The three major video game console manufacturers lowered their prices at the same time, and they even started promotions for the game discs. In the end, Sega suffered a tragedy.
Sega was supported by Microsoft in the past, but Sega was abandoned by Microsoft. Now, Sega has no money and no sales volume. Even the brand's reputation is getting worse day by day.
Sega cannot afford to lower their prices. They are still not making money, and if they lower their prices, they will lose money. Sony, Nintendo, and even Gbox can afford to compensate Feng Yu, but Sega can't.
So in less than a month, Shijia couldn't hold on any longer. In this month, the global sales of their Saturn game consoles were less than 100 units! It's not a drop in sales. It's a drop in sales!
Sega's shareholders are frowning. Microsoft had wanted to acquire them in the past, but they felt their offer is too low and will not make any profits. But now? Sega wants to sell their consoles, and Microsoft is willing to give up on them. Obviously, Gbox had a better future.
Although Gbox's sales are not as good as Sony and Nintendo, it can easily overtake Saturn. A new video game console brand can climb to third place in the market within a short period. This shows how powerful they are.
Also, Gbox's advertisements are all over the internet and newspapers, and there are lots of praises for them. Of course, some of the praises are paid for, but Feng Yu cannot deny that Gbox's games are very popular. Gbox is built like a PC, and its functions are very powerful.
Also, Gbox's upcoming Gbox-Live is highly anticipated, and Gbox is ahead of Sony and Nintendo.
But Sony and Nintendo have more fans. After all, they have been in the industry for many years. Many people are looking forward to the sequels of some classic games.
Duan Yongping also noticed a unique feature of these two companies' video game consoles. Their video game consoles have a lifespan of about five to seven years. That means their previous generation consoles should have broken down by now.
Now, they are selling their new consoles, and they do not even provide maintenance services for their old consoles. Duan Yongping remembers this trick. Users will have to upgrade their consoles because of their lifespan.
In fact, this trick was common in future electronic products. No matter if it was an MP3 player, a mobile phone, a tablet, or even a computer, very few of them could survive five years without needing maintenance. Of course, the current Nokia didn't count.
Five years later, even if the machine was not broken, its functions would definitely be greatly outdated, and you would have no choice but to replace it. In this way, they could continuously stimulate the sales of new products without saturating the market.
Otherwise, if the quality was the same as Nokia's divine phone, a phone that could be used for 10 years with careful care, the sales of the product would quickly reach a peak and then go downhill.
Feng Yu finally understood. In his previous life, it wasn't just because the console's performance couldn't keep up that they released a new one. It was because the old ones were about to break down.
Many users were already used to the existence of game consoles. Coupled with the excitement of new games, those in their thirties would still choose to buy a game console and place it at home, in the name of accompanying their children. But more often than not, these parents played longer than their children and enjoyed themselves more.
"General Manager Feng, although our sales are increasing, we had lost a lot of money. Microsoft had done a lot of promotions for this console, and their share prices had increased a little. We are not a listed company. "Duan Yongping was frustrated. They were the ones suffering losses from this discount promotion.
"You want to let Aiwa be listed?" Feng Yu laughed and asked.
Aiwa Little Tyrant's company is located in Shenzhen, and it's not far away from Shenzhen. No wonder Duan Yongping is jealous when he saw the red and green numbers.
Because of Gbox, Aiwa had handed over the voice recorder, cordless phone, and electronic dictionary business to Aiwa Home Appliances. These were all Duan Yongping's ideas.
At first, Duan Yongping thought Gbox will make more money. But now, he had lost money. His shares might not even be able to pay his workers their bonuses, let alone dividends.
Of course, Duan Yongping did not suffer any losses. Duan Yongping still has some shares in Aiwa Home Appliances, and he could tell that General Manager Feng is satisfied with him. In the future, Duan Yongping can still fight for the position of Deputy President of Taihua Holdings.
Zong Qingxian is also supportive of Duan Yongping. In Taihua Holdings, Duan Yongping is not as experienced. But in terms of capability, Duan Yongping only respects Feng Yu.
"General Manager Feng, Aiwa's funds are getting tighter. We need to develop a better console and let the company operate normally. The shareholders must continue to inject funds into Aiwa, or we can only get listed." Duan Yongping explained.
Injecting funds into Aiwa will still result in losses. Getting listed is better. We can use the funds from the investors to develop the company. Even if there are losses, it will not be a lot. Anyway, this Gbox project is a long-term project. Now, this first-generation console will surely be incurring losses. It will take at least three to five years for the second-generation console to be launched.
Can the company bear with the losses and inject funds into Aiwa for the next three to five years? This is not in line with the investment philosophy.
Feng Yu looks at Zong Qingxian. "Zong, what do you think?"
"I also think what Old Duan said is right. Everyone is selling their products at a loss. Nintendo and Sony are listed companies, and their products are selling well. They claim that their products are profitable, and they are trying to fool investors into thinking about the future. This way, their share prices will recover. But we can't do this. We can only keep investing, and this is taking up a lot of our funds. "
"Have you all discussed with Microsoft's representative? Do they agree to let Aiwa be listed?"
"They agree." Duan Yongping replied.
Feng Yu thought for a while. "Don't get listed in China. China does not have much support for video game consoles, and the amount of funds raised will not be high. How about this? Let's get listed in Hong Kong. It is not too far away, and we can raise more funds. Old Zhong, get someone to prepare a proposal for the listing of Aiwa Little Tyrant. Early next year, Aiwa Little Tyrant will be listed! "
Of course, Feng Yu can continue to invest in Aiwa. But just like what Zong Qingxian said, it is not worth it. Anyway, after Aiwa is listed, it will still be Microsoft's decision. Raising funds now is not a bad thing. If those investors have foresight, they can hold on for more than five years, and the returns will not be bad.
If Microsoft's share prices are rising, it will be better. Feng Yu will manufacture his own video game console in the future. But Feng Yu knows Microsoft will never sell off their shares. This investment is not a lot, and it is very important to Microsoft. If it is Feng Yu, he will also increase his shares and not sell them.
Sony and Nintendo want to compete with us in burning money? Feng Yu will raise a few hundred million or even a few billion HKD to play with them.
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