Chapter 36 Cash, No Cows(1/2)
Chapter 36: There is cash, no cow
Author: Fortunately I didn't go
Chapter 36: There is cash, no cow
“What?”
This fact surprised Ethan.
“Why?”
Ethan didn't understand.
And the frowning of his eyebrows is a very striking situation where anyone stops me from making money!
Such an excited performance made Nolan laugh, pressing the cigarette to kill, "Okay~Okay~Ethan~Don't be excited~"
He pressed down with both hands and said, "Ethan, to be honest, if possible, I hope that the longer the time to sell the goods, but this kind of thing is not possible, because going eastward, the cost of selling the goods is
It is greater than the profit of the product itself.”
"You should know Ray Kloak, right? It's the father of McDonald's! He created a standardized kitchen! He created a food supply chain system! But even so, they need to find multiple suppliers in North America to do their own
The restaurant offers standardized products.”
"No matter what kind of company it is, if you want to do your business all over Mi, you must have multiple factories in Mi, because factories in a single area cannot deliver full rice."
Speaking of this, Nolan paused, pointed to the map behind him and said, "But we atari, there is only one factory, or so far, only Sega and Mirohua have many games in all of them.
Branches.”
"In this way, troublesome things will happen. Take the route you ran before, as an example, from California to Houston and Austin in Texas, the total distance is almost 1,800 miles, one round trip, then
It will take one week.”
"We don't count the oil money. A round trip of 200 gallons is only a few hundred dollars, and the personnel expenses can be ignored. Even if each of us has a daily food and accommodation subsidy of ten dollars, three people only have more than two hundred a week
.”
"But I have to calculate the labor cost of the production staff."
Nolan Bushnell looked at Ethan with a smile, pointing his thumb outside his office with his left thumb.
"We atari have more than a hundred employees, and it is their presence that we can continuously produce circuit boards, and their salary is 12,000 dollars a week, that is, when you hold a
When you travel to Texas with a circuit board of more than 100 or even 200 yuan, your profits can only offset the normal personnel expenses of Atari. At the same time, the sales income between Tang and I are the real source of our share.
.”
"As for why not set up other branches?"
Speaking of this, Nolan stopped.
There was helplessness on his face.
"Ethan, I don't think I need to answer this?"
"Everyone in the industry knows that electronic arcades are really not very profitable."
"If we can really make profits in a crazy way and compensate Mirohua in full, how could Professor Ralph Bell agree to the settlement? The professor actually knows, or everyone knows that the electronic arcade is just a reputation
It just looks good!"
"Because the ones who really make money in this industry are actually those merchants who buy arcades!"
Nolan Bushnell's small calculation made Ethan feel a little moved.
In his previous life, video games were recognized as cash cows worldwide. Every time a global financial crisis came, no one who made video games could not survive.
The pig farm relies on games, from the era of the three major portals to 2023. Tencent also relies on electronic games, and all the BAs that have been killed have fallen behind. Mi Fuyou even absorbed 10 billion cash flow. As for Lao Ren, Sony doesn't need it.
As mentioned, the former has always been a high-performance stock held by Liben National Pension Fund for many years, while the latter has gone bankrupt every year, but it was still pulled back by the game.
However, making money from electronic games does not mean making money from electronic arcades.
In the electronic arcade industry, it is a one-time transaction. Game companies sell arcades to various merchants to make meager profits, and merchants are the real king of income because they make money from players.
When opening up the channel for game companies to directly charge players for money, the electronic game industry actually seems glamorous.
And how to open up this channel?
Professor Ralph Bell has actually told the whole world.
That is to make a home console.
Only by truly selling electronic games to players! Electronic games can become cash cows!
But something like a host...
The personal computer has just come out ~
When Ethan thought of all this, he also put away his resentment and laughed, "Nolan, I understand what you mean, the cost-effectiveness principle~"
At the same time, he also asked: "But if we don't sell, do we want the market in the east? You know, people from New York, Chicago, and Boston are very rich!"
