Rebirth Tokyo 1986

Chapter 389 Japanese Animation Master
Upon leaving the fighting game development department, Masato Takeshita suddenly saw a very interesting game screen.

The young man then stopped and quickly walked over to try out the farming game in front of him, which resembled Stardew Valley, feeling a surge of excitement at having found a fun game.

"Is this the company's farm town type game? It looks like it's about to be successfully developed?"

"Yes, this is a farming game that we made according to your requirements, and it's currently in its second generation."

Suzuhara Tetsuya bowed slightly respectfully and briefly answered his chairman's questions.

"Oh, it's the second generation now. The first generation must have sold very well, right?"

Generally, if a game can be developed to its second generation, it means the game is profitable. And it can't just be a small profit; it needs to be at least twice the size of the development scale.

Unless a game has already established a franchise, game companies will not produce sequels at a loss, hoping that the new sequel can recreate its former glory.

Starry Sky Games' Farm Town doesn't receive this treatment, so it can only mean that the game's sales are better.

"Although the game only sold over 60 copies, the production cost was very low, resulting in a profit of about 10 times. Naturally, the company supported the development team in making a sequel."

"Furthermore, these types of games can help us train new employees and increase their game development experience."

Farm games are typically small-scale, and can be developed by a single person. Furthermore, farm game sales are relatively stable, with little variation in the number of copies sold, whether good or bad.

Such a place naturally becomes the best base for Xinghai Games to train new employees.

"That makes sense. Casual games are very suitable for new employees."

While manipulating the mouse, Masato Takeshita responded subconsciously; he was somewhat engrossed in the task.

Fishing, in particular, is one of the most interesting aspects of farm games.

Of course, the early farming phase is also very interesting.

The satisfaction of watching your own creation gradually improve and become more beautiful is something only those who have experienced it can understand.

However, farming games also have a common problem: they become too grindy in the later stages.

That kind of hectic life, where you practically have to harvest and process agricultural products all the time, is far more exaggerated and exhausting than the 996 work schedule.

After playing for about half an hour, Masato Takeshita reluctantly put down his mouse.

"This is a really good game. Is it available on both consoles and PC?"

"Yes, the PC version can reliably contribute more than 40 units in sales for us."

Xinghai Games' new PC games will be purchased by the Xinghai Internet Cafe Alliance.

In this way, the minimum sales volume is guaranteed to be over 30 units.

Although the profit margin will be much lower, it can maintain a minimum level of game sales and prevent huge losses.

This can be considered a major benefit that Xinghai Games has gained since the emergence of the Xinghai Internet Cafe Alliance.

As for other companies, it depends on luck.

If your game becomes very popular, then Starsea Games will try to purchase it.

If it's just so-so, then we need to offer an extremely low price.

Big clients speak with authority.

Yes, Xinghai Internet Cafe Alliance is a truly major client in the PC gaming industry.

In developed countries alone, there are over 30 computers and thousands of internet cafes operating in the market. Including developing countries, the number of computers exceeds 40.

However, in developing countries, Xinghai Internet Cafe Alliance basically operates on a free model; even if they pay, the buyout price is very low.

Different national conditions lead to completely different attitudes.

"Oh, so it seems the PC market has become the cornerstone of the company's development?"

When asked by his own chairman, Tetsuya Suzuhara answered with certainty.

"Yes, the PC market is the cornerstone of the company's development. With the support of the PC market, employees can freely create games."

In the early to mid-1990s, the game market was dominated by small project teams. Even with discounts, sales of hundreds of thousands of copies could basically cover development costs.

However, the gaming market has begun to change.

The emergence of 3D games has increased game development costs.

What used to take tens or hundreds of thousands of dollars to develop a good game is now gradually evolving into hundreds of millions or even millions of dollars.

This can be considered an inevitable law of progress in the times.

"Yes, but we can't be too free. The company needs to have the ability to develop 3D projects and large-scale projects involving many people."

"Yes, please rest assured, Chairman, the company also has plans to launch an RPG game."

Mini-games can generate revenue, but they are unlikely to significantly enhance a company's standing and influence within the industry.

Tetsuya Suzuhara was ambitious and naturally wouldn't be content with just making money. Therefore, after taking office, he launched five major projects in one go.

