Chapter 197: For a Little Money
In March 1983, Lin Qi returned to Hong Kong from Shenzhen. The www.biquge.info held a brief meeting to learn about the company's latest developments.
"Since December last year, the game industry has not been peaceful, especially in the recent North American market, which has obviously been a lot more difficult than last year. The collapse of Atari led to a dramatic shift in attitudes towards video games across the North American consumer market. ”
"Our company's products, though, perform better than their peers. However, the sales expectations of arcade and handheld machines have also dropped significantly. In February, handheld sales fell below 10 million units, and global sales were only 9.7 million. The monthly shipment of arcade machines is only 56,000 units, and since there are no new explosive games for the time being, arcade sales have also dropped significantly......"
In the first two months of 1983, the world's video game industry fell into its first overall loss. That's right, the industry as a whole is losing money.
The reason is that the top two giants that occupy market share in the entire industry, Atari and New Venture Electronics, are expected to lose money in the first quarter.
Among them, Atari is expected to lose more than 100 million US dollars, while the new venture electronics company has accumulated a total loss of 180 million Hong Kong dollars in the first two months.
The net profit of these two giants is a loss, and even if other companies have meager profits, they cannot offset the losses of the two giants.
Fortunately, the new venture electronics company is not a listed company and does not need to publish financial statements, otherwise, the market will definitely exclaim that the two giants of the game industry are losing money, and the industry is a pill.
Of course, the nature of the losses of the two major companies is different, and the short-term strategic losses paid by the new venture electronics company in order to occupy the market.
However, Atari's loss is a crushing loss caused by losing the market.
However, the continued loss of new start-up electronics companies cannot be ignored.
"It is expected that the loss will continue to grow in the next few months......," Zhang Ru said in a cold sweat, "At present, the company has cash reserves of 3.77 billion yuan." Among them, interest-bearing liabilities are 2.13 billion yuan, and 1.64 billion ...... are owed to suppliers."
It continues to enter a net loss state, which is the first time since the establishment of the new venture electronics company. In the past, new start-up electronics companies, even if some small projects lost money, there would always be a lot of money-making projects, so that those small losses were ignored.
"Got it! Control the cash on the monthly books, and it is not a big problem to reduce the cash by one or two hundred million per month. Lin Qi was not worried, and said with a smile, "This is an exciting gamble, burning money every month and increasing the number of host users." In the future, users who buy consoles, every time they buy a new game, they will be able to bring us new profit growth space......"
"The net loss is more than 100 million per month!" Zhang Ru shook his head and said, "Just counting the Pangu host project, this project will lose nearly 300 million Hong Kong dollars every month!"
Assuming that the new start-up electronics company stops all the money-burning projects and focuses on profitable projects, then it can currently generate a net profit of 500 million per month. It can be called the most profitable company in Hong Kong, but Lin Qi will not do this.
Because, investing money in a loss-making expansion like Pangu Host is a strategic expansion in order to capture the market. Invest money in R&D, which is a necessary investment to remain competitive in the market in the future.
If for the sake of stable financial returns, then investing in food, beverage, tobacco and other industries is undoubtedly the most stable, and the formula and production process of these industries have not changed much even in a hundred years.
However, Lin Qi wants to change the world, of course, he will not choose those conservative traditional industries, but choose industries that can change the future of the world. These industries require continuous intellectual and creative investment, and market changes and competition are extremely fierce, and it is possible to encounter directional choices every few years.
Lin Qi felt that he should not be wrong about the layout of many technologies. Therefore, the main thing that remains is not a matter of direction, but a question of quickly occupying the market.
Without a market, no matter how good the technology and creativity are, you can only become a loser.
And the most effective version of occupying the market is low-price dumping, not for short-term profits, but for market share, through low prices to squeeze competitors out of the market!
Our family wants to sell at a loss, hurt others hard, and stifle the opponent's living space. If you don't lose money yourself, how can you do it?
The low-price dumping of Pangu host is to lower the price threshold and attract potential consumers to become users of Pangu host. At the same time, the high-performance threshold and low price threshold have created great resistance for opponents.
