Start a company to make games

Chapter 248 Play for real!play big!
"The price war, that is to say, for "Warcraft", we are more concerned about whether it can squeeze out "King of Middle-earth" and become the most popular RTS game nowadays."

"In contrast, you don't really care about making money, do you?"

Liu Xiong gave an affirmative answer: "That's right, my purpose for this "Warcraft" is very clear, which is to spend money to play with penguins!"

"Sometimes, for the sake of long-term goals, it is acceptable for a game of ours not to make money, or even to lose money."

"For example, that penguin teamed up with Glass Slag before in a competition with a prize money of more than [-] million US dollars."

"Now it's spending another 1 million US dollars, and it's 1 million US dollars alone, and it's a four-major."

"The penguins spent hundreds of millions, so naturally we have to risk our lives to accompany the gentleman."

After getting a signal from Liu Xiong that Fei Meng really doesn't care much about the profit of "Warcraft", Zhu Guda expressed his next plan.

"Then, we can completely squeeze out a part, even a large part, of the profit margin of "Warcraft" to motivate various distributors."

"Just imagine, if the distributors of various companies tried their best to promote our game."

"Put "Warcraft" on the most conspicuous shelves all the time, post "Warcraft" posters everywhere in the store, and all the salesmen in the store give priority to recommending "Warcraft" to players."

"In this way, all the distributors will work hard together with us, will it help us achieve our goals better?"

"I still don't know how powerful these channel providers are, but at least this will be a boost."

After listening to Zhu Guda's suggestion, Liu Xiong fell into serious thinking.

While thinking, Liu Xiong said: "I originally expected the price to be 99 yuan, which should be said to be a very low price."

"Normally, for every copy of "Warcraft" sold for 99 yuan, after deducting costs and taxes, I can get a net profit of 35-45 yuan. Here I assume that the profit is 40 yuan."

"Here, we assume that the sales volume of "Warcraft" is the same as that of "King of Middle-earth". The current cumulative sales volume should be 4.4 million sets."

"With a profit of 40 yuan, I can get almost 56 billion, which is about 8 million dollars."

"The development cost of the game is 2.7 million. Considering that it took several months for "Warcraft" and the film also invested 1.5 million US dollars, the profit of "Warcraft" is not too high. "

"If I follow Zhu Guda's suggestion, I can even give away another 20 yuan!"

"This time, play for real! Play big!"

"In this case, the remaining 20 yuan profit can barely make up for the development costs and film investment."

"Time cost is another matter."

"But as long as our profit sharing can successfully bring the sales of the game to a higher level, then even a profit sharing of 20 yuan is enough to guarantee at least no loss."

Since it is going to be done, Liu Xiong is going to make a big one!
Barely protecting capital, even a certain degree of loss is fine!
This is also the advantage of Feimeng.

Feimeng is a company owned by Liu Xiong alone. It is not listed, has no other directors, and has no investors.

As long as Liu Xiong is willing to lose money, then Liu Xiong can do as much as he wants.

However, Penguin and other companies can’t do it. Even though Penguin’s current market value is many times higher than that of Feimeng, Penguin dare not say that it is really losing money and making money.

After deciding on the price war strategy, Liu Xiong notified the optical disc factory to start production, and on the other hand notified various distributors, large and small, and invited them to gather in Feimeng conference room to discuss the upcoming "Warcraft", Hold a supply meeting.

Liu Xiong invited many distributors, most games, amusement houses, iron games...

Basically all large distributors and some small and medium distributors came to the meeting.

If Liu Xiong hadn't bought the upper floor and transformed it into a large conference room, there might not be enough room for the mighty 200 people!
"Thank you very much for coming here today. This time, "Warcraft" is very important to Feimeng. Feimeng also needs the cooperation of all distributors, so I specially invite you to come to the conference, thank you!"

"Haha, Mr. Liu invited us to come!"

"That's right, our company has made a lot of money relying on Feimeng's games for more than a year."

"Game companies and distributors are brothers. What are your orders, Mr. Liu?"

After some politeness, Liu Xiong finally brought up the topic.

""Warcraft" is about to be launched, I can tell them about the price of "Warcraft" now, it is 99 yuan."

After Liu Xiong said that the price of "Warcraft" was only 99 yuan, it really aroused a lot of discussion among channel dealers.

"99 yuan, this price is very low."

"99 yuan... This is, Feimeng is going to fight a price war?"

"Hehe, Mr. Liu is domineering, he just wants to confront that penguin head-on!"

"If it's an ultra-low price of 99 yuan, our distributor's share of a single game will be reduced... But if the sales can increase, that's okay, and we shouldn't make less money."

Liu Xiong waited patiently for a while to discuss, then looked around the scene and took a deep breath.

Because Liu Xiong knew that what he was going to say next would cause a sensation in the audience.

"The price of 99 yuan is indeed a very low price, but the focus of today's meeting is not this."

"Rather... I'm going to announce a decision today."

"No matter what the previous agreement between Feimeng and you is, I announce that the channel sales of "Warcraft" will be shared."

A small number of smart distributors have already sensed something, and their eyes suddenly cleared up a lot, full of anticipation.

"The channel sales share of "Warcraft" will be 40%!"

Liu Xiong's words ended here temporarily, but the sensational effect has been achieved!

40% share, what is this concept?

Under normal circumstances, the share that channel operators can get is only about 10%.

There may be some discrepancies, but overall the difference will not be too great.

40% of the channel fee share is equivalent to 4 times the profit!
If the price of "Warcraft" is 99, the channel dealer will get a share of 9.9 yuan for every "Warcraft" sold before.

But now, if the share ratio is 40%, then every time a "Warcraft" is sold, the channel dealer will get an astonishing 40 yuan!
What does a 40% profit mean, it is definitely enough to drive all the distributors crazy!
And Liu Xiong's decision to give up 40% of the profits almost gave up all of Feimeng's profits, and Feimeng was almost doomed to lose money on "Warcraft".

(End of this chapter)