What was the core of a VCD player?
Of course, it was the VCD decoding chip!
When it came to chips, everyone instinctively thought of cell phone chips or computer chips. But in fact, even the simplest microwave oven had a chip installed in it.
Chips had always been the core of all smart electronic appliances. Without a chip, an electronic appliance would not be smart. So, whoever could control the chip would be able to control the core of the appliance.
VCD players were no exception.
The core chip of a VCD player was the decoding chip. This was the core component that converted the information recorded on the CD into TV signals.
The CD player was like a novel written in Chinese, and the TV player was like a reader who could only read the novel in English. The VCD player was like a translator who could read both Chinese and English. The VCD player needed this VCD player to translate the information from Chinese to English and then show it to the reader.
Now, all the decoding chips used in VCD players were from Sony.
There were many types of decoding chips that could decode all kinds of compressed codes. But only two companies in the world were able to decode the RMB file format. One was Sony, and the other was Toshiba.
[Ps: This is not the truth. The decoding chips were mainly produced by the United States and Fusang. Because of the plot, the decoding chips produced by the United States were ignored.]
As mentioned before, the CD player was not very popular after it was invented. Only Sony had done research on the CD player. Later on, the VCD player convention was set by Sony.
So, the decoding chips for VCD players were only produced by Sony and Toshiba. These two companies were Fusang.
Including Daqian, all the decoding chips used in VCD players were sold by Sony. The price of one decoding chip was as high as 1,600 RMB. This was almost one-third of the cost of a VCD player.
As for the manufacturing cost of a decoding chip, it was probably less than 1600 yen.
Actually, Daqian had sold 1.5 million VCD players, and that was equivalent to ordering 60 billion yen worth of decoding chips from Sony. This was Sony's best customer.
So, even if Sony does not enter the VCD industry, they can still make a lot of money by selling decoding chips. But it was a pity that Sony was greedy this time. They saw the huge potential of the VCD industry and wanted to monopolize this market. Therefore, it was natural for them to kill Feng Qian, who was originally a customer of Sony.
"We only need to cut off the supply to Daqian and stop the supply of decoding chips to them. Then, everyone will not be able to produce a single VCD player. Without new VCD players, how are they going to compete with us for the VCD market?!" As Iwasaki Tomokazu spoke, a cruel smile appeared on his face. Then, he looked at Nobuo Idei and asked, "Mr. Chairman, what do you think of this plan?"
"This is actually the suggestion that I'm going to put forward to the esteemed directors later!" Nobuo Idei laughed. "We are also going to use decoding chips to block Daqian. But this involves 60 billion yen worth of orders. Without the approval of all the directors, we will not dare to make this decision!"
"Other than this, we still need Toshiba's cooperation. If we do not sell our VCD decoding chips, but Toshiba sells their decoding chips in bulk, then the situation will be awkward!" Nobuo Idei laughed.
Toshiba was also one of the manufacturers of decoding chips. But because Toshiba did not place much emphasis on the decoding chips, they did not increase their production. The prices were also higher, and the market was mainly in Sony's hands.
"Toshiba will need all of us to cooperate with them!" Iwasaki Tomokazu looked at the directors and said. "I suggest that Toshiba and Sony should form an alliance on this issue. We will stop selling decoding chips to the public, and as a reward, Sony will buy half of the decoding chips from Toshiba. What do all of you think?"
"Agreed!"
"Good idea!"
Everyone must be wondering why Sony's board of directors made the decision regarding Toshiba's decision. How can these Sony directors decide on Toshiba's matters?
This was the truth. More than 60% of Fusang's assets were controlled by the conglomerates. Sony and Toshiba were the same. Most of their shares were controlled by the 4 conglomerates of Fusang. These 4 conglomerates controlled the shares of these companies.
That's why there were more than a dozen directors in Sony's board of directors. More than half of them were from Toshiba's board of directors or their backers were from Toshiba's board of directors. These people's shares were enough to control Toshiba.
That's why there was such a comical situation. Sony's board of directors had decided on Toshiba's future.
"Everyone, we don't need to stop the supply directly. This will cause international criticism!" Nobuo Idei quickly said. "I think we only need to increase the price of the decoding chips from 40,000 yen per chip to 200,000 yen per chip. What do all of you think?"
"Increase the price? What if Daqian accepts this price? "Someone frowned and asked.
"Hahaha!" Nobuo Idei laughed. "If they are willing to accept this price, then it will be the best. We can earn back the cost of a VCD player with one chip. Also, if we increase the price of our chips, their VCD players will also increase in price. How can they compete with us in the VCD market? "
"Also, if we increase the price, we will not expose our real motive. We cannot start the VCD production line immediately. This will take some time. So, we can increase the price slowly and let Daqian's VCD players prices increase. We will let them die like boiling a frog in warm water. Before they die, we can still make some money from the chips! "
"That's right!" All the directors looked at Nobuo Idei with approval. They did not expect someone who was in the music industry to be so cunning.
— — —
"What? Sony wants to increase the price of the VCD decoding chips from 40,000 yen to 50,000 yen per chip because of the recent increase in silicon prices!" In less than 2 days, Boss Jia, who was in Fusang, received an urgent message from Daqian Entertainment. Sony is going to increase the price!
"Then don't bother about Sony. We will get the VCD from Toshiba!" Boss Jia said. He still did not know that he was in deep trouble.
"Toshiba is the same. They also used the price increase as an excuse to increase the price of their chips to 50,000 yen!" His secretary said softly.
"Then how much did the price of monocrystalline silicon increase in the market?" Boss Jia asked.
"The price has increased, but it's only increased by less than one point. It's only about 20 yuan!" The secretary reported.
"Sony and Toshiba are trying to take advantage of the situation. They saw that our VCD players are selling well, and they want to get a share of the profits!" Boss Jia rubbed his nose. At this time, Boss Jia thought that Sony and Toshiba were only trying to increase the price to make more money.
But Feng Yu did not expect that Sony was not only trying to destroy Toshiba.
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