Chapter three hundred and eighty first trade-in
Mars Entertainment Inside.
This is not a high-level meeting specially for something. In fact, Jester rarely holds a high-level meeting specifically for an emergency to discuss, because Jester thinks this is completely unnecessary. For leaders like them, the most correct and safest way to deal with changes in the same way as them.
This is also the case with this high-level meeting. This is just a routine recollection of R&D discussions at the beginning of each month. The leaders of each development team attended. At this meeting, we focused on discussing the problems encountered in the R&D process last month and the plans for the next month.
And there was such an opportunity, someone mentioned the policy of reducing the price of md to 201 US dollars proposed by Xiaokou Kuoxiong in the program two days ago.
Players outside the industry may not be sensitive to this price, but they are extremely familiar with the high-level executives of Mars Entertainment, whether they are administrative or R&D personnel. This price is just above the cost price. If the logistics and promotion costs are increased further and the production cost is not effectively reduced in the increase in production capacity, then this price will be a loss.
"They just want to lose money?"
He said indignantly, and most of the people present kept agreeing, and they didn't understand why Sega did this.
Jester was expressionless. After looking around, he showed a very ordinary smile on his face and said simply: "Actually, there is nothing easy to understand. They know that it is impossible to compete with us in sales through general methods, because our advantage in North America is too great."
After a brief pause, Jester saw that the faces of many people present had changed, so he smiled and continued, "So. The only thing they can do is to fight them with a method that we cannot, or it is difficult to be determined to use."
Jester said this well. In fact, the best way to deal with Sega is to parrot. We can do whatever Sega does. Anyway, I have more capital than you and I have more players. In the end, you will definitely not be able to play with me.
But the problem is that Sega's method is difficult to have more players.
Indeed, the purpose of selling by reducing prices is to seize the share of the market. After the share of the amusement park, it is a strategy that later game console manufacturers, besides Nintendo. Both Microsoft and Sony will adopt, but the problem is that the more you sell, the more you lose.
In the previous case, when the game is not profitable enough, a lot of cash is needed to invest in to fill in this huge loss. If there are more players on your own, the greater the loss you need to fill. The money needed is an astronomical figure. Mars Entertainment’s accumulation over the years is not that it is impossible to fill, but it is difficult to make this decision.
Once this decision is made, it is necessary to use real money to make up for the loopholes.
Judging from the expressions of the people on the scene, Jester knew that at least more than half of the people did not agree to learn from Sega to reduce the price. In fact, Jester himself was hesitating. He knew that if he did not follow Sega to reduce the price, then many players would definitely be dissatisfied. They were likely to transfer to Sega's camp. And it can be foreseeable that after seeing that Sega's measure was effective, Sony, which was closely following, would likely follow suit.
I can only say that the situation will be very unoptimistic.
Jester sighed secretly. He thought of a solution that was not a solution, but this method was only a treatment for symptoms and could not be cured. The most important thing is whether the belief in his company is worth fifty dollars more than his competitors in the minds of players.
The loss of players caused by non-bargaining is not within the controllable range?
These are all questions that are hard to explain, but they are the reality that you will face soon. Jester asked to the people present: "What are your suggestions?"
The whole audience was indifferent.
After waiting for more than ten minutes, no one spoke, all silent. Jester didn't care, because he had thought about it for so many days but had not thought of any better measures. He could only say himself: "Since you have no suggestions, let's talk about my response plan."
As he said that, Jester took out a large stack of documents, put them on the table in front of him, and continued: "This is the investigation report I commissioned to investigate the market situation in Australia and South America for a whole year. These are just brief introductions of the reports, and in more detail in the archives room. I will have someone give you a brief introduction of these reports to you. This is the core of my plan."
Everyone didn't understand what Jester meant. Now that he was discussing the issue of 16-bit computers, why did his boss suddenly lead the topic to these backward places? Can these places still meet the market for 16-bit computers? It's fine if Australia is, but what the hell is that South America?
In fact, this is also the past in the game console industry that Jester suddenly remembered, that is, in South America, FC was the most popular host for more than ten years. Even in the PS era, FC consoles still have the highest share, especially Brazil and Argentina, two countries that are still rich now.
Australia was the most important market for Sega in addition to North America. They were the only place they were stronger than Nintendo in this market. Therefore, Jester felt that these two markets were promising, but he did not pay attention to them before, so before officially launching the strategy for these two markets, he would spend money to ask the investigation company to investigate.
The conclusions I got were very satisfying.
"I suddenly thought of a pretty good plan." Jester faced the doubts of everyone present, just smiled and began to explain, "Actually, the content of the plan is very simple. Let's learn directly from Sega. We will also reduce the price. This is absolutely impossible. Even if we plan to reduce it, it is definitely not the time."
Everyone understands Jester's saying this. If you lower the price before Dreambox2 is released, and if you do it after Sega's price reduction news comes out, you will be looked down upon and underestimated by players.
"So, I thought of a promotional method that would be considered a reward for players, that is, use the old dreambox host, and use the old to discount the new ones to buy the dreambox2 host, in short, trade it for the new ones."
No one has heard of this method before. It is very novel. If you think it is carefully, it still has great operability. In fact, this is also a strategy used by Jester when he suddenly thought of staying in later generations and Chinese electrical appliance manufacturers. As it turns out, this strategy is very successful.
"Is this OK? But, what's the difference between this and direct price cuts?"
Someone asked such a question.
Jester smiled and replied: "This is why I said it was the South American market and the Australian market before. The Australian market is the market we are preparing to log in to next. The main product is our sixteen host Dreambox2. However, in the South American market, there is no need to use Dreambox2, because the price is too high. Not only can we not sell it at a low price, but even if it is sold, they can't afford it."
Speaking of this, many people also understand what Jester means. Jester means very simple, that is, use dreambox host to occupy the South American market.
"It's not just a dreambox host, but actually, my first plan is a second-hand mobile device."
Jester expressed his idea: "When I asked someone to go to South America to investigate the market situation, I also conducted a survey of a game console store. I found that in South America, many people are very interested in this. Where, although the production price of our dreambox console has been reduced enough to less than seventy dollars, seventy dollars is also very expensive for many people in that area, and we cannot sell it there for seventy dollars."
"So, many people are very good at renting game consoles, opening rental stores for those interested to play. In fact, there are many places like this in Brazil and Argentina." When Jester said this, a confident smile appeared on his face.
"My plan is to please players through this discount in North America. Didn't Sega want to win over players by directly reducing the price? We can't learn from them directly. We use the old-for-new method to please those players who already belong to us."
As he said that, Jester's mouth curled slightly, revealing a malicious look. He continued: "And the advantage of our method is that we did not just cut prices. The second-hand host we acquired can be directly sent to the South American market after renovation. If it is not possible to sell directly, then we can sell it to the owners who open an hourly rental store. They are also a very large market group."
"And, I believe that even if Sega has the money to fill in the holes, they will not feel heartbroken when they can't see the improvement of their market share in a year or two years."
At the end, Jester smashed the table hard. (To be continued, please search for Astronomy, the novel is better, updated and faster!
Chapter completed!