If competitors want to challenge, they need to have products with performance that is not inferior to the Pangu console, and in addition, they must learn the Pangu console's way of playing before hurting others.
Rather than setting a high price that can be profitable, let competitors think. It is better to start with a price that is unprofitable for anyone, so that many potential competitors will not touch this market at all.
Of course, if you continue to burn money and lose money, you may have to maintain it for more than a year. It is conservatively estimated that the Pangu console will probably lose more than 3 billion Hong Kong dollars before it can start to turn from a loss to a profit through the maturity of the game software sales market and the reduction of spare parts prices.
In short, the Pangu host for the whole year of 83 was not profitable and brought huge financial pressure to the company.
As long as there is enough money in this strategy, the future recovery will certainly be very impressive. However, if you want to burn the money out and break the capital chain, it will be shameful to become the second Atari Atari. In the future, the history of the game industry will become the collapse of the two giants of the industry in the 80s......
Of course, such a funny ending is impossible!
But be prepared for danger in times of peace!
Don't look at the lot of cash on the books, but Atari had nearly $2 billion in cash on its books last year, which is still much inferior. Atari is a giant like Atari, and the poor only have money left, and they will still be finished in a few years because they sit on the mountain!
"It's time to find some profit growth. After thinking about it, Lin Qi decided to take out some of the ideas of the scroll shooter and cheat some small money.
Strictly speaking, the idea of a reeling shooter has been around before, and "Little Bees" and "Space Invaders" are already popular reeling shooters on multiple platforms in arcade and console games in this era.
It's just that compared to the later classic scrolling shooter games, "Little Bees" and "Space Invaders" are still too basic.
One game that laid the foundation for later reel-reeling shooters was 1942 by Capcom.
1942 is a game set in the Pacific War of World War II, where players operate American planes and destroy NPC Japanese planes and military forts.
"1942" is a game made by a Japanese game company, and tells the story of players who control American fighter jets and fight evil Japanese fighter jets.
Of course, there is also a cunning on the Japanese side, and there are definitely a few masters who can play the game. A large number of rookies failed in the game, and it was also Japan secretly YY, and the Pacific War assumed that the Japanese army won...... Now, Japan is still relatively honest and nominally submits to the country of its father. Even if you don't accept it, you can only leave a little vague setting, so that it can be dark and cool after passing the brain supplement. In fact, Japan did not dare to talk to the United States about what would happen if Japan defeated the United States in World War II.
Of course, Capcom's "1942" is only a brick throw. In the 90s, the company improved on "1942" and created the "Striker 1945" series, and later, the flight shooting games in the arcade market were almost monopolized by Caijing, and this company became synonymous with flying shooting (bullet hell) games.
Lin Qi is ready to come up with the idea of an airplane shooting game, which is also set in World War II. The battlefield has become a Chinese battlefield, and the player is the "Flying Tigers" jointly organized by China and the United States with the characters. In this way, the game avoids the minefield of modern Chinese history.
Because, during World War II, the "Flying Tigers" only participated in the war against Japan and did not interfere in the Chinese civil war. Therefore, this force is probably a symbol of friendship between the two countries that neither China nor the United States has any dispute. With this unit as the protagonist, from the perspective of the current history of World War II, it is typical of political correctness.
Such a game, from the point of view of political history, can be sold in any country in the world.
Including those defeated countries, if you want to make things difficult on this subject, then, what are you defeated countries thinking? Want to rebel?
In fact, Germany and Japan, the defeated countries, after World War II, the United States beat Germany and Japan in film and television games, and there is a huge market in their countries. Of course, the premise is that the protagonist of the work is the United States, and if you change China to make an anti-Japanese film, you will be ridiculed by Japan.
To put it simply, Japan can accept countless times of being grass by the United States in films, television, and games, but it will never accept dwarf and poor frustration as the protagonist of the work.
Therefore, for the sake of small money, Lin Qi came up with the game of the Flying Tigers fighting Japanese planes, although the Flying Tigers were jointly organized by China and the United States, but the main pilots were basically the US military, and after the United States officially entered the war, the Flying Tigers directly changed their vests to become the US Air Force.