"Mr. Morita, do you want to enter the Japanese KTV market with "Snake"?" Chen Zhiwen thought for a while and asked.
Since the beginning of developing arcade games, Chen Zhiwen has always followed the performance development rules of the chip market. "Snake" was not chosen randomly as the first game, but because it is the simplest game and requires the lowest computing power of the chip.
In the same way, "Magic Cube" requires more chip computing power than "Snake", and the current "Space Invaders" has the highest requirements.
Today, the chip used in "Snake" is already a non-mainstream computing chip. The price has been halved, and the cost has indeed been reduced a lot. However, this game has been released almost two years ago, and the European and American markets are almost saturated. There are no more orders. The main production capacity in Hong Kong is "Space Invaders", which is climbing rapidly in the United States, and "Magic Cube", which is still in high demand in Europe.
"Yes, since the environment is different, the business methods must be different. The game "Snake" has no market in Europe and the United States, and the cost has also dropped. If the market in Japan or other non-European and American countries is not developed, then It means it has no use. In this case, it is better to lower the price. As long as it is lowered to a level that Japanese KTV can accept, then this will be a very big market. Not to mention compared to the United States, even if it is one-fifth, it will still be a big market. It’s very impressive.” Morita Shaofu said with a smile.
"It makes sense." Chen Zhiwen had to admit that the old man in front of him was indeed right.
In fact, Japan's game arcades in the 1980s were actually the product of a sharp drop in arcade machine prices. When arcade machine prices dropped, once-impossible business models would become a reality. If he had asked Woz to be in charge of "Snake" 》The hardware is to reduce the number of chips so that the first generation of arcade machines can make American bars profitable.
In the same way, Japan, which does not have a large number of bars, would not be able to launch arcade machines because there is no place where these high-spending groups can gather. However, the KTV mentioned by Shao Morita does have some hope.
In terms of crowd density and mobility, KTVs are not as good as bars. However, some people go to KTVs and are willing to spend money. This is also a potential possibility. It has not even appeared in the original history. .
In many KTVs in the 21st century, there are also many games, but they are modern games that can be projected onto the screen. They are completely different from now. Morita Shao's proposal can only be said to be feasible in theory, but what is the actual situation? , don’t know yet.
"Actually, I have arranged for people to try it in some KTVs in Japan. There are still many people willing to play in some large private rooms, but they are not suitable for the coin-operated mode. Instead, they are directly priced based on time. Everyone can play, or directly Included in the price of the private room." Morita Shaofu said with a smile: "As for the issue of spending power, Mr. Chen, don't worry. In many KTVs, fruit prices are very expensive, but many people still consume them. You can play this game for half a day, and you may still pay the price. Not as good as a fruit platter.”
"That's true." Chen Zhiwen nodded and said.
In this era, Japan's economy is rising rapidly. It is at the level of developed countries and is still rising. Although it is not yet ten years later, Japan intends to buy the entire U.S. economy at that time, but the rising economy , giving many people the motivation to consume, especially Japan's exports, which have ranked first in global trade surplus for several years, and Japanese cars have begun to expand significantly in the US market.
"But no matter what, KTV still can't match the number of people in bars. The difference is too big. The price of arcade machines needs to be significantly reduced to make it possible to continue this business model." Morita Shaofu added.
"What is Mr. Shengtian's psychological price?" Chen Zhiwen asked.
"The cooperation model, I hope, will be the same as that in the United States. Hong Kong will directly send the arcade machines to Japan. You will be responsible for everything before customs entry, and then I will be responsible. The price is 1,200 US dollars per unit." Shaoo Morita said.
"Impossible, the price is too cheap." Chen Zhiwen shook his head and said. Two years ago, his selling price reached 2,500 US dollars, and the cost here was almost half, which is 1,250 US dollars. Now even though the chip price has dropped by half, But the cost of a "Snake" arcade machine is seven to eight hundred dollars.
Being able to earn 400 US dollars is already considered a very good business for many companies, but it is too little for Midea's long-term profits.
"If there are more, Japan's KTV will not be able to bear it. I have already calculated that a KTV large private room has two games a day on average, and one session can cost 2-3 US dollars. It takes almost a year to recover the cost. This is actually compared to the United States. The bar is a little bit worse, but it’s still acceptable,” Morita Shaofu said.
"Not every guest can accept paying for a game console, right? Some people may not like it?" Chen Zhiwen asked.
"It is possible, but unlike American bars, KTVs have many rooms, and there are always rooms that are willing. It depends on the operator's ability." Morita Shaofu said.
Chen Zhiwen nodded and said: "I need to calculate the cost here, and the production capacity of the factory in Hong Kong is currently at full capacity. If we need to re-produce "Snake", it will take at least a month of preparation time."
"Actually, Mr. Chen can authorize Sony to produce in Japan. In this way, transportation costs and tariffs can be saved. There is no need to add more factories in Hong Kong. Midea only needs to authorize us, and we will follow the authorization. Just pay the licensing fee according to the quantity." Morita Shaofu added.
