Chapter 90

"Mr. Ye, 1.5 billion yen is not a small amount. Your company must have a very high opinion of our 'Pac-Man' game, right?" The interpreter on the scene quickly translated Nakamura Masaharu's words into Cantonese.

Ye Chengkang glanced at Nakamura Masaharu, who sat across the negotiation table. The old man had a deep and calm gaze, revealing no information on his face.

"Mr. Nakamura, since Oriental Electronics is willing to offer this price, it is definitely because we are optimistic about the sales prospects of your 'Pac-Man'! According to our marketing department's estimates, if we handle 'Pac-Man,' the global sales should exceed 5,000 units, allowing us to at least break even!"

Ye Chengkang smiled sincerely, "So, the 1.5 billion yen also includes the derivative copyrights beyond the arcade, such as the recently launched Game Boy. We will port 'Pac-Man' to this handheld platform, as well as computer and home console platforms. We value these secondary profit sources even more!"

Nakamura Masaharu nodded. Although Namco entered the game market much earlier than the newly established Oriental Electronics, it was less well-developed in terms of sales network layout.

Namco had so far focused mainly on the Japanese and American arcade markets. Although it established a subsidiary called Nam Kong Enterprise in Hong Kong two years ago to open up the Asian market, the results have been limited due to competition from counterfeit and pirated products.

According to the information Nakamura Masaharu had, the newly emerged Oriental Electronics, relying on its strong financial strength, had rapidly built a comprehensive marketing network in the United States, Japan, Southeast Asia, and Europe.

Thinking about this, Nakamura Masaharu couldn't help but feel a bit disheartened. Why couldn't Namco develop excellent games like Tank Battle and Hong Kong Blocks? He had high hopes for 'Pac-Man,' but the performance in the Japanese market had given him a harsh reality check.

The originally planned American promotion for the 'Pac-Man' arcade was urgently halted by the board of directors, changing from self-development to seeking an agent. Although Nakamura Masaharu was the founder of Namco, he was not a major shareholder, and his actions were constrained by the board.

If it were up to him, the company should take a risk and continue to push 'Pac-Man' into the American market, but the performance in the domestic market left him with no sufficient reason to convince the other board members.

"1.5 billion yen is already the final bottom line we can offer at Oriental Electronics. Any higher price would be too risky for us, especially given 'Pac-Man's' poor performance in Japan!"

Ye Chengkang firmly rejected Nakamura Masaharu's request for 1.7 billion yen. He knew his offer of 1.5 billion yen was already much higher than another competing American company. Although Li Xuan had set a limit of 2 billion yen, backing down now would only have a negative effect.

"I can make one more concession: the 1.5 billion yen will be paid in full within a week of signing the agreement, without any installment payments!" Ye Chengkang held firm on the price but made concessions in other areas.

Cash flow is undoubtedly very important for any company. If Namco could receive the full 1.5 billion yen in one lump sum, it would be a significant benefit for the company's subsequent financial operations.

For Oriental Electronics, the two cash cows, Hong Kong Blocks and Tank Battle, could bring in over 15 million US dollars in profit each month. The company's high surplus on its books made it easy for HSBC and Standard Chartered Bank's account managers to frequently visit and promote various financial products. A one-time payment of 6 million US dollars was no pressure for Oriental Electronics.

Nakamura Masaharu deliberated for a long time and finally nodded with a bitter smile. The highest offer from the American company Midway was only 1 billion yen, and it required three installment payments. Although they only bought the rights to produce arcade machines in the American market, Oriental Electronics' offer of 1.5 billion yen required the purchase of all overseas game copyrights outside Japan, not just the arcade platform.

But he knew that the old stubborn board members of his company would not consider these factors; they would only see that 1.5 billion yen was 50% higher than 1 billion yen.

Seeing Nakamura Masaharu finally nod in agreement, Ye Chengkang secretly breathed a sigh of relief, hoping that Young Master Xuan's judgment would not be wrong, as 6 million US dollars was not a small amount.

