Chapter 227 Cutting the pig farmer's aorta [Subscribe]

After Wang Chengguang visited the Xinghuo headquarters, it was already 10: in the morning when he returned to Guomao. To his surprise, as soon as he entered the door, the girl at the front desk reported that the pig farmer had arrived and had been waiting for more than half an hour.

Although Brother Yangzhu didn't have an appointment, we had dinner and chatted together under the introduction of Brother Xiaoma in the year when his Xinghuo Weibo just became popular. We had a good time.

In recent years, although we have competed and exchanged ideas in business, we have also maintained a good relationship privately.

When Wang Chengguang arrived at the waiting room, he smiled when he saw the pig farmer, "Boss Ding, why didn't you say hello in advance so I could pick you up."

The pig farmer exchanged pleasantries. After the two of them went to the office and had a cup of tea, the pig farmer spoke up and said, "Mr. Wang, does your Spark Mobile need investment? I can offer 3 million US dollars for only 10%."

Premium, premium again!

At first, Lei Jun and a group of friends had 9000 million, accounting for 37.5%. Ten days later, Pony Ma invested 12.5 million dollars, accounting for 11%. Now months have passed...

Wang Chengguang didn't know whether to laugh or cry. "This is not just my business. For such a big matter, Mr. Ma and Mr. Lei also have a lot of decision-making power."

The pig farmer took another sip of tea and said, "Shit, if our NetEase games want to be available on iPhones, players have to top up 1000 million yuan, and Apple will take 300 million yuan. This will have no impact on e-commerce platforms like Xinghuo Online Store, Penguin Paipai, and JD."

"When it comes to physical transactions, electronic transactions of buying and selling physical objects, Apple doesn't dare to collect taxes, but when it comes to games, this is cutting into my aorta."

"No wonder you and Pony Ma are playing with mobile phones. If you don't build your own platform, won't you be bullied by Apple?! I admit that Jobs is a genius and a great man, but he can't cut the flesh of our companies like this."

Even though Brother Pig Farmer has been raising pigs for more than a year, NetEase Games is still his main development pillar. Since the number of mobile phone users and smartphone users is increasing...

The PC gaming business cannot be said to be shrinking drastically, but the mobile gaming business has already begun to show its potential.

This is since the sales of Meizu M8 have been increasing. From last year to now, more than a year has passed, and the sales of M8 in the mainland have exceeded 200 million units, generating sales of nearly 60 billion yuan.

Eighty percent of them are manufactured in Zhengzhou, so Jack Huang, who did not have to pay taxes in the first three years, can be said to have made a lot of money.

It was under such market conditions that the Xinghuo Weibo Game Center took the lead in launching a series of products including mobile versions of Tower Defense Three Kingdoms, Card Journey to the West, and Fengshen.

Casual games such as Landlord, Mahjong and mobile chess are very popular, so Penguin naturally copied them.

The Spark series and Penguin series cannot stop the strong rise of Apple mobile phones, at least before Wang Chengguang develops his own chips, screens and other technologies.

Therefore, the apps that have entered the Apple Store one after another have all been cut sharply. This is also the reason why Lei Jun quickly thought of platform tax after hearing about the loss in selling mobile phones.

Apple not only takes commissions in China, but also in Europe, the United States, and South Korea. The highest commission rate is for Chinese users.

The same is true for Yangzhuge. He has already contacted Apple. Even if it is a golden blood-making machine like Fantasy and Dahua, if it wants to be put on Apple, the players will spend 100 billion, and Apple will take 30 billion first! !
It's really fucked.

Yesterday, Gu Jingjing was the first to point out, and Lei Jun and others publicly certified, that Spark Mobile is a new platform in the Internet money-burning war. Only then did Yang Zhu Ge realize that this group of guys had been setting up this plan a year ago.

Even if Spark and Penguin lose 8 billion RMB a year, as long as the platform tax can stop the loss, it will be one of the best news for Spark and Penguin.

Online stores that trade in various physical goods will not be affected, and those who order takeout meals involving physical transactions also do not have to pay taxes to Apple. The ones who will be hit the hardest are game developers.

Of course, in the future, when recharging memberships of major video platforms is done, Apple will also impose heavy taxes because it is a virtual product.

In addition to game transactions, NetEase also has to take a cut of various advertising revenues.

NetEase’s annual advertising revenue is not a small amount of money, at least several hundred million.

The current Spark phones use the Spark system developed based on Android. They do not need to pay taxes to Android. Google's Android is open, open source, free, etc. As long as you do not download the Google Store and do not use Google Pay...

You can't smoke over there.

The original trajectory was in 2014, when mobile phone brands using the Android system such as Huawei, OPPO, vivo, Meizu, Samsung, etc. formed an alliance and began to ask gaming giants such as Penguin and NetEase for a share of the profits, and then officially launched the Android tax.