"This is not possible. The production of arcade machines must be done in Hong Kong." Chen Zhiwen shook his head and said. After authorization, no one knows how much the other party has produced. Even for "Snake" after the price reduction, an arcade machine costs several hundred dollars. Run, who is not jealous?
"That's okay, you can wait a month. These are small things. I also hope to discuss further cooperation with Mr. Chen. We at Sony can also make chips. We can also make Midea's latest arcade chips, which are color The same goes for monitors. My quotation can be 10% lower than that of American chips and Bayan's RCA factory. What does Mr. Chen think?" Morita Shaofu added.
"Do you want Midea to purchase Sony's chips and monitors?" Chen Zhiwen suddenly understood. This may be one of the important reasons why Morita Shaofu came to Hong Kong.
At present, Midea's arcade machines only sell close to 100,000 units a year in the U.S. market. In Europe, there are 50,000 to 60,000 units. In addition, in other places, 200,000 units a year is not a problem.
200,000 color monitors, and they are high-end types, are priced at US$20 million, and the value of the entire chip is even higher. Such a large order is enough for the founder of Sony to come to Hong Kong to negotiate in person.
As for the exclusive agent, it is estimated that Shao Morita thought of using this opportunity to negotiate with himself when he saw the potential of this market. After all, no company will give up having 100 million people if it has the opportunity. of developed countries.
"Yes, this is one of the main purposes of my coming to Hong Kong. Midea is already a very influential electronics company in Asia. We at Sony are very willing to cooperate with Midea in this regard. In terms of price, Mr. Chen will definitely be satisfied." Shao Morita The husband said confidently that in terms of cost control, Japanese companies far surpassed the United States. Even RCA went to Bayan to build a factory, which only reduced labor costs, but its technology and efficiency were still not as good as Sony's.
"If it can really be cheaper, I can consider it. Color monitors are okay, but chips are not. The risk of replacing the chip midway is too great." Chen Zhiwen thought for a while and said.
The color monitor is just a display, but the chip is the heart of the entire game. It has been selected and tested. If it is confirmed to be OK, it cannot be replaced casually. Otherwise, if something goes wrong during the replacement process, no one can We can't afford it, and if we test it slowly, we won't be able to keep up with market demand.
"Our Japanese chips are definitely no worse than those in the United States. Mr. Chen can think about it again." Morita Shaofu said again.
Japanese chip technology has basically no problems in general market areas, such as home appliances, but not in high-end areas, because many companies simply do not give Japanese chips the opportunity to try, which requires a slow breakthrough. Once a breakthrough is made There are only a few companies, but there are no quality issues, and the price is cheap, so it will be much easier to break through other companies.
"Well, after "Space Invaders", Midea will launch the next generation of new games. It is still in the hardware design stage. We are still using American chips, but this time we can adopt your chips and do testing together. , in this case, as long as they are qualified, both chips can be used in the future." Chen Zhiwen said after thinking for a moment.
Japanese chips are currently making rapid progress under the joint efforts of the Japanese government and several major electronics giants, but what they lack is actually the opportunity to compete in actual combat. Midea has actually been completely dependent on Intel's chips, although the probability is very low. But if you suddenly can't buy chips, you'll be in trouble.
Having another choice gives you peace of mind. Large companies usually have backup suppliers. As for whether it will help the development of Japanese chips, Chen Zhiwen is not worried at all, because even without him, Japanese chips will do whatever they want. In this way, the most fundamental reason is that Japan's ability to control costs and the degree of involution are far greater than those of the United States. In the early days when the technology gap was large, the United States could still do well in semiconductors. Once Japan catches up, it will be useless. In later generations, In the mid-1980s, if the White House hadn't taken action, Intel would have been bankrupted by Japanese Semiconductor.
In the early 1990s, Samsung Electronics, which was promoted by the United States, would also beat Japanese semiconductors.
As for his own chip industry, Chen Zhiwen is not arrogant enough to think that he can compete with Japan in the 1980s or South Korea in the 1990s with the support of the United States. This is impossible for one person to do. He can guarantee the success of his company in the mid-range field. Just be self-sufficient.
Or wait for the opportunity to invest in companies such as Samsung and TSMC early. Although both companies are completely controlled by US capital, as long as you can hold a small amount of shares, you can at least get a small piece of this feast.
On the contrary, LCD, this field is not strictly controlled, but I have the opportunity to play at home. Again, the same goes for BOE, which supports the future of the country.
"Midea is already developing the next new game? This is really admirable. It seems that only Midea in the world can grasp what kind of games users need to play. Mr. Chen doesn't know how to do it?" I heard that there are also Shaoo Morita couldn't help but feel a little jealous of the new game. The game was really too profitable. Sony spent more than ten years researching and developing color picture tubes and invested hundreds of millions of dollars to develop the latest generation of technology and create color picture tubes. Although it is also sold well all over the world, the profit is still not as good as an arcade game with almost no technical content.
