Super Tycoon

Chapter 634: Reduce Game Promotion Costs

() The annual publicity expenses of Zhiduoxing Group is not a small amount. In fact, every game machine manufacturer has a lot of publicity expenses. Even Nintendo, which used to be very reluctant to advertise, is now increasing its advertising costs year after year.

According to Nintendo's advertising in the first half of this year, at least more than 100 million US dollars was spent. There may be an increase in the second half of the year, so it will definitely exceed 200 million US dollars.

And Nintendo's sales this year will not exceed five billion US dollars, which means that Nintendo spends nearly one-tenth of its sales on advertising, no expense spared.

It is also true that Nintendo's profit margins can continue to be maintained. Although Nintendo's sales have declined sharply in the past two years, mainly due to the market being seized by Zhi Duoxing and Sunny, Nintendo has also begun to catch up.

In the previous life, Nintendo did not re-emerge until the new generation of game console w, so it will take two or three years. At least for this period of time, Nintendo can only compete for the second place in the industry at most, and it depends on whether Sunny agrees.

No way, who let it be considered a rush? At present, it has only sold more than 1,000 units, and its performance is not as good as that of Super Uranus, and game manufacturers are not optimistic about Nintendo anymore.

The more game consoles are sold, the more games they can sell. The Zhiduxing 2 series has sold more than 100 million units, Sunny's p2 has sold close to 50 million units, and Super Uranus and Uranus have sold more than 30 million units. Nintendo is the worst seller of this generation of game consoles.

Fortunately, Nintendo is second in the sales of handhelds, Sunny has no handhelds, and Sega Bandai's handhelds hit the street, so hard sales, price cuts, and crazy advertising, and only sold a little over 10 million units .

However, Sega Bandai's handheld b is about to release a new model, which adds the function of 3.

When Zhang Yang heard the news, he thought it was extremely funny. Now there is a video playback function, why don't you add it together?

Zhiduxing and Nintendo's handhelds with 3 functions were released as early as last year, and Sega Bandai is too slow. If it weren't for Sega Bandai's popular games on handhelds, Zhang Yang wondered if they would stick to it, obviously losing money.

Sega Bandai's advertising expenses this year are even more aggressive than Nintendo's. It is also through advertising that they have gained a firm foothold in North America. In addition, the island market has also improved somewhat, and the sales growth in the European market has allowed them to continue to persist.

But this year they will spend at least 300 million US dollars in advertising fees, and their gross profit may not be that much. In other words, Sega Bandai will continue to suffer losses this year.

So what if Microsoft joins in, Microsoft is just a rookie in the game industry, even in the previous life,

Microsoft's gaming business isn't making money, either.

It seems that Microsoft is involved in products in the hardware field, and it seems that it does not make money. In my previous life, I first proposed the concept of a tablet computer, but no one bought it, so I lost money. Making set-top boxes turned out to drive the development of Internet TV, but Microsoft still didn't make any money.

As a game console xbx, the promotional slogan is very loud, but the game is not very good. It just sells well in North America, but other markets are not so good, and it still loses money.

Microsoft also made mobile phones and laptops, but they didn't make any money.

The most fundamental reason is the resistance of other hardware manufacturers. They don't want to see Microsoft come to grab their hardware territory after dominating the operating system.

Another reason is that Microsoft has little experience in the hardware field, and its foundation is poor, so it cannot compete with those hardware giants. Not to mention Intel, even compared with Dell and HP, Microsoft is far behind.

Fortunately, Microsoft is indeed the leader in the software industry. Its annual net profit of at least several billion U.S. dollars and its advertising expenses of several hundred million are simply ignored.

Microsoft's goal is to become the leader in the game industry. Before, they were jealous of Nintendo's profit margins, and now they see that Zhiduxing has developed through this, and they are even more jealous.

If Microsoft can become the industry leader, the stock price will rebound quickly, and the assets of these shareholders will skyrocket. Then the net profit can also increase. I dare not say that after more than a year, it can increase by several billion dollars, right?

Perhaps Microsoft's annual net profit will exceed 10 billion US dollars!

It's a pity that the ideal is full and the reality is too skinny.

Microsoft has also spent on advertising, and invested in research and development, but the effect is not very good. Not to mention the number one in the industry, it is still the fourth in the industry now, and there is no meaning of climbing up.

Sunny Computer Entertainment spends hundreds of millions of dollars a year on advertising. Before p1, they relied on spending money to smash sales. The first game console did not lose money and had a small profit.

It's just that on p2, after they were jointly targeted, they started to go downhill. The stock price has not fallen much in the past two years, and it is not as strong as Zhiduoxing.

Among them, the one that spends the most on advertising is actually Zhiduoxing Group. Last year, it spent about 500 million US dollars, including game consoles, handhelds, 3, repeaters, electronic dictionaries, games and other fields, of which the game industry accounted for more than 80%.

The advertising expenses in the first half of this year increased again, because 4. Mobile phone advertising expenses were newly added. It is estimated that this year's advertising expenses will exceed 600 million US dollars.

In the ball market, perhaps this advertising fee is not too much, but in the game industry alone, the advertising fee of Zhiduoxing Group is too high.

The company has already researched that Zhiduoxing Group is currently the number one in the industry, and no other company will be able to shake this position until the next-generation game consoles appear.

That being the case, the advertising fee is not necessary to be so high, after all, no new models have been launched.

Both 2 and z4 have entered a stable sales period, and when the new models are launched, they will decline rapidly, or before the launch, sales will decline significantly, which cannot be prevented by advertising.

Now the advertising costs are too much, it is a waste, there is no big effect, it is better to save some, and use it to advertise other products, such as 4 and mobile phones.

Zhang Yang looked at another report on the table, which was sent by Duan Yongping, which contained a report on the adjustment of advertising fees.

In the second half of the year, two new models of mobile phones will be added. The new models must be advertised. Now is the era of mobile phones, and it is impossible to only advertise for brands.

In addition, mobile phones have begun to be distributed in the Southeast Asian market. Hutchison’s sales channels cannot be used to push them. Advertisements are necessary to attract more people’s attention to Smartphones and increase sales.

This year, Zhiduoxing mobile phones must gain a firm foothold. What they have to do is cross the river. Even if you are just starting to make mobile phones, you must quickly gain a foothold and start expanding rapidly next year.

Let those manufacturers who laugh at Zhiduoxing know that since Zhiduoxing has done it, it must do its best!

He signed the word agree on the report. From the second half of the year, the promotional expenses of game products will be reduced and the promotional expenses of mobile phones will be increased!

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