The Internet winter continues, and it doesn't immediately usher in a reversal of the dilemma because the Fed stopped raising interest rates.

From Silicon Valley to Seattle, a large number of Internet startups have not been able to get investment, and the market value of listed Internet companies has plummeted by more than 90%, and even delisted or collapsed.

Only Internet companies with good performance and financial health can stop the downward trend.

In such an environment, it is the only Internet company that can rise against the wind, with the market value of "Genting Game" rising by 40% in two weeks after the release of the data.

So much so that the Wall Street media exclaimed:

"The cold winter is not over, and Newman has already led Riot Games into a new spring."

Game developers will care about the secret to Genting Game's success and if there is anything to learn from it, and they want to replicate the success of Genting Game.

This is especially true for Goryeo game developers who are already aware of the power of free-to-play online games.

For Wall Street, the concern is why Newman, whose businesses are commercially successful.

While other Internet companies were struggling under the influence of the Internet winter, Riot Games found a new profit model.

And it's a model that clearly has great potential for growth.

Riot Games hasn't returned to its former peak, but it's much better than other internet companies.

According to a report by the New York Times last week, Riot Games has the highest percentage of about 1,000 Internet companies on the Nasdaq compared to its highest market capitalization in history.

"Why is it always Newman?"

The cover article for Barron's, which is part of News Corp. Murdoch, is a large-format photo of Zhou Xin's face.

Barron's was a well-known financial magazine founded in 1921 and published a cover article titled "Burn Out" after the start of the Nasdaq bubble.

In the article "Burn Out", a lot of information is revealed about the bad situation of Internet companies, among the 207 Internet companies surveyed, 71% of the companies have negative profits, 51 companies will run out of cash within 12 months, and even the cash flow of the famous e-commerce company Amazon can only last for 10 months. A large number of founders and early investors of internet companies are doing their best to cash out. The flow of money from the old economy to the new economy is about to run out, and Internet companies that have no money to burn or make money are about to fall off the altar.

Barron's has been focusing on Nasdaq Internet companies for a long time, and has long predicted that there will be a valuation bubble for Nasdaq Internet companies.

When your prophecy comes true, you will want to let everyone know that my prophecy has been fulfilled. Not to mention financial magazines that rely to some extent on the quality of their articles.

Compared with magazines in other fields, financial magazines are more likely to see Zhou Xin because they are less influenced by Quora.

The audience of financial magazines is basically old money, which has limited adaptability to the Internet and has a low acceptance of the magazine model of Quora, so financial magazines have not been greatly affected.

The old money's low adaptation to the Internet also led them to be extremely curious about Newman.

You have not dealt with Zhou Xin, only know his commercial success and the ability to lead his companies out of the crisis after the NASDAQ bubble burst.

Barron's readers wanted to know the magic of Zhou Xin, so Barron's took advantage of the trend with a cover article that analyzed Zhou Xin's success.

"As we all know, Internet companies are facing an unprecedented crisis. The Nasdaq has fallen more than 50% from its highs, including a 9% drop on March 12. Internet companies and shareholders are faced with the tragic scenario of a free fall in market capitalization.

After the vicious circle of falling market capitalization - investors losing confidence - panic selling - falling market capitalization, it is difficult to reverse the situation without external forces. Not to mention that external forces have been negative news such as the Federal Reserve raising interest rates, corporate earnings reports not as expected, and Internet companies' losses further increasing. More than 30 percent of Internet companies went bankrupt in the crisis, and most of them lost 60 percent of their market value.

Even Amazon and eBay, which are doing well, have fallen by 40%, and a large number of communications and hardware companies have also been implicated, and Cisco and Sun have even lost 80% of their market value. Time Warner, which bought Quora for $74 billion last year, also lost 40% of its market value in this crisis. Netscape, the originator of the freeware model, has also lost most of its market share in the confrontation with Microsoft, and more than 300,000 IT practitioners have been forced to change careers.

