Chapter 313

Now, it's Qin Miao's turn to have a headache.

These red-and-white game consoles were very profitable in the 1980s, and every person born in the 80s and 90s has memories that can't be separated from them! If Ha Gong Da also got involved in this industry, they'd definitely be making money hand over fist!

But… the Dragon Core No. 1 is selling well, but only domestically; international manufacturers haven't made any moves, and they're clearly just watching.

For Dragon Core to succeed, it absolutely cannot just dominate the domestic market; it must go international to make money—in short, earning foreign exchange is more important!

Now, if we reject Nintendo, how will other internationally known companies view us? They already weren't optimistic about Eastern products, and now they're likely to just stand by and watch. Historically, many powerful chips never became mainstream for reasons, and marketization is even more important!

So…

After a simple consideration, Qin Miao made his choice.

"Mr. Shan Nei Pu, we are very pleased that Dragon Core has been selected by you to be the chip for the game console; you will have no regrets about your current choice! Moreover, to take care of our major clients, here we will announce our product sales strategy."

Qin Miao looked at the people present: "If annual purchase volume exceeds 100,000 units, we will rebate 10% of the payment as a bonus at year‑end; if it exceeds 1,000,000 units, we will rebate 20%; if it exceeds 3,000,000 units, we will rebate 30%. Of course, this sales policy applies only to Dragon Core No. 1!"

Then, everyone was stunned.

The scale of this rebate is so large it's hard to believe!

"What if it exceeds five million units?" Shan Nei Pu said with an even louder tone!

Is the game‑console market really that big? Annual sales over five million units? What a joke!

Others were skeptical, but Qin Miao smiled and said, "If it exceeds five million units, the rebate will be forty percent!"

Others doubted, but Qin Miao knew clearly that this was certainly no problem!

Historically, Nintendo developed the red-and-white game console in 1983, launched it in the U. S. in 1985, selling over a million units that year and three million the next; in total, Nintendo sold 34 million red-and-white game consoles in North America!

Such huge sales volume demands that we give them a suitable price!

A processor priced at $399 per unit is not expensive for a personal computer, but it is too costly for a home game console; a forty percent rebate would mean the processor's price drops to around $200.

That way, the red-and-white game console could sell much better.

The key is……

For us, Dragon Core No. 1 is just a start; after all, this 16‑bit processor's performance is still too weak, and the upcoming Dragon Core No. 2, the 32‑bit version, will be our main product going forward.

Dragon Core No. 1 is destined to be merely a transitional product; how to recoup its high development costs? Naturally, by driving volume through game consoles!

Selling three to five million units a year, even earning just $150 per unit, would already be a modest goal of several billion! Moreover, although the rebate is large… we won't cut prices later; we'll just keep selling at the original price!

Originally, chips are priced high when they first hit the market, and scalpers may even drive the price up further; but as market supply increases, the price will fall back.

Even without Nintendo's order, in three to five years Dragon Core No. 1 will be worth only about $100‑200; this promise is actually meaningless now, yet it will still move many people!

"Unfair, this is unfair!"

That voice was somewhat abrupt, breaking the atmosphere; Qin Miao looked over and saw only Liu Zhonglie angrily standing up.

Well, our Institute previously sought cooperation with you, and you refused to lower prices; now, seeing foreigners, you start cutting prices?

What does a forty percent rebate mean?

"This way, those big computer companies will only grow stronger, because their large purchases lower their procurement costs! Their profits will also grow, while small enterprises will gradually fall into a disadvantage in competition, eventually being eliminated, and the computer market will end up forming one trust after another!"

"That's right, you're correct." Qin Miao looked at the other party: "The essence of market competition is that the strong get stronger. Right now, everyone is starting from the same line; those who run fast get ahead and reap rich rewards, while those who lie back waiting to be fed naturally fall behind and will surely be mercilessly eliminated by the market. Let me ask the other companies: do you have any objections to this rebate plan?"

"We, Qinghua Daxue, support it!"

"Capital University also supports it!"

Everyone can see that as long as the computers they make can sell, ordering more will accumulate sales volume, and the year‑end rebate they receive will of course be larger!

Only those who lack ambition would think this system is bad!

We must support it!

Liu Zhonglie's face turned red, and he gritted his teeth: "Hum, if we keep doing this, the country will surely fall into chaos!"

"Liu Zhonglie, are you denying the market economy?"

Swish! Liu Zhonglie's face turned pale.

Of course not! At the Institute, he has always been a supporter of the market economy and a founder of the company; how could he possibly think that? He's just upset because he didn't get any advantage.

"Of course not, don't try to pin a false charge on me!"

"All right, sit down; in front of all these foreigners, you're embarrassing our Institute!" Director Zhou said angrily.

Liu Zhonglie then realized what was happening, quickly sat down, clenched his teeth, gripped his fists, and remained silent.

Then he thought of something and looked toward Intel's direction.

Geluofu and Mo Er's faces were clearly not looking good; this Dragon Core No. 1 is absolutely the biggest blow to Intel!

"Everyone, today's press conference ends here. The formal contract will have to wait until tomorrow to be signed. We will arrange delivery according to the order of today's quotations and the order of deposits, and we will ramp up production to meet domestic and foreign demand as soon as possible…"

Amid applause, the meeting ended.

"Geluofu, let's go; we should be leaving!"

"What?"

When Geluofu snapped out of his thoughts, there were hardly any people left at the scene.

"Oh, yeah, it's time to go." Geluofu stood up: "We need to hurry back, urge our team to develop our 286 processor in the shortest time possible; now, most international manufacturers are still watching, and we still have a chance…"