Tokyo Video Game Tycoon.

"Damn Yusei Electronics Entertainment! They're trying to stifle our American gaming industry and allow the Japanese to completely monopolize it. We absolutely cannot let them achieve this!"

The young boss's eyes darted around quickly, then he swiftly picked up the phone.

"Hello? Glass Brothers, yes, it's me. Have you heard about the news from Youxing Electronic Entertainment? What? You heard about it too? What do you think?"

……

"That's right! This damn company is targeting us, we have to fight back! Otherwise, we'll all be wiped out!"

……

"Wait a minute, listen to me first. My suggestion is to retaliate with the same low price! We can also lower the price to five dollars a game, we'll just make less money, but Yuxing Electronic Entertainment is definitely competing at a loss to suppress us, we can totally fight them to the bitter end!"

……

"That's right! That's exactly it, my brother! Let's adjust the sales price together and show that Japanese company what we Americans are capable of! We absolutely cannot admit defeat!"

Click!

The young boss hung up the phone, his expression gradually turning gloomy.

"Tell the marketing department that we're changing our prices; all products will only cost five dollars!"

Upon hearing this, the employee timidly suggested, "Should we follow suit and offer a game for one dollar?"

"You idiot! If we do that, we'll die on the spot! At least we can make a small profit at five dollars a game, but exchanging it for one dollar is suicide!"

"But even so, we're still not very competitive..."

"Let's see how things go. If it really doesn't work, we'll lower the game's price again. We absolutely cannot let Youxing Electronic Entertainment succeed!"

"Okay, I'll do it right away!"

The employee immediately ran out of the office to carry out the boss's instructions.

But not long after, another employee rushed in in a panic.

"Boss! Something terrible has happened! We've been sued!"

The young boss felt a sudden unease, a sense of foreboding washing over him.

Who will sue us?

The employee who rushed in handed his boss a newly delivered court letter.

The boss quickly opened the package to check, and then felt his vision go black.

Inside was a court summons and a lawyer's letter from Yuxing Electronic Entertainment.

"Dear *** Company, after multiple investigations and evidence collection, we have discovered traces of our company's code in several of your video game products. We strongly suspect that your company has shamelessly copied our game code for profit, causing us irreparable losses. In accordance with the Digital Copyright Act, we hereby order your company to immediately cease its digital infringement activities, and you will also face legal action from us..."

A lawyer's letter usually gives advance notice, and the court summons will only arrive if the notice is ignored.

However, this time both documents arrived at the same time, which means that Youxing Electronic Entertainment has begun legal proceedings.

"Where is our company's lawyer? Where is our company's lawyer? Contact him immediately!"

The young boss shouted loudly.

He seemed somewhat hysterical at this moment, no longer as composed as before.

Soon, the lawyer hurriedly came to the young boss and personally checked the court summons and lawyer's letter.

The lawyer looked serious: "Boss, you are indeed suspected of infringement, but there is still room for maneuver."

Upon hearing the lawyer's words, the young boss's eyes lit up: "Can it still be salvaged?"

"It can definitely be salvaged to some extent. First, we need to delete all the suspected infringing code. Then I will handle the rest. In the United States, this is our territory, and they are outsiders. The court will be more inclined to side with us, especially since we are the weaker party. The jury can also negotiate, but the process will be very long."

"The process is very long... Does this mean that Yusei Electronics Entertainment will also have to pay huge sums of money in lawsuits?"

The lawyer nodded: "That's right. They will pay the same price as us, and in fact, they will pay even more to maintain their advantage."

"Very well, then we can delay, and keep delaying!"

Chapter 262 A Seed

For a small company, a lawsuit can have a significant impact. However, the young boss soon learned that Youxing Electronic Entertainment had sued quite a few companies.

There are at least thirty or forty game companies that copied their code, and Youxing Electronic Entertainment has sued them all at once.

Moreover, they hired a top-notch team of lawyers specializing in infringement cases at a high price, completely disregarding the cost.

Clearly, Zhu Youxing wanted to use this method to warn certain people with ill intentions: if you want to squeeze any profit out of me, then you should prepare to face my fierce counterattack, even if it comes at a terrible price.

But whether Yuxing Electronics Entertainment can afford this cost is another question altogether.

"A Japanese company, which is just starting out, is trying to fight on two fronts with a low-price, loss-making strategy and legal means. They are obviously a bit arrogant. We will just wait and see. Although we will suffer considerable losses, if we can bring this big company down, then we will have won!"

After a day of shock, the owners of more than a dozen game companies calmed down.

Zhu Youxing's attack was fierce, which did make them a little flustered at first.

However, after thinking about it for a while, I realized it wasn't so bad after all.

No one knows exactly how much money Youxing Electronic Entertainment has made. These small companies don't have any proper statistical channels. However, in their opinion, Youxing Electronic Entertainment probably doesn't make too much money. After all, they still need to pay a lot of capital investment. If most of their working capital is invested in selling games at a loss and fighting lawsuits, it is obviously a very unprofitable behavior.