But this one is even more ruthless, asking for a 3- split, which is more than Apple's % cut! And the ones who get the money are Huawei, Meizu and OPPO, not Google.

Otherwise, the big penguin would not have tried so hard to steal the Penguin App Store. As long as you download the Penguin Video and Penguin Game apps from Huawei, Meizu, Samsung, OPPO and other stores, 100 yuan will be taken away from you if you spend 50 yuan, and the penguin will take half of it.

As the pig farmer complained, Wang Chengguang laughed and said, "We didn't think that far ahead at the time. We just took it one step at a time."

The current Spark mobile phones are still based on the Spark system developed based on Android. Let’s take it one step at a time and strive to develop a system similar to Huawei’s Hongmeng system in a few years that can be independently produced.

Even if Google cannot actively collect taxes, it is still more practical to develop its own products.

Google has been messed with by Europe several times, and is preparing for a big massacre by imposing heavy taxes on European users who use Google Store and Google Payment.

The pig farmer took another sip of tea and said, "Boss Wang, can you help me?"

Wang Chengguang was speechless. "This is really not just my problem. You have to talk to Lei Jun. Lei Jun has been busy for one or two years for this. He can't continue with continuous losses."

The pig farmer has come to his senses. It is not a bad thing to seek help here. At least it will make Lei Jun more confident in continuously promoting the mobile phone business.

Last year, Lei Jun and his friends raised 9000 million US dollars. If they transfer 37.5% to the pig farmer 10% now, it means more than 200% profit, and they can still hold 27.5% of the shares.

It is really promising to collect taxes through mobile phone physical platforms.

This is why he suggested that Lei Jun only take 50% or %, instead of taking % like the original mobile phone manufacturer alliance did for Penguin, NetEase and other game companies!

Many big guys were so angry that they wanted to overturn the table, but Xiao Ma Ge tried to overturn the table, but failed.

The pig farmer was helpless. He thanked him and smiled, "By the way, I heard from outside that Mr. Wang was addicted to games during his four years in college, including Fantasy and Legend of Mir, which led to his poor academic performance? Because of these, he decided to start his own game after graduation?"

"Come to think of it, I'll have to make amends when you go to Guangzhou to watch the Asian Games next month."

Wang Chengguang laughed a little louder. "Your crappy game is such a rip-off. It ruined a lot of my youth. I had a roommate who was just as addicted to games as I was. After graduation, he returned to his hometown in the provincial capital. He works in Yangcheng."

He was talking about one of his roommates in college for four years in the inherited memory, and also a real computer assembly expert in one of their dormitories. After traveling through time, Lu Tao asked him to assemble a machine, and he went to that Lao Liu. In the early days of his business, he met He Yihang, the eldest son of Zhengzhou Real Estate Group, and that young master He also complained that he was no longer the follower of Lao Liu, helping him assemble computers.

I was addicted to games during college, which is why I never had any relationship troubles or other black spots, except for poor academic performance.

The pig farmer couldn't stop laughing. "If my game can make you the richest man, how many people will go to Fantasy and Legend of Mir to learn from it? I don't expect to join Spark Mobile in the short term. I just hope you don't take too much commission."

"Apple's move is really offensive."

Wang Chengguang was speechless again. “Don’t think too highly of Lei Jun. He started his own business at the age of 40. I suggest taking 10% of his commission. Whether it will be 20% or % in the end depends on his determination. He has already stopped taking commissions from my Spark Games, and will take even less from Penguin Games…”

"Where do you think Lao Lei and his friends go to smoke?"

The pig farmer was confused and pointed at himself???
There are many large game companies in China now, including NetEase, Shanda, Perfect World, Giant, etc. As long as they want to maintain the market, it is necessary to move from PC games to mobile games.

As for the various small game studios, they are even more numerous. Even if miHoYo rises again as a giant in the future...

They all need to pay taxes to Apple or Spark phones.

Wang Chengguang is the largest shareholder, holding 51% of the shares. It was he who proposed the overall strategy. No matter how much Lei Jun wants to make a profit, he knows that he cannot withdraw from Spark Games. Pony Ma can pay a lower percentage because of his status as a major shareholder.

After being confused, the pig farmer took another sip of tea and complained, "Don't be too Steve Jobs!"

………………

After a while, just as Wang Chengguang sent away the pig farmer, Jack Huang from Meizu came.

After the two sides drank tea and exchanged pleasantries, Jack Huang complained, "Boss Wang, you guys are really ruthless in making mobile phones. I originally wanted to complain that you guys are engaging in vicious competition, operating at a loss and disrupting the market, but it would be very useful to learn from Apple to collect taxes."

