Chapter 264: Retaliation From Distributors
“Price war?”
“Yeah, he’s trying to out compete them using a low price. Just like the App wars with free apps. First they spend money to get all designers, games and players over then raising the price, harvesting the fruits of their labour after they take up a huge chunk of the market.”
“Tsk… Is Chen Mo really planning to do that?”
“I don’t know what he’s planning, but I think that is highly likely. Think about what kind of person Chen Mo is. He’s not a charity. Why would he take twenty to thirty percent when he can take fifty?”
“That’s true. He’d lose so much money based on how many users Thunderbolt Gaming Platform had.”
“Well, there’s quite a lot to take in then.”
“Isn’t this a perfect example that the seller knows better than the buyers? There’ no way Chen Mo made a mistake here being as smart as he is.”
“Yeah, why would he go through the trouble of killing off all the distribution platforms in China if it weren’t for his personal gains?”
“Geez, whatever. I don’t care what he thinks. But in the short term, this will be a great plus to us video game designers. If the distributors are going to fight the price war, us designers will surely benefit from it.”
“That’s true. It’s a war among G.o.ds, us peasants will just have to stand back and watch.”
—
Emperor Dynasty Entertainment HQ.
Xu Xiaojun was reporting to Lin Chaoxu about some important statistics related to Thunderbolt Gaming Platform as well as a few high priority reports regarding Chen Mo’s announcement.
Lin Chaoxu didn’t do too good as he was visibly upset, yet managed to control his temper and was thinking in silence.
After some time, Lin Chaoxu finally said, “What do you think Chen Mo is trying to do?”
Xu Xiaojun replied in a few moments, “I think Chen Mo’s intentions are clear, the same as when he made Thunderbolt Tabletop, trying to gain players through a more compet.i.tive price and expand Thunderbolt Gaming Platform’s influence to beat down on the other platforms.”
Lin Chaoxu nodded and muttered, “This kid sure is stubborn.”
Xu Xiaojun added, “Brave too.”
Lin Chaoxuo seemed to have something in mind, “That’s one thing that separates him from other designers, he always looked out for the long term. He knows the difference between a short term gain and a long term day clear as day, and always managed to suppress temptations in front of his eyes.
“How much would he lose with the three to seven split based on Thunderbolt Gaming Platform’s current performance? It’s amazing for someone as young as he is to let so much money go.”
Xu Xiaojun asked, “What do you mean, Mr Lin?”
Lin Chaoxu sat in silence for a few seconds before replying, “First, we’ll need to try and hold onto the indie developers on our platform, and cut down on our split or have exclusive contracts as a last resort. Basically, don’t let go of too many of the other designers.
“Then we’ll need to do some things on public opinion. You should know what to do by now, I’ll leave you to it.
“If these plans fail… There’s nothing else to do but let in and fight the price war. We don’t have to be too quick on that either as Ding Xing at Fantasy Gaming Platform is probably more worried than we are, they probably won’t sit and do nothing.”
Xu Xiaojun nodded, “Alright Mr Lin, I’ll do as you ordered.”
“The other distributors will probably make their moves soon.”
—
When Chen Mo announced that Thunderbolt Gaming Platform will allow any video game designer to post their games, many other distribution platforms quickly started their retaliations.
First was to sign an exclusive agreement with many of these indie developers.
Many of the designers were considering if they should post their game onto Thunderbolt Gaming Platform. On the other hand, the distributors that they have been working with were working towards a better price and exclusivity agreements.
For example, promising a higher share of the profits (an unprecedented four to six split, with developers getting sixty percent), while promising promotional spots and advertising strategies.
These words were also extremely alluring.
“Thunderbolt Gaming Platform is a new platform, they are surely weaker in terms of promotion, so what if they offer higher cuts? If the game isn’t promoted sufficiently, you wouldn’t be making money either way. Take a look at the official app store. They only take twenty percent, but how much money does your game make on there?
“We’ve already worked together for so long and know each other in and out. We’ve been in the business for so long, so there’s a certain amount of guarantee there.
“Moreover, how many developers would want to post their games onto their platform the second the news came out? Thunderbolt Gaming Platform only has so many promotional spots, and with that many games at once, the compet.i.tion would surely be fierce!
“Think about it, well you get an advantage based on the quality of your game? If you can’t, why bother?
“It’s true that we are impacted by this, that’s why we decided on an exclusive agreement. A four-six split, with you getting six. This is unprecedented! Moreover, we’ll arrange a bunch of services. Not only will you get various promotional splots, you’ll even get resources for advertising. We’ll guarantee that your game gets the attention it deserves.
“Of course, once you sign the exclusivity agreement, you won’t be able to post your game onto Thunderbolt Gaming Platform. But just as I said before, think about it, there’s no good coming out of their side!”
The intentions of the distributors were clear. They were trying their best to retain these indie developers and rope them in.
This was to prevent a large scale move of developers to the Thunderbolt Gaming Platform. Once the move starts, it’ll be near impossible to stop.
Moreover, attacks against Chen Mo and Thunderbolt Gaming Platform also started appearing.
There was a paragraph on a Q&A section that got over ten thousand likes and were being reprinted by various media.
“Exposing Thunderbolt Gaming Platform: Is Chen Mo really starting a charity?”
One of the paragraphs was as so.
“Do you really think that Thunderbolt Gaming Platform undercutting the entire industry is a good thing for the development of the videogame industry?
“This was similar to some app wars. Some software advertised themselves as free to outcompete the other serious companies.
“And when they got their hold on the market share, these software companies finally bare their fangs. Although they were still free, they added various plug-ins in their software to steal the data of their customers, among other nasty things.
“There’s no such thing as a free lunch. Whatever benefits the designers enjoy now will be paid back with interest.
“And when that day comes, the companies that didn’t want to comply would go bankrupt, and the surviving ones would all look the same. And there’s so saving it then!
“Please open your eyes, don’t get blinded by short term benefits!”