Chapter 900 Courtesy Three Points(2/2)
"I don't believe it, what about you?"
"I don't believe it either."
"That only means that Mr. Pei has a deeper idea, and we haven't discovered it yet."
"Think hard and leave if you can't think of anything!"
The two of them were drinking and thinking hard.
Ye Zhizhou said: "I think this matter is a bit strange."
"Mr. Pei spends money, when has he ever lost to others?"
"In the past, when you wanted to burn money, you had to spend slightly more than the other party. This is true whether it's games or real industries."
"But this time, President Pei actually asked us to 'give three points of courtesy'? How is this possible! It is not in line with President Pei's usual style at all!"
Min Jingchao nodded: "Indeed."
"Key Finger Company and Longyu Group are both our mortal enemies. They are competitors, but they do not have any cooperative relationship, and there is no friendship at all."
"They took the lead in provoking a price war, but we have to give up three points? Why! This is not in line with Tenda's consistent style!"
"So there must be some special purpose behind Mr. Pei's 'three points of courtesy'!"
The more the two people discussed, the more they felt something was wrong.
But no one can tell why something is wrong.
Min Jingchao left the lounge and came back a moment later with two laptops.
"These are the relevant data of GOG and ioi in China, including changes in market share and other data. If you study it, you may be able to figure out something."
Ye Zhizhou nodded and took one of the laptops.
The two began to look through various information aimlessly, hoping to find some clues.
Suddenly, Ye Zhizhou seemed to realize something and said: "One thing I noticed is the market share and new game releases of other MOBA games like ioi and GOG."
"Needless to say, the market share of GOG and ioi is currently dominated by GOG in China, while both sides compete overseas. GOG has a small advantage, but the advantage is not very big, and each has its own fluctuations."
"But the situation of other MOBA games is worth pondering."
"On the one hand, market share continues to decline, and on the other hand, new game releases are becoming increasingly rare."
"There are at least five or six MOBA mobile games at the same time as GOG, but now there are only one or two that are still barely operating, and they are still half-dead."
"It can be said that he died very quickly."
Min Jingchao nodded: "Isn't this something you have known for a long time?"
"The competition between us and ioi will definitely squeeze the living space of all other games of the same type. In the end, only the only winner will survive."
"Old games including "Shenqi" have also been seriously affected."
"Although from the data, "Shenqi" still has a group of die-hard players, which is difficult to shake, it has almost no new blood flowing in."
"More importantly, there was news that a large company wanted to buy "Shenqi" to make an online game similar to ioi or GOG, but in the end it was delayed again and again."
Ye Zhizhou said: "What if we dig deeper into the reasons behind this?"
"Why are these companies giving up on MOBA games?"
"I think fierce market competition is only one aspect, and there is another very important reason: the anchoring effect!"
"Mr. Pei's pricing for GOG actually formed an anchoring effect. After ioi was forced to fight a price war with us, this anchoring effect became even more stable, which made it unprecedentedly difficult for other companies to get started.
, so they don’t plan to follow!”
Min Jingchao nodded: "Yes, that's right."
The so-called anchoring effect is actually easy to understand: they are both MOBA game types, and the profit methods of all games are similar, which is nothing more than selling heroes, buying skins and various value-added services.
Otherwise, you can't sell your combat power, right? That's asking for death.
If all MOBA games set their skins at a level of tens of dollars, then players wouldn’t find it strange.
This pricing allows many emerging MOBA games to barely survive.
Only after surviving can it gradually develop and grow.
But Mr. Pei forcibly set the price of GOG skins at a bargain price, and forced ioi to engage in a price war. He also conducted a large price reduction on skins, which created an anchoring effect: all players feel that MOBA games
Skin should be so cheap!
Therefore, even if other game companies make MOBA games with similar quality to GOG and ioi, they basically have no possibility of success.
Because of the anchoring effect, these companies will face a dilemma: if the price is higher than GOG, players will think you are ugly; but if the price is the same as GOG, they will not be able to operate at all.
GOG skins are priced low, but the player base is huge and there is a GPL league, so there are many ways to maintain profitability; those other MOBA games have few players to begin with, so they just make money with skins, but then the skins are priced at cabbage prices, then
What more money do you make?
Therefore, the price war between GOG and ioi will not bear the brunt of ioi, but all other MOBA games.
MOBA games are originally a winner-takes-all game type. GOG has taken advantage of its huge user base and set the price so cheaply. What other MOBA games are there to play?
Ye Zhizhou continued: "Therefore, Mr. Pei's 'three-point courtesy' strategy is worth digging into."
"On the surface, Pei is always deliberately allowing ioi to expand its user base. But if you think about it carefully, isn't Mr. Pei using ioi's power to continue to attack other competitors?"
"GOG has a huge user base and first-mover advantage. Even if it only uses 70% of its promotional funds, it can continue to fight a protracted war with ioi. If ioi continues to persist and continue to burn money, the stronger we will fight, other MOBA games will
The harder it is to live.”
Min Jingchao frowned slightly: "But it's good to kill someone with a borrowed knife, but what if ioi beats us? What if their market share increases and they enter a virtuous cycle?"
Ye Zhizhou said: "This possibility does exist, but seeing that Mr. Pei is so confident, he must think that it is impossible for ioi to beat us."
"Mr. Pei said that no matter how much money they spend, we will follow them. It's just a 'three points of courtesy'."
"This three-point gap will not put us at a disadvantage, but will also induce Zhidou Company to continue to burn money. While expanding market share and helping us eliminate other competitors, it will also consume a large amount of funds from Dayak Group and Zhidou Company.
"
"The 'courtesy of three points' that Mr. Pei said is not about the enemy advancing and me retreating, but: for the sake of helping me grab the market, I will give you three points; but if you want to challenge me, then who of us will give in to the other?"
grandson!"
Min Jingchao suddenly realized: "Indeed, that's what Mr. Pei meant! Let's keep a third of our power first, play with Zhitou Company, and spend money with them to further eliminate other competitors; when the time is right, we can give Zhitou Company a fatal blow.
hit!"
Both of them felt much more at ease.
Chapter completed!