The three major game console manufacturers cut prices at the same time, and even offered corresponding price reduction promotions for game discs. As a result, Sega suffered a tragedy.
Sega was also supported by Microsoft at the beginning, but unfortunately it failed to live up to expectations and was abandoned by Microsoft. Now Sega has neither money nor sales, and even its brand awareness is declining day by day.
They can't afford other people's price reduction promotions, and they're not making any money yet. If they cut prices, they'll just lose money. Sanni, Rentian, and later GBOX could all afford to pay, but Shijia could not afford to pay.
So in less than a month, Shijia could no longer hold on. This month, their global sales of Saturn game consoles were less than 100 units! It can’t be said that sales have plummeted, it’s simply a trap!
The shareholders of Sega are all frowning. Microsoft originally wanted to acquire them, but they thought the price was too low and would not make money. What now? If they want to sell it, they won't even want to sell it to Microsoft at a loss. Obviously, GBOX is more promising.
Although the sales volume of GBOX is still not as good as that of Sunny and Rentian, it can easily surpass Saturn. A new game console brand can actually climb to the third position in such a short period of time, which shows how powerful it is.
And now there are advertisements for GBOX on the Internet and in newspapers, with rave reviews. Of course, some of them must be bought with money, but it cannot be denied that GBOX games are indeed very popular. GBOX is completely made based on computers, and its functions are really powerful.
Moreover, GBOX-LIVE, which is about to be launched by GBOX, is also highly anticipated. In this regard, it is ahead of Sunny and Rentian.
But Sunny and Rentiantian have more fans, after all, they have been doing it for so many years. The sequels of some classic games have many people looking forward to them.
Duan Yongping also discovered a characteristic of the game consoles of those two companies, that is, the service life of their video game consoles is about five to seven years. In other words, their previous generation of consoles, even if they are not obsolete, are basically not obsolete. It's time to break.
This new machine happens to be sold now, and they don’t even provide repairs for the old machine. This trick made Duan Yongping remember it and forced users to replace it due to its service life.
In fact, this trick will be common in future electronic products. Whether it's an MP3 player, a cell phone or a tablet, including computers, few can survive five years without needing repairs. Of course, the current Nokia machine does not count.
Five years later, even if the machine is not broken, its functionality will definitely fall behind so much that you will have to replace it. This will continuously stimulate new product sales without causing market saturation.
Otherwise, if the quality is the same as that of the Nokian mobile phone, and a mobile phone can be used for ten years with careful care, the sales volume of the product will soon reach a peak and then go downhill.
Only then did Feng Yu understand that in the previous life, it was not just because the performance of the game consoles could not keep up that they launched new ones, but the older ones were almost ready to break.
Many users have become accustomed to the existence of game consoles. Coupled with the excitement of new games, people in their thirties will still choose to buy a game console to keep at home, euphemistically speaking, to play with their children. But often, these parents play longer and have more fun than their children.
"Mr. Feng, it hasn't been long. Although our sales have been rising steadily, we have lost a lot of money. Microsoft has been promoting this game console a lot, and the stock price has increased slightly during this period. , We are not a listed company." Duan Yongping was a little depressed, they were the losers from this discount promotion.
"Do you want Aihua Xiaobawang to be listed on the market?" Feng Yu asked with a smile.
This company that loves China is right here, not far away, but it is Peng Exchange. Looking at those red and green numbers, no wonder Duan Yongping was jealous.
Because of this GBOX, Aihua Xiaobawang handed over the business of repeaters, cordless phones and electronic dictionaries to Aihua Electric. These were all his ideas.
Originally, Duan Yongping thought that GBOX could make more money, but now it is losing money. Not to mention dividends from his shares, he may not even be able to pay bonuses to workers this year.
Of course, Duan Yongping actually did not suffer any personal losses. He would have to be compensated for the divestiture of advantageous businesses. Aihua Electric also had Duan Yongping's shares, and he could see that Mr. Feng was very satisfied with him. Not to mention the future, he can still compete for the position of vice president of Taihua Holdings Group.
Zong Qingxian also supported him. In the Taihua Holding Group, in terms of qualifications, Duan Yongping was probably inferior, but in terms of ability, Duan Yongping only obeyed Feng Yu.
"Mr. Feng, Aihua Xiaobawang's funds are getting tighter and tighter. We need to develop better consoles and keep the company running normally. Either shareholders will continue to inject capital, or we will have to go public for financing." Duan Yongping explained. .
Injecting capital is not just about losing money. Financing is great. If you use the money invested by retail investors to develop the company, even if you lose money, you won't lose much. Anyway, this GBOX project is a long-term plan. If we do it now, at least this generation of machines will lose money. It will take at least three to five years for the second-generation mobile phone to be launched, right
Can the company still hold back and continuously inject capital into Aihua Xiaobawang in the past three to five years? This is also not consistent with investment philosophy.
Feng Yu looked at Zong Qingxian: "Old Zong, what do you think?"
"I also think what Lao Duan said makes sense. Now it is clear that everyone is selling at a discount. Rentiantang and Suini are both listed companies. Their products are selling well. They claim to be profitable and deceive investors to look to the future. So the stock price You can make money back if you go up. But we can’t, we can only keep investing, which is too serious a pressure on funds.”
"Have you discussed it with Microsoft representatives? Do they agree to the listing of Aihua Xiaobawang?"
"They agree." Suan Yongping replied.
Feng Yu thought for a while: "Don't list it in China. There is not that much support for game consoles in China, and the amount of financing will not be too much. Let's go to Xiangjiang to go public, it is not too far, and we can raise more money. Lao Zong, Find someone to prepare a listing plan, and let Aihua Xiaobawang go public early next year!"
Of course you can continue to invest money in it, but as Zong Qingxian said, it is not cost-effective. Anyway, they still have the final say after listing, and there is nothing wrong with financing development now. If those investors are discerning and can cover it for more than five years, the rate of return will not be bad.
If Microsoft takes advantage of the rising stock price to cash out, that would be even better. He will make this game console himself in the future. However, Feng Yu estimates that Microsoft will never sell this part of the shares. Not to mention that the investment itself is not large, and it also has great strategic significance for Microsoft. If it were Feng Yu, he would only continue to increase his holdings, and he would definitely not Sold.
Aren’t Sunny and Rentian Tian going to compete with us to burn money? Come back now, raise hundreds of millions, or even billions of Hong Kong dollars, and play with them slowly.
(End of chapter)