Feng Yu had been eyeing the video game console market for a long time. Look at Nintendo. Their annual profits were a few hundred million USD! How much was the cost of a video game console? It was around 10 USD to a few hundred USD, but the retail price could reach a few hundred USD or even more than 2,000 USD.
Feng Yu had done some research on the market. In China, there were only small and simple video game consoles. A video game console was only about 80 to 100 RMB. Compared to Nintendo's 1,000 RMB products, it was too cheap.
It was mainly because of The Little Tyrant's impact on the market. The console introduced by The Little Tyrant was cheap, but it was compatible with Nintendo's game cartridges. There were also pirated game cartridges in the places that sold the consoles. This was also the reason why Nintendo was struggling in China. The price of the cartridges had been lowered, but there was no market for them.
As for video game consoles, they were not allowed to be imported!
The Little Tyrant's video game consoles were the leader in China's market now. They had more than 60% market share, and no one could challenge their position.
The Little Tyrant was fighting a price war, relying on low prices to attract consumers. But now, the price of a video game console was still more than 100 RMB. Feng Yu remembered that in his previous life, the price of video game consoles had dropped to about 40 RMB. After deducting the distributors' profits and transportation costs, the production cost of a video game console was less than 30 RMB.
The Little Tyrant had relied on CCTV's advertisements and promotions to increase its popularity. But if Aiwa or Wind and Rain were to introduce video game consoles, the consumers would surely buy this product because of their love for the brand.
The difficulty was that the price of Wind and Rain or Aiwa's video game consoles must not be lower than The Little Tyrant. This was because these two brands were focusing on high-end products. Their products with the same functions were more expensive than other brands. If they were to introduce a video game console that cost more than 10 RMB, it will give the consumers the impression that it was a cheap product. This will affect the sales of Walkman or Super Fans.
But did Feng Yu have any other ideas? What was The Little Tyrant's most profitable product in his previous life? Video game console? No. It was The Little Tyrant's Learning Machine!
What was a Learning Machine? It looked like a keyboard with a motherboard. It was also a 486 PC. You could learn simple programming languages, typing, and vocabulary. Not only idioms, but also English words. You just needed to have the appropriate cartridge.
The Little Tyrant had introduced this Learning Machine was because Hua Xia had allowed gaming consoles to be imported. Nintendo and other companies were attacking Hua Xia's market, and The Little Tyrant's gaming console was a pirated copy of Nintendo's. Other people's gaming consoles were also patented. To be exact, the advertisements on CCTV were also illegal advertisements!
Originally, Nintendo did not have many products to sell in Hua Xia. This was because the country did not allow the importation of game consoles. So, other than some that were bought from overseas, most of the Nintendo consoles were smuggled goods!
Hua Xia's blockade gave The Little Tyrant an opportunity. Of course, it wasn't only The Little Tyrant doing this. Many small factories in the country were doing this. However, The Little Tyrant was the biggest and became the leader of the country!
Didn't the Little Tyrant know that they were pirated copies? Of course I know! But at that time, China did not have the awareness of copyright protection. It was rare for companies like Tai Hua Trading to apply for patents for their new products.
Anyway, everyone was doing this, and the country did not care about it. Nintendo could not sue them, and they took this opportunity to grow. At the beginning of last year, The Little Tyrant was still in debt of 2 million RMB.
But this year, The Little Tyrant's net worth was more than 10 million RMB, and it was still growing!
But The Little Tyrant's development stopped there. This was because Aiwa and Nintendo's cooperation product was the Learning Machine introduced by The Little Tyrant in Feng Yu's previous life.
This idea was used by Feng Yu. The brand was called Aiwa Learning Machine, and it was only sold to Hua Xia's Chinese market. This was because Aiwa was the one who came up with this idea, and Aiwa's Aiwa brand was very influential in China. That's why Aiwa Learning Machine got 70% of the profits, and Nintendo only got 30%.
Nintendo wanted the Hua Xia market and requested Aiwa to let Nintendo use Hua Xia's distribution channels for free. They firmly believe that with their video game technologies, they will be able to take over the Hua Xia market. As for the Learning Machine, it would be considered good if they could sell 10,000 units. They did not care about the profits.
That's why Nintendo did not mind using Aiwa's brand for the Learning Machine. They even let Aiwa use Aiwa's brand to sell their video game consoles. Nintendo was the world's best video game console. Learning Machine was not in line with Nintendo's product concept.
Nintendo was arrogant and thought that they could dominate the world's video game console market. Even the powerful Sega was defeated by them. Who else could compete with them?
The Hua Xia market was a huge market. Nintendo firmly believed that it would be like how they conquered the US and Europe. When their video game console was introduced into the market, they would be able to defeat their competitors!
Feng Yu had a different view from Nintendo. Games were a gaming kingdom's greatest asset. Nintendo thought that their future games would be the best in the world. But they did not expect that they would be replaced by PC games and handheld video game consoles.
No matter how advanced their video game technologies were, as the price of the video game consoles dropped, their profits will also drop. Nintendo will not be able to survive for many years.
Aiwa and Nintendo's cooperation was progressing very fast. They estimated that the Learning Machine would be ready in about a month, and production would start in July. The video game consoles will enter the Hua Xia market.
To ensure Nintendo and Aiwa's cooperation, Feng Yu had asked Master Lu to allow the video game consoles to be imported into Hua Xia. Feng Yu felt that even if the video game consoles were allowed to be imported, the video game consoles from other countries would not sell well.
The Little Tyrant and other low-end video game consoles would affect the market. Just Aiwa's Learning Machine, which was about the same price as Nintendo's video game consoles, would take away most of the market share.
The Learning Machine was the same price. Learning Machine could be used for learning and entertainment. Video game consoles could only be used to play games. What do you think parents will buy for their children? Which parent does not want their children to be successful? Which parent will let their children play video games all day? Just the words "Learning Machine" would increase the sales of the video game consoles!
If Nintendo really exceeded Feng Yu's expectations and rose, then Feng Yu would organize another campaign to support the Hua Xia brand. If Sony could handle it, how could he not handle Nintendo?
On one hand, he had to guard against other countries, and on the other hand, he still had to guard against China. The Little Tyrant will also be introducing the Learning Machine at the end of this year to early next year. But Feng Yu will not give them another chance. He still has a trick up his sleeves. He will make The Little Tyrant suffer!
"Ok. General Manager Feng, I know. I will register this brand."
After hanging up the phone, Wu Chih-gang immediately went to the Trade and Industry Bureau to register the "Learning Machine" brand. That means in the future, his other products will no longer be called Learning Machine. This will be a brand created by Aiwa!
After hanging up the phone, Feng Yu had a proud smile on his face. Without the Learning Machine, The Little Tyrant will not be able to compete with Aiwa. The Little Tyrant, come to me obediently … …
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