"Ah That's good."

After a cursory look around and finding nothing particularly problematic, Takeshita Masato didn't linger.

He also wants to visit Xinghai Animation to meet Hideaki Anno, who created the company's hit IP.

As soon as they arrived at the place, Masato Takeshita couldn't wait to say it.

"Anno-san's animations are really good; they touch everyone's hearts."

If you strip away all the superficial details, EVA actually reflects the true thoughts of young people after the bubble bursts.

It is precisely because it represents everyone that it became a hot topic of discussion among young people after just three episodes.

While it is not enough to offset the negative impact of the Miyazaki Tsutomu incident on animation, it has begun to dispel the fog.

"President, you flatter me. I am simply expressing my true thoughts through animation."

Hideaki Anno did not realize the potential of this anime. Although he was happy about the increased popularity of the anime, he only felt that the late-night time slot on TV channels had potential.

However, this is normal; the birth of most well-known IPs is full of surprises.

Hello Kitty originated from cartoon images printed on small gifts and greeting cards; Pikachu originated from games that performed poorly in their early stages...

Only those wildly popular comics can guarantee the value of their IP from the very beginning.

"That's great. Original animation should fully showcase the thoughts and ideas of animators."

Since Hideaki Anno is here, he naturally can't miss Studio Ghibli.

But the old man is the type to take his time and do things meticulously, so for now we can only get a general idea of ​​his new movie.

Have you tried contacting Sony to release our film in the US through their channels?

"No, does the president have any thoughts?"

Toshio Suzuki, who was in charge of Studio Ghibli's publicity, gently shook his head and looked expectantly at Masato Takeshita.

He also has the desire to promote his own animation to the world, but he simply doesn't have the ability to do so.

"In this way, the company established a new business unit in the United States. Then we gave away our animations to others for free."

Studio Ghibli doesn't have much brand recognition outside of Japan, so there's no need to get bogged down in trivialities.

They directly copied the NBA's strategy for entering the Chinese market, giving away the animation broadcasting rights to others for free.

"free?"

Hayao Miyazaki objected, as older generations of Japanese people like him value copyright the most.

"Yes, not only Studio Ghibli, but we're giving away the broadcasting rights for the entire Xinghai Animation franchise for free for five years." Expanding into new markets requires strategy, and free is always the most effective strategy.

"This this……"

Miyazaki was still a bit confused and was about to refuse when he was interrupted by Takahata Isao, who was sitting to the side.

"I think the free strategy is great; it can expand our influence overseas."

"Yes, we can make more money when we have a greater influence."

Masato Takeshita smiled and nodded, then continued to explain his reasons for doing so.

"For a Hollywood animated film, box office revenue accounts for less than 30% of its total revenue; the rest comes from merchandise."

"The movies and TV animations we give away for free can increase the influence of the animations once they are released, and then we can make money from merchandise."

"Perhaps the money earned from the surrounding merchandise will far exceed our copyright fees."

At this point, the young man paused slightly, and then continued after seeing that the others seemed to understand.

"Besides, we can't sell our animation copyrights to East Asia and Southeast Asia right now. It's better to give them away for free and make money from merchandise and DVDs than to leave them gathering dust."

With his broad perspective, Toshio Suzuki immediately realized something was wrong; if it was free in Europe and America, it would be difficult to charge for it in places like Hong Kong Island.

However, considering that it wasn't much money, he didn't say anything.

He agreed with Masato Takeshita's idea that the copyright fee was insignificant compared to the increase in influence.

Of course, all of this is based on the fact that Xinghai Group is rich.

If Studio Ghibli were still at Tokuma Shoten, he would never have supported a free strategy.

Compared to future development, it is more important for the company to focus on the present.

"Well, okay, I'll listen to the chairman."

Hayao Miyazaki was still reluctant, but since his old partner Isao Takahata and producer Toshio Suzuki, with whom he had a good working relationship, both approved of the plan, he couldn't say anything more.

"OK, it's settled then. Starting today, all works under Xinghai Animation will be licensed free of charge to all countries."

"As long as the animation isn't drastically altered and no merchandise is produced, everything else is fine."

After barely reaching an agreement, Masato Takeshita didn't linger; he needed to hurry to the next place.

