You call this entrepreneurship?

Chapter 91 Going out to sea to make money
Qin Shaoyan stood in front of the projector confidently and talked eloquently.

"Domestic stand-alone games started in 1994. After that, game companies from Hong Kong, Taiwan and other places entered the mainland one after another to open up the game market."

"In 1996, "Guandu" came out. It was the first large-scale game software based on Windows 95 in the Mainland and the first game software in the Mainland to be exported overseas."

"Since this period, a large number of game companies have emerged and began to flourish."

"This period was also a period of great development in the international game market, because the emergence of optical disc technology greatly reduced the cost of game development and significantly lowered the monetary standard for game development."

"The game industry is the most exaggerated industry forced to upgrade by market competition. From art to programming to planning to management, there are major upgrades and changes every 1-2 years."

"Game music has been upgraded from MID sound quality to MP3 sound quality in a very short period of time, game art has evolved from bitmap painting to three-dimensional modeling, and game programs have evolved from mastering collision detection in 2D games to developing dynamic light and shadow."

"With each generation of consoles, development budgets must at least double."

"On the mainland alone, from 1995, total sales of 10 units was the standard for successful game sales. By 2000, 10 units was the standard for failure to recover costs."

"Coupled with the popularity of online games, original game users have turned to online games one after another, and new game user groups have also been absorbed by online games."

"Due to well-known reasons, the domestic stand-alone game market has become increasingly sluggish, and companies that produce stand-alone games can only turn to the development of online games."

"Single-player games provide a large amount of technology and production teams for online game development. Stand-alone games are also responsible for leading the development of new game technologies, so stand-alone games are very important."

The leaders in the audience looked at each other and found Qin Shaoyan's statement very strange.

Although stand-alone games appeared early, because the group is too niche, the entire industry does not have much output value, so naturally it will not be taken seriously.

Online games are different. They are quite large in terms of economic benefits and player group size.

Online games have made important contributions to the development of IT, communications, and publishing industries, and the effect of driving the development of other industries is very obvious.

Comparing the two, the treatment is very different.

Qin Shaoyan moved the mouse and replaced it with a pie chart.

"From a global perspective, there are three main game markets, North America, Europe, and Japan."

"From the perspective of sales share, North America accounts for half of the sales, followed by Europe and Japan. The international game market basically presents a tripartite situation of the United States, Europe and Japan, and the market size in the remaining regions is smaller."

"Considering that the total population ratio of the three major regions is the United States: Europe: Japan ≈ 5:6:1, the per capita sales volume in Europe is not as good as that of the two mature markets of North America and Japan, and there is greater room for development."

Looking at North America, which occupies half of the pie chart, the leaders could not sit still and whispered to each other.

"North America accounts for half. Except for Europe and Japan, all countries combined are less than 9%. The gap is so huge."

"Americans are still rich."

"The Japanese market is huge, with one country accounting for 15%."

"I remember Xiao Qin mentioned that in 2001, the total output value of the game industry in the United States was 11 times that of ours. The gap is obvious."

The big leader raised his hand and motioned for Qin Shaoyan to continue speaking.

Qin Shaoyan then switched to the next page and continued.

"The United States has a strong living room culture. The number of game consoles accounts for nearly one-third, and it has a huge user group of stand-alone games."

"In the North American market, sales of 100 million to 200 million copies are considered failed products, but for us, this sales volume is a huge success."

"The research and development cost of stand-alone games in my country is five to eight times lower than that in the United States. It has a considerable cost advantage. Coupled with the eight-to-one exchange rate, the net profit generated by stand-alone games is quite considerable."

After hearing this, the big leader also fell into deep thought, and the others couldn't help it, and the discussion became louder and louder. A deputy director suddenly asked: "Xiao Qin, what is the average price of domestic games?"

Qin Shaoyan immediately replied: "According to the most popular stand-alone machines on the market, they cost between 15 and 20 yuan, which is between and US dollars when converted into US dollars."

"This price is very competitive in the United States, where stand-alone games are not cheap."

Several leaders present began to calculate quickly, and then everyone showed a surprised expression.

Based on the price standard of US$15, and the minimum sales standard of 100 million US dollars, it is US$1500 million.

Converted into RMB, it is close to 100 million.

This is just the minimum standard for a game. If it can sell two to three million units, it will be two to three billion.

The people present were immediately refreshed, there was great potential for this.

Even if it's just one, that's a pretty big achievement.

The big leader did not express his position directly, but asked a question, "How much profit can domestic game companies make."

At this time, Qin Shaoyan suddenly became excited. He was a big leader after all, and he immediately grasped the key issue.

“如果按照传统的发行模式来说，一款游戏售价是60美元的话，其中15美元要分给零售商、4美元是物流和货品包装、7美元作为平台抽成、发行商要拿走27美元，制作开发者能分到7美元。”

The big leader nodded, "That's 11%. This number is on the low side."

It is indeed on the low side. When converted, a few hundred million becomes tens of millions. Although this is a lot of money, it is a bit boring compared to the previous base number.

The conference room became quiet for a while.

Qin Shaoyan smiled and said, "The traditional distribution model is very detrimental to game developers, so developers in the American game market have found new distribution models."

"This new model breaks down old market barriers and rebuilds a new ecosystem for the upstream and downstream markets."

The big leader looked interested, "How much do you know about this new model?"

"American game development companies are using the online sales model to build online sales platforms." Qin Shaoyan said modestly, "When I was working at V Agency, I was deeply involved in building an online game sales platform, which increased the number of online users from 100 million to . Ten million, made a small contribution."

hiss~
One million to ten million, this is a talent!
The senior leader looked at Qin Shaoyan again and admired: "The young people are awesome."

Qin Shaoyan added, "Our company's games are sold online. Two million units were sold in the first month and five million units were sold in three months."

"If we adopt the traditional distribution model, the sales volume in the first month will be far from reaching one million levels, and a lot of money will be spent on advertising."

"The skyrocketing sales performance is just one of the advantages of online platforms." Qin Shaoyan said seriously, "The most important thing is that this model puts aside the costs of publishers, retailers, packaging, etc., and it is a direct sharing between the platform and developers."

"Profits can be three to four times what they were before."

The big leader's eyes lit up, and he suddenly asked seriously: "You mean you can get one-third of the profits?"

"Yes." Qin Shaoyan nodded.

At this time, everyone present became energetic again.

If you think about it this way, going out to sea to survive becomes going to sea to make money.

There's a lot to be done about this.

(End of this chapter)