Chapter 703: The CEO

Liu Tianxian gave birth to her baby and was recovering at home when Warcraft was sweeping the entire film market.

It broke ten billion in just six days, a speed that left people astounded, yet its overseas box office was weak, entirely reliant on the domestic market.

It was those gaming fans who propped up this movie's box office, and these gamers had all grown up with spending power, creating this film's high earnings.

Of course, within just a few days, by late June, the box office collapsed.

This year's summer season, like every year, was fiercely competitive, with over a hundred films including Mr. Six, Three Times, The Bounty Hunters, Cold War 2, Big Fish & Begonia, Lu Yao Knows Ma Li, Lost in White, Now You See Me 2, and The Legend of the Condor Heroes.

The summer season is one of the most crucial periods of the year, since students are on break and the audience pool expands.

Mr. Six had already been reshot and was perfectly timed for this summer, as its rivals were relatively weak; the reshot funds were borrowed from Yutu Film.

Big Fish & Begonia is Light Road's animation, produced by their own animation studio.

Additionally, Now You See Me 2 and Cold War 2 are Yutu Film productions, with the female lead replaced by Nazha in the sequel.

The female lead in Now You See Me 2 could be anyone—it's about magic and plot—and the trailer confirmed Liu Tianxian did not appear in this film.

This disappointed fans, who believed she should have played the role and vowed to boycott it if she didn't.

Promotions for the summer season were in full swing, yet just as Panda Live was struggling financially, an online wave of backlash against Honor of Kings and PlayerUnknown's Battlegrounds suddenly erupted.

The trigger was the high proportion of underage players in Honor of Kings; after school holidays, elementary school students flooded the game.

People's Daily published three articles: the first, "Honor of Kings: Entertainment for the Masses or a Destruction of Lives?"

The second, "Strengthening Regulation of Social Games Is Urgent!"

The third, "Living Well in the Mobile Era Requires Health Protection!"

These three articles criticized game design for lacking protections for minors, leading to elementary school students' addiction and harming their futures.

They strongly demanded society, schools, and the government strengthen regulation, sparking major social impact and resonating deeply with parents.

Other media also rushed to report: "Spiritual Opium Has Grown Into a Trillion-Yuan Industry!"

PlayerUnknown's Battlegrounds faced the same criticism: teenagers were addicted, the violence was excessive, and it clashed with the promoted ideals of a harmonious society.

This is why China's gaming industry is always marginalized and never taken seriously, generating widespread negativity.

Parents angrily denounced games: "Games kill!"

They also cursed the government, demanding games be banned outright, triggering mass parental complaints.

Complaints weren't just about children's addiction—they also accused games of encouraging spending, as many children secretly used their parents' Alipay and WeChat to make payments.

As always, when negativity arises, action must follow; Swan Castle had no choice but to respond with reforms, banning a large number of suspected underage accounts.

They urgently launched the "Health System," limiting users under 12 to one hour of play per day and users aged 12 to 18 to two hours.

They also announced solutions: implementing real-name verification and an anti-addiction system, blocking unverified accounts from recharging or playing.

The real-name system must integrate with official platforms, otherwise it's impossible to obtain users' ID numbers.

This response was relatively proactive, but Fang Hong knew this was a necessary process—even if he knew Lao Wang Zong had reported it, he still had to endure it.

Because this was a trend, and the hidden danger had long existed; it merely exploded due to this opportunity.

As a result, Swan Castle's active player count dropped 10%, revenue plummeted 20%, and its annual revenue of over 30 billion yuan meant roughly 1 billion U. S. dollars vanished.

A single policy or negative wave could wipe out billions; Chang'e Technology also faced revenue pressure, showing signs of pain.

After all, Chang'e Technology was now a large enterprise with many financial needs, and it was precisely in the critical phase of acquiring overseas assets, requiring funds for integration and promotion.

"But for long-term operations, short-term pain must be overcome," Fang Hong told Swan Castle.

The remedy was to launch Fortnite as soon as possible—earning money from foreigners was more reliable.

Of course, Tencent's and NetEase's games were also affected; as major game companies, they too faced regulatory pressure, with declining revenue and daily active users.

This was an industry-wide blow, not just targeted at Chang'e—Chang'e simply bore the brunt.

Others lost eight hundred, but Chang'e lost a thousand.

Small studios were hiding and avoiding the issue—they lacked the technology and the will to implement real-name systems.

Until strong regulation forced their hand, they'd delay as long as possible.

Big studios and small studios were different; big studios faced greater pressure, while small ones could easily relocate after a single strike.

Otherwise, there wouldn't be so many skin-deep games.