The Nasdaq opened the next day after a symbolic rally following the news that the Federal Reserve had stopped raising interest rates. With such a severe winter, it seems that spring is not coming. In such a harsh environment, Riot Games has become the only favored Internet company in the entire NASDAQ market due to its beautiful financial report, solid cash flow and new profit model.

Riot Games' market capitalization is approaching $20 billion, which is less than 20% of its all-time high, which is already the most impressive report card compared to other Internet companies. Therefore, in the process of intensive communication with practitioners in the financial industry under the current situation, one of the questions that everyone is concerned about is: why is it always Newman?

From quora's sky-high valuation to Riot's reversal of the dilemma, from the quiz community to the video game internet service provider, why is it always Newman who has been able to achieve success that no one else can match?

There has never been an entrepreneur like Newman who has repeatedly verified his success in the Internet industry and delivered such a brilliant report card every time.

Even famous entrepreneurs like Steve Jobs have had failures like NeXT, and Newman's startup never missed. Even NewPay, which has not yet been listed, is known as the most anticipated unicorn company in the industry, and Goldman Sachs has given a valuation of 100 billion US dollars. After the arrival of the Internet winter, whether NewPay can still enjoy a valuation of 100 billion US dollars remains to be tested by the market. ”

NeXT is a computer company founded by Steve Jobs, and its first product sold only 400 units per month, which was seriously worse than expected.

The above-mentioned Sun is a company founded in 1982 to focus on servers and workstations, which was later acquired by Oracle.

"If matrix is a failure, then Newman has also failed, but this is the hardware field, and Newman in the Internet field is undefeated."

Compared with Quora and Riot Games, Matrix's results are insignificant, with a valuation of $499 and a revenue of $20 million for the year, and $20 million a year after the cost. The cost here only refers to the operating expenses of the keyboard sector, and does not include the research and development expenses of mobile phones.

Because Matrix's flagship stores are located in the heart of the big cities in the Americon and Europa regions, rent and renovation are expensive.

So much so that the outside world regards matrix as a new game of Zhou Xin. The Matrix keyboard is very good in terms of product, and very much a failure in terms of business.

"As a financial magazine, we want to help readers understand the essence behind things, and explore why Newman has succeeded one after another, and what kind of magic he has in the same way that we analyzed the existence of the Nasdaq bubble before.

Whether this magic can be continued, as an investor, whether it can be invested in as long as it is a project designed by Newman himself does not require any other considerations.

Let's take Riot's dilemma reversal as an example to analyze Newman's entrepreneurial logic in depth. Back in the summer of 1998, when Newman typed the first code on Riot's website, he certainly didn't expect Riot Games to become a billion-dollar company.

At that time, Riot Games was only an official website set up to bypass the expensive offline channels of agency fees, and only served the game Angry Birds. The payment method is also different from the current NewPay one-click payment, which requires players to go to the nearest bank transfer, and reserve a mobile phone number during the transfer process, and then the mobile phone number will get a receipt of a verification code, and players can then use the verification code to download the game, so as to complete the electronic payment in the era of no electronic payment.

At that time, all game developers had to rely on offline game channels, even if offline game channels required more than 30% of the royalty, and even 70% of the royalties of unfamous game developers, only a very small number of famous game developers could enjoy a 30% share.

Isn't there a game developer who wants to break free from the shackles of offline game channels and sell directly through online? Of course, there is, but there is no electronic payment, and the labor cost is too high by transfer, confirmation and delivery. It can be seen that Newman was able to think of ways to design products that others can't think of to meet the needs that actually exist.

Internet practitioners in Silicon Valley agree that Newman is a natural product manager, that innovation is as easy for him as drinking water, and that he can easily find ways to solve problems. A lot of the needs are out there, and everybody knows that people have such needs, but only Newman can find a solution.

Therefore, we believe that Newman's ability to innovate will determine that the company he founded will always have a first-mover advantage.