When Li Xuan received Ye Chengkang's call, he had just returned to the hotel after a banquet. Seiko's board member, Fukuboshi Kenjin, upon learning that he was in Tokyo, had specially come from Suwa City to invite him and his girlfriend to dinner.

At the dinner, Fukuboshi Kenjin casually inquired about the possibility of Seiko obtaining the production rights for Game Boy. Li Xuan immediately rejected the offer. Arcade machines, handheld consoles, home consoles, and computer games were the four directions Li Xuan had set for Oriental Electronics' gaming industry.

Although arcade machines were the most important source of income for Oriental Electronics now and in the next few years, history had shown that they had the least potential among the four sectors. With the continuous development of electronic technology, before Li Xuan's rebirth, home consoles and handheld consoles had developed to the eighth generation, and computer games had grown into a huge industry with an annual output value of 25 billion US dollars. Arcade machines, on the other hand, had long declined, surviving only in the Japanese market.

In the future, the PS4 and 3DS would still be important cash cows for Sony and Nintendo, respectively. Sony's entry into the gaming console market was largely due to Nintendo's own cultivation. Li Xuan would not repeat Nintendo's mistake for a small profit.

Seiko was a major supplier of one of the most important components of handheld game consoles—liquid crystal displays. It had a cost advantage in entering the handheld console market. Li Xuan could not and would not actively help Seiko enter this market.

"Already secured? For just 1.5 billion yen?" Li Xuan, upon receiving Ye Chengkang's call, couldn't help but wave his fist in excitement.

He could already imagine the dejected expressions of Namco's employees and management when 'Pac-Man' became popular worldwide.

"Was the game I played really that good?" Zhong Chuhong, seeing her boyfriend's excited face, was a bit puzzled.

"Have you played the game? What do you think of it?" Li Xuan pulled Zhong Chuhong into his arms and asked with a smile.

"It's pretty interesting!" Zhong Chuhong thought for a moment before answering.

"Exactly! The people at Namco haven't figured out the difference between the Japanese and American markets. In Japan, it's similar to Hong Kong, where arcade machines are mainly found in specialized game centers on the streets. Most of the people who go to these centers are boys!"

Li Xuan smiled and explained to his girlfriend, "Men generally prefer action-packed, fast-paced games like shooting games. Games like Hong Kong Blocks and 'Pac-Man' are more suitable as a change of pace after playing fast-paced games.

But the American market is different. There are no specialized arcade centers like in Japan. Arcade machines are mostly placed in convenience stores, gas stations, movie theaters, and bars, where there is a more balanced ratio of male and female players. This provides a foundation for games like 'Pac-Man' to become popular.

Once a game becomes a fashion trend, my previous analysis becomes irrelevant. Even players who don't like 'Pac-Man' will play it to avoid being isolated when they see others discussing it."

Although Zhong Chuhong couldn't fully understand everything Li Xuan said, it didn't stop her from lying quietly in his arms, sharing his excitement and joy.

"Let's go shopping tonight. You can buy whatever you want, and I'll pay for it!" Li Xuan kissed his girlfriend's cheek and said confidently.

"Let's not. We've already bought enough in the past few days!" Zhong Chuhong shook her head. "We need to return to Hong Kong tomorrow morning, so let's just stay quietly in the room tonight. I heard that the wellness spa in this Imperial Hotel is very good. Let's try it after dinner!"

"Wanting good skin actually has a better way than doing a spa!" Li Xuan whispered with a mischievous smile, "Like drinking milk!"

"I drink milk regularly!" Zhong Chuhong clearly didn't understand her boyfriend's dirty hint.

"Didn't you throw it up last night?"

Before Li Xuan could finish, Zhong Chuhong reacted and pinched his waist.

Li Xuan laughed and picked up his girlfriend, "I'll give you a detailed full-body service right now, guaranteed to make you moan with pleasure. You'll wake up radiant tomorrow, better than any spa!"