Chapter 579: Fiery

Microsoft's Windows system has a lot of vulnerabilities because of compatibility problems, although Microsoft is also trying its best to make up for it, but it has been repeatedly attacked by hackers with vulnerabilities, and some hackers who have found a vulnerability are mostly secretive and use these vulnerabilities to gain benefits!

Of course, Microsoft also has bounties for system vulnerabilities, but there are too few people who earn these bounties, and it is higher to sell any vulnerability to security antivirus software than to Microsoft!

The failure of the previous generation of the system, it seems that it has not affected the monopoly position of the Microsoft empire, and the timely launch of W7 can be called a remedy, with W7, Microsoft's hegemony is still unshakable.

Apple also gave up the idea of taking the road of Microsoft, or decided to focus on the closed ecology, Microsoft gave up the game computer and other markets, decided to focus on the office field, focused on young people, put the target of the product in an age group, and decided to stack hardware, so that the product reaches the top level in all aspects!

Making hardware is actually not profitable, software companies are the most profitable, a best-selling software is very low in terms of cost, but software is related to hardware, and it has to be hardware!

There is no suitable opportunity to make a software system for global users, and Apple can only do hardware and software together; Companies that make software and succeed will eventually have to go down this path.

Entities are actually hard to do.

Take StarrySwitch as an example, the adjusted price is 2499 yuan in China, but what about its comprehensive hardware cost? However, it is only about 1100 yuan, and the hardware cost accounts for less than 50% of the selling price, and it seems that you can make 50% of the profit.

But after deducting a series of costs such as R&D, assembly, advertising, distribution, taxation, etc., such a starry sky STARRYSWITCH, Star Group can only get a net profit of about 100 yuan in the end.

That is, the hardware cost is 45%, the cost of other costs is 50%, and the profit at hand is 5%...... The profit is only 5% of the overall selling price, and this profit margin, with a little promotion, is gone.

The current price of StarrySwitch is not cheap, but the cost is not low, advertising and marketing are necessary expenses, at present, the word Starry Sky is not a well-known company, if it has a reputation, the cost of marketing will be saved, but it will not save too much!

No matter how big a company is, it has to spend money to market its reputation, which is an essential expense!

This is also the reason why Yang Yi did not enter the mobile phone industry first, the mobile phone industry is known for its profiteering iPhone, the profit margin is at most less than 20%, of course, the current iPhone and other mobile phone manufacturers are the same, the net profit margin can reach 5% is good.

Originally, excluding all costs, StarrySwitch's net profit margin could reach 15%...... The price is set at 2699 yuan.

That is, for each starry switch, Yang Yi can earn more than 300 yuan.

But a total of 50,000 units sold at this price, of course, after the Christmas price adjustment, this part of the user has given a compensation coupon of 300 yuan per person, of course, this coupon can not be reflected and resold, you can only buy the products of the Star Group, you can recharge into various online games, you can also use to buy games or game consoles, you can also buy some unique products of the Star Group.

In other words, in fact, StarrySwitch can only be calculated according to the selling price of 2499, which is a profit of 100 yuan at most, and now the overall sales volume has reached more than 9 million, and the profit is almost 900 million yuan.

This is also the result of Xinghai Company's savings in advertising, R&D, distribution and other intermediate links!

This money looks like a lot, after all, ordinary people can't earn money in a few lifetimes, but this money is saved, after all, if nothing else, as long as the hardware-related experimental costs are added, it is not a matter of hundreds of millions.

Just one chip, not a few hundred million can get it, 900 million can buy such a suitable chip, for Microsoft, they are willing to spend ten times the price!

This is not a lie, Microsoft has been in contact with the commercial department of the Star Group, and wants to buy chips or licenses, but the price of technology licensing alone has now reached 200 million, and the cost of technology transfer has even reached 10 figures.

It can be seen how the role of a chip is huge, Sony's PS3 is the processor of the next-generation game console jointly developed by IBM, Sony, and Toshiba; Although Microsoft's Xbox360 was released a year later than Sony's PS3, there was no improvement in performance, and Microsoft also invested a huge amount of money, but the results were not satisfactory!

Starry Switch is weaker than these two in terms of performance, but after the handheld is plugged into the base, the performance is basically the same, and even better in some aspects.

You must know that the main running program of StarrySwitch is just a handheld, and it is not much larger than Sony's PSP, so the performance is very powerful!

Therefore, not only Microsoft, but also some mobile phone manufacturers are considering this chip, but the cost of developing chips is too high, and investing hundreds of millions can only be a waste, and if you are lucky, you can almost produce results, and if you are unlucky, you want more!

……

Yang Yi will not transfer technology, such as lithium battery technology, what is shown is only for the current lithium battery technology, not much ahead of the technology, is the current battery manufacturer's process can be directly manufactured level.

In the handheld mode of Starry Switch, the battery life is at the level of one and a half days, and the batteries used are produced by two companies authorized by Huaguo Datang Industry and Chen Guoshengshi Energy.

