Super Tycoon

Chapter 201 Game Consoles Don’t Make Money

On March 1, 1994, Zhiduoxing G was launched worldwide.

This approach is also different from other game console manufacturers. Others are launching in their main markets first, and then covering other markets, and the warm-up time is relatively long.

It also relies on preheating the publicity to measure the market acceptance, adjust some performance parameters, adjust the price, and at the same time purchase or designate a company to develop corresponding games according to the performance of its own game consoles.

At this time, game console manufacturers around the world are making little profit in terms of game consoles, and they don't even plan to make a profit. They rely entirely on the follow-up sales of game cassettes, CDs, etc. to make profits.

People who bought game consoles always wanted to play games. A game definitely couldn’t meet the needs of players. The more they bought, the more the company that developed the game consoles would earn.

At this time, companies such as Nintendo, Sega, Soni, NEC and other companies are all announcing the launch of the new generation of game consoles at the end of this year or early next year, and even Nintendo is planning to continue to postpone it, because their SFC is currently selling well. The product is a handheld GB.

But this year there will be a 32-bit game console with a very advanced design concept officially launched, that is 3DO.

In fact, this is a joint venture company with shareholders including Songxia, Sanyo, EA, several American film companies, and telephone companies. The company was established in 1992. In October of the same year, Songxia officially announced that they would launch a 3DO game console.

It was also at this time that Nintendo broke up with Suony and tore up the contract. Nintendo chose to cooperate with Philips, while Suony developed his own game console PS.

Last year, Songxia took the lead in launching the 3DO game console in the American market, but in the first month, it only sold less than 130,000 units, and had to stop selling it later because it couldn't be sold anymore. This data made other game console manufacturers laugh at it.

When their new game console was launched, it didn’t sell hundreds of thousands of units, or even millions of units in the first month. The global market had tens of millions of units that year, and then the games could also be sold crazy.

They didn't pay much attention to the sales volume of Songxia, and even asserted that this is a failed product with many shortcomings, and whoever buys it will know.

The reason why Songxia's 3DO failed was because Songxia set the retail price too high according to the routine of selling other electrical appliances in the past.

Before selling VCRs, TVs, etc., Songxia’s profits were not low. Their brand awareness is high and their technology is good. Even if the price is a little higher, the sales volume is not bad.

But after entering the game console industry, it gave them a head-on blow. Consumers think that the price of game consoles is too expensive, and very few people buy them.

When they first went on the market last year, the price was extremely high, which was high enough to sell for US$699 in the United States, and 78,000 yen in island countries.

And this price is more than three times that of SFC. Even consumers in the United States and island countries think the price is too expensive.

This year, Songxia is going to re-launch this game console. It claims to have adjusted some designs, but in fact there are no changes. It just improves production efficiency and reduces costs. At the same time, it also follows the rules of other game console manufacturers and does not rely on game consoles to make money. .

According to the news Zhang Yang got, 3DO will be officially listed in the island country in April. Although they lowered the price, they still failed to grasp the rules of the market.

Because Songxia handed over the sales of the game to those game development companies, and at the same time charged a certain percentage of licensing fees from those companies, hoping to make a profit.

Such game companies,

I am unwilling to develop games according to the requirements of Songxia Company, because I have to be responsible for my own profits and losses. It is possible to make a lot of money, or it may not be sold and lose money.

Most of those game companies have no sales channels, and Songxia Company was not even willing to let the games of those game companies be sold in Songxia stores at first.

This also leads to a big problem, that is, there are very few games that can be played on the 3DO game console.

The price of game consoles is high, and there are relatively few games. It is no wonder that the 3DO jointly developed by Songxia and other companies in the previous life failed.

After Zhang Yang passed the market research, he also discovered the problem of Zhiduoxing G. Like Songxia, he also wanted to use the sales of game consoles to make money at first.

Thinking about it now, this will fall into the bottom line. Just like Songxia's 3DO, the sales situation is not good, far below expectations.

No wonder he thinks that the game console developed by his company is not so outstanding, but it is not bad now. Compared with SFC, it is still significantly improved, and there are so many games for players to choose from. Why is the order quantity? It's that low.

It seems that in the final analysis, the reason is that the price is too high.

The production cost of this game console was initially close to US$400. Now that the production line has been debugged, the efficiency has been improved, and the cost has been controlled to less than US$350. To ensure the profits of agents and distributors, logistics, warehousing, advertising and other costs must also be considered, even if the selling price is too low.

Zhang Yang calculated carefully, and finally gave the retailer a guide price of 399 US dollars, and 41,800 yen in the island country market, and a KOF game is also included.

At this price, it is competitive enough. At least compared with 3DO, it is very competitive.

The new game consoles of other companies will only be released at the end of the year. During this period, the main competitor of Zhiduoxing G is only 3DO.

Not only the 3DO of Songxia, but also the 3DO produced by several companies such as Sanyo and AT\u0026amp;T.

It's not that Zhang Yang looks down on Songxia and them, nor does it think that 3DO's game consoles are bad, but their games are too few, which is a fatal flaw!

Souni and other companies can also bring game consoles to the market now, but they are still doing market research and acquiring the copyrights of some games at the same time, just to understand how the market operates.

The cost of a game may be one million dollars, but a game disc can be sold for twenty dollars. If you sell 100,000 copies, you can keep your breakeven. If you sell a million copies, you can make a lot of money.

After the new price was communicated with those retailers, the order volume increased sharply.

On the first day, the sales volume of Zhiduoxing G exceeded 180,000 units. Although this is the global data, it is actually only a few major markets, because only the English version is available. The region with the highest sales volume is the United States, which surpassed 100,000 units.

The sales of game discs are even more booming. The Metal Slug, which was heavily publicized before, sold 150,000 copies that day. With the increase in sales of game consoles, it will definitely become even more popular.

When Zhang Yang received Zhang Benxiong's call to announce the good news the next day, his tone was very flat, as if he had expected this a long time ago.

After hanging up the phone, Zhang Yang punched hard. This first step is considered a success, and the next step is to look at the sales statistics of the week and the sales statistics of the month.

If this month can be stabilized, then perhaps this year, the sales volume of Zhiduoxing G will be close to one million units, and his first small goal will be truly realized!

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