Afterwards, Miyazaki Hayao watched the young man leave, glaring angrily at Takahata Isao and Suzuki Toshio.

"How can we give our animation to others for free? It's very unfair to our Japanese viewers who support us."

"Old friend, there's nothing we can do about it."

Isao Takahata patted his old friend on the shoulder and continued.

"Our films are not well-known in Europe and America, so they simply won't buy the copyrights. Even if we gave them away for free, we'd probably have to beg them to give us feedback."

For movies that aren't well-known, sometimes people are unwilling to show them for free, complaining that your movie might negatively impact viewership or theater attendance.

Only during off-peak time slots on TV and in theaters will they use the free animation you provide to fill their runtime.

As for the Asian region, Japanese animation still enjoys considerable popularity.

But this didn't help.

Because, apart from a few countries and regions, most places in Asia don't yield much profit.

Why not give it away for free now and lay the groundwork for the future?

"That's true. We have no initiative at all; we can only do whatever others say."

Suzuki Toshio looked helpless; Ghibli was the weaker party and had no bargaining power whatsoever.

"Oh, so that's why you agreed to the president's free strategy, and then took everything back when you had a lot of influence?"

"That's right, influence equals money."

Isao Takahata shrugged and then nudged his old friend.

"Okay, I know you've figured it out, but you're still having a hard time accepting it. That's normal. Your brain will adjust to it after a while."

"Don't forget, we're part of the Xinghai Group, and we don't lack those copyright fees at all. Even if the animation is free to watch domestically, we still don't need to worry about funding."

Since its inception, Studio Ghibli has faced financial problems.

The parent company, Tokuma Shoten, is weak and unable to provide sufficient funds for Studio Ghibli, and occasionally even tries to take advantage of them.

It can be said that everyone at Studio Ghibli has developed a frugal and thrifty approach to making money.

Xinghai Group is different. It has never lacked money since its inception, so its vision is naturally more far-sighted.

“That’s right. We’ve only used two-fifths of our budget this year, so there’s no need to be too frugal.”

In order to develop its own animation industry, Xinghai Group will provide subsidies based on the development of each company.

This money is mainly used for training new employees and for team-building activities.

As for investments in animation, Xinghai Group has separate funds to handle them.

Of course, every animation company has targets to meet.

The first three years are a guarantee period for newcomers, during which Xinghai Group will cover all expenses of the animation company.

After the three-year probationary period ends, the 11 animation companies will be required to be self-sufficient.

If a company becomes poorly managed, it is usually dissolved, and its employees are reassigned to other companies.

Of course, even if the company's work is critically acclaimed but commercially unsuccessful, the group will still support them even if they cannot make a profit.

Because Xinghai Group needs more than just money in the animation industry; it also needs influence and recognition.

This is also the Hollywood formula: some directors are responsible for making commercial films to make money, while others are responsible for art films to enhance Hollywood's reputation.

As for directors who have achieved great success in both artistic and commercial fields, they are extremely rare, and each one is highly sought after.

Starsea Animation Studios has so many animation companies and so many animation directors. Currently, it seems that only Hayao Miyazaki can reach this level, producing animated films that are both artistic and commercially successful.

However, this is not Miyazaki Hayao's peak moment yet; he and Studio Ghibli are both in a period of transition.

Besides Hideaki Anno and Hayao Miyazaki, Satoshi Kon was another animation director that Masato Takeshita highly valued.

His work leans more towards art; don't even think about making money from it.

Of course, at this time, Satoshi Kon had not yet demonstrated his talent as an art director.

Satoshi Kon directed his first animated film only after the Starry Sea Group made a strong entry into the animation industry. Before that, he was mainly responsible for character design, scriptwriting, and direction.

"What is this? It looks interesting."

Satoshi Kon's style is somewhat fantastical and bizarre; those who like it find it particularly interesting, while those who don't find it boring.

This is a common characteristic of most art films: they are not exciting enough to attract viewers.

"Blue Apartments, a story about immigrant apartments."

Satoshi Kon didn't know how to explain it either, and gave a dry reply.

"Oh, I see. Then, Satoshi-san, you continue with your work. Maruyama-san and I will go take a look elsewhere."

"Okay, Chairman, you're busy."

(End of this chapter)