Chapter 79

"About how much does this handheld game console cost to produce?" Li Xuan looked up and asked, which was the question he was most concerned about.

"The preliminary calculation shows that the manufacturing cost for each unit should be around 40 yuan, and it should be able to decrease a bit more with large-scale production!" Du Wenqiang immediately replied.

Li Xuan frowned. The manufacturing cost for each Game Boy was 8 dollars. If calculated with a 33% sales profit margin, the factory price would be 12 dollars.

After passing through various distribution channels, the final price of the Game Boy when it reached the customer would be at least around 25 dollars, which was significantly higher than his original estimate of no more than 20 dollars.

"Can the cost be reduced further?" Li Xuan asked again.

"It will be very difficult!" Du Wenqiang shook his head with a bitter smile, "After all, we need to leave some profit for the contract manufacturers!"

Oriental Electronics has already spread its operations quite widely at this stage, so it does not plan to build new factories to produce handheld game consoles. Instead, it will outsource the production of Game Boy entirely.

In fact, this is the normal profit level in the electronics industry. Even if Game Boy achieves huge success and sells ten million units a year, the profit would only be around 40 million dollars. Currently, the two arcade games, Hong Kong Blocks and Tank Battle, generate over 15 million dollars in profit for Oriental Electronics every month, which is easier than robbing a bank.

Unfortunately, the golden age of arcades only lasted four to five years. From the mid to late 1980s, the largest market for arcades, North America, began to rapidly shrink due to various factors.

"How is the 'Mario' project going?" Li Xuan then asked about another major project of the game development department for the first half of the year.

"Progress has been quite fast recently. After the scroll algorithm was developed, we have started working on the graphics. It should take another one or two months to complete the initial draft of the game!" Du Wenqiang's smile was much happier.

For a while, the entire project team was stuck on the design of the game's scrolling. In a scrolling game, the background changes continuously as the main character moves, requiring the processor to constantly allocate part of its computing power to draw new background maps. If the program algorithm is unreasonable, it can cause various issues such as overlapping images and lag.

Although Liang Ning is the head of the arcade department, he is not technically inclined and could only watch helplessly. He knew that the development team members had been working overtime until midnight every day to solve the scrolling algorithm problem, and he couldn't continue to pressure them.

So he went to bother Du Wenqiang, the vice president of R&D, every day, which made Du Wenqiang very frustrated. He had to put aside other work and personally join the project to tackle the challenge.

Li Xuan was not unaware of the difficulties the 'Mario' project was facing. He had a detailed solution in mind but deliberately kept quiet, letting the project team members figure it out themselves.

Oriental Electronics aims to become a gaming giant that surpasses Sega and Atari. Li Xuan cannot rely solely on himself to support the entire game company. Moreover, in the coming period, he will not focus all his energy on game development. The era of personal computers is about to arrive, and Oriental Electronics will not want to miss this vast market in the future.

Furthermore, with the current sales momentum of Tank Battle and Hong Kong Blocks, the popularity of these two games will last at least until the end of the year. Li Xuan has enough time to let his company's technicians grow through the challenges they face.

The 'Mario' project team still has plenty of time, and Li Xuan has no need to rush in personally. Considering profit maximization, Oriental Electronics will not engage in self-destructive behavior. Even if a new arcade game is developed, it will not be immediately released to the market until the sales of the existing two arcades clearly slow down.

Li Xuan nodded to indicate that he understood and did not continue to inquire. He had previously seen the art design for 'Mario', and the game's graphics were based on the few sketches he had provided, featuring grass, brick walls, and pipes, similar to the Super Mario he remembered.

Once the initial draft of the game is completed, he will hold a discussion with the project team members to ensure that it aligns with the classic version in his mind.

Just as Du Wenqiang left, Li Ke burst in with a tense expression.

"Boss, what happened? Is someone trying to get you?"

As the deputy manager of Feihong Real Estate, Li Ke had dinner with Lin Yuhao the previous night, entertaining several key leaders of Shenzhen in the special zone. It was not an era where everyone had a mobile phone, and in the special zone, there were hardly any pagers, let alone telephones.

He only received a call from his subordinate in Hong Kong after the dinner. The content of the event had been distorted after several relays. His subordinate told him that his younger brother called, saying that Oriental Electronics had just been attacked, and someone might be planning to target his family.

Li Ke couldn't sit still upon hearing this and wanted to return to Hong Kong immediately to fight, but the Luohu checkpoint closed at 5 PM every day. So he had to return early the next morning.

Li Xuan explained the entire incident to his brother in detail. After listening, Li Ke let out a sigh of relief, realizing that the situation was not as serious as he had imagined.

"Little brother, what are you planning to do now?"

Li Ke took out a cigarette and glanced at the newspaper Li Xuan had just thrown on the table. The front page prominently featured a report about the attack on Oriental Electronics the previous day.

He chuckled, "Little brother, are you planning to use the newspaper to pressure the police? Is Boss Chen's land being investigated now?"

Li Xuan smiled and nodded, "An eye for an eye. Since Boss Chen dared to attack Oriental Electronics, he should be prepared for retaliation! We are good citizens and can't engage in violence, so we'll have to rely on the Royal Police for help!"

"Several former leaders of the Wo Shing Yee triad have been sent to Stanley Prison, but the triad's reputation has only grown stronger. However, after Boss Chen took over, he became a coward, only concerned with making money. The Wo Shing Yee lost every conflict with other triads, earning them the nickname 'Wo Baisi' (Wo Defeat Righteousness) in the underworld."

Li Ke flicked the ash from his cigarette and continued, "The Wo Shing Yee's position as the second-largest triad in Hong Kong has been almost entirely taken over by the Sun Yee On! As a result, Boss Chen was ousted by dozens of dissatisfied uncles within the triad after serving only one term as the leader, a first in the history of the Wo Shing Yee. If it weren't for the support of two tigers and one bull under his command, he would have been eliminated long ago!"

The Wo Shing Yee has about sixty uncles with voting rights. To be elected as the leader, one must gain the support of more than half of the uncles. Therefore, to secure the leadership of a large triad, one must have a high level of prestige, capable of controlling the various factions and resolving internal disputes. If one lacks prestige, they must bring sufficient benefits to everyone; otherwise, why would anyone choose them?

PS: Sorry, a childhood friend is getting married, so updates might be a bit late today and tomorrow. Apologies!