Under Iwata's slightly skeptical gaze, Boss Jia completed the first half of the OEM negotiations with Nintendo.

First of all, Boss Jia's Daqian determined a contract to produce 5 million N64s within three months, and if he could not complete the task, he would need to pay liquidated damages of $100 per N64.

To be reasonable, this liquidated damages are fair and not too high.

In order to help Daqian's production, Nintendo needs to fully assist Daqian's production work, such as providing a full set of drawings, parts that only Nintendo has, and ordering channels for various parts, as well as 20 front-line production engineers as auxiliaries.

At the same time, Nintendo also needs to help Daqian purchase more than 100 professional equipment, which cannot be bought with money, and Nintendo must come forward to get it.

Anyway, all in all, Nintendo wants to provide everything to help Daqian as much as possible, in this regard, Boss Jia believes that Nintendo will definitely do it, after all, they are the ones who urgently need N64, and they will not destroy Daqian's production.

"Iwata-kun, the details of the contract are already very perfect, we have no opinion, we just don't know how much price Iwata is willing to give!" After negotiating the details of the contract, the most critical pricing issue remains.

Boss Jia asked lightly.

"Well...... Iwata" Satoshi Iwata hesitated, because Nintendo has its own production plant, and the production tasks of the console were all completed by Nintendo itself.

Although about 60% of the parts are purchased from suppliers, there is no doubt that these consoles are produced by Nintendo itself.

So Nintendo has never had the experience of giving the whole machine to others for OEM, so naturally it doesn't know how to quote.

So, Iwata began to calculate the cost of producing an N64 himself, which was $152.75.

The N64 sells for $199, so an N64 has a profit of $46, which seems pretty good.

But this is just an illusion, because the price of the N64 to the dealer is not this price, after all, the dealer also wants to make money, so the actual factory price is $169.

This seems to be a profit of $16, but if you add in various taxes such as consumption tax, value-added tax, customs duty, etc., then the profit of $16 is almost completely consumed, and Nintendo even has to subsidize the price of nearly $10 per machine.

It can be said that every time a machine is sold, Nintendo loses money.

In fact, Nintendo could have set the price a little higher, but the PS is priced at $199, and if Nintendo is higher than this price, then it will not be competitive in terms of price.

So Nintendo can only lower the price to $199 to compete with PS.

Of course, you don't have to think that Nintendo is stupid to do this, because the profits of this industry have never been on game consoles, and almost all game consoles have been sold at a loss throughout the ages.

After all, the real profits in the console industry are in the games themselves.

For every game sold in the N64, Nintendo was able to share a profit of about $10, which means that as long as one game was sold, the cost of missing an N64 would come back.

After that, every time you sell an additional game, that's Nintendo's net profit, and it's obviously impossible for players to buy just one game for one console, so as long as the console can be sold, Nintendo can make a lot of money.

Ahem, to get back to business, when it comes to the price, Satoshi Iwata began to ponder in his heart, with Nintendo's technology and equipment, as well as the ultimate cost reduction strategy, the cost of each machine is nearly 153 US dollars, so this price is probably difficult to achieve.

Loss-making business, Daqian obviously won't do it.

Or give him $160?

Iwata Satoshi muttered in his heart, but in this way, the cost of the N64 will increase by 7 dollars, and Yamauchi Pu knows it, I'm afraid he won't beat himself to death.

However, even if it is a purchase price of $160, it is estimated that it is low, because if this list is handed over to other companies to produce them, they may offer a price of more than $200, after all, not everyone can reduce costs to the extreme like Nintendo.

But if the price is given according to 153 US dollars, then Daqian will definitely not do it, hey, how to give the price! It's so hard for me!

Iwata Satoshi turned around for a while, and finally decided to quote according to his own production cost, and talk about it if Daqian was too low.

"We can buy each machine for $152!" Finally, Satoshi Iwata spoke.

"That's too low, isn't it?" When Boss Jia heard this, he immediately wailed, "Iwata-kun, you know, we Daqian produced game consoles for you from scratch, and we have to spend money to buy new ones for all the equipment, your $152 price is too low, we can't make money at all, and we have to lose money!" ”

"Sure enough, the other party refused...... Iwata Satoshi sighed, and also felt that his price was a little excessive, so he gritted his teeth and said with the consequences of being scolded by Yamauchi Pu, "That's 155 dollars, this is the highest price I can give, otherwise I really ...... Hey, Jia Jun, to tell you the truth, the production cost of $152 is our Nintendo's own production cost, and the price I give you is more than our own production cost, we are already very sincere! ”

"This ......" Boss Jia pursed his lips, as if he was caught in extreme thinking and calculation, and finally said, "Okay, we can barely accept this price, but Nintendo must promise us that after the completion of the order of 5 million, we must continue to give us orders for N64, and the number of orders cannot be less than half of the total sales of N64." ”

"Otherwise, the equipment I bought for the production of the N64 will be all blind and put there as air!" Boss Jia sighed and said.

"This ......" Iwata Satoshi hesitated for a moment, and then said, "If this is the case, the price must return to the price of 152 US dollars, and the order price must be recalculated every six months, after all, the international selling price of electronic components is constantly falling, and the cost will continue to fall, and our purchase price must also change with it, and we can't always lose money to make N64." ”

"Okay, I can promise you!" Boss Jia thought for ten minutes before finally agreeing to Iwata Satoshi, but Iwata Satoshi still needs to ask Yamauchi Pu.

Satoshi Iwata thought that when Yamauchi saw that the purchase price was actually higher than his own production price in this contract, his eyes would be angry.

But I didn't expect Yamauchi Pu to agree very calmly, I think Yamauchi Pu also understands that time is the most important cost, and he doesn't want to waste time, so he agrees so readily.

So the next day, the two sides happily signed the contract, and then Boss Jia left Nintendo in a hurry, saying that he was going to arrange the purchase of equipment and raw materials, and he had to negotiate with what supplier to try to lower the price again.

It's just that what Iwata Satoshi didn't know was that after Boss Jia left Nintendo, he sat directly on his car and ordered his secretary to distribute the production plan that had been prepared long ago to the various companies under the Daqian Group Army.

In the end, these companies will send the finished products to Tianxing Machinery, and Tianxing Machinery will be responsible for the final production and assembly.

No way, with the development of these enterprises, everyone is waiting to be fed, many companies have no meat to eat, and Boss Jia, as their big boss, must be responsible for finding food for them.

"Chairman, our production costs have been calculated!" A few days later, the secretary handed over a report that was calculated to 5 decimal places to Boss Jia, who looked down and finally had a total production cost of "$98.3254"

"It's still too high!" Boss Jia sighed, and then shook his head and said, "Tell the company below, or find a way to reduce the cost by 10 US dollars, after all, all the chips are given to everyone by the head office at cost price, they can't play tricks with me, I think there is at least $15 of water in this price, you can't be too dark, don't think I'm the boss, you can bully me!" ”