Chapter 739 Three Questions
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Pei Qian replied: "It's very simple, because there can only be one dominant MOBA game in the world, and this is a 'winner takes all' competition."
"For me, it's not a question of daring, but a question of having no other choice. It's not about daring to burn money, but that you have to burn money. If you can't keep going, the money you burned before will be wasted."
"The question I want to ask is, for Dayak Group, what is the upper limit of burning money for ioi?"
Eric took a sip of tea, thought for a moment and said, "I don't have a definite answer to this question, and I can't guarantee the accuracy of the answer."
"Our company's top executives have different opinions on similar issues, and no one knows what the outcome will be before a meeting is decided."
"Moreover, the company has a department dedicated to data analysis to provide a basis for high-level decision-making. The data of this department is also very important."
"If you let me judge, this number will fluctuate depending on the situation. If you invest a lot of resources but can't see the effect and the market share grows slowly, then it is not completely impossible to give up."
"If I had to estimate a number ... I would guess $100 million."
"Our company only spent about 250 million knives on the acquisition of Zhitou, which has brought a certain amount of pressure, and it is impossible to continue burning indefinitely, especially under the condition that there is no clear prospect."
"My second question is the same as Mr. Pei: For Tenda Group, what is the upper limit of spending money for GOG?"
Pei Qian smiled: "The upper limit is all the funds that Tenda can use."
"The third question, 100 million knives is obviously not the limit of Dayak's ability, so... do you think it is possible for Dayak to burn more than 100 million knives?"
Eric thought for a moment: "In my personal judgment, this possibility certainly exists, but it will not be very high."
"Everyone knows that our company has always been a company that pays more attention to short-term and immediate interests. This has nothing to do with the right or wrong idea, but just our company's thinking habits."
Hearing this, Lin Wan subconsciously nodded slightly.
The reason why Dayak Group is so notorious in the game circle is because they have shown the coldness of capital to the extreme.
Acquiring a potential game company, quickly overdrafting and draining its full potential has ruined many excellent game companies.
This shows that the Dayak Group is indeed a capital group that only pays attention to immediate interests and does not particularly care about long-term interests. Then, if the market share of the finger company has been declining, and it has been burning money like a bottomless pit without any results, it is indeed a very likely option for the Dayak Group to give up and stop losses.
Eric said: "My last question is: Mr. Pei, you said that you will use all the funds to market GOG, but the problem is that with Tenda's current size, doing so will inevitably bring huge losses to the capital chain. Once there is any uncertainty, it may cause huge losses and drag down the entire group."
"Mr. Pei, where does your courage come from?"
Pei Qian was silent for a moment, then sighed softly: "My luck has always been good."
This seemed to be a very empty answer, but Eric didn't feel dissatisfied, but fell into deep thought.
After a while, he raised his glass with a smile: "Mr. Pei, I think we have all obtained the information we want, and I would like to toast you."
Pei Qian also picked up his glass and said with a smile, "Mr. Ai, I hope we will meet again if we are destined."
...
After the dinner, at the entrance of Yuanda Tiandi.
Everyone in Tengda watched Eric leave.
Pei Qian also didn't know exactly what information Eric would draw from his words. He only confirmed one thing, that is, the topic of each other has always been focused on "burning money".
As long as Eric can influence the executives of the Dayak Group to continue to burn money happily after returning, that's fine, and nothing else matters.
Lin Wan tentatively asked, "Mr. Pei, do you need to cooperate with Shangyang Games?"
Pei Qian shook his head: "No need. Everyone has worked hard after shopping all day today. Let's go back and rest."
Xiao Sun was already waiting in the car, and Pei Qian drank some wine at the dinner table. Naturally, he felt a little sleepy at noon, so after saying goodbye to everyone, he took the car back to rest.
After watching President Pei leave, Lin Wan, Zhang Yuan, and Min Jingchao got together to discuss what happened at the previous dinner table.
Zhang Yuan showed doubts: "What do these three questions between Mr. Pei and Eric mean?"
"None of the three questions they asked seemed to be critical;"
"When answering, they are all true and false, false and true;"
"But both of them are very satisfied with the answers to the questions, which..."
"It's a bit like playing a riddle, you can't figure it out."
Zhang Yuan was really at a loss.
Min Jingchao also nodded in agreement: "Yeah, the two seem to have talked about a lot of things, but they didn't seem to say anything."
"Some information seems to be very important, but in fact, based on the intelligence acquisition capabilities of both parties, this information should be available sooner or later."
"Moreover, everyone at the dinner table is actually in a chain of suspicion. Even if Eric tells a real message, we will not believe it is real information, but will think in the opposite direction..."
"Anyway, I don't understand at all."
Lin Wai also shook his head: "I don't know either, but I guess that the focus of the two parties' problems should also hide some information, but we can't understand it and have no way of interpreting it."
"Sure enough, Eric is not an easy person. Anyone who can get to the top in a multinational company is not an idle person."
"Before we were able to beat him, in the final analysis it was thanks to Mr. Pei, our rank is still too low."
"In short, trust Mr. Pei, I think Dayak Group will never let it go."
...
On the plane, Eric pulled down the shade on the window, closed his eyes and rested.
During the long flight, he had a lot of time to slowly sort out the information he collected in his mind, and dig out useful information from those three questions.
At the dinner table, he and President Pei each asked three questions and answered three questions.
Eric knew very well that both were old foxes, and it was impossible to take what the other said completely seriously.
But Eric is also very clear that the purpose of him and Mr. Pei is to dig out some useful information from the other party's true and false answers.
"Boss Pei asked me three questions, namely the new person in charge of the ioi national server, the upper limit of Dayak's spending, and the possibility of breaking through this upper limit."
