Chapter 334: Teach the Cottage Factory
Xiaobawang company is actually divided into several parts, Hong Kong Xiaobawang, Guangzhou Xiaobawang, Yueben Xiaobawang, the United States Xiaobawang, the British Xiaobawang five parts, make full use of different countries' funds, resources, talents, the formation of a new multinational company.
As the holding company, Hong Kong Xiaobawang is controlled by the Hong Kong head office in Guangzhou, Yueben, the United Kingdom, the United States and other branches. In the equity ratio of the head office, Zhang Shaojie holds 95% of the shares. The younger brother Zhang Shaohuai has 2% equity, and William Lin, Robert and other core technical backbones of R&D Xiaobawang have 1% of the equity. A general manager like Mi Zhen, who joined the company relatively late, only owns 0.5% of the equity. Most of the remaining important employees own 1/10,000 to 5/10,000 of the equity.
Guangzhou Xiaobawang is a production and R&D base of a joint venture with the political axe of Guangzhou, with Hong Kong Xiaobawang holding 60% of the equity and Guangzhou's State-owned Assets Supervision and Administration Commission holding 40% of the equity. This company is capable of producing 5 million Xiaobawang consoles and 20 million sets of game cartridges per year, and develops 5 new games per year.
It is said that this Xiaobawang is a wholly-owned enterprise of Hong Kong Xiaobawang. It has a factory capable of producing 30 million sets of game cartridges per year, and is responsible for not only marketing the market, but also cooperating with game makers. Taking advantage of the ability of the game company to make games, we will provide a wide variety of new games for the Xiaobawang game console.
Xiaobawang of the United States is also a sole proprietorship of Xiaobawang of Hong Kong, in order to compete for the North American market. The U.S. market, as the earliest place for the development of the world's video game market, is also the nest of Atari. In the North American market, Xiaobawang Company is naturally determined to win!
The British Xiaobawang, which is currently developing relatively slowly, has only set up an office in London. However, after Xiaobawang has achieved a dominant position in the two major markets of Yuben and North America, it is inevitable to attack the European market.
Now the scale of assets controlled by the entire Xiaobawang company has reached an unprecedented 800 million US dollars, and even if the debt of 500 million US dollars is removed, the company's net assets are 300 million US dollars.
$300 million may seem like a lot, but it's not enough to see in either the entertainment industry or the technology industry.
For example, any of the eight major Hollywood movie giants has annual sales of more than $1 billion and net assets of more than $5 billion.
And the generation of IBM and Motorola in the technology industry is a terrifying existence with a net worth of tens of billions and annual sales of more than 100 billion US dollars.
In just over 2 years, Xiaobawang has developed very sharply, and basically has not made any mistakes. It has expanded to Europe, America and Asia, with 7,000 employees, assets of $800 million, net assets of $300 million, and annual profits of $250 million.
Naturally, it has attracted the attention of the market, and many companies have not paid attention to the home game console market, but seeing that Xiaobawang is so profitable, they have also launched home game console projects.
It is said that no less than 20 game console companies have sprung up in this alone. In South Korea, Taiwan, Malaysia and other places, a bunch of copycat Xiaobawang compatible machines have also emerged.
These copycat Xiaobawang, by cracking the operation system of the Xiaobawang game, can smoothly read the data on the Xiaobawang game cassette.
The emergence of copycat Xiaobawang and pirated cassettes has caused huge damage to Xiaobawang's interests.
Xiaobawang Company, in order to protect its own interests, has initiated patent infringement prosecution cases in more than 10 companies around the world. A large number of copycat manufacturers were taken to court.
Even South Korea's chaebol Samsung Company is suspected of manufacturing Xiaobawang's compatible machine, and has a long-lasting lawsuit with Xiaobawang in the Seoul court in South Korea.
According to statistics, the sales of Xiaobawang's genuine game consoles reached 800,000 units per month. And a variety of compatible machines, the total sales volume of each month has surpassed the genuine products of Xiaobawang.
Of course, the copycat of game consoles is not the most troublesome thing.
After all, the price of the Xiaobawang game console is only about 50 US dollars, and the copycat factory cannot make products that cost less than the Xiaobawang.
What really hurts Xiaobawang's profits is the pirated game cartridges.
Because of the dividends paid to the game production company, the price of the genuine game cartridge is about $25 or more. However, pirated game cartridges made by black factories in South Korea, Taiwan, and Southeast Asia cost only $10!
You know, at this time, the game cartridge is mainly a ROM memory chip that needs to be used, and the cost is only $5. The pirated factory, after cracking the secrecy measures to prevent the copying of the game cartridge of the Xiaobawang company, the cost of producing the pirated game cartridge does not exceed 7 dollars.
