To give the simplest example, let’s take TECMO’s signature game Ninja Gaiden.

What is the concept of the Han Dynasty only taking 20% ​​of the net profit? Even if a game of Ninja Gaiden can earn 20 US dollars, the Han Dynasty can only get 4 US dollars!

10 million copies is only 40 million US dollars! How many games in the gaming industry can sell more than 10 million copies? The games of the Han Dynasty cannot be regarded as a normal situation at all.

Not everyone’s game can easily exceed the tens of millions threshold!

The highest-selling game on PS1 has just exceeded 10 million, Gran Turismo! Final Fantasy 7 has not even exceeded the 10 million threshold!

If Ninja Gaiden is added to PS, Liu Zhiyuan has already estimated that the sales volume will not exceed 3 million copies.

If a game makes 4 U.S. dollars, 3 million copies is only 12 million U.S. dollars! What’s more, making 20 U.S. dollars per game is just what he said casually.

The games that can make a net profit of 20 US dollars are all super masterpieces, such as Pokemon and Super Mario. Ninja Gaiden is far from qualified.

A 20% net profit means that even if TECMO's games sell an ideal share, the return to Sony will not exceed US$10 million.

US$10 million seems like a lot, but you have to remember that Sony also has to shoulder some of TECMO's promotion and publicity, as well as other miscellaneous expenses.

In the end, the amount that will fall into Sony's pocket will not exceed 5 million US dollars. With the R&D and publicity expenses of the PS, 5 million US dollars will not even make a splash!

Only he dares to promise 20% of the net profit dividend, because he does not rely on these third parties to make money for the Han Dynasty at all!

What he wants is for these third parties to stop causing trouble and allow them to unify the game market. Their profits are in the Internet era.

"Sorry, although it's rude to ask this, but I still want to confirm, will the Han Dynasty really provide free development kits to third parties affiliated with it?"

"That's right, it's free, it doesn't cost a penny, and there are instructors who can be sent abroad, and you don't have to pay for the salary."

This development kit is not cheap. MD’s development kit costs 2 million US dollars, and SFC’s is exaggerated to 6 million US dollars. How many third parties can come up with this kind of money?

You can't get this money back. This is not a deposit or anything like that. This is money to buy the host technology! It's still incomplete.

If you give it, you lose it! How many third parties will never make so much money in their lifetime, but it’s not enough if you don’t buy it. Not buying it means you can’t fully understand the performance of the console.

Failure to fully understand the performance of the console means that your game cannot be outstanding. If it is not outstanding, there is no hope of being approved by Nintendo and Sega.

If the review fails, there will be no platform for the game to be released, and all the hard work invested before will be in vain. There are even rumors of bankruptcy and liquidation in the real industry.

But the software has to be cleared out, and countless financial resources have been spent line by line, and the code that has been put into it will become worthless!

This is an endless cycle! The development kit is a blow that no third party can avoid. Sony also accepts it, and it is definitely not cheap!

Otherwise, the $299 PS price doesn’t mean it’s sincerity, it means it’s just someone who got kicked in the head and came out to do charity.

By 2005, the PS has sold more than 100 million units. It seems that Sony has earned US$29 billion, but what about the cost? What about the risks? Sony is sure that the PS will succeed? Norio Ohga is also reborn?

It is impossible for any successful entrepreneur to make such a huge gamble without a bottom line. There must be a bottom line, and this development kit is the bottom line.

At least the cost recovered from the development kit can ensure that the PS will not lose money. If it sells a few more consoles, it will fail in the end. Although it will hurt for a while, it will not lead to a sudden death.

Sakaguchi Kazuyoshi was completely tempted. The fact that he came to answer Liu Zhiyuan's invitation meant that he wanted to join the Han Dynasty. Otherwise, he would not have come at all.

"15%?"

Liu Zhiyuan knew what Sakaguchi Kazuyoshi meant. He actually didn't care if he lost 5% of the net profit share. Again, he didn't rely on these third parties to make money for the Han Dynasty now.

Is there any difference between 15% and 20%? There is still some, but it is not money, but status! This 5% gap is a symbol of the third-party status of the Han Dynasty.

"If TECMO had been the first third party to side with the Han Dynasty, then this treatment would have been available."

"Okay, last question, pirated CDs, how are you going to solve them?"

As long as Liu Zhiyuan can solve the problem of pirated discs, then he can agree to TECMO joining the Han Dynasty lineup today.

The conditions were too generous. PS's share was 35%, gross profit, which was enough to surprise him. He didn't expect Liu Zhiyuan to be even more generous!

He understands the significance of the 20% net profit sharing. Liu Zhiyuan simply does not expect his TECMO to make money for the Han Dynasty.

The most important thing is that there are no production costs, no deposits, no restrictions, and no sky-high development kit fees!

These are the most favorable benefits! Far more generous benefits than the 20% pure profit dividend.

Sony asked for a symbolic deposit of US$5 million, limiting TECMO to 5 games and not requiring them to bear production costs.

This is infinitely better than Nintendo. This kind of treatment is not available at Nintendo's top third parties. The production costs are borne by themselves, which cannot be avoided by Hiroshi Yamauchi.

Sony's asking price for the development kit was US$5 million. After trying out Sony's console, he called it a conscientious company. But now, comparing it to the Han Dynasty, Sony's heart is black!

As for the 15%, I just tried to say it. He understood what Liu Zhiyuan said. This is not a problem of the 5%, but a problem of status.

As a newly joined third party, TECMO would not be able to get the 5% difference anyway, and he knew this very well.

"Piracy? There are more than 1,000 interns in the Legal Department of the Han Dynasty. How do you think those little wolf cubs who want to make meritorious deeds will treat those pirate dealers?"

"Gudong..."

Sakaguchi Kazuyoshi lost his temper for the first time in this negotiation. The legal department of the Han Dynasty still had 1,000 people. He really wanted to see who was bold enough to pirate the games of the Han Dynasty.

"As long as the benefits you mentioned are written into the contract, I will join the Han Dynasty on behalf of TECMO."

"no problem."

Liu Zhiyuan is not afraid of others piracy of Han Dynasty games at all. If you are not afraid of death, just piracy. This is his bottom line! Ni Lin!

The Han Dynasty does not need to rely on piracy to seize the market, and it cannot afford the price. The Han Dynasty now has so many big money-making departments, and they all rely on games to support them!

If the game is pirated, will he still do it? The loss is not just hundreds of millions of dollars, but billions or even tens of billions!

The biggest disadvantage of CD-ROM games is that they are easy to be pirated, which is why Hiroshi Yamauchi has been hesitant about whether cassettes or CDs are the most important.

Do you really think that the dictatorial old man can’t see the future of the game market? The entire game industry, from the day the game was born until he was reborn.

He has never seen a person with such an absurdly strong intuition! Yamauchi Hiroshi is not a high-quality gaming talent, nor is he an international elite.

He is a narrow-minded, vengeful, stubborn and conservative autocratic old man! He did not rely on data or rational analysis, but relied solely on intuition to bring Nintendo to the throne of the emperor of the gaming industry.
Chapter completed!