"As long as we can collect 10% tax, so many game manufacturers will be pigs and sheep. For example, NetEase and Perfect World, if they port a game to mobile phones and make 3 billion a year, we will collect million, and then the loss from selling mobile phones will be directly earned back."

"You guys at Xinghuo Mobile really only take 10% or 20%? Isn't that too little?"

Wang Chengguang, “…”

As expected, Jack from Meizu, who also joined the Android tax car in 2014, thought for a few seconds and said, "It's not impossible for large companies to have heavy taxes, but then we have to consider the proportion of small companies and small studios that don't collect much."

"For example, we can take more from NetEase and Perfect World, and only take 5% from small studios that sell their games on mobile phone stores. We should also encourage all entrepreneurs to try their best to create a more prosperous and free world for mobile games."

Jack Huang nodded. "My Meizu has sold more than 200 million units. We didn't dare to collect taxes before. At that time, Apple also started to collect taxes on 3GS, but I didn't have the confidence. If you take the lead, I would also like to join in. Then even if I sell the M9 that I am developing at a loss, I can grab the market and platform, and make a lot of money by collecting commissions."

"Of course, since it was President Wang who started the trend and we are also a strategic partner, my Meizu will definitely not draw Spark Games."

At present, the mainland's mobile phone manufacturing, the price of a mid-range phone priced at more than 2000 yuan, has a profit of between 10% and 20%, ranging from 200 to 400 yuan.

Calculated at 200 yuan, with the support of Zhengzhou's large platform, Jack Huang has made a profit of about to million yuan, which is equivalent to four or five small goals. The profit will be even greater during the tax-free period.

But taking the financial report released by NetEase as an example, NetEase has Fantasy World in its left hand and is the agent of World of Warcraft in its right hand. Its average gross profit per quarter is more than 15 billion yuan. It is not as good as Big Penguin's net profit of more than one billion yuan per quarter, but it is also a super large company.

If Jack Huang draws blood from NetEase...

Drawing blood from all the mobile game groups, this makes much more money than selling mobile phones!

Wang Chengguang was speechless again, and poured a cup of tea with a smile, "You should talk to Lei Jun about the specific commission. He is the CEO of mobile phone manufacturing, and he is the one who drives and executes all major events."

He has made great changes to the beginning, layout and overall direction of Lei's mobile phone manufacturing, but he will not interfere too deeply in the small details.

Jack Huang nodded and smiled happily, "We lose money selling mobile phones to consumers, and consumers spend money playing games to get benefits for Mr. Ding and his team. Then we get our money back from Mr. Ding. It's a perfect cycle."

"Speaking of which, this is also to help the players who have been cheated by Mr. Ding and his team. They are giving back some money and subsidies. There are no victims in this model. I discovered the first generation of Apple phones in 07 and felt the brilliant future of smartphones, but I never thought I would dare to put a knife on the necks of all the big game companies and draw blood and cut flesh."

"There are no such bullies on the PC side. That's not right. Penguin uses big platforms to extract commissions from small game studios. The era of Xiaonei.com also extracts commissions from small studios. Those big platforms are wielding big knives."

Wang Chengguang was still speechless, and Jack Huang's logic was a perfect closed loop.

There was nothing wrong with that either. When he first started Happy Farm, he negotiated with Campus Network on a tiered profit sharing basis. The amount of sales would determine how much they would get in return for Starfire 4 and Campus Network 6.

The project manager of Penguin Games Department came to us, and he accounted for 70% of Penguin and 30% of Spark, which showed that they attached great importance to the treatment of Happy Farm.

With this in mind, it's no wonder that the original Android Alliance would split the meat with Penguin 50-50. They were already being merciful given the Penguin platform's model of bleeding small studios.

Wang Chengguang felt that he was being a Bodhisattva by suggesting that Lei Jun take a 10% or 20% cut, but starting a trend of selling mobile phones at a loss from now on would really be cheapening consumers.

…………

It's afternoon.

Wang Chengguang planned to go out for a run and exercise. He was just walking outside in his sportswear and mask when he saw Jiang Nansun rushing out of her office. She said excitedly, "Boss Wang, I can run 100 meters in 11.50 seconds. I will not let you down in this Asian Games. I will try to win a bronze medal."

"Are you going out to exercise as well? Would you like to take a look at my results?"

Wang Chengguang smiled and said, "Alright, let's test your endurance at the same time."

The domestic athlete standard is 11.70 seconds. Jiang Nansun's result is indeed very good. After all, she has been running for 15 months according to regular training intensity.

This result is the standard for the gold medal in the domestic women's 100 meters in track and field.

Jiang Nansun was also wearing sportswear. As she spoke, she swiftly took out a mask from her pocket and put it on. Her morale was still very good.

(End of this chapter)