Therefore, pirated game cartridges, even if they are sold at a price of $10, have a gross profit margin of 40%!
As a result, hundreds of piracy factories have sprung up across Asia that make pirated game cartridges. Every month, 3 million copies of pirated game cartridges are sold to the market, causing Xiaobawang to lose more than $30 million in economic losses.
Zhang Shaojie casually read the important documents of Xiaobawang Company, and felt a headache, and said: "This damn pirated game cartridge!" ”
Mi Zhen said: "The powerful companies in Ben, the United States, and Europe are still more subtle and learn from our creativity. But bypass our patents and redesign a game console. South Korea, Southeast Asia and other regions with relatively weak R&D capabilities have directly infringed on our patents and produced so-called compatible machines! I've hired a lot of lawyers, and I've launched massive prosecutions in various countries! ”
"Just prosecuting doesn't solve the problem. We should have a pull and a fight. For companies that are willing to become our foundry, give them orders and let them do the OEM for us. For those who are stubborn and do not accept Zhao'an, they will be attacked by destroying the surname! Zhang Shaojie said.
Pirates are a problem that exists in any country in the world. Even in developed countries where copyright protection is relatively strong, the number of pirated copies is relatively small, and it is impossible to completely disappear.
Piracy cannot be eradicated by adopting a method of pulling and fighting, but it can effectively deter more unscrupulous businessmen who are interested in engaging in the piracy industry, and prevent the scale of underground factories that produce pirated game cartridges from continuing to expand.
———————————— Migait was originally a Malaysian plantation owner. However, due to the impact of the global economic downturn, the agricultural industry produced by the plantations has been sold at a loss.
After several years of dismal business, he gradually wanted to find another livelihood.
And in 82 years, the Xiaobawang TV game console landed in the Malaysian market and quickly became popular in Malaysia, and the supply of Xiaobawang exceeded demand, which made Miquet think: "If I can imitate Xiaobawang, will I be able to make a lot of money?" ”
With this idea in mind, Migait began to seek advice from some technologists who had gone to college and had expertise in electronics. Coincidentally, I met Lin Shanfu, a Chinese college student who was idle at home.
Migait had no intention of mentioning to Lin Shanfu the idea of imitating the little overlord.
Lin Shanfu tried to crack Xiaobawang's program system, and it took about a month, Migait and Lin Shanfu spent 3,000 US dollars, and finally imitated a part-time version of Xiaobawang. The two began to make thousands of copycat machines in the name of "Super Overlord" and sell them to the market.
After that, Lin Shanfu began to crack the popular Little Overlord games such as "Super Mario Bros.", "Alice Cube", "Little Bee", "Pac-Man" and so on.
In a humble factory, Lin Shanfu and others made more than 100,000 sets of pirated game cartridges. Initially, they sold pirated game cartridges for $8, but later found out that selling them for $15 was also very gunman. This led them to gradually decide to expand production, and they were ready to invest millions of dollars to build a production plant with an annual production capacity of 3 million sets of game cartridges
However, in May '83, shortly after the construction of a pirated game cartridge factory with an annual output of 3 million sets, Migait, Lim Shan Hock and others began to be sued by Xiaobawang in the Kuala Lumpur court.
"The defendants, Migait and Lin Shanfu, are suspected of manufacturing pirated Xiaobawang game consoles, as well as games copyrighted by Xiaobawang Company such as "Super Mario" and "Alice Cube". The evidence was conclusive, and the court sentenced the confiscation of the illegal gains and imposed a fine of $500,000. Lin Shanfu and Migait were sentenced to 3 years in prison each," the judge announced.
"No, I'm going to appeal!" "The punishment is too heavy!" "Lao Tzu only earned 300,000 US dollars, why is it worth a fine of 500,000 yuan for confiscating the income? ”
After Migait and Lin Shanfu heard the verdict, they almost collapsed. All illegal gains will be confiscated and a two-year prison sentence will be enough.
They were even more shocked by the forfeiture of the profits from piracy and the additional fine of $500,000. If it is carried out, the two of them will be destitute
With the piracy case of Migait and Lin Shanfu, many video game-related media in Asia began to reprint. Many pirates shuddered.
"Obediently, the little overlord is really moving!" "The wind is too tight, don't do piracy!" "Damn, the little bully who is bullying. ”
With the results of the first Xiaobawang prosecution case, pirates across Asia have converged to varying degrees.
Due to the fact that the number of pirated cassettes on the market has been greatly reduced. Vendors selling pirated cassettes in Southeast Asia and elsewhere have recently used the most common phrase to say: "Out of stock!" "The wind is tight, and the manufacturers of pirated cartridges dare not produce it! "Let's see it in a while, the pirated game cartridges are not available now!" ”
(To be continued)