Video Game Empire
Chapter 38: Bring the arcade to the cinema
Before Christmas, all the exams for the first semester of CUHK ended and the school began to close. There is no winter vacation for students in Hong Kong, but next Christmas and New Year holidays, students can rest for half a month. The second semester of CUHK will not resume classes until January 6th.
Li Xuan has become even busier. The new factory has already completed the recruitment, and he is the boss who has to nod and make up his mind on all kinds of things. When Keji graduated, several old employees jumped to Dongfang Electronics under his mobilization. They acted as teachers for new employees and provided simple skills training for a group of new employees.
The newly opened arcade assembly workshop of Dongfang Electronics is much larger than the original Keji factory. Li Xuan recruited more than 100 people in one go. According to his plan, after the factory is on the right track, the monthly output of arcade machines will reach more than 4,000 units.
In fact, this is still far from the scale he wants. According to the scale of Space Invaders selling more than 100,000 units a year, Dongfang Electronics has to expand its recruitment by at least two or three times. He does not believe in Tank Wars and Hong Kong Square. A classic game, better than a space invader.
But Li Xuan didn't dare to expand the factory so much in one go, because the funds couldn't keep up. Leasing workshops and purchasing production equipment, all kinds of investments are really expensive. In addition, the purchase of various raw materials also requires a large amount of capital investment, and the salaries of more than 100 employees should be reserved.
In the past, Keji Company was a stable cash cow, which could bring Li Xuan almost one million net income every month. But now Ke Kee has closed down, and the arcade factory in Kwun Tong has been taken over by Shao Yongqiang. The name of the new factory was also changed to Hutchison Electronics Co., no matter how much money it made, it had nothing to do with Li Xuan.
Shao Yongqiang paid 3 million in cash as the factory transfer fee, Li Ke kept 500,000 for himself, and the rest went to his brother's account. In addition to the dividends of Keji Company in the past few months, Li Xuan spent more than five million yuan in just a few months.
From the summer vacation to now, in just half a year, Li Xuan has earned the first five million in his life. With the fact that he is only 18 years old now, if the reporter knows the news, it is enough to write a vivid entrepreneurial article, grab the headlines of Hong Kong newspapers, and become the best example of Hong Kong youth inspiration.
But Li Xuan is under a lot of pressure now. He can make money quickly and spend money quickly. Since the establishment of Dongfang Electronics Company, he has invested nearly two million Hong Kong dollars. Don't look at the more than three million cash left in the account, but after deducting expenses such as raw material ordering fees and reserved staff wages, there is not much money that can actually be used.
Fortunately, the cost of game console motherboards ordered from Epson can be deducted from the game license fee. When the two parties negotiated the contract before, the Japanese representative proposed to sell the two games in one million dollars, but Li Xuan refused.
His plan was that for every arcade machine Epson produced, it would pay Dongfang Electronics a $500 game license fee, which would not be enough. Epson thought the price was too high and refused to accept it, and Li Xuan was unwilling to make any further concessions.
Later, Seiko Epson even sent Director Kenshin Hattori to fly to Hong Kong overnight to negotiate with Li Xuan. But Li Xuan's attitude is very firm. If Epson can't accept it, the two sides will break up.
In Li Xuan's view, selling the game production license in the Japanese market is already cutting the flesh on himself. If he wants to buy out two games for one million dollars, there is no door. In the end, Epson succumbed, but also requested to buy out the Japanese market, which means that the two arcade machines produced by Dongfang Electronics could no longer be sold to Japan.
Li Xuan also nodded in agreement. His current focus is still on the development of the American market. But before that, the local market in Hong Kong cannot be spared. After all, the legs of mosquitoes are also meat and cannot be wasted.
Li Xuan handed over the sales task of the game hall to Li Ke. After all, most of the game halls in Hong Kong are now watched by He Le Tang. But he also warned his eldest brother that doing business is not a mixed society, it is about harmony and making money, even if your enemy comes to the door, you must smile. No matter which club background the game hall owner comes to negotiate business, they must make people feel at home.
In addition to the game hall, Li Xuan also took a fancy to the cinema in Hong Kong. Hong Kong movies have swept across Southeast Asia since the era of Bruce Lee. In 1976, the box office of the Xu brothers' "Half a Catty Eight Two" broke through 8.5 million Hong Kong dollars in one fell swoop. ten years.
The development of Hong Kong's film industry has also made this small land one of the most densely populated places in the world. In addition to the two giant cinema chains, Shaw Brothers and Golden Harvest, there are also several small and medium-sized cinema chains, as well as scattered independent cinemas.
The waiting hall of the cinema is actually the best place to put arcade machines. Most of the people who like to watch movies are young people, and those who like to play arcades are also young people. In the boring moment of buying movie tickets and waiting for admission, if there is an arcade machine nearby to pass the time, and spend five cents for entertainment for a few minutes, why not do it.
And movie theaters don’t need to increase manpower and venues. In addition to the income from selling movie tickets, popcorn and drinks, they can also add an additional source of revenue. It is not a matter of killing two birds with one stone.
Li Xuan's idea is good, but the actual situation is not very optimistic. He first went to the two largest cinema chains in Hong Kong, the Golden Harvest Cinemas and Shaw Brothers Cinemas, but he didn't even get a chance to interview, so he just closed the door.
So Li Xuan had no choice but to set his sights on a few smaller theater chains, and he also changed the way he first negotiated with theater line managers~www.wuxiaspot.com~ and directly contacted the managers of individual theaters.
Compared with theater managers who focus all their attention on arranging films, theater managers are obviously more aware of the miscellaneous income outside the box office, which is an important contribution to the overall profitability of the theater.
"Manager Li, you haven't played our video game console, no matter how hype I say, you don't have an intuitive understanding, and you may even think I'm bragging in your heart.
Or else, our company will provide a Hong Kong cube and a tank war game console for free, which will be installed in the waiting hall of the cinema. We speak with practical benefits. If the money made by these two game consoles for the cinema can satisfy you,
Let's sit down again and talk about buying and selling! "
Li Xuan smiled and said to Manager Li of Lisheng Cinema. Lisheng Cinema is the leading cinema of Lisheng Cinema Line. The cinema has a good location and a large area. There are four screens that can show different movies at the same time. It is one of the cinemas with the highest occupancy rate on Lisheng Cinema Line.
Manager Li didn't answer directly, but pondered for a moment and made some trade-offs in his mind. If this game console is really as profitable as the guy in front of him, then he will undoubtedly open up a new source of revenue for the theater, which can add points to the boss.
If this game machine is not very good, you can let the person in front of you take the machine away in a few days, and you will have no loss. Since this was an empty-handed business, Manager Li nodded without hesitation and agreed.
A smile finally appeared on Li Xuan's face.
PS: I asked for a recommended ticket in the morning, I will bow down to you, don't hide the ticket!
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