In June 1995, the three core hardware manufacturers of Pangu camp, Xinchuangxin, Lishan Semiconductor and Amd, gradually lowered the price of CPU chips.

Affected by the significant price reduction of hardware, the retail price of personal computers has further dropped to the bargain price.

For example, the entry-level Pangu computer can be as low as less than US$100, and it has all the basic functions and is equipped with no less than the flagship 4 years ago.

For example, the best-selling model in the Chinese market is mainly RMB 2,000. The host and display are given together. The configuration is equivalent to the level of Pangu's 6th generation, and the monitor is old. This host monitor package is cheap and has almost become the mainstream of the market. In the Chinese market, it can sell four or five million units of this entry-level model a year.

Although Pangu's 6th generation has become outdated, in fact, there are still a large number of old versions of application software to support it, so the functions are still very rich.

Computers with the same level as Pangu’s 7th generation computers have been reduced to between 200 and 300 US dollars. Compatible machines with similar configurations to Pangu’s 8th generation computers are mainly markets between 300 and 500 US dollars.

With the collective price reduction of hosts in Pangu camp, the share of the personal computer market gradually stabilized in June, not as urgent as the decline in April and May. Compared with PC, market share still has an advantage, but with the popular CPU and console, PC's market share gradually rebounded to 42%.

Although the Pangu computer camp still maintains a market share of around 57%, the market share is still very obvious.

Even in the Chinese market, it is difficult for PC to obtain more than 5% of the market share when using all its strength. However, in the global market, PC is as powerful as a bamboo shoot.

In the high-end market, the new generation of PC emphasizes flagship performance and is ahead of Pangu's 9th generation. The mid-range models focus on cost-effectiveness. Top-level chips represented by the high-frequency and low-frequency versions of the Pentium 2 chip, plus the price that is so cheap that it is not like Intel's style, it is like a sharp knife, which inserts into the weakness of Pangu's computer camp!

Even if there is a certain gap in game software, ibm and Intel announced that they will subsidize game software manufacturers, and each sales of exclusive games on the PC platform is no less than US$1. In this case, game manufacturers not only make money from players, but also earn subsidies from computer hardware Changshan. This good thing naturally causes the number of new games on the PC platform to surge by more than 300%. Of course, most of the manufacturers attracted by PC are small and medium-sized manufacturers with low share in Pangu platform. The average quality of these manufacturers is not high, mainly to take advantage of the PC subsidies. Even so, it has brought a large number of new games to the PC market and made up for the weaknesses of PC in game software.

Pangu Platform is a rebate for game manufacturers. Because, currently, Xinchuangye Electronics Group has the most extensive game distribution channel in the world, and is the largest game publisher in Europe, the United States, Japan, China and other markets. Moreover, it not only has offline distribution channels, but also has e-commerce distribution channels online. And online download distribution channels. Just the "Pangu Game Mall" channel generates more than 100,000 genuine game downloads every day, and the sales of genuine games in one year exceed 400 annually.

00,000 copies, the amount is not less than US$500 million. In addition to other channels, the game distribution channels controlled by the New Entrepreneurship Group can sell more than US$6 billion in a year, of which only one-third developed by itself. Nearly US$4 billion is the copyright of the game entrusted by other game developers. The New Entrepreneurship Group has a commission of 10% to 30% for game software, and the average commission can reach about 20%. For the distribution alone, you can earn more than US$1 billion in a year, which is more profitable than developing games by yourself.

Therefore, the new entrepreneurial group does not require additional subsidies and only withdraws the rebate reward. If the sales share exceeds 10,000, the rebate will be rebate 0.5%, and the popular games with sales exceeding 100,000 will be rebate 1%. For popular games with sales exceeding 1 million, the sales share will be rebate 3% as a reward for making high-quality games.

These rebates alone are enough to make the first-line game manufacturers of Pangu Platform firmly loyal to Pangu Platform.

What's more, even if the game is not rebate, as long as the game sells well, game developers can basically make huge profits. The main reason why game manufacturers will lose money is not that the share ratio is not high enough, but that the game is not popular in the market and fails!

