The investors looked at each other in shock. They did not expect Zhou Xin to answer like this.
Everyone is waiting for Zhou Xin to explain the meaning of "wait".
Zhou Xin continued: “I don’t need to do anything, Riot Games will naturally surpass traditional offline physical channels with technological breakthroughs.
The key factor that restricts Riot Games from further improving the user experience is network bandwidth. It takes about three hours for users to download a game.
During this time, they can go to a nearby physical store and buy a game CD.
However, as network bandwidth upgrades, download speeds will become faster and faster. It only takes 10 minutes for users to download games after purchasing them through Riot Games, so users will no longer choose to purchase in offline stores.
Even if there are activities in offline stores, can they hold activities that are attractive to players at any time, 365 days a year?
I'm afraid it can't be done.
And activities are also operating costs for physical stores.
The events we hold through our online game store can be available to all of our users at the same time. The activities of offline game stores can only be open to players within the radius of specific physical stores.
When will Amazon surpass traditional stores? When various infrastructures are fully developed, the popularity of logistics, commodity transfer warehouses, electronic payment software, etc.
When will Riot Games surpass traditional game stores? We need to wait for the network bandwidth to be upgraded.
At the same time, compared with traditional game stores, game developers can collect feedback from players at any time and release relevant DLC at any time.
The content of this kind of DLC is not enough to support a CD, like the Angry Birds Christmas Special, which only has fifty levels.
If it is sold offline, then we can only wait until the Christmas special is released together with Angry Birds 2. However, 2 was released in the summer, so the surprise that the Christmas special brought to players would be meaningless.
The same is true for other game developers. They can release DLC at any time according to their own needs and in conjunction with corresponding festivals.
Horror games can regularly release Halloween specials during Halloween, and FIFA can release World Cup specials during the World Cup.
I do not deny the advantages of offline channels, but in my opinion these advantages are limited and will gradually be consumed with the development of technology.
So for Riot Games, all we need to do is wait until their advantages are turned into disadvantages by technological progress. "
Zhou Xin continued: “The high operating costs of offline game stores will inevitably lead to great performance pressure on them.
This kind of performance pressure will become an absolute disadvantage when facing online game stores.
The split I just mentioned is a major source of dissatisfaction among game publishers.
The second-hand recycling prices offered to players by offline game stores are unusually low. At the same time, the selling price of second-hand games is much higher than the recycling price. Players have always been particularly dissatisfied with this.
Riot Games will adopt a series of operational methods to compete with offline stores for players.
We have a natural advantage in cost control. "
The investors here were thoughtful. Some investors who originally planned to hold Riot Games in the short term planned to hold a small part of Riot Games stocks in the long term.
In Zhou Xin's view, the only advantage that offline game stores have over Riot Games is the cartridges of console games, which cannot be eliminated through online channels in the short term.
But in the long run, game console manufacturers will also develop their own online channels, and offline stores will either transform into online stores or be eliminated.
After the roadshow ended, thunderous applause erupted from the scene, and everyone was full of confidence in Zhou Xin and Riot Games.
The success of a pre-IPO roadshow depends on whether it sparks interest in the offer and generates interest in investing in the company.
The purpose of the roadshow is to attract potential buyers of the company, and Riot Games alone is exciting enough just to have Zhou Xin behind him.
Not to mention this road show, Zhou Xin responded to all the key issues investors were concerned about.
The financial report of Riot Games obtained by investors is so healthy that these investors who are used to seeing the financial reports of Internet companies can’t believe it.
At present, the financial reports of most Internet companies can only be described in one word: bad.
They spent most of their time introducing the company's growth and number of users, touching on revenue, profit, growth rate, etc., but they were losing money anyway.
There is no harm without comparison. Why has the market value soared after Time Warner acquired Quora?
Because Quora has stable cash flow, a stable profit model, and the best customers, all of which make Quora look so valuable.
The same goes for Riot Games.
Therefore, the day after the road show ended, the Wall Street Journal directly printed this headline:
"Rist Games, the next great Internet company brought by Newman"
"Yesterday Newman led Riot Games' executive team to conclude a three-day roadshow at the Nasdaq exchange.
This is also the first IPO in the past five years to hold roadshow activities only in the New York area. A successful roadshow is often crucial to the success of an IPO project, but Riot Games’ roadshow does not seem to need to be carried out to make it extremely successful.
Just the name Newman is enough to make Wall Street investors pounce on him like hyenas. But judging from the road show held at the Nasdaq exchange yesterday, Newman and their executive team are obviously seriously preparing for the pre-IPO road show.
A detailed introduction was given around the company's current situation, future vision, development goals, corporate pricing and financial situation.
The content of Newman's speech during the road show and his answers to investors and media reporters made the author very intuitively feel that he is worthy of being the most successful product manager in the world.
His knowledge of Internet products alone far exceeds that of any Internet company founder I have ever heard in a roadshow project. The last time a founder had such a charismatic personality dates back to 1984, when Apple founder Steve Jobs single-handedly led the launch of the Macintosh computer.
The concept of user stickiness has given me a new understanding of how to judge the value of Internet companies."
News about the listing of Riot Games was very loud, and it was filled with major media and online forums for a while.
"Newman, congratulations, this will be another success. I believe you are gradually getting tired of success."
On the eve of the launch of Riot Games, Bill Gates rushed to New York to attend the launch ceremony of Riot Games with Zhou Xin.
He is actually the second largest shareholder of Riot Games, and this is also the most bragging investment in his personal investment career so far.
Zhou Xin: "Microsoft is more successful than any company I have ever founded, and you are still chasing success.
Where am I?
And Riot Games wouldn’t be so smooth without your help. "
At the upcoming listing ceremony, company representatives and Nasdaq representatives are required to ring the opening bell together.
This also marks the official listing of the company's shares for trading on Nasdaq.
Generally, companies will hold celebrations after listing. That year, after Alibaba was listed on Nasdaq, it gave 6 investment banks US$50 million as bonuses.
On the day of listing, New York and Hangzhou celebrated at the same time.
The representative of Riot Games is naturally Zhou Xin. Before going to ring the bell, Zhou Xin and Bill Gates chatted in the lounge.
One more chapter, maybe a little late
(End of chapter)