"It's just good luck. Compared with Sony's technology, the beauty is still far behind." Chen Zhiwen said with a smile.
"Then our cooperation is okay, Mr. Chen, right?" Morita Shaofu said again. He didn't ask any more about the arcade. This was the core secret of the other company. How could he tell him? Asking was in vain.
"As long as your color tubes have better performance and are cheaper, that's no problem. I can purchase 10,000 of them from you at one time. As for the chips, you can arrange for someone to send the samples over. We need to do tests and make sure they pass the test according to your requirements." Chips are used to develop game programs, but you have to sign a supply agreement and a quality agreement to ensure stable quantity and quality supply." Chen Zhiwen thought for a while and said.
"No problem." Morita Shaofu nodded and said. He was naturally very confident in his own chips, not to mention the production capacity. Japanese chips were preparing to go global, so how could they not have production capacity.
"Okay, but I have one more request." Chen Zhiwen paused and said, "I need to purchase some patented technology for color picture tubes from Sony, as well as a color tube production line."
"Color tube production line?" Morita Shaofu frowned slightly and said, "Midea also wants to enter the color TV field?"
"Yes, but I don't need Sony's latest technology and production lines, just the previous generation technology." Chen Zhiwen added that Sony's latest technology and production lines cannot be bought even if you have money, and it is impossible for others to sell them.
"Old production line?." When he heard that it was not a new production line, Morita Shaofu immediately returned to normal. Sony did have second-hand production lines to deal with. It was originally planning to sell them to Southeast Asian countries. It would be no problem to sell them to Hong Kong. .
But if Midea could produce color tubes on its own, wouldn’t the purchase of color tubes we just talked about soon die?
However, with Midea's capital, it is not a problem to enter the industry of producing color picture tubes. Sony will not provide help. If Midea has money, it can find other brands or directly purchase production lines.
And as one of the top companies in the color tube industry, Shao Morita also knows that the technology of color tubes is very complicated. It may take half a year from the installation of the production line to the subsequent production, and a new company does not have the people skilled in this area. In terms of manpower, it will take at least two years to stabilize production. This will affect cooperation, at least for now.
"Yes, Midea's main home appliances are fans, air conditioners and refrigerators, and it still lacks a color TV. There are also some color TV factories in Hong Kong, but they are all assembly, so I want to buy a color tube production line. Second-hand ones are also fine, but if If not, then I will have to go to Europe or the United States to place an order," said Chen Zhiwen.
In the past few years, Midea has not entered the field of color TVs. This is because among home appliances, color picture tubes have the highest technical content and require large investments, far exceeding the core condenser of refrigeration equipment, and the barriers to technology patents are very strong.
In addition, color TVs are visual products, and users are very picky. It is difficult to achieve results when the terminal sales market layout is not large-scale.
However, this year, Costco is preparing to enter a stage of rapid expansion in the United States, Wal-Mart is also developing rapidly as it has been for half of history, and its own funds are still sufficient. Trinity has reached the time to invest in color tube production lines. More importantly, the mainland The re-opening is coming soon. This is a golden opportunity. You can’t wait until the re-opening and then slowly enter the market to study it, right?
As for why we buy second-hand ones, one is that they are cheap, and the other is that without a cooperative relationship like Sony, it is very likely that we will not be able to make good-quality color tubes even if we buy the equipment. Western countries are not only cheating the mainland, but also I know how many developing countries have been played like this.
"Mr. Chen, don't worry. Our Sony company has a production line with an annual output of one million color tubes in a factory in Hokkaido. It is 80% new and can fully meet Midea's requirements. However, I need to spend some time to confirm the price." Morita Shaof said immediately.
"Okay, as long as the price is right, I can consider buying it. I need Sony engineers to guide me throughout the process and train my workers. As for the cost, I can pay extra according to Japanese wages until we can produce color tubes of good quality. ." Chen Zhiwen said again.
"No problem, our cooperation goes far beyond this transaction, don't worry, Mr. Chen." Morita Shaofu said with a smile. A production line costs only 20 to 30 million US dollars, which is incomparable to Midea's potential future orders.
"Okay, then I'll wait for the good news from Mr. Shengtian." Chen Zhiwen nodded and said. Mutual benefit is the basis for cooperation with this group of wild wolf companies.
As long as a little of Midea's hundreds of millions of dollars in external purchases is given to Sony every year, at least during the cooperation period, Sony will not really cheat itself, because Sony is not its only choice in this regard.
Similarly, cooperation with Sony can also reduce Midea's procurement costs and avoid the risk of supply interruption in the United States. At the same time, it can also obtain some technologies from the traditional home appliance industry.
As for his own chips, they are still many generations behind Japan's and have not yet been manufactured. Chen Zhiwen has no intention of obtaining patents in this area from Sony, and there is little chance that Sony will grant them.
PS: Please give me a monthly ticket
(End of chapter)