Newman's second strength, and what we believe is the most important advantage of being an entrepreneur, is that the strategic planning is extremely clear. There are not a few entrepreneurs with the ability to innovate, and it is not difficult to figure out what to do now, but it is difficult to think clearly about what to do in the future. This is not only a problem in the process of starting a business in the Internet field, but also widely exists in other industries.

NewPay is the second company founded by Newman, which predates quora. Riot Games' earliest payment prototype was borrowed to some extent from NewPay, which is the most popular electronic payment software in the United States, with a market share of more than 70%, and only NewPay and others on the market are electronic payment software.

After winning the battle between Riot Games and Yahoo Games, and selling a stake in Riot Games to Bill Gates, Newman founded NewPay, and all of his subsequent ventures revolved around electronic payments.

Riot Games' online video game distribution business, Quora's paid Q&A, Quora Gold Selection, without exception, are inseparable from electronic payment. These can all be referred to as internet paid services.

Newman first adopted the incentive fund plan, that is, users can get cash rewards when they register a NewPay account, and invite friends to register a NewPay account can also get cash rewards, which has gained a large number of users.

After NewPay completed the accumulation of users, it began to launch Internet payment services, which only had an electronic payment option for NewPay, which brought more users to NewPay.

Under the positive cycle, it is the continuous expansion of NewPay, and it is also the fact that Newman's enterprises are becoming more and more easy to harvest user payments. Newman's Internet service with electronic payment as the core has taken shape.

As for Riot Games' new online game, Genting Game, we found through a questionnaire that the most common payment model for players is a monthly pass, which is issued at a monthly price of $9.9, and players can choose to subscribe.

After subscribing, NewPay will automatically deduct the payment every month, and if you choose to subscribe, then the first month will be discounted by 5%. Does it feel familiar? The same subscription system as Quora Gold Selection.

Newman will transfer the success of one model to another Internet service, taking the money out of the user's pocket in a way that is not objectionable to them.

We call this model a value-added model, simply put, Newman's Internet companies will provide users with high-quality free services, and provide you with more high-quality paid services on the basis of high-quality free services.

Let users involuntarily choose to buy paid services.

This is true for both Quora and Riot Games. Genting Game is a free-to-play game that amazes all game developers with its quality, and it charges for the use of cosmetics. Players willingly pay for it.

While the entrepreneurial philosophy of other Internet companies is to get big fast (don't worry about anything in the early stage, do the number of users first, don't care about profits and revenue), Newman only cares about how I can make a profit.

Including when he participated in the Internet conference in China, his advice to Internet practitioners in China is to find your way to make money as soon as possible.

Newman has developed a long-term strategic plan based on the principle of profitability, and then implemented the strategic plan step by step"

The reason why Riot Games' stock price can soar in such a harsh environment is fundamentally expected.

With the expectation of free-to-play games, it is believed that Riot Games will be the only way to play free-to-play.

Like stand-alone games, online game channels are highly competitive, and offline games should not be underestimated, and it is difficult for Riot Games to achieve a monopoly in this field. At most, the online gaming channel has achieved a monopoly.

Free-to-play games are different, offline game channels can't make free-to-play games, only online game channels can release free-to-play games, and Riot Games' user base determines that it will be the largest player in this field.

The success of free-to-play games with Genting Game has also proven to be highly profitable. Then Riot Games, which may be the only online game distribution channel, naturally has a higher bargaining power.

You can also enjoy the almost monopolized free-to-play market.

The only free-to-play game is Genting Game, which earned tens of millions of dollars in just 10 days, and Riot Games was able to share more than $3 million.

The future expectation can be imagined, according to the calculator is the basic skill of the basic skill for investors.

I went back to Chengdu today, thank you for the blessings of every book friend!

Although getting married was troublesome and tiring, I was still very happy.

Thank you again for your best wishes!

(End of chapter)