Top of the big era

I answered Ren Yuxin's phone call and first expressed my New Year greetings.

Then I talked about the cooperation with Konami.

Ren Yuxin said: "The big framework has basically been negotiated, which is similar to what we expected before, and the conditions are even better... To be honest, I think talking about cooperation here in Japan is better than talking about cooperation in Hong Kong, Taiwan and South Korea. It’s still easy. Now there are only a few details that need to be worked out, and I think it’s still very important.”

Zhou Buqi asked: "What is it?"

Ren Yuxin said: "Changyou can obtain the development rights of "Pro Evolution Soccer" for computers, tablets and mobile phones. The negotiation is less difficult than expected. Maybe we can compete for more copyrights in other forms."

Zhou Buqi lowered his head and glanced at the printed material in his hand, "Is this Article 6?"

If it is the development of other versions of "Pro Evolution Soccer", in principle, it will be completed jointly by Changyou and Konami, and the revenue sharing will still be 50:50.

There are indeed some problems with this.

After all, the copyright of "Pro Evolution Soccer" is in the hands of Konami, which will have more initiative.

Once Changyou makes "Pro Evolution Soccer" popular...

Maybe Konami is not willing to cooperate with Changyou and wants to eat alone.

Changyou has access to games on the three platforms of computers, tablets and mobile phones. This is a huge market with huge economic benefits.

However, who knows whether new game forms will appear in the future?

Such as VR games.

If a VR version of "Pro Evolution Soccer" is to be launched in the future, the copyright will still belong to Konami.

In principle, it is jointly developed by Konami and Changyou, and the revenue after development will be divided into 50% and 50%. But it’s hard to say what’s going to happen in the future. Once the “Pro Evolution Soccer” brand really becomes popular around the world, Konami may try its best to break the rules and develop a VR version of “Pro Evolution Soccer” by itself, and enjoy all the benefits. .

Ren Yuxin said: "Yes, it is Article 6 of the core framework. The principle here refers to the intellectual property rights in football purchased by Changyou. Changyou will purchase from FIFA, UEFA and the five major leagues. Relevant authorizations are shared with Konami to develop the console game version of "Pro Evolution Soccer". If Konami wants to develop other versions of "Pro Evolution Soccer" independently in the future, but they do not have the intellectual property rights shared by Changyou, they will have no choice but to Cooperate with Changyou and develop together.”

This is a beautiful entry point.

It is also the key to Changyou’s cooperation with Konami this time.

Konami owns the copyright of "Pro Evolution Soccer", and Changyou spends money to purchase related intellectual property rights in the field of football, and the two parties exchange copyrights to a certain extent.

Zhou Buqi said: "However, if "Pro Evolution Soccer" sells well in the future and makes a lot of money, Konami may bypass Changyou and contact the football industry alone to purchase the copyright."

Ren Yuxin said: "Yes, this is the worry. As long as the output exceeds the input, it is possible that Konami will violate its principles one day in the future."

Zhou Buqi thinks this analysis is correct, "The current situation of "Live Football" is in decline, and has been overtaken by "FIFA Football". The reputation, market, and number of players have all been far behind. If Changyou takes "Live Football" in the future, The brand "Football" has been developed and it has become the number one in the world. It is really possible for them to forget their loyalty for the sake of profit."

Ren Yuxin said: "Even if they abide by the contract and continue to maintain such a cooperative relationship, I don't think such terms are good."

"ah?"

"At least not 50/50."

Zhou Buqi smiled and said, "It is no longer easy to enjoy all the benefits from the three platforms of computers, tablets and mobile phones."

Ren Yuxin said: "You don't know how bloated Konami is internally and how complex its organizational structure is. There are nearly 6,000 employees worldwide, and there are only more than 800 people who are actually engaged in game development. They even have a gym. Business Department.”

"Well……"

Zhou Buqi had heard about this for a long time.

In this regard, Konami can be said to be notorious.

Every time Konami develops a popular game, all departments will take action around this game, and various peripheral copyrights and derivative copyrights will take action.

Until all the value is squeezed out of this game.

The gym business is actually Konami’s launch of several excellent fitness games, which have been recognized by the market. Then, other departments took action and built a real version of the gym based on the design and methods in the fitness game to invite players to experience it.

This kind of business thinking is as confusing as it gets.

Ren Yuxin said: "Konami's actions are too slow. They have barely kept up with the era of computer games and are at least ten years behind the market. Even if new copyrighted games appear in the future, they will definitely feel the same. If not, we have to rely on Changyou to develop. Since Changyou dominates and the revenue is split 50-50, it is not appropriate."

Of course Zhou Buqi also wants Changyou to get more revenue rights, "Can we negotiate?"

Ren Yuxin said: "They also put forward several conditions. I think in exchange, there might be a chance."

"What conditions?"

“First, Changyou must negotiate conditions with FIFA and obtain the ‘FIFA’ authorization.”