This kind of two-front warfare is not cost-effective.

As a result, these dozen or so small companies gradually became more emboldened.

A few days later, they immediately began selling their respective companies' game products at four dollars each. Four dollars was their break-even point; anything lower would result in a loss. They wanted to sell all the games first, and then invest a little more money to develop new games, without copying the code from Youxing Electronic Entertainment.

This would increase development costs slightly, but it's no longer a problem in today's relatively mature game industry.

If the new game sells for around five dollars, it can still compete with Yuxing Electronic Entertainment.

They believe that the games sold by Youxing Electronic Entertainment must be sold at a loss, otherwise the games shouldn't be so cheap.

As long as they can get through this period, the future will be bright.

At this time, Hayakawa Ueto also learned of this news.

He was also shocked when he heard about the series of actions taken by Youxing Electronic Entertainment.

That's too risky.

This operation is very risky; one wrong move could bankrupt the company.

But at the same time, he also admired Zhu Youxing.

He is someone who is willing to bravely protect an industry.

The previous trash games had the biggest impact on them, causing a precipitous drop in sales of their newly released PN2 game console.

Not to mention the PN1 game console.

He had originally planned to announce their first handheld console soon, but this incident forced him to temporarily shelve the project and cut his losses.

Otherwise, they might spend huge sums on marketing and promotion, only to find that the spread of those cheap, low-quality games is still insufficient.

Cheap, low-quality games are like viruses, and Zhuyouxing is now like an antivirus expert, paying a 'price' to kill these viruses.

However, after careful consideration and analysis by several professional researchers, they discovered that the sales of FC by Yuxing Electronic Entertainment were probably not a loss, but rather a profit.

Dozens of data analysts integrated all of Yusei Electronics Entertainment's FC sales information in Japan, only to discover that Yusei Electronics Entertainment actually had a terrifying inventory of FC game consoles and games.

Dumping all this inventory in the US is actually a way to save costs and increase revenue.

Of course, only large companies like Surui Electronics can afford to do this kind of data analysis.

Companies like Morgan Stanley in the United States could also do it, but they haven't taken Zhuyouxing seriously yet.

When Hayakawa Ueto saw these data laid out on his desk, he suddenly realized what was happening.

It turns out this guy had a much bigger plan: releasing so much inventory would save costs, and the money earned wouldn't even need to be recouped; it would all be used to fight lawsuits, creating a complete cycle.

On the one hand, it expands the market, and on the other hand, it can gradually eliminate those 'viruses'.

Hayakawa Ueto felt a surge of excitement when he saw these figures.

Zhu Youxing didn't pay any price at all; on the contrary, he profited from it.

The benefit they gain is letting players know that their games are high-quality, so that buying their games in the future is definitely the right choice.

Once this mindset takes hold, other game developers will no longer be able to compete.

Hayakawa Ueto, having thoroughly investigated everything, did not hesitate for a moment.

Youxing Electronic Entertainment has a huge inventory, and so do they.

The PN1 game console also has a large inventory, which allows him to lower the price of the console and the games themselves. Of course, the game quality is still not as good as that of Youxing Electronics Entertainment, but he may be able to take the opportunity to make a good profit.

As November approached, Surui Electronics also lowered the price of its PN1 game console, and the prices of its own games listed on it were also reduced to five dollars each.

Moreover, Su Rui Electronics is a large company. What Zhu Youxing can do, they can do as well. Even if they suffer a small loss as a result, it's not a problem. It's better than the previous precipitous drop in sales.

……

The strategies employed by companies like Youxing Electronics Entertainment, Surui Electronics, and many others that copied the company are essentially business practices.

In business competition, the players actually benefit the most.

They can play games at a lower price and experience the joy that games bring.

In an American family, a child happily turns on the FC game console, inserts the cartridge that he just bought with his allowance, and starts playing a game called Donkey Kong.

Next to the television, there was a game console that had been sitting there for a long time, covered in a layer of dust, with some cheap junk game cartridges scattered around it.

Previously, these children were disappointed by cheap and low-quality games, which made them think that this was all video games were like.

But in the blink of an eye, only a few months later, FC games from Yuxing Electronics Entertainment allowed them to experience the joy of gaming again.

It turns out that games can really be fun, while the ones they played before were simply indescribable and unpleasant. A seed of gaming entertainment has quietly taken root in their young hearts and has already sprouted.

Chapter 263 Defeat

Why is Yuxing Electronic Entertainment showing no signs of decline? Don't they incur any losses selling FCs?

As December arrived, many companies that produced low-quality games had the same question.

In an effort to boost its company's reputation, Yuxing Electronics Entertainment now periodically releases sales figures for its game consoles and some of its games.

This sales figure is a dynamic ranking that displays the weekly sales figures for the top ten video games, as well as weekly sales data for game consoles.