Because the technology has not been completely understood, it is more than double the level of the previous one, and there is a higher level, but the risk is also higher, and the danger of lithium batteries cannot be ignored, although according to the strict process, as long as ordinary people do not throw it into the fire to roast, it is not easy to be dangerous.

OLED's display screen doesn't need Yang Yi to deliberately go to the cottage for any information, because of various reasons, the display screen requirements she needs are not high......

In this world's technology, Yang Yi will not use the way of pulling out seedlings to grow, but use pressure to force, various manufacturers will not invest money in research and development if they are not forced, the purpose of capitalists is profit, and no profit will not invest money in research and development.

For example, Intel, if there is no chaser behind it, it will not invest a lot of money to upgrade the process, without AMD, Core will only be like squeezing toothpaste, and there is not much real difference in performance between generations of products!

This is true in hardware, and the same is actually true in software, such as game manufacturers, except for those manufacturers who really love games and want to be a great company, are basically dry and fish, no matter how much they make, they are reluctant to invest heavily in making a good game!

At present, the mainstream business model of games is the sales of game-specific hardware (game consoles) as the core, even if a game console is added with multiple functions, its core purpose, and the user's reason to buy is and only to play games.

Console manufacturers control the quality of games on consoles, sell medium and high-quality games on consoles, and assist in promotion and sales.

But not necessarily, in this world, Sony has always come according to this standard, Microsoft's standards are also very strict, but Sega and Yarida are not so pure, so players vote with their feet, these two are gradually falling behind the first echelon, and there is one, Huaguo's Xiaobawang, but with a low console price, and then a large number of small game producers have made a large number of small games, and the market is not small!

Console manufacturers generally collect royalties from each game they sell in order to make their own profits, but they replace royalties with royalties, and even Microsoft and Sony even pay upfront development funds to game studios in turn.

Although unwritten, the current console manufacturers actually support the game development business on the console in the form of personal development, first-party investment, or official recommendation.

Under this model, players get the best games that are technically allowed, console manufacturers get monopoly profits that are guaranteed by drought and flood, and game developers will use those epoch-making products to become the top companies in the industry, forming a three-way closed loop of benefits, until the next generation of technological progress arrives and a new round of console wars unfolds again.

To date, all the victors and important participants in the war on consoles, from Sony, Sega, Sony, Microsoft, Arida, etc., have faithfully enforced this rule of the game.

This model supports the world's largest and most well-resourced game companies, as well as the most costly and well-made game products. Game developers and console manufacturers take money from their loyal users and reinvest them into the next-generation gaming spectacle that is bigger, more technological, and more amazing.

Of course, not no one has tried other styles of game business models, and in the new century, with the development of technology, other business models in the game industry seem to be very successful at present: PC boxed games, mobile games, free-to-play games, browser games, casual games, ......

In fact, from the perspective of the global market in the last two years, the total market size of non-console games has almost reached about half of the console game market, and it is still growing rapidly.

The development of PCs and smartphones has also allowed more roles in hardware, and there have also been many fun boutique games, such as World of Warcraft, Age of Discovery, OL and other games.

But there is an undeniable fact: the world's highest-invested, best-quality games have always been in the console game market; Although non-console games also have a huge market size, even the most invested online games cannot compare with the highest investment in triple-A games under the console game system.

The investment gap in second-tier games is even more huge: in console games, second-tier and even third-tier 3A works have at least tens of millions of yuan to calculate the investment, and hundreds of millions are common.

Non-console games, such as free-to-play online games, browser games, and mobile games, can be called masterpieces with a million-dollar investment, and most of them even have a production budget of 20 or 30 million yuan to be considered an unusually sufficient resource - and in the world of console games, this is only the scale of a "high-budget indie game" - many independent game studios have this number in the budget they get from crowdfunding and first-party subsidies.

And the difference in game quality and risk-taking ability between the two sides is as striking as the difference in investment amount: the objective risk of console games with large R&D investment is actually lower than that of lucrative free-to-play games!

Console game developers and studios have been in business for more than a decade or decades, delving into the most advanced graphics technology, finding the latest expressions and game design methods, and smoothly transitioning from one generation console to the next. Developers of online games, web games, and mobile games, although the development cost is lower than that of console games, the market size is larger than that of console games, and the operating time is shorter than that of console game developers, in fact, they bear higher risks than console game developers.

Basically, the real elite of the game industry will probably agree with this conclusion, and every market model change is accompanied by a large number of R&D companies going bankrupt; Even if the company hadn't gone bankrupt and had laid off and disbanded production teams much more frequently than console games, even the largest and most profitable companies in the field wouldn't have much inclination to keep their development teams for pure R&D and technical improvements.

Moreover, this market form is not unique to "online games", nor is it the only feature of markets with similar business models, such as "mobile games" or "web games".

In the game market where there are non-consoles and failed consoles, a similar picture is repeated: market participants invest less and take more risk; Although the market leaders have grabbed huge profits, they do not dare to invest more money in game research and development, but choose to withdraw from the huge profits and invest in other fields.

