My fintech empire.

Chapter 1204 [Perfect Card BUG Bypassing Restrictions]

Tian Jiayi, who had prepared a memo, thought to himself and said, "Even if there is a platform to help apply for game license qualifications, the game licenses themselves are still scarce, and the situation of too many people and too little meat has not been fundamentally improved. I believe that there will still be many games that will not get the licenses, and game companies will not be able to make profits legally."

This year is coming to an end. Currently, the number of newly issued game licenses in the game industry is only about 1500, but the number of games launched this year is far more than that. There are as many as 1.2 new domestic games of various types launched for public testing on the Game Box platform alone. Although most of them are online mini-games, mobile games, etc., no matter what, each game must correspond to a license.

What’s more, the entire game market is not only composed of game box platforms, but also industry giants such as QQ and Tencent.

Tian Jiayi tilted his head and looked at Fang Hong, adding: "…Especially small and medium-sized manufacturers and start-ups cannot survive for long without income. After a long time, it will be difficult for them to operate continuously, and the game license company may go bankrupt before they even get a chance to receive the game license. If the inferior products go bankrupt, it will go bankrupt, which is a natural elimination, but if the good products go bankrupt due to the restrictions of the game license, it will be a pity."

Hearing this, Fang Hong frowned slightly and fell into deep thought, but after a little thought, he soon relaxed and thought of a solution. He smiled and said, "This problem is not difficult to solve. We can just get targeted financing."

After hearing this, Tian Jiayi couldn't help but be stunned for a moment.

After realizing what was going on, his eyes lit up and he couldn't help but say, "This method is really good. Products that have been verified by the market are confirmed to be profitable, but they are just blocked by the version number. By providing precise and targeted financing support, this cannot be considered a profit item for game manufacturers. Game manufacturers can continue to operate with funds, thus avoiding bankruptcy."

Without a publishing license, one cannot participate in profit sharing, but the financing funds obtained cannot be considered a profit item, but an investment item, which is a reasonable, legal and compliant way to circumvent the constraints of publishing license scarcity.

For the game box platform, it does not matter even if the application for a game license is not approved for a long time, as long as the game itself is successful and popular, and the game has been operating on the platform. The game company cannot get a share of the profits. At most, it can continue to provide financing support to the company until the license is approved.

Even if they can’t get a game license, it doesn’t matter. Platforms or other investors will continue to provide financing to game companies, first with the A round, then the B round, then the C round, the D round, the E round…

The company can continue to raise funds, which is equivalent to indirectly sharing profits with the game company. Although the company itself is not profitable, it can always obtain financing. The company has money in its account to continue operating the game, and employees' salaries and bonuses will still be paid. In fact, there is no impact at all.

Moreover, the platform can control third-party game developers in all aspects. If you don’t obey, I will withdraw your investment and you will be finished, and you will go bankrupt on the spot.

It is no exaggeration to say that with this targeted financing operation, the issue of version numbers is a constraint for peers such as Tencent and QQ, but for game box platforms it is in fact non-existent, and can be said to be out of the three realms and not within the five elements.

Third-party game developers who plan to launch games on the game box platform don’t have to worry about their version numbers being blocked. As long as they ensure that they do not violate the core social values ​​and other principles, they can develop products with full enthusiasm. It doesn’t matter if they launch their games or even continue with public beta testing. There is no profit-sharing platform to provide you with continuous targeted financing. Even if the company loses money for ten years and does not make any profit, it does not matter. You will still receive continuous financing.

The most important thing is that even if friendly competitors such as Tencent and NetEase want to imitate this gameplay, they can’t do it and can only watch helplessly.

Because there is a prerequisite for this gameplay to work, which is that it has to adopt a platform subscription payment model like the game box platform. The money that the game box platform takes out to provide targeted financing to third-party game developers is essentially income from player subscription payments.

Not only does it circumvent the restrictions of the version number, but it is also reasonable and legal. There is no violation of any regulations or laws, and it can be done openly.

In this way, the version number has become a powerful moat for the game box platform, because the version number is meaningless on the game box platform, but peers cannot avoid it. Without the version number, the game cannot be profitable, and if it continues to be free for public beta, it is obviously doomed to bankruptcy.

This will lead to another result. All third-party game developers, especially small and medium-sized manufacturers and start-ups, will have only one best choice, which is to join the game box platform. Once they come to this platform, they will only do one thing: develop games, develop good games, and develop games that players like.

At last, Tian Jiayi couldn't help but say: "Continued targeted financing can circumvent the issue of game licenses. I have a feeling that if this plan is implemented, the game industry will definitely usher in a blowout explosion next year, and newly established startups will surely emerge like mushrooms after rain."

Here, good wine will sell itself, and gold will surely shine. It is not a problem if you don't have a publishing license or cannot make a profit. There will be investors who will continue to provide targeted financing to your company, and bonuses and salaries for executives and employees can be paid as usual.

Never underestimate the impact of the game box platform's ability to circumvent the version number restrictions on the future development of the entire game industry. This will encourage more investors to enter this market. In the past, they were worried that they would fail due to the version number restrictions, resulting in their investments going down the drain. Now they don't have to worry about this problem. They only need to focus on the competitiveness of the product, and don't have to worry about the lack of survival space for good products.

As time goes by, the rise of local game masterpieces and local third-party game developers is definitely just a matter of time. We just need to wait patiently for those who stand out.

In addition, if a company cannot obtain a publishing license and cannot make a profit but is excellent and the game products it develops are very popular, it can still be listed on the A-share market even if it does not make a profit for several years, because the A-share market now already has a registration system pilot project, including the Singapore Exchange.

Such gaming companies can register and list on the SGX even if they are not profitable. As long as the capital market recognizes your business development logic, they will still buy into it even if it is not profitable for ten years, and the stock price will be supported.

Finally, Tian Jiayi looked at Fang Hong and said, "In this way, in time, the scarcity of game licenses will no longer exist. In a sense, wouldn't the game box platform actually do what the General Administration of Press and Publication should do? Will this prompt the amendment of regulations to restrict game box platforms?"

Fang Hong shook his head and smiled, "Not to say impossible, but very unlikely, because if we want to change it, we have to do a major surgery on the existing legal system framework, which will really affect the entire system. In that case, the impact and scope will not be as simple as just the game industry. If you don't allow my normal financing investment, what about other industries? You won't allow it either? You said that you won't allow game boxes to adopt a subscription service model, what about other industries? You won't allow it either?"

At this point, Fang Hong still smiled and added: "I guess either the game version number mechanism is cancelled, which is the simplest and the impact is limited to the game industry and will not radiate outward on a large scale; or the status quo is maintained and continues to operate according to the existing regulatory framework. Maintaining the status quo is the most likely because it is the most worry-free and labor-saving."

……

(End of this chapter)