Video Game Empire

Du Wenqiang came to Li Xuan not only to report the sales of these three newly launched computer game floppy disks, he also had other things. 【First Release】

"Xiao Lisheng, we have already discussed with the three companies almost. This is a specific merger plan, and we will hold 30% of the shares!" Du Wenqiang put away the smile on his face and said to Li Xuan seriously.

Dongfang Games produces more than 5 arcade machines per month, mainly by three foundries, as well as Dongfang Company's own arcade machine factory in Shatin. After Dongfang Games was spun off independently from Dongfang Electronics, Li Xuan hoped that it could become a company focusing on game research and development. The game publishing business will be entrusted to the newly established Dongfang Shangshi to be solely responsible.

Outsourcing the production and manufacturing links at the end has always been a firm implementation idea of ​​Dongfang Company, and Dongfang Game Company is no exception. However, due to the actual needs of production in the early stage of development, Dongfang Company established a large-scale arcade factory by itself.

Under the idea of ​​Dongfang Game Company focusing on research and development and outsourcing all production, this arcade factory has now become a big burden. So Du Wenqiang has the intention to further split him from the game company.

But how should it be managed after the split, and the establishment of a new independent subsidiary is definitely out of date. It just so happened that Li Xuan had the intention to integrate the peripheral enterprises around Dongfang Electronics. So he came up with a plan, hoping to merge the three electronics factories that originally produced arcade machines for Dongfang Game Company into a large-scale foundry company.

If the three companies merge into a large electronics company, not only can the logistics procurement and production management be unified and integrated, but production costs can be effectively reduced. And it also placed production orders for Dongfang Games. More importantly, Dongfang can integrate its own arcade factory into the new company.

But all three companies have different bosses and their respective managements. Who will run the operations of the new company after the merger? How is the equity of each boss distributed? These are very tough questions.

So Du Wenqiang began to communicate with the bosses of the three factories at the behest of Li Xuanyi. All three factories' orders now come from Dongfang Game Company. Therefore, several bosses really dare not have too many opposing voices.

So the merger negotiation started like this. The first few bosses were not very interested. It was more like they could not directly reject Du Wenqiang's merger proposal. However, several bosses soon discovered that Dongfang Games seemed to have no particular interest in taking over the management power of the new company, and did not want to annex their three factories through mergers.

At the same time, Dongfang Company also gave a specific research report, if the three factories can be powerfully combined. Non-labor jobs can be cut in half after consolidation. Coupled with unified management, the reduction of logistics, procurement and other costs can reduce the production and operation costs of the entire company by about 10%.

Faced with this data, the attitudes of the three bosses suddenly changed, and they began to actively discuss a series of key issues such as equity distribution and management arrangements in the new company after the merger. After more than a month of war of words, Dongfang Games and the three arcade foundries finally reached a merger agreement.

According to the Hong Kong PricewaterhouseCoopers accounting firm, the asset appraisal report made by the three electronics companies and the arcade factory split from Dongfang Games. Dongfang Games has a 30% stake in the newly established Xintongda Electronics. The name of Xintongda Electronics Co., Ltd. is composed of the names of the original three electronics factories, Xinguang, Litong and Qida, each taking a word.

After the establishment of Xintongda Electronics Co., Ltd., the net assets will reach 20 million Hong Kong dollars. Monthly OEM production of 50,000 arcade machines, with an annual output value of 120 million Hong Kong dollars, will suddenly jump to one of the largest electronics companies in Hong Kong.

"In those factories, we sent technicians to help with production management training. It can be said that everyone is from the same source, and the management system is the same. It's a lot less troublesome to integrate!" Li Xuan quickly After scanning the integration plan, he said with a smile.

"Yeah. There is no need to make adjustments in production and management. We use the system we originally formulated! The only thing to do is to lay off staff. At least seventy or eighty people can be demolished in the first batch!" Du Wenqiang nodded and said.

Most of the abolitions of the new company are administrative personnel. The four factories are merged into one, and many duplicate administrative departments need to be integrated. If some departments are bloated, they will be abolished. This is also an important aspect of cost reduction. These abolished positions can save a lot of salary and welfare expenses.

"In the next step, Jiekang Electronics and Dongsheng Electronics will also merge, and we will also inject some funds and hold part of the equity in the new company!" Du Wenqiang continued.

Two companies, Jie Kang Electronics and Dongsheng Electronics, are the OEMs for the whole game console and game cards for Dongfang Game Company. The two companies have also recently conducted merger communication with the help of Du Wenqiang. The production capacity of the two companies has now reached the limit, and both are raising funds to build new factories, and Dongfang Electronics will inject a sum of money in time in exchange for a part of the new company's shares.