The gaming industry faced crackdowns and reforms, but Fang Hong did not sit idle.

On June 28, the Tu Ying Conference was launched!

This date was chosen after calculating Liu Tianxian's delivery date, fearing conflict with her childbirth and Fang Hong's absence, so it was set for late June.

Late June also coincided with the peak of the summer season.

At Yanqi Lake Hotel in the HR District, trees were lush and the lake shimmered gently, offering beautiful scenery.

By the lake stood a modern building with square staircases, constructed entirely of glass, brightly lit and reflected in the water, adding a unique aesthetic to the landscape.

Inside the banquet hall, major figures from the film industry and filmmakers gathered—some familiar, like Chen Zhixi, Xu Guangtou, Wu Jin, Guo Fan, Chen Sicheng, Ning Hao, Han Han, and Wen Muye.

All were part of the new generation of directors and filmmakers!

Of course, veteran directors were also present, such as Feng Kuzi and Zhang Yibai.

Lao Mouzi and Chen Daren did not attend—they didn't participate in such events and had no reason to.

They had never collaborated with Fang Hong.

These directors came because Fang Hong himself was a representative of the new generation and had supported each of them.

Feng Kuzi didn't count—he was backed by Huayi, which Fang Hong now held on a leash.

Besides these, the two Huayi brothers, Bo Na's Fatty, Mahua Fun's Zhang Chen, Xinli's General Manager Cao Huayi, and President Wang Ziwen were also present.

These were Yutu Film's lackeys.

Yaolai Film and Television and Yinghuang Film and Television were brought along by the two Huayi brothers.

Yinghuang's General Manager Lao Yang, though aged and thin, still looked spirited; he sat alone in a corner chair, watching the crowd move about.

No one spoke to him, no one paid him special attention—he was a figure in Hong Kong, but here, he was nobody.

He sighed; he hadn't wanted to come, but now, to enter Neidi, a film had to pass through the Principal's gate—the Principal only let those who paid him profit, so not paying respects was impossible.

The current Principal is no longer the kind of figure one could challenge a few years ago; even a few companies larger than Huayi and Bona have now become his lapdogs.

Other film studios like Tangde, Huanrui, Huace, Huanxi, and Bad Monkey have all sent representatives—even Wang Changtian came.

He came just to watch the spectacle; in truth, many were here for the same reason—they didn't even know what this meeting would actually be like.

Zhang Hongsen didn't come; he wouldn't attend such a meeting—it was their private matter, and his presence would change its nature.

Fang Hong sent him the invitation merely to notify him, to let him know this event existed.

So they wouldn't be accused of acting recklessly again.

Regardless of whether the entire film industry was present, at least half its major players and top titans had shown up.

Many theater chain General Managers also came: Liu Rong of Dadi Cinema, Xu Tianfu of Hengdian Cinema Line, Wang Jian'er of Shanghai United Cinema Line, Li Xiaodong of Jinyi.

All were theater chain titans; Hengdian, Jinyi, and Dadi had joined Lao Wang Zong's Wanda to form the Wuzhou Alliance.

It was merely a resource integration for joint distribution—pooling efforts to create blockbusters to achieve higher box office returns, not a hierarchical union.

Moreover, their internal cohesion was unstable, as profit-sharing disputes frequently sparked infighting.

They had also clashed multiple times over cinema location selection and audience diversion issues—Wanda and Dadi, for instance, were both expanding, inevitably causing conflict.

Profit, location, and ticket pricing led to constant vicious competition, which was ultimately why the Wuzhou Alliance fell apart.

Their alliance often prioritized shareholder theater chains for screening slots, provoking protests from non-shareholder chains, so their reputation was far from good.

There were no stars here; if there was one, it was Ren Quan—ordinary stars had no qualifications to attend.

The venue was crowded with figures, all dressed in suits and ties, outwardly dignified; though outsiders didn't know many of them, those present knew each other well.

They chatted and laughed, some networking, some greeting; the two Huayi brothers moved through the crowd, boasting about the Principal's plan this time.

"This Tu Ying Conference is about uniting everyone so we can all make money together."

"Look how the Principal restricted Wanda's traffic—didn't that let you guys feast?"

"The Principal has content, we have content too; as long as we follow the Principal's lead, we'll grow stronger and stronger!"

The two brothers moved through the crowd, spouting all kinds of nonsense, and everyone just smiled and said: "Yes, yes, yes!"

They didn't argue with the two brothers—they'd wait until the Principal arrived.

At that moment, everyone turned their gaze to the entrance—Fang Hong appeared, flanked on either side by Chen Zhixi and Zheng Zhihao.

"Principal!"

"Principal!"

".."

(End of Chapter)