"This vision is quite accurate."

Zhou Buqi nodded.

As long as it can win the naming rights of "FIFA", it will definitely be a fatal blow to EA's "FIFA Football" series. The copyright value of "Pro Evolution Soccer" can be greatly improved.

Ren Yuxin said: "What Konami means is that if Changyou can snatch the naming rights of 'FIFA' from EA for the next 10 years, then the copyright exchange conditions between Konami and Changyou will be achieved. If you can't get it, , Changyou needs to pay them US$100 million to buy out the copyright for computers, tablets and mobile phones.”

Zhou Buqi smiled and said, "Let me tell you, why did the negotiation go so smoothly? There are still additional conditions that were not included."

Ren Yuxin asked: "Is it feasible?"

"No problem!" Zhou Buqi was very generous, "Promise them! This time, Changyou must reach an agreement with FIFA no matter what. A closed monopoly organization like FIFA is the easiest to operate internally. I and the Korean The Hyundai family relationship is not bad and they have carried out many cooperations. They can even operate the World Cup in Korea and Japan behind the scenes, and it is just electronic copyright. Isn’t it easy to operate? "

Ren Yuxin was startled, "Isn't it necessary?"

"I have plenty of backup options." Zhou Buqi smiled, "Go on, what else do they want?"

Ren Yuxin said: "They want a financing of no less than US$200 million."

Zhou Buqi was very surprised, "Why? They are short of money in their accounts? They are not operating well, but they are not losing money, right?"

Ren Yuxin said: "They are going to shrink their business in the European and American markets. This money may be used for business adjustments and layoffs. Konami has a branch in the UK that is engaged in the production and sales of game derivatives. I When I heard about it, I was shocked.”

Zhou Buqi laughed and said, "It won't be surprising if you've seen it often."

Games can also have many derivatives.

For example, Changyou's "Angry Birds" earned more than 16 million US dollars in derivative revenue last year. Many clothes want to embroider birds, including bird dolls, bird figures, etc. If these products are to be produced, Sales require payment of copyright fees.

Changyou's approach is very simple, no participation.

Fully authorized by Ziweixing Global.

Hollywood has been doing this business for decades. Hollywood blockbusters all have to sell related derivatives. They have a very mature operation model with high efficiency, low cost and wide coverage.

After receiving the copyright income, Ziweixing Global takes a commission of 20% and Changyou gets 80%.

The profit is divided, but it is easy and comfortable.

You don’t have to do anything here, just sit back and wait for the money. There is no need to set up relevant departments, which makes the organizational structure become more and more bloated and confusing.

As for game companies, they focus on games, developing games, publishing games, and operating games.

Don't get involved in those messy things.

Konami obviously does not think this way.

It is a vertical model from top to bottom. Everything is done by themselves, even the gym is built by themselves. It is not surprising that they produce and sell some derivatives such as pillows, clothes, and dolls.

Ren Yuxin said: "Konami has also realized that this bloated organizational structure is not conducive to management and will reduce work efficiency, so it wants to carry out certain layoffs and business rectification. The local market generally has lifelong employment, and it can do a lot It is limited, so we may have to start targeting overseas markets next.”

Zhou Buqi said with a smile: "If we can't lay off employees locally, we will go overseas to lay off employees."

"right."

"$200 million, I can give it. What model? Private placement?"

"Yes." Ren Yuxin was very happy when he heard that the big boss agreed to the plan. "Based on the current stock price, it is estimated that he can get 4% of Konami's shares."

Zhou Buqi said: "It is best to cooperate with strategic investment and get a seat on the board of directors. Well, this is very important. This time we have completed "Pro Evolution Soccer". Don't forget that there are many outstanding companies under Konami." As for the game copyrights of Konami, I played "Contra" and "Red Fortress" a lot when I was a child. If Konami has a say in the board of directors, Changyou may be able to develop mobile versions of these games in the future. "

Ren Yuxin smiled and said: "Basically it's almost the same, it can be done."

Zhou Buqi encouraged: "Okay, let's talk about it. This case of "Pro Evolution Soccer" can be big or small. In order to do it well, I even asked Mattrick to acquire Take-Two. ."

"Ah?" Ren Yuxin was slightly startled, "Does the acquisition of take-two have anything to do with "Pro Evolution Soccer"?"

Zhou Buqi said: "Yes, take-two's sports games are as famous as EA. Changyou took over "Pro Evolution Soccer" in a hurry. We don't have the experience or team to make sports games."

Ren Yuxin took a deep breath, "This is quite courageous."

Zhou Buqi smiled, and then said in a deep voice: "The "Pro Evolution Soccer" case must be done well, and the details of each clause must be carefully considered. This case must be made into a typical case and a benchmark for cooperation. In the future, Changyou cooperates with Japanese or Korean game manufacturers to develop games, and they all use the "Pro Evolution Soccer" case as a template and reference."