Game Development: Starting with Recreating the Anime Game Style

Chapter 17 Chinese Cabbage

Upon hearing that Chu Chen wanted to keep the team size around 100 people in the future, Huang Jintao's first reaction was that Chu Chen was very confident in himself, while Xiang Lixuan next to him felt that Chu Chen was very ambitious.

In general, actually.

Most small companies in China tend to become conservative after they become profitable.

People like Chu Chen, who have just started to make a profit and are already expanding, especially to a base of 100, are extremely rare.

It's worth noting that, based on labor costs around Shanghai, the monthly labor cost for these 100 people would exceed one million yuan, based on the results on the first day.

The monthly revenue of "Final Frontline" is only around ten million.
Although Final Frontier is performing well now, its paid subscription rate is relatively low, and its revenue usually drops after the first month.

If the operating model is not changed, how much net profit can be made after deducting channel revenue sharing, taxes, and operating costs?

Huang Jintao muttered to himself.

With this revenue, the highest monthly profit would be less than four or five million, and after six months it might only be three million at most. To suddenly take out a million, or even all the profits, to support a team of a hundred people? The risk…

He looked at Chu Chen, trying to find a trace of hesitation or bravado on the other's face, but only saw calmness.

Compared to Huang Jintao's surprise, Xiang Lixuan didn't think that much about it.

Hearing Chu Chen talk about team expansion, he was like a wolf that had smelled meat.

"President Chu is indeed a young talent with great courage and vision."

"However, building such a large team presents considerable challenges beyond recruitment, including subsequent management, project planning, and cash flow."

He paused, his tone very "considerate".

"I wonder if Mr. Chu has any plans regarding funding? Or, does he need any external assistance?"

Chu Chen thought to himself, "The fox's tail has finally been revealed."

After all that buildup, it all comes down to the word "money".

Huang Jintao immediately realized what was happening and looked at Chu Chen.

For external investors like them, what are they most afraid of? They are actually most afraid of teams that are content with small gains.

Take Huanmeng Games, the developer of "Warship Girls R", for example. After "Warship Girls R" became popular, its development team basically did not expand much.

The money earned was not further invested in game development.

Of course, this is also related to the fact that the owner of Huanmeng Games is not from the game industry, and developing "Warship Girls R" was purely a lucky break.

However, teams like Huanmeng, which have no ambition whatsoever and just plan to keep living off their past achievements, are the most troublesome.

in contrast.

People like Chu Chen, who are ambitious, are their targets.

A team of over a hundred people cannot be easily supported by the current profits of "Final Frontline". Especially judging from Chu Chen's words, 100 people is just the beginning, and he will continue to invest in research and development.

This is indeed an excellent entry point.

"Funding? I have enough funds right now. I'll take it one step at a time. It shouldn't be a big problem."

"Taking it one step at a time is the right thing to do."

Xiang Lixuan immediately followed.

"But sometimes, the help of capital can make this step more stable and faster. Mr. Chu, to be honest, we at Tencent are very optimistic about Xingchen Games, both the 'Final Front' IP and the humanoid auto chess game launched by 'Final Front'."

"We all believe it has greater potential."

He leaned forward slightly. "We are willing to invest 60 million to acquire 30% of Starry Sky Games' shares, and will also provide Tencent's traffic resources support to help Starry Sky Games go further."

Sixty million, thirty percent?
Correspondingly, Tencent's current valuation of StarCraft is 2 million yuan.
This figure made Huang Jintao, who was standing next to him, twitch his eyebrows. Tencent was indeed rich and powerful, throwing money at the problem right off the bat.

A valuation of 200 million is actually within the normal range for a company with monthly revenue of over 10 million, because the current industry valuation of game companies is roughly annual net profit multiplied by the price-to-earnings ratio.

Conversely, Tencent's price-to-earnings ratio for Xingchen is approximately 10.

Not high, but definitely not low either.

Especially considering that the company's current product has been online for less than a month, the short launch time means high risk, and Xingchen may rise steadily in the future.

However, it's not impossible that he might die suddenly in the second month.

It seems that Tencent does indeed have high expectations for the game "Final Front".

Since the other party has already made a quote.

Huang Jintao had no choice but to follow suit.

"President Chu, we at NetEase also have high expectations for Starry Sky Games."

"We can also provide financial support, 60 million, which is also 30% of the shares."

"However, what I really want to say is not about money. We at NetEase have been deeply involved in the field of self-developed technology for many years, especially in the management of large-scale projects and the accumulation of technology. We have a lot of experience to share."

"We prefer to be a partner that grows together with Starry Games, rather than simply a financial investor."

"We guarantee that we will absolutely not interfere with the company's specific operations and product development direction."

The two talked back and forth, like bidding at an auction, except the target was a newly emerging game company.

Chu Chen's face remained calm, as if he had expected this scene.

He picked up the almost untouched teacup in front of him and took a small sip.

Sitting next to Chu Chen, Song Yueying's jaw nearly dropped in shock. Sixty million? Thirty percent?

Her brain seemed to freeze up a bit...
Doesn't that mean that in their eyes, the company is now worth... 200 million?!
Two hundred million!
Song Yueying's fingers curled slightly as she pinched her palm. It hurt a little; she wasn't dreaming.

As a veteran and art director at the company, she was already quite surprised when "Final Front" achieved a daily revenue of over 500,000 RMB a couple of days ago.

At that time, she was still marveling that Chu Chen had really made the right bet and succeeded.

The Final Frontier really made a lot of money.

But now, it's valued at 200 million? This money is too easy to make!
Song Yueying felt as if an abacus was clicking away in her mind, and she could almost see gold coins falling from the sky.

At that moment, she suddenly thought of someone.

Qin Hunting.

The major shareholder who ran away with one million back then.

One million, fifty percent of the shares.

Now, 60 million, 30% of the shares.

Song Yueying's lips twitched involuntarily, and she almost lost her composure.

She felt sorry for Chu Chen back then, but looking back at Qin Lie's actions now, he's just a complete clown!
If Qin Lie knew the company's current valuation, wouldn't he just explode on the spot?
Thinking about this, Song Yueying suddenly felt a strange sense of satisfaction.

She secretly glanced at Chu Chen beside her. He still looked calm and collected, as if a valuation of 200 million was no different from a cabbage on the roadside.

(End of this chapter)