Video Game Empire
Chapter 86: Go to Japan again
The plane slowly landed on the runway of Tokyo International Airport. This is Li Xuan's second visit to Japan. The previous time, he was still a little uneasy, and he was not sure whether he could convince Seiko Epson to manufacture arcade motherboards. But now, Li Xuan is in high spirits. Dongfang Electronics has just established a branch in Japan and is ready to enter the Japanese market in an all-round way.
"Let's go!" Li Xuan took Zhong Chuhong's hand and said with a smile.
"Yeah!" This was Zhong Chuhong's first time to fly, and it was also her first time to go abroad. She was a little excited.
At the pick-up port, Suzuki, the head of Oriental Electronics Japan Branch, was waiting respectfully there. As soon as he saw Li Xuan coming out, he enthusiastically bowed to Li Xuan.
"Your Excellency President, I have reserved a luxurious room at the Imperial Hotel for you!"
Accompanied by Ichi Suzuki, Li Xuan and Zhong Chuhong left the airport and headed to the Tokyo Imperial Hotel in Ginza. This luxury hotel built in 1890 is located near the Japanese Imperial Palace. It is the hotel where the Japanese royal family held weddings and is known as the symbol of Japanese hotels. The luxurious suite Suzuki booked for Li Xuan is located on the 14th floor, from the window overlooking the Japanese Imperial Palace.
Before, Dongfang Electronics authorized the Japanese production and sales of the two arcade machines of Hong Kong Cube and Tank Wars to Seiko Epson, so it did not enter the Japanese market for the first time.
However, after Dongfang Electronics was on the right track, the newly appointed CEO Han Peng immediately began to lay out the second largest game market in Japan. Suzuki is a general hired by Han Peng from the Japanese branch of Sega, and he is solely responsible for presiding over the preparations for the Japanese branch.
Dongfang Electronics' first handheld GameBoy has been developed and will be unveiled at the upcoming Akihabara Electronics Show. Li Xuan flew to Japan this time to come to sit in person.
Zuo Before Li Xuan arrived in Japan, the Japanese branch chaired by Suzuki had already launched a large-scale market development work. The company's marketing director Ye Chengkang also flew to Japan as early as a week ago to arrange the related work of the Akihabara Electronics Fair. This is his first tough battle after joining Dongfang Electronics, and he can only win but not lose.
"Xuan Shao, will the price of 5,000 yen be too low, so we really don't have much profit at all!"
Not long after Li Xuan arrived at the Imperial Hotel, Ye Chengkang knocked on the door, trying to persuade him last. The original price of GameBoy in Japan was set at 5,500 yen, but Li Xuan suddenly decided to lower it to 5,000 yen three days ago.
"The price of 5,000 yen cannot be changed. We set a lower price, which is conducive to the rapid promotion of game consoles. As long as players buy our game consoles, they will become sticky, and it will be easier to sell game cards in the future."
Li Xuan said with a smile, "That's why I decided to increase the game card from 2,500 yen to 3,000 yen. The profit we lost on the game console can be fully recovered from the game card!"
"But there's no need to adjust the price so low!" Ye Chengkang shook his head and said, "We have done market research, and the price of 5,500 yen is already low enough! A game company called Nintendo, just last week Launch a handheld console similar to ours. This game console called GameWatchBall can only play a simple game of catching the ball, and the price is also 5,800 yen. The sales are very good these days! We launched this time The quality of the handheld game is higher than it, and it is priced at 5,500 yen. It has absolutely swept the market, and there is no need to lose an extra 500 yen in profit!"
The recent exchange rate between the US dollar and the Japanese yen is 1:250. The retail price of 5,000 yen set by GameBoy is equivalent to 20 US dollars in US dollars. Now that the retail price is lowered, the ex-factory price of Dongfang Electronics must also be lowered, and the company finally set the ex-factory price for the GameBoy at $10.