"Obviously, he still has some curiosity about his new opponent, but he doesn't really care. What he cares more about is how much money the Dayak Group will burn."
"This shows...'burning money' is the crux of this business war."
"And the three questions I asked are actually related to Tenda's marketing strategy. Although Mr. Pei's answer is true and false, as long as you analyze it carefully..."
Eric thought hard.
In the past few months, he has done a lot of investigations, except for some details at the execution level, he has basically clarified GOG's operating methods.
It's nothing more than desperately burning money!
Originally Eric thought that Tengda was just willing to spend money on marketing, but later he discovered that making less money is actually burning money in disguise.
GOG's heroes are all free, and the skins are all at the price of cabbage. The first skin of the hero designed by the player is directly discounted... After such a discount, it is almost the same as giving away for free.
And ioi has always been unable to beat GOG, a very important reason is the pricing of heroes and skins.
Although the price war is low, it does have a significant effect.
Eric knew this, but he couldn't change it, because it was difficult for him to convince Dayak and the top management of the finger company to change the skin price to the same cabbage price as GOG, and the profits involved here were too great.
Therefore, the question Eric wants to ask the most is, why does Tenda dare to burn money?
You must know that Tenda is not listed, so there is no option to burn the money of investors and shareholders, and all the money burned is the company's money. Or to be more precise, it was all Boss Pei's money that was burned.
That's why Eric was confused. President Pei burned so much money, didn't he feel distressed?
And Mr. Pei's answers to the three questions can actually be summed up in one point.
Because the MOBA game is a winner-takes-all game, it must be burned all the time, otherwise all previous efforts will be wasted;
Will use all the funds that Tenda can use to burn money to promote GOG;
As for the risk of breaking the capital chain, Mr. Pei's answer is directly "believe in your luck".
This is a gambler mentality!
Eric rubbed his temples.
"Judging from the available information, Mr. Pei's actual behavior is indeed consistent with what he said. It is not an exaggeration to say that he is a gambler."
"If this information is true, then Mr. Pei may have two purposes for saying this:"
"The first possibility is to scare Dayak off and tell Dayak that this war is a bottomless pit. If you dare not follow to the end, then please give up as soon as possible."
"It's like at a poker table, stud all your chips directly, create huge psychological pressure on the opponent, bet that the opponent will not dare to follow, and eat up the chips on the table."
"The second possibility is, as a radical method, to let Dayac burn money, including reducing the price of skins. In this way, the two sides will fall into a dangerous hand-to-hand combat, but the entire MOBA game group will continue to expand rapidly.”
"When the cake grows bigger, the winner takes all and can get greater benefits."
"But the latter is clearly too risky to be a sensible course of action."
"What if this is false news deliberately released by Mr. Pei?"
"That means Mr. Pei is not a gambler, but a bluff, so it still plays the role of 'intimidation'. To put it bluntly, he still wants to scare Dayak Company away."
"Sure enough, it's still too difficult to guess Mr. Pei's psychology."
"However, I can also bypass this problem and start with realistic conditions."
"President Pei's answer to these three questions actually verified one of my conjectures inadvertently, that is..."
"Although Tenda burns money ruthlessly, the capital flow is actually not particularly healthy. In other words, Tenda Group is actually in a state of dancing on the tip of a knife."
Eric has already analyzed it a long time ago. He believes that the investment and return of Tenda, a company, is very likely to maintain a small amount of profit or even a small loss. That is to say, Mr. Pei seems to pay too much attention to the turnover of funds Speed, resulting in the company's ability to resist risks is not strong.
Tengda is indeed very willing to throw money, but there is a limit to this kind of throwing money.
Once the speed of spreading money exceeds Tengda's profitability, Tengda's capital chain will become very dangerous.
When Eric asked about the capital chain, Mr. Pei's answer was "luck".
Eric already vaguely has the answer: "In other words, I don't need to worry about what Mr. Pei's mentality is. Regardless of whether he is a gambler or not, the capital chain of Tenda Group is actually in a relatively tense state .”
"That is to say, Dayak Group will have a 'limit value' for burning money. This limit value is the combined profitability of all industries of the entire Tenda Group and the upper limit of funds that Tenda Group can obtain through various means."
"When this limit value is not exceeded, it is useless to burn money. GOG's first-mover advantage cannot be shaken; but once this limit value is exceeded, the entire Tenda Group may be dragged down!"
Eric couldn't help but smile.
When he answered Mr. Pei's question before, he once said a number: 100 million dollars. He said that this is his estimate, the upper limit of the amount of money that Dayak Group can afford to burn.
If burning money does not achieve obvious results, then the Dayak Group will burn so much money at most.
It's hard to tell if this is true or not. But whether Mr. Pei believes it or not, this will establish an anchor point in Mr. Pei's psychology and play a certain suggestive role.
Moreover, the premise of Eric's assumption is that the Dayak Group is not particularly aware of the situation of the Tenda Group, and it will only give in when it burns money to its own psychological bottom line.
But the question is, what if Eric shared this information with the top executives of the Dayak Group?
Chretien will adopt a different operation strategy from Eric's, and may make certain modifications to the ioi game itself, and may cooperate with local game companies in China.
But Eric judged that the effect of Chretien's series of measures would not be any better than his own.
When Chretien also fails, Eric can take the opportunity to report this information to the senior management of the Dayak Group, and it is very likely that he will get a chance to make a comeback.
At that time, the Dayak Group will either give up the money-burning war with the Tenda Group, or it will follow Eric's suggestion and burn to the limit of Tenda!
If it's the former, it goes without saying; but if it's the latter, then Eric has a chance to stand up!