With various confrontations of light and darkness, the unit prices of Pangu computers and PCs have been declining. Consumers are just saying that they are satisfied and only hope that the two camps will always fight and never have a single dominant situation!

The game industry also hopes that the two major platforms will continue to give concessions to these game developers!

...

After some hesitation, Pangu 9th generation computers announced on June 8 that the retail price of Internet channels will be reduced to $899, and on June 18, they will enjoy a discount of $899 for $100. That is to say, you can buy Pangu 9th generation for $799.

It can be said that the price has been cut in half less than 8 months after its launch. The price reduction rate has also set a record since the publication of Pangu computers.

In addition, Pangu Computer Co., Ltd. ceo Gaotian announced: "Before April 17, 1995, consumers who purchase Pangu 9th generation computers through major regular channels, who are above US$899, will unconditionally receive 0 threshold coupons worth US$400. For users who purchased Pangu 9th generation before this, we will give away 0 threshold coupons of US$200. These coupons can be used to purchase computer products, including software, hardware, and these coupons, which we Pangu Computer Co., Ltd. will bear. Of course, it can only be used online for Yigou.com. If you do not register an Yigou account, you can activate the coupons. This subsidy is for Pangu 9th generation users around the world. We solemnly promise that it will not disappoint all consumers. No matter how much the price is, it will even cause short-term profit losses. We will still insist on giving benefits to consumers!"

The gross profit margin brought to Pangu Computer Co., Ltd. by the 9th edition of Pangu Computer Co., Ltd. is more than 45%. In the consumer electronics industry, such gross profit margin is actually too high. Generally speaking, it is not easy for most electronic and electrical products to maintain a gross profit margin of more than 20% in a fierce competition environment. Net profit is even lower. Most manufacturers with higher gross profit margins, but considering R&D costs, advertising and promotion costs, channel costs, financial costs and tax costs, it is actually extremely difficult to obtain a net profit of 5%.

However, after Pangu was listed in the 9th generation, Pangu Computer Co., Ltd. could earn no less than US$300 per unit, after deducting costs. It can be said that it is a huge profit like a money printing machine. If there is no price war in the PC camp, the gross profit margin and net profit will increase.

However, at this stage, Pangu's 9th generation has been sold at a minimum price of US$799. Although it is only restricted to Yigou users, there is no doubt that such a price has no profit.

"What you want is not profit, but survival!" Lin Qi said privately to Gao Tian, ​​"In the high-tech industry, competition is not as gentle as traditional industries. Winners are absolutely the winners, and losers are not in a bad mood. It is very difficult to survive. Therefore, it doesn't matter whether you make money or not, and the market and consumers cannot lose it. It doesn't matter if you don't make money for a generation of products. As long as the market is not lost, there will be opportunities to make money in the future. Once the market is lost, then the previous success is meaningless! Technology is like fuel.

The technology of the past will continue to burn, and the value will continue to burn out. Human civilization will continue to burn new technologies to gain momentum. Therefore, for technology companies that have lagged behind and have their value burned out, they will be really burned to ashes, and no dregs will exist. There is a need to continue to sell products and cash flow. Cash flow supports the research and development of subsequent products and technologies. New technologies and new products are equivalent to new fuels that can continue to shine and heat before they can exist. As long as you don’t shine, it will be completely cold!”

Gao Tian chewed Lin Qi's words and couldn't help but feel a sense of mission in his heart!

Technology promotes the progress of human civilization, but human civilization is very cold-blooded for technology companies. No matter how brilliant you were in the past, as long as you no longer shine and heat, it will soon be cold!

For innovative companies that remain leading, it is good to be ahead now and always be ahead. If you can’t lead, then you won’t be happy!

Price war is actually not the key to the victory of technology companies!

However, in a situation where you are at a disadvantage, you must use price wars to stabilize your market share. In fact, if you lag a little behind in performance, you will not completely lose the market, and you will only lose a small number of customers who care about the ultimate performance.
Chapter completed!