Top of the Great Era

Chapter 2144
When games were mentioned, Zhou Buqi became interested. He came to Japan on a business trip this time, and the most important task was to target the Japanese game industry.

Zhou Buqi asked, "Is it really a game?"

Chen Dong said with a smile: "It's really a game, but the income model is different. One is Jingtao's self-operated products, and the sales of products are counted as Jingtao's income; the other is the agency's third-party products. The commission is regarded as Jingtao’s income.”

Zhou Buqi is no stranger to this.

Jingdong is like this.

JD.com’s income far exceeds that of Taobao, because JD.com has self-operated products. If a product is sold for 100 yuan, it is 100 yuan in income for JD.com.

If it is a third-party product, just like on Taobao, what you earn is commission.If a product is sold for 100 yuan, the commission may only be 10 yuan, which is 10 yuan of income for Taobao.

It can be seen that the income of self-operated products is high, but the profit margin is low; the income of third-party products is low, but the profit margin is high.

Jingtao now has both self-operated products and third-party products sold through Jingtao.The income that Jingtao obtains through third-party products is actually the commission income of the platform.

Because of the lower marginal cost, virtual products are more suitable for small profits but high sales, especially games, which leads to games often being the products with the highest commission ratio.

Jingtao earns commissions from game manufacturers by helping game manufacturers sell games; then, the earned commissions are paid in proportion to the up masters who help to promote them through Niconico videos.

Zhou Buqi asked: "What is the commission ratio?"

Chen Dong said with a smile: "The minimum is 50%."

"What?"

Zhou Buqi was slightly startled.

Chen Dong smiled and said: "Yes, it is 50%, which is the minimum standard. There are also some unpopular games or new games that have a higher commission ratio. For example, Konami has launched a new shooting game "Undead", because It is a new game that has just been launched, and it needs to open up the market as soon as possible, so the commission rate has reached 75%.”

Although Zhou Buqi had been prepared for a long time, he couldn't help but take a deep breath when he heard this, "Isn't this too high? In the United States, for example, the game platform Steam acquired by Ziweixing International, the proportion of games sold here It’s only 30%. Like the Apple tax and the Facebook tax, it’s generally 30%.”

You know, in the domestic market of future generations, because the 30% Apple tax makes many mobile phone manufacturers jealous, Coolpad, Gionee, Lenovo, Huawei, OPPO, Meizu, vivo and other mobile phone manufacturers have cooperated to form a "hard core alliance" based on the Android system. ".

For all game consumption through the "Hardcore Alliance" mobile phone, the mobile phone party will collect a tax of 50%, which is 20 points higher than the Apple tax.

Penguin wanted to make trouble and struggle for a while, and didn't want to pay.

Later, I found out that I couldn't deal with them at all, and was slammed for being unpatriotic, so I defaulted to a 50% commission.

But what Chen Dong said was too evil.

The minimum is 50%, and some game commissions even reach 75%!

Chen Dongdao: "The national conditions are different, and the channel cost in Japan is too high. In the past, game sales were all about selling game cards and game CDs. Game manufacturers have to find manufacturers to produce game cards and game CDs, and then sell them to Tier [-] suppliers. Tier [-] suppliers sell to department stores or Tier [-] suppliers, and Tier [-] suppliers sell to some small shops... In some small towns, they are all Tier [-] and Tier [-] suppliers. Every A channel must maintain employment without layoffs, and must generate profits. In fact, these are sucking blood from game manufacturers.”

"No change now?"

Zhou Buqi is not surprised by this, because the game industry in Europe and the United States also followed this model in the early years.

However, the channel cost of this model is too high, and the money earned in each link is actually the output of the game.Therefore, Europe and the United States have gradually shortened the industrial chain and carried out vertical operations.

Through a series of industrial adjustments, game manufacturers have removed many unnecessary intermediate channels, and gradually recovered the part of the profits that originally belonged to the intermediate channels.

This is the general situation of the whole industry.

Not just the gaming industry, but all industries.

For example, the Manchester United store used to be an authorized store and cooperated with third-party stores, but now it is more of a direct-sale store; including the Disney store and Apple retail store, all of them are banned from intermediate channel providers and directly operated by manufacturers.

Chen Dong shook his head, "Nothing has changed. Japan's social structure is relatively rigid. What they pursue is stability. Unless it is absolutely necessary, they should not change. Such a complicated channel system in the downstream of the game industry has eaten up too much of the profits of game manufacturers. , 5000 yen for a game disk, maybe 3000 yen fell to middlemen at all levels, and game manufacturers can only get 2000 yen. But this system has been in operation for 30 years, and many of them are cooperation between parents , It has been maintained to the son's generation. How can you just stop it? As long as it can be maintained and can be supported, it will not change."

"This social system is really a stagnant pool, lifeless."