It's like treating gamers like cows who are responsible for producing milk, and they pay for the game in order to be deprived of cash, which can then be invested by "investment-minded" entrepreneurs, or wasted in other fields, or made high purchases, etc.

What often follows is a vicious circle: as investment decreases, the market becomes stagnant, decaying, and niche, gamers are lost, and investors rush to the "next outlet" and abandon the market.

This kind of "grab a handful and leave" game industry, on the contrary, is natural and in line with the capitalists, an industry outlet will come immediately, the cost has become high, everyone does not want to take the risk and shouts "bubble" retreat, and finally left a group of people to stick to this sunset industry, which is really natural.

However, successful console manufacturers want to firmly write "fun" and "innovation" into the obsession of gamers like genes, completely replacing the "speculation", "making money" and "washing" of capital.

A new positive cycle is born in this model, replacing the vicious circle caused by the profit-seeking nature of capital: when a user buys a console for a great game, he expects that on this console, he will also be able to buy other great games of comparable quality, thus providing a good buying power; When investors see that this console has so many high-quality users, they will expect that if I make games of equal or medium quality, I will recoup my huge investment; Console hardware vendors, on the other hand, expect total game sales on machines to continue to climb as the variety and quality of games improve, recouping the huge costs of console hardware and first-party game development.

The business model of the console has actually become a contest to attract new users through publicity, and a contest to improve the quality of the game to attract old users.

In other words, there is really only one core competency of console games: to reduce the expected risk of investors investing in serious game development by producing great games.

It is important to reduce the expected risk, not the actual risk. First of all, as a high-investment and high-risk entertainment, the risks of games are unavoidable; Every game can fail, and you can't tell for sure if it's going to be a big hit, or even if a game isn't going to be a big hit.

But the expected risk is manageable and more important; It determines how much people will invest in the game, and it determines the direction in which those resources will be developed into the game.

A best-selling game console can naturally attract developers to invest in the development of games on this platform, and if there is a high-quality product, it will even make people buy a game console because of a certain game!

This is also the reason for the success of StarrySwitch, through the continuous high-quality games, players can see the company's open ability and level, and then through the successful launch of several IPs to launch game consoles, and initially has several exclusive boutique 3A-level masterpieces, attracting players into the pit.

In the end, it was also used to attract traffic with a hot online game, and developed a limited edition of heroes, which really made this game console hot and attracted third-party game studios.

There is another reason for the success of Starry Sky Switch, that is, it is still a handheld machine, at present, for the field of mobile entertainment, although smart phones are rising, but they have not yet risen completely, the current good and bad are mixed, and the price of boutiques is too high, and it is impossible to play 3A-level masterpieces at all.

Successful console platforms have succeeded in "reducing the expected risk of gaming investors", and Sony and Microsoft are paying exclusivity and buying first parties not just to defeat their rivals, but to increase the attractiveness of the entire console platform.

Another reason for the success of the console platform is that the console sells well, which is based on tens of millions of units, and after this sales volume, many third parties begin to contact and ask for technical standards without negotiating.

To achieve this, there are a variety of specific business tools that can be used, such as selling consoles cheaply to attract players, conducting all kinds of commercial promotion at trade shows, personally investing in and nurturing first-party developers, paying huge exclusivity fees to third parties, and so on. But the common denominator is the huge initial investment.

"Reducing the expected risk of other investors" is itself a bit against the instinct of capital: it means that the hardware and console vendors need to take this risk on a regular basis, which is something that most "ordinary" game market participants simply do not want to do.

Whether it's buying a game studio, investing in a triple-A game as a first party, or spending a huge amount of money on an exclusive game, you have to pay a huge amount of money while risking losing your money.

However, the host that can overcome the risk to achieve this goal can win under this business model, as long as a game console system can achieve this goal, it is actually on the road to victory; Even if it doesn't win, it's completely self-sustaining, surviving as the second, or even third, number one in the console market, and the current gaming scene is enough for the three or even four major consoles to survive together.

From a capitalist point of view, the "natural market" is indeed beyond reproach: capital should indeed seek advantages and avoid disadvantages, and if everyone, from investors to producers, has such a high expected risk, they will never be able to make great games in the first place, and thus create this positive cycle.

And whether or not there is a console to reduce the expected risk of investing in games for everyone is the difference between being a successful console manufacturer.

In order for StarrySwitch to succeed, Yang Yi has made a lot of efforts, taking out loans to acquire shares in video companies, acquiring online literature and entertainment tools, and building a product port in StarrySwitch to make it a thorough entertainment tool, which is what is now successful.

The influence of entertainment products is the strongest, the current network conditions, when the 4G network is not popular, the game is the most influential, for teenagers and even adults have a great impact, this field can not be abandoned.

StarrySwitch in the efforts of the OEM, the current daily output of the product has reached 430,000 units, but the current official channel sales are still in short supply, this product is currently predicted by experts from the beginning of 10 million to 30 million, and some experts have shouted out a forecast of 100 million.