant!

The game industry also hopes that the two major platforms will compete and continue to make profits for these game developers!

……

Pangu 9th generation computers, after some hesitation, announced on June 8 that the retail price of Internet channels would be reduced to $899, and on June 18, it would enjoy a discount of $899 minus $100. In other words, you can buy Pangu 9 for $799.

It can be said that in less than 8 months after being listed, the price has been cut in half. The speed of price reduction has also set a record since the advent of Pangu computer.

In addition, Gao Tian, CEO of Pangu Computer Co., Ltd., announced: "Before April ~ June 17, 1995, consumers who buy Pangu 9th generation computers through major formal channels, higher than $899, will unconditionally get $400 worth of $0.com 0 threshold coupons. Before that, users who purchased Pangu 9 generations will receive a $200 0-threshold coupon. These coupons can be used to purchase computer products, including software and hardware, and these coupons are borne by Pangu Computer Co., Ltd. Of course, it can only be used on Tesco.com, and if you are not a Tesco user, you can only activate the coupon by registering an account on Tesco.com. This subsidy is aimed at Pangu 9 users around the world. We solemnly promise that we will not disappoint all consumers, even if it costs a lot of money, and even cause short-term profit losses. We will still insist on benefiting consumers!"

The gross profit margin brought to Pangu Computer Co., Ltd. by the listing of Pangu 9th generation is more than 45%, which is actually too high in the consumer electronics industry. Generally speaking, it is not easy for the vast majority of electronic and electrical products to maintain a gross profit margin of more than 20% in a fiercely competitive environment. In terms of net profit, it is even lower, and most manufacturers with higher gross profit margins, but considering the cost of research and development, advertising and promotion, channel costs, financial costs and tax costs, it is actually extremely difficult to obtain 5% net profit.

However, after the listing of Pangu 9, Pangu Computer Co., Ltd. can earn a net profit of not less than US$300 per unit after deducting costs. It can be said that it can be called a huge profit like a money printing machine. If there is no price war in the PC camp, the gross profit margin and net profit will increase.

However, at this stage, the price of Pangu 9 generation is reduced to $799 at a minimum, although it is only limited to Tesco users, but there is no doubt that such a price is no profit at all.

"It's not about profits, it's about living!" Lin Qi said to Gao Tian in private, "In the high-tech industry, competition is not as gentle as in traditional industries, the winner will definitely take all, and the loser will have no bones." It is very difficult to be at a disadvantage and want to survive. Therefore, it doesn't matter if you make money or not, the market and consumers can't afford to lose. It doesn't matter if a generation of products doesn't make money, as long as the market is not lost, there will be opportunities to earn it back in the future. Once the market is lost, then the previous success is meaningless! Technology is like fuel, the technology of the past, continuous burning, the value will continue to burn out. Human civilization is constantly burning new technologies in order to gain growth momentum. Therefore, for technology companies that have fallen behind in technology and their value has been burned out, they will really be burned to ashes, and there will be no scum at all. There needs to be continuous product sales and cash flow. Cash flow supports the research and development of products and technologies in the future, and new technologies and new products, equivalent to new fuels, can continue to shine and shine in order to exist. As long as you don't glow, it's completely cold!"

Gao Tian chewed Lin Qi's words, and his heart couldn't help but ignite a sense of mission!

Science and technology promote the progress of human civilization, but human civilization is very cold-blooded for technology companies. No matter how glorious you were in the past, as long as you no longer shine, it will soon be cool!

For innovative enterprises that maintain a leading position, they are now leading and now cool, and they have been leading all the time. If you can't take the lead, then you won't be able to get up!

In fact, price war is not the key to the success of technology companies!

However, in the situation of succumbing to the disadvantage, it is necessary to use the way of price war to stabilize the market share. In fact, a slight lag in performance will not completely lose the market, but will only lose a small percentage of customers who care about extreme performance.

However, if we continue to lag behind, our market share will continue to decline. Just like the original Apple computer lost its share, mainly because the core processor 6502 chip has not been upgraded, which has dragged down the development of Apple computer. Hardware configuration, five or even ten years behind the opponent, how can it be undefeated?