These actions are a series of means for Dongfang Electronics Company to strengthen its influence on the peripheral companies of the Dongfang system. Through a series of methods such as orders, shareholding, unified procurement, and bank loans, these companies will be firmly tied to the chariot of Dongfang Electronics.

"How was the negotiation with Qijun Game Office?" Li Xuan asked suddenly.

Qijun Games is a small game production company located in Kyoto, Japan. Before, Taidong Company used hundreds of thousands of yen in research and development costs on the "Space Invaders" arcade to win a business miracle of tens of billions of yen in sales, which completely detonated the Japanese game industry.

Countless Japanese companies are starting to enter the industry, wanting to be the next lucky ones to get rich. Qijun Game Studio is such a follow-up company, but unfortunately it has no achievements in the arcade field.

Orient's game portable handheld game console, which went on sale in Japan last year, quickly became popular throughout Japan, selling millions of units within a year. After failing to achieve success in the arcade field, Qi Jun Office turned its attention to the newly popular handheld.

However, the strength of Qijun itself is limited, and it has spent a lot of investment in arcade projects before. It couldn't develop its own handheld game console like Casio, Seiko Epson and other powerful companies, so it took aim at the game that dominates the handheld console.

Li Xuan's original idea for the game design was to separate the machine from the card. Although because of the technical reasons of the printed display screen, the game screen of different games must also be integrated with the game card and replaced at the same time. This makes the game card with a display screen of game not cheap, reaching 60% of the price of the whole machine.

However, this strategy of separating the machine and card can still save players a lot of money without having to buy the machine repeatedly, which greatly increases the user's consumption stickiness. Qijun Game Studio saw this and sent a letter to Dongfang Game Company, hoping to obtain authorization to produce compatible game cards

This is the first game company to submit such an application to Dongfang Electronics. When Li Xuan decided to separate the machine and card, he had already considered that the game would be developed into a game platform in the future, and he would authorize the game from third-party manufacturers.

This similar practice in later generations is undoubtedly the most famous of Nintendo's red and white machines and the famous "royalty" system. Nintendo can be said to have changed the game rules of the entire industry and created a new profit model.

When the red and white machine was first launched, it quickly opened up sales by virtue of its extremely low sales price and sophisticated self-made games such as "Super Mario". After the red and white machines established a monopoly in the US and Japanese markets, Nintendo began to authorize third-party game software vendors.

To put it simply, Nintendo's royalty system is that hardware manufacturers are responsible for promoting hardware, software manufacturers have to pay part of the money to the hardware manufacturers, and the software is subject to review by the hardware manufacturers. But in fact, Nintendo relies on the monopoly position of the red and white machine in the market, which makes him extremely harsh on the licensing conditions offered by third-party software vendors, and transfers almost all the risks to the other party, so that he can make no loss.

After receiving the application letter from Qijun Office, Dongfang Game Company directly rejected the plan to authorize the other party to produce compatible game cards. But Eastern Games has also proposed another form of cooperation. Qi Jun Office is responsible for creating the game. After the game score reaches the distribution standard of Dongfang Game Company, Dongfang Company organizes the production and distribution on its behalf, and Qijun Office only participates in the final profit sharing.

Such conditions are very unfavorable for Qijun, which has almost no autonomy, and the entire game distribution process is firmly controlled by Dongfang Games. As a result, the negotiations between the two sides stalled at the beginning.

But Li Xuan is not in a hurry at all, game is sweeping the entire handheld game console market, UU reading www. uukanshu.com Nintendo's game, as well as the handheld products of several companies such as Casio and Seiko Epson, are completely unable to pose any threat to the game. With such a game platform with a huge distribution in hand, Li Xuan is not worried that no company will give in.

"The position of the Japanese side has softened, and Qijun Office has initially agreed to hand over the production and distribution of game cards to us. But they still haven't let go of paying deposits and sharing game copyrights!" Du Wenqiang explained. , the negotiations between the two sides have dragged on for more than two months.

"Paying a deposit is necessary. Once the game card is of poor quality and the game card is unsalable, we cannot bear these losses and must be deducted from the deposit paid by the other party!" Li Xuan said with a smile, "As for the sharing of game copyrights, there may be some It is difficult for a strong man, this one can be given up!"

Dongfang Game Company is in a strong position in the negotiation, and the conditions given are naturally harsh. Although the company requires to accept third-party software vendors and entrust the production and distribution of the developed games to itself, it is not willing to take any sales risks. (To be continued..)

ps: After writing the three chapters, I finally have the face to shout a few times for a monthly pass! Where is the monthly pass! I'm waiting for you!

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