Chapter 767 The Hot Arcade Market

As for Hong Kong Land, there is no need to rush to acquire it for the time being, because the real estate economy is now in a period of rapid growth, Hong Kong Land is also optimistic, and the management of Jardine Matheson is also relatively cautious. At this time, even if a forced acquisition is successful, it will require a huge amount of funds, and the cost-effectiveness is too low;

The best time was naturally the economic crisis a few years later. At that time, many people in Hong Kong did not think there was a future, so naturally the stock price plummeted. Only a few who were optimistic about Hong Kong were able to gain huge wealth.

The most important thing is that there were many golden development opportunities between 76 and 82. If the operation was good, the capital could be multiplied tenfold. Even if Hong Kong Land developed faster, the growth space was far less than this number. It would be more cost-effective to wait.
The largest real estate company in Hong Kong is no longer Hong Kong Land, but a combination of Cheung Hing Properties, Wharf Holdings and Hutchison Whampoa. However, the three companies are still independent of each other. A single company may not be able to compete with Hong Kong Land, and they cannot compete with Hong Kong Land in terms of prime locations.
Hutchison Whampoa has dominated Hong Kong for a hundred years. With just Hutchison Whampoa, Jardine Matheson can defeat Swire's monopoly on aviation, beverage and shipping businesses, which is enough to show its strength in real estate.

Once he acquires Swire Properties, his real estate business layout in Hong Kong will basically be complete. He has taken the big share and it is impossible for him to take over the small shares. One reason is that it is unnecessary, and the other is that the prosperity of the real estate market requires cooperation among multiple companies, not just one. If one company participates too much, it will become a cage for funds and it will be difficult to cash out.

Soon it was early December, and Yang Wendong came to the industrial area in North Point, Hong Kong Island:

Wang Zhiqun and other leaders from Honor Electronics came to accompany them. When Yang Wendong saw them, he said, "There are too many people. Just keep a few of them. The others can go back to do their own things."

There are more than a dozen assistant bodyguards around him, which is already a relatively low configuration. In the distance, there are usually more than 20 bodyguards to take precautions against suspicious people from a distance. If there is anything on the boss' side, they can also quickly gather in the center;
Wang Zhiqun also brought more than a dozen people, and if they got together, there would be too many people.

Wang Zhiqun smiled and said, "Okay."

After saying that, he spoke a few words to one of his subordinates, and then many people left reluctantly. You know, it is an honor to be able to walk with the big boss Yang Wendong.

When the number of people was about the same, Yang Wendong said, "Let's go to the arcade machine factory first. I heard they are very busy there recently."

Wang Zhiqun nodded and said, “Yes, now that “Chinese Cube” has just landed in California, it has caused a craze inside the bar. California alone is already in short supply;
I am also expanding my production capacity and will gradually enter other states in the United States in the future. The demand is so great that we have to take it step by step."

"Well, our goods are not civilian products, so it doesn't matter if we miss Christmas." Yang Wendong nodded, and then said, "Which states will serve as follow-up markets? Is there any problem with the channels?"

Wang Zhiqun said: "In New York State and some other wealthy states, the Carmen family has already prepared channels. We only need to deliver the goods to the US ports, and we don't have to worry about the rest."

Yang Wendong said: "This is good, so we don't have to worry about the channels, and we can just focus on production capacity and quality."

For such sales involving a large area, it is basically impossible to control the channels by oneself. If you want to do it well, you can only entrust local capital to be responsible for it. And if you tie up local capital, the other party will also use their own resources to ensure the stability of the business.
It's not just arcade games, it's the same for many other industries. Mutual cooperation is the foundation of an enterprise, and it is also necessary to implement operational strategies that are in line with each other's strengths. Honor only needs to be responsible for the front end. Anyway, under the copyright monopoly, they also account for the bulk of the profits.

The group soon arrived at a large factory, where a large number of arcade machines were being assembled one by one;
"There's no assembly line here?" Yang Wendong said.