"Take Snake Game and you can earn two million no matter how you want!"
"Oh~Ethan~ This is actually what I want to tell you next!" Nolan Bushnell rubbed his hands eagerly and said with a smile: "In fact, in the past week, the United States has been
Game producers in the middle and eastern regions are looking for me and want to reach a cooperation with us atali."
"I think this cooperation is feasible, but the content is..."
Instead of finishing his words, Nolan took out a document from the drawer and pushed it in front of Ethan.
Ethan opened it and saw that the first page was filled with the company's name and their cooperation plans.
A New York game company proposed to obtain the production license for "Snake Game".
To this end, they are willing to pay an eight percent of the net profit per machine.
Some Miami gaming companies said they want Snake Game motherboard licenses.
In return, for every game board sold, they can give Atari a fixed, ten dollars in reward.
Since Ethan directly handed over the authorization of "Snake Game" to Atari in one year when signing the contract, so if you follow the normal process, Nolan Bushnell doesn't have to give it to him
Look at this kind of thing.
Because no matter what method Nolan uses to sell "Snake Game" to the East Coast, no matter which partner Nolan chooses to sign what kind of cooperation contract, Ethan will ship according to Atari's selling price and final receipt
The commission is taken. Even if other companies sell for one thousand dollars, they will still draw Atari for one thousand,200 dollars. But now this offer lets him know how much people in this era look down on creativity.
It's right.
"Eight percent of the profits per machine are paid, and you want to get the authorization for a price of ten dollars per dollar?"
Ethan threw the documents directly on the table, "These people are really ugly and beautiful!"
"Puchi!" Nolan Bushnell laughed out loud.
He shrugged and said, "There is no way. If Mirohua had not sued all the plagiarists on the market after we reached a settlement with Mirohua, they would probably continue to copy."
Yes, if Mirohua hadn't transformed into Disney and vowed to give all infringers a blow, the sales of "Snake Game" would never have been as smooth as it is now.
Only when the iron fist hits these plagiarists will they know what pain is!
But being beaten doesn’t mean they are sensible!
After making too fast money, who really wants to pay the authorization fee?
"So, you wouldn't want to discuss this with me, right?"
Ethan knocked on the table and asked, "To be honest, after looking at the conditions above, I feel that my own blood pressure has risen."
"Yes~Brother~ I feel the same as you, I think these guys are very funny!" Nolan complained.
Then he changed his mind and said, "However, among so many companies, there are still two who are full of sincerity."
“One is Midway Games and the other is Chicago Coin.”
Nolan picked up the documents thrown by Ethan again, and simply flipped through them, pushing the information from the two families in front of him.
Ethan also learned about the information related to it.
Midway Games, born in 1958, Chicago Coin, was born in 1932. They used to do traditional coin-operated arcades, had rich market channels, and had certain experience in the production of electronic arcades.
As for experience, how did Atari know about it?
Very simple!
Both companies have made imitations of table tennis games and are currently sitting in Mirohua’s dock!
With Mirohua's endorsement, he is a ghost who knows that they have made money!
Perhaps because both companies are in Chicago and have had some connections, their cooperation plan was jointly proposed, and they are willing to jointly win the thirty-two states in the eastern and central U.S. region that Atari is unwilling to be involved in.
The distribution rights of "Snake" are, on the whole machine, they can pay a commission of 10% per unit, while on the game motherboard, they are willing to pay a fixed fee of 30 US dollars per unit.
If it were just that, Nolan wouldn't have said that they were full of sincerity.
What really surprised Ethan was that they wrote the calculation standards for commission and fixed fees.
The two companies said that because the arcade "Snake Game" cannot be gambling and does not coincide with the traditional businesses involved in the two companies, their existing customers will not treat them in the way they treat emerging electronic companies.
To be continued...