Chapter 216: Attack on Nintendo

In 1983, after the collapse of Atari, many media outlets began to predict the game industry pill.

“…… The video game industry should be the biggest bubble ever. A lot of repetitive, low-tech code, many of which are programs that third-rate programmers develop single-handedly in a few days, are packaged as tens of dollars of software to unscrupulously defraud consumers of their money. A large number of young people who should have devoted themselves to studying technology have begun to pour into this industry, trying to make a fortune as quickly as possible with suffocating technology and fraud. The playability and creativity of the game don't matter, nor does the programming technique, just a package and cover that looks like it, and a deceptive hype that can easily sell hundreds of thousands, if not millions, of the software...... However, other software written by computer engineers with a real level of technology lacks commercial packaging and hype, and does not sell many copies. Just imagine, wouldn't the value created by those office software far exceed those garbage games? However, garbage games can sell millions of copies, and office software and form software can sell millions of copies. Now, the third-rate technicians' use of fraud to make money has finally been recognized by consumers, so game companies, including Atari, have fallen into losses one after another, and even collapsed...... "Media outlets including the New York Times, Nikkei, and other media have praised the rapid development of the video game industry in an endless number of articles, but in the blink of an eye, they are filled with articles about the pills of the video game industry."

The entire game industry has been in a bumble, including KONAMI, a game company established in 1969, which did not rely solely on the Atari platform, but accounted for more revenue in the pachinko, arcade and other markets, and also announced a third of the workforce, which shows the pessimism of the entire industry.

The main theme of most game companies is layoffs and bankruptcy.

Of course, there are also ambitious companies that are ready to start sharing in the huge market that has been vacated after the collapse of Atari.

For example, Nintendo is such a careerist, and when many companies in the industry are thinking about survival, Nintendo's president Yamauchi Pu is thinking about making a decisive move to carve up the market.

"Our FC will definitely not follow in the footsteps of Atari!" said Yamauchi with confidence.

"That's right, though, we use a similar chip, but our chip is optimized, and the sound and display colors of the host are far richer than the Atari 2600......" Masayuki Uemura is full of confidence, "but ...... The Pangu host of the new venture electronics company is too far ahead of our FC!"

The FC can be said to be an upgraded version of the Atari 2600 console, which is slightly stronger in performance, but it is only equivalent to the gap between average and excellent grades in the first grade of elementary school.

However, compared to the Pangu console, FC is about the level of the first grade of elementary school and the level of the first grade of junior high school.

There is a technological generation gap between the two that can be seen at a glance!

"So what?" Hiroshi Yamauchi sneered, "The Pangu console costs $399, and FC only plans to list it for $40!"

"But...... In this way, the more we sell our consoles, the more we lose!" Masayuki Uemura worried.

"It's okay!" Yamauchi said confidently, "Even if a console loses $30, it is nothing more than selling two copies of game software to earn it back!

Historically, Hiroshi Yamauchi sold FC at a loss, and it was initially listed at a price of 14,800 yen. At that time, the exchange rate between the yen and the dollar was equivalent to 60 US dollars. Moreover, it is also necessary to give profits to dealers, so Nintendo has adopted a loss-making strategy to open up the market.

Of course, this strategy is very effective, and the entire market is similar to FC's console, and under normal circumstances, the price is more than double that of FC. There are very few game consoles under $100, and it is precisely because of the cheaper price than all the consoles of the same type in the entire market that FC is selling against the trend when the game console market is in recession!

And Nintendo saw the collapse of Atari with his own eyes, so, the performance of the FC console is only slightly stronger than the Atari 2600, after all, this is also an 8-bit host, and the chips used are all modifications of the 6502 chip, however, it is more powerful than the Atari 2600 in terms of display chips, and, with a false sound card, the sound is much better than the Atari 2600.

In addition, Nintendo's FC has focused on quality from the beginning, not by the number of games, and most of the games on its platform will be felt by players to be playable. And as it bucked the trend and occupied a large market share, a little olive branch was stretched, which made a large number of game manufacturers who were originally not birds Nintendo kneel and lick Nintendo.

Of course, the current Yamauchi Pu is not as confident as he shows, because it is not a day or two to fight with a new start-up electronics company. The two companies have been fighting each other for several years in the field of handheld computers, at the beginning, Nintendo still felt that there was hope to be with the new venture electronics, but as the new venture electronics companies developed their own CPU chips, Yamauchi Pu understood that Nintendo did not have the technical genes, and it was humiliating to compete with the new venture electronics in terms of product performance.

After learning from the pain, Yamauchi Pu realized a truth - price! Yes, naturally there is no higher performance product, so make the lowest price product......

As a result, the price of the FC red and white machine was lowered to 9,800 yen per unit, which is one-third lower than the historical price of 14,800 yen! This is the price of the retail channel, and the ex-factory price is as low as 9,000 yen per unit, and the profit of 800 yen per unit is given to the dealers!

In fact, Yamauchi's strategy was also successful, and the FC game console was sold for 9,800 yen, and even elementary school students could afford to buy such a low-cost console with pocket money.

At the same time, FC's first released games, such as "Popeye" and "Super Mario Bros.", are indeed classics, although compared to the later game standards - fun, good looking and good sound, they only reach the level of "fun". But in this day and age, it is enough.

People are already picky about the sound of the game picture, and they still meet the standards of those 3A masterpieces in the future.

Moreover, among the game consoles of the same era, only the games of the Pangu console platform are overwhelming. But compared to other game consoles, FC is definitely not bad.

As a result, shortly after its launch in Tokyo, FC sold 100,000 units in a week, and its inventory was almost empty......

But...... Nintendo did not dare to increase the shipment of game consoles, because - poor, no money!

Because Nintendo's profit performance over the years is far from the level that it should have in its original history, in order to avoid burning money too quickly, so that the capital chain is broken, Nintendo has to control the shipment of game consoles, in addition, it is constantly promoting software, subsidizing the hardware losses of consoles with software profits, and then selling more game consoles......