The factory cost of this handheld is about 8 US dollars, which means that the gross profit of Dongfang Electronics is about 2 US dollars. After deducting a series of costs such as sales expenses, publicity and promotion expenses, the actual profit will be lower.
But Li Xuan was not shaken by Ye Chengkang's persuasion. Li Xuan made the price adjustment decision arbitrarily after reading the competitor's information collected by the Japanese branch a few days ago. Nintendo's GameWatchBall, is considered by the Japanese branch to be the main competitor after Game is a Boy listed.
This is a very simple ball game. The player controls the left and right hands of the character with two buttons, and constantly bounces the falling ball back to the sky. With the passage of time, the falling speed of the **** will become faster and the number of **** will increase. As long as the player fails to catch any of the **** and falls to the ground, the game will fail.
The owners of Dongfang Electronics Co., Ltd. did not pay much attention to this company called Nintendo. Although their GameWatchBall game sold well after it was released, it was because the GameBoy was not yet on the market. It is very easy to sweep the opponents when GameBoy dominates the world with the handheld game cards of Hong Kong Cube and Tank Wars.
But Li Xuan never dared to underestimate the word Nintendo. If he remembers correctly, GameWatch has sold tens of millions of copies in the few years since its launch, which is definitely a money-sucking weapon. If there is no handheld console from Dongfang Electronics to disrupt the game, although the playability of Nintendo's Ball game is very general, it has made great progress compared to other handheld consoles using LEDs on the market.
And the information Li Xuan has at hand clearly shows that Nintendo's current financial situation is not ideal, with debts as high as 1 billion yen. As early as 1978, after Taito's Space Invaders detonated the arcade wave, Nintendo's chairman Yamauchi decided to enter the arcade industry. However, Nintendo's successive launch of several game consoles failed to succeed, and instead accumulated a lot of debt.
Taking advantage of people's illnesses can cost people their lives! Li Xuan is keenly aware that now is the perfect opportunity to completely crush Nintendo. The 5,500-yen GameBoy has no obvious price advantage over the 5,800-yen GameWatch, but if Dongfang Electronics reduces the price to 5,000 yen, it will guarantee the bottom line by virtue of Hong Kong Square and Tank War, two arcade games that have become popular in Japan. It is completely able to bring a fatal blow to the just listed GameWatch.
The GameBoy launched by Dongfang Electronics comes with its own Hong Kong cube game card, and also launched four game cards: Tank Wars, Snake, Highway, and Gobang ~www.wuxiaspot.com~ The handheld price is 5,000 yen, and the game card is priced at 3,000. JPY.
The price of GameBoy is much lower than that of Nintendo's GameWatch, and there are a variety of game cards to choose from. Every game is very fun. There is almost no suspense about what choices players will make.
If Nintendo's GameWatch fails again, it will be even more difficult for their company. Li Xuan felt that when the time came, he could go to Yamauchi to have a chat and see if there was a chance to buy Nintendo directly.
Since he had the opportunity to kill Nintendo before he made his fortune, Li Xuan would never be soft-hearted. He won't be so bored that watching his competitors grow, and then come to a battle of Yuliang, his head has not been caught by the door, and he won't do such stupid things. The Nintendo controlled by Dongfang Electronics is the cutest Nintendo.
This is because of this, Li Xuan can give up part of GameBoy's profits without hesitation. If GameWatch also chooses to cut prices under the pressure of Dongfang Electronics, Li Xuan will also snicker. The manufacturing cost of GameBoy has been compressed to the limit by Dongfang Electronics.
For example, in the procurement of handheld display screens, Epson, as one of Japan's top LCD display suppliers, was also forced to be involved in the war due to the price war between Sharp and Casio in LCD screens in recent years.
Li Xuan made Epson reluctantly agree to offer a jump-off price on the basis of his promise to purchase at least five million display screens. He doesn't believe that with Nintendo's current strength, he can get parts from Japan that are cheaper than Dongfang Electronics, so Li Xuan is not afraid of a price war at all.
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