Wang Zhiqun said, "Mr. Yang, although there is a huge demand for arcade machines, there are only tens of thousands of them a year. This is limited by the number of bars in the United States. In addition, arcade machines are very large, heavier and taller than a person, so we don't have an assembly line, but a small group model, with each group responsible for producing its own batch of equipment."

Yang Wendong nodded: "Yeah."

Arcade machines are about making huge profits from each unit, rather than selling in large quantities like future home game consoles.

Wang Zhiqun continued: "The Carmen family said they intend to place arcade machines in other places other than bars, such as casinos, libraries, near universities, etc. If they can succeed, then our production will increase significantly, and perhaps we can consider an assembly line."

"Then we'll talk about it after they succeed." Yang Wendong was not optimistic about this. It's not that arcade machines can't do it, but soon home game consoles appeared and gradually replaced arcade machines. Then he asked: "The Carmen family is so active now, it seems that they can make a lot of profit from it. How do we arrange the profit distribution now?"

Wang Zhiqun replied: "The cost in Hong Kong, including the picture tube purchased from RCA and the motherboard purchased from the United States, is about 1400 US dollars. The price we sold to the Carmen family is 2500 US dollars. In the United States, the Carmen family sold it for about 3500 US dollars based on their own situation."

"It's really a huge profit." Yang Wendong smiled and said, "The Carmen family can make several hundred dollars per unit. If there are 10,000 units, that would be several million dollars."

In this era, several million dollars is already a huge sum of money. The ZZ family in the United States is not a real business tycoon, and many things cannot be done so obviously. This income is high enough;

Moreover, this industry is low-key enough that if you are not an insider, you will not be able to find it at all;

Wang Zhiqun smiled and said, "Yes, after deducting tariffs, secondary distributors, and various transportation costs, the Carmen family estimates that they can make three to four hundred dollars per unit. According to forecasts, our game can sell tens of thousands of units. Their family is now very proactive and is urging us to expand production capacity as soon as possible."

"Okay, it would be best if they take the initiative. They can sort out all the problems, and then we just need to focus on the market." Yang Wendong nodded;
Some profits have been given up, but as long as they can ship the products smoothly, even if they make less profit on each unit, the shipment quantity will definitely increase. This is also the basic logic of modern business.

Wang Zhiqun said: "Yes, our arcade machines are about to become the most profitable business of the company. It's incredible that we have only been able to achieve this in a few years."

Honor Electronics has been established for more than ten years. From the early electric mosquito swatter to various kitchen appliances and white appliances, it has taken one step at a time and eventually became the No. 1 electronics company in Hong Kong. However, even so, some of its businesses are profitable, while others are just so-so.

However, the electronic game market has only been around for a few years, and nothing has been seen at the beginning. However, a hit game immediately led to explosive growth in business profits, far exceeding other businesses. "Times have changed. Although we attach importance to the home appliance market, the profit margin is actually not large, mainly because the market is large." Yang Wendong said: "The electronic game market will have high profits and a large market in the future, and this is also where we need to focus on."

If it weren't for the great opportunities in the domestic home appliance market in the future, Yang Wendong might not have entered the home appliance field. You know, traditional home appliance giants in Europe and the United States have been beaten badly by Japanese home appliances.

In terms of "volume" and "technology", Hong Kong's population base is no match for Japan. Even Taiwan and South Korea in the future will not be able to succeed without targeted assistance from the United States. As for the mainland, that will have to wait for decades.

The gaming industry is special. It has copyright protection and decades or even hundreds of years of exclusive time, which means huge profits. Games made on arcade machines can later be put on home game consoles, computers, feature phones, smartphones, and even made into online games, and all the profits are theirs.

It is precisely because the profits of the gaming industry can be stable and huge that he has the confidence to let Honor compete with other emerging electronic giants in the future;
Of course, there are other factors, such as the mainland market, mainland labor costs and Best Buy's channels, which are also key factors.