Zhou Buqi felt a headache.

This is really a hassle.

If Changyou came to Japan to acquire several major game companies, would it be necessary to deal with this situation?That would be bad.

Chen Dong said with a smile: "Well, but this is a good thing for Jingtao."

Zhou Buqi nodded, "Well, traditional giant companies have such decades-long relationship accounts, and they have formed a big gold-eating beast. No wonder those giant companies have scary high sales and scary low profit margins. It was divided up layer by layer. Before coming here, Ren Yuxin told me that game giants such as Scarlett and Konami have a profit margin of only 10%."

Chen Dong asked: "How much is the swim?"

"Changyou?" Zhou Buqi snorted, "There is no comparison with Changyou. In the past fiscal year, Changyou's business revenue was 22 billion US dollars, business profit exceeded 14 billion US dollars, and the business profit margin reached 64%."

Chen Dong was shocked, "So much?"

"It's business profits." Zhou Buqi smiled, "Didn't Changyou acquire Ziwei Star International's game division last year? It cost too much money in business restructuring and layoffs, as well as rapid global expansion and increased R&D investment. The net profit seems to be more than 7 million U.S. dollars. But even so, the net profit margin is only 32%.”

The profit margin of the game industry is too high. In the new era, the gross profit margin of terminal games can reach 90%, and the gross profit margin of mobile games can also reach 70%.

The so-called new era refers to the digital age.

Games are completely virtual products.

Unlike Japan, where game cards and game CDs are produced, they are then sent to various department stores and convenience stores through distributors, and sold to players through physical transactions.

This model is the same as it was decades ago.

The cost is too high, all wasted on channels.

A virtual product is a set of codes.

The player downloads the game installation package from the Internet, installs it on the computer, and then enters the genuine serial number. Even if the transaction is completed, there is almost no additional cost.

Zhou Buqidao said with emotion: "In the United States, the streaming media model of Netflix will become more and more popular, and Silicon Valley can go to Hollywood's territory to get a share of the pie. The reason for this phenomenon is that streaming video is the Digital products, virtual products, and the traditional Hollywood set, still need to produce CDs and game cards, and then send them to various retail outlets through suppliers to sell to consumers."

Chen Dong said with a smile: "Yes, this is the digital economy's dimensionality reduction blow to the traditional economy."

Zhou Buqi glanced at him, "The digital promotion of Japanese games is not very good?"

"No, it's very bad, and the traditional forces are too strong." Speaking of this, Chen Dong was very happy, "This has become an opportunity for Jingtao. Normally, 60%-70% of the sales of a game may be taken by the middleman." The merchants took it away. The quotation given by Jingtao is more cost-effective, only 50%. For game manufacturers, it is very cost-effective. They are very happy. Just now I received a call from the boss of a game company, saying yes Thank you very much, in the past 3 weeks of this month, I have helped them generate 2 million yen in revenue. In fact, they have earned 2 million yen, and Jingtao has earned 2.2 million yen."

Zhou Buqi was a little dumbfounded.

In the United States, game sales channels such as Steam, Apple Store, Facebook Open Platform, and Microsoft Store all charge 30% commission.

Even the 30% rake still caused strong dissatisfaction in the game industry.

Japan is really weird here.

Chen Dong went to take 50% of the commission, and he was very grateful.

However, most of the commissions drawn by Jingtao still have to be paid out.

Chen Dong went on to say: "General up owners, the commission rate for recommending games is also very high, generally 10%-20%. Also, Jingtao also pays a commission to Niconico."

Niconico is a video website owned by Ziweixing International Japan Branch. Of course, Zhou Buqi also supports it, saying: "It is right to pay commissions to Niconico. Only with the guidance of interests can the subjective initiative of Niconico be stimulated, allowing them to further develop Technology development to complete the drainage of this kind of content e-commerce.”

Chen Dongdao: "Yes, just like Taobao Ke."

Zhou Buqi said with a smile: "That's right, it's Taobaoke. The content e-commerce model that Niconico cooperates with Jingtao, I really learned the truth from Ali."

"Learned from Ali?"

Chen Dong was somewhat surprised.

He thought it was an e-commerce idea created by the omnipotent boss Zhou.

The concept of content e-commerce was originally proposed by Boss Zhou. Now the mainstream of the world is search e-commerce, mainly based on the traffic import of search platforms.

Zhou Buqi nodded, "I got a little inspiration, so when you are free, you should study the business model of Ali's mother and some business ideas. It is best to go to Ali specifically to investigate and talk to them. Face-to-face communication with middle and high-level executives. Anyway, Ali is also an important shareholder of Jingtao, and they have no reason to refuse. Ali will definitely develop an international strategy in the future. They also value Jingtao’s overseas operating experience. You can do more business. comminicate."

(End of this chapter)