A ten billion dollar business, I'm not sleepy when you say this.
But is there really ten billion?
In fact, Bamboo Yuxing is still slightly vague on this figure.
The tens of billions that Take Yusei is talking about are US dollars.
And Ota was subconsciously thinking of ten billion yen, which is more than a little bit different.
But if Takeshi had said ten billion US dollars, he would have been treated like a psychopath.
This company has only just started and he is already thinking about a ten billion dollar business, so I can only say that young people think too much and really see business as too easy.
"Takehiro-kun, tell me in detail what this ten billion dollar business is all about, is it related to this game console?"
"That's right." Takenyou Hoshi nodded, "There is this potential for game consoles, it's just that it has never been tapped in the past, this area is tantamount to an untapped gold mine."
Ota Masa pondered for a moment and said, "I have to admit that this game console of yours is really popular, Take You-kun, but I don't think the scale should be that big, if you say a billion scale, that's still possible."
Instead of rushing to defend anything, TakeYouSing asked in turn, "Why would you say that?"
"Look, now your game machines are placed in some shopping malls and entertainment halls, how many game machines can one entertainment hall need? A hundred units on average is the most, right?"
Bamboo Youxing nodded his head without denying it.
"Then a hundred units according to your future price, one 50,000 yen, a hundred units is only five million, you have to sell a hundred units to twenty entertainment halls is only one hundred million, or, counting those games you mentioned, how much do you plan to sell one game?"
"I guess between three and four thousand yen."
"Eh? That cheap? I thought it would be ten or twenty thousand too."
Takeshi waved his hand, "No one would buy it then, I don't intend to set that high a price, but if it's a special entertainment hall version, there might be a price difference because of the extra data tweaks and whatnot."
Ohta Masa blinked, I think he just heard a special version for the entertainment hall?
What does that mean? A special version of the game for the entertainment hall, so there's a regular version? Then who is the regular version for?
But that was just a fleeting thought, he didn't take it too seriously and went on to say what he thought.
"So, one game at a maximum of four thousand yen, a hundred consoles all loaded with the same game, that's only an extra four hundred thousand yen, and for twenty all loaded with the game, that's only eight million, that's a bit too little, it's not even close to ten billion."
Unless, of course, it's sold all over the world, and that's somewhat possible.
But by that time, it will be seven or eight years later.
But there are too many variables, and as a young man in his early twenties, he doesn't understand what's going to happen in the process.
There is never a shortage of shrewd people in this world.
When they see that it has the potential to make money, they will immediately follow suit, even though it may not be as good as your games and consoles in every way, but if it's attractive enough and cheap enough, it can take away your market.
In many, many classic cases in the past, the same scenario was playing out.
The first mover had an advantage, but it was hard to reach monopoly status, and there are countless examples of the late comer who would rise to the occasion and beat the former wave to the beach.
Especially once this thing is targeted by the kind of massive corporations that rely on big investments and massive influxes of money, a small company like Bamboo Tour Star will be destroyed in an instant.
The entertainment hall industry is not that good.
Take Youxing listened attentively to Ota Masa's views while nodding his head in agreement, which in turn confused Ota Masa a little.
Seeing that you agree with me so much, then why do you still swear so strongly that there is a ten billion dollar scale industry?
It was only when Ohta Masa had finished that Takenyou-kun finally spoke up.
"Ohta-kun, I think you've been heading in the wrong direction from the start. The ten billion dollar industry I'm talking about is not just about the little bit of game machines sold to the entertainment halls."
Ohta Masa froze.
If you don't sell to entertainment halls, who else do you sell to? To shopping malls? Or rent it out yourself? Or ...
Something suddenly occurred to Masa Ohta.
He stared in disbelief.
"You're not trying to sell it to an individual, are you?"
Takeshi Yusei smiled, "Why not, I've positioned my console from the start to actually be a home console, not an entertainment hall console."
"But ... that's too expensive, 50,000 yen, and the average family would never easily buy something that can only be used to play games, that's definitely not possible."
Ota was shaking his head hard, no matter what he thought it was impossible.
"I'll be straight with you, the cost of this console, right now, is only about two thousand four hundred yen, and that's because of the higher labour costs due to manual assembly, while the price I intend to sell the home console for in the future, is under seven thousand yen."
Masa Ohta's breath hitched.
How much?
The cost is only two thousand fourteen?
You sold me two hundred thousand yen!
How much money are you making off me?
Ota Masa had forgotten the more important news that Takeshi had just said, and instead he suddenly remembered how much Takeshi had sold him the console for.
That's more than eighty times the profit, isn't it?
It was outrageous!
He had initially envisaged that the cost of this console was estimated to be something like twenty to thirty thousand, so now that this was the only one making consoles and games, he had no choice but to accept it.
That's over eighty times the fucking profit?
"I know, you're probably thinking about me selling you 200,000 yen a console at the moment, but in Chinese language it's business as usual, it's a wishful thinking, what you should pay more attention to is how big do you think the industry would be if this thing was sold to a thousand households?"
Every family has children.
And even in the downward spiral of a bursting economic bubble, the average income of Japanese people overall is still on the high side of the world.
If, for example, they were asked to put out seven thousand yen to buy a console for their child, and then an additional three or four thousand yen to buy a game that would keep them entertained for a long time, many families could afford it.
According to the current population statistics of Japan some time ago, it was around 120 million, with the urban population reaching more than 80 million, and calculating an average family of three, that would be more than 26 million urban families, and excluding elderly families, it is estimated that there would be more than 10 million normal urban families.
Of these, if just one tenth spend for the sake of their children, that's more than a million families.
It's all good maths stuff.
And one million times the average price of 10,000 consoles plus games, that's like ten billion in size ...
Ohta was looking at Take Youkun, and in his eyes he saw a lot of things.
Then, Takeyu Xing threw out another figure that made his breath catch.
"In fact, the profit of the console is only secondary, I can even sell it at zero cost or even negative cost if necessary, the real profit, is those games, three or four thousand yen for one game, how about ten? How about twenty? These are long-term windfall profits."
Masa Ota: "..."
My brain has temporarily gone down.