Wang Zhiqun asked: "Mr. Yang, according to previous experience, the peak of a game is only a little over half a year. Do we need to develop the next game?"

"You're right. I'm also going to develop the next one." Yang Wendong said, "Call all the core technical members and we'll have another meeting."

"Yes." Wang Zhiqun replied;

Half an hour later, everyone in the Honor game development department arrived. Yang Wendong stood on a small blackboard and said, "Everyone, the previous "Chinese Cube" was also successful, but we must continue to develop new games to ensure continued success. The name of our next game is "Space Invaders."

In the original history, the game "Space Invaders" was developed by a Japanese game company, which then exploded the American arcade market and earned more than 100 million US dollars a year;

Of course, the current American arcade market will soon be ignited by "Chinese Cube", but no matter what, it will not affect this game much;
Whether it was for his own benefit or because he couldn't let Xiaozi make a lot of money, he naturally had to develop this game, even if he made less money, but he couldn't let Xiaozi get away with it;
In the next hour, just like the last meeting, Yang Wendong introduced the content of the entire game, and the people below also asked some questions.
When the time was almost up, Yang Wendong said, "Okay, everyone, this is the preliminary plan for the game. Go back and think about it. If you have any questions, you can discuss it internally first. If you really can't figure it out, come and find me."

"Yes, Mr. Yang." A group of people answered;
With previous development experience, they are now familiar with the process.

In New York City, a bar under Plumlin Boulevard is filled with the atmosphere of Thanksgiving. Although this holiday is not usually celebrated in bars, it does not prevent bars or other commercial departments from using it for activities.
There were many people queuing at the door of the underground bar. Due to the limited space inside the bar, the flow of people was limited. Only after a certain number of people came out could a group of people be allowed in.

"What the hell is going on? Why haven't we gotten in for so long?" a white man yelled in dissatisfaction.

"Be quiet. Get out if you don't want to queue." The leading black security guard was not going to tolerate these customers. He flexed his muscles, and immediately made many people quiet down.

At this time, a young girl took out a $5 bill and stuffed it into the pocket of the black security guard, and asked with a smile: "Hi, sir, we just want to know how long it will take before we can get in?"

"If this piece of paper was thicker, maybe you could go in now." The black security guard said without blushing.
"Okay." After saying that, the woman stuffed a few more in. The black security guard immediately treated them like God, opened the fence, and said with a smile: "Everyone, please come in."

Although the people in the queue are all customers, it has nothing to do with him who is paid a fixed salary. But if they are given some extra benefits, then they are his customers, so naturally he will treat them differently;

After seeing this, the others also understood what was going on, but there was nothing they could do. They either paid themselves or left. After all, this bar was still very popular and lively, and there was no shortage of customers.

After entering the bar, the group saw that the bar was full of people, and there were many people gathered together, wondering what they were shouting.
"Hi, Ted, do you know what's going on? There weren't so many people in the bar before?" The generous woman came to the bar counter and asked about the wine.

While preparing drinks for others, Jiubao replied, "Look over there. The boss went into the arcade a few days ago. Now there are too many people playing. Many people are queuing in the back or watching. This has led to fewer people going out."

"Arcade, is that the Ping Pong from before?" the woman asked curiously;
Table tennis is somewhat famous in the American bar industry, and they have played it before.

Jiubao shook his head and said, "It's different. This is a block game. It's said to test your IQ. There are also points rules and a battle mode. I wonder how many people are working hard to break the record."

"Points, battle?" The group immediately became curious and walked over;
But there were too many people, so they had to wait for a long time before they could see the arcade screen. After watching for a few minutes, they understood how to play.

"This is very interesting. Changing the shape and then destroying the line below really tests your IQ." The man traveling with him said with a smile.

The woman also said: "It does look good. So many people want to play. It seems we will have to wait a long time."

"Just wait, at least we can see how others play." The man didn't care at all;

It doesn’t matter if they can play games or wait a little longer, they don’t care about time anyway.

PS: Please give me a monthly ticket
(End of this chapter)

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