Chapter 1137 – Launch of Gbox
Gbox, a joint venture between Microsoft and Feng Yu, is finally launched into the market. The initial plan is to launch it nearer to the end of the year, around Christmas, but Sony had launched their PS one last month.
This is an upgraded version of Sony’s PS console. It is smaller and about a third of the original PS and can be fitted with an LCD monitor. Also, it can even be fitted in a car by plugging the adaptor in the main socket. Now, users can play games in their cars.
There are rumors that Sony will be introducing a portable power source for PSOne that has about 2 hours of battery life.
Sony had no choice but to release this model. They had invested a lot into MP3 players but failed. Many people considered their MP3 players as defective products and affected Sony’s profits.
With the CD player and Walkman sales on the decline, Sony needs a new product to push up their profits, shareholders’ confidence, and share prices.
Although the share prices will not affect Sony’s operations, it impacts the brand. For example, Sony had relied on their positions in the Fortune 500, World’s top consumer electronics brand, etc., for their marketing. They don’t want their position to drop.
Another reason is Sega Saturn had launched their latest console. Although they don’t have many games, they still managed to get some of the market shares.
Nintendo is also going to launch its 4th generation of console. Gbox does not want to clash with Nintendo and chose to launch during this period.
……
“Ladies and gentlemen. Gbox-1 is a gaming console jointly developed by Aiwa Little Tyrant, Microsoft, Wind and Rain Electronics, and many other companies. This is the first generation gaming console using Intel processor, Microsoft’s brand new operating system, and Wind and Rain Electronics’ latest DVD technologies. This console can also be connected to the internet. We will be releasing a Gbox-live soon, and users can play games over the internet…”
This launch is held in New York. After all, the gaming console market is bigger in the US compared to China.
Microsoft had sent its CEO, Ballmer, to host the launch, and Aiwa Little Tyrant sent Duan Yongping as their representative. Of course, Zhong Qingxian was also there as the representative for Tai Hua Holdings.
Feng Yu was also in New York, but he did not attend. It’s too tiring to listen to Ballmer speak for an hour.
Feng Yu sat in his office and watch the launch live through his PC monitor. Although the US’s internet is not that great, Feng Yu’s office has a dedicated line for him, and the live telecast is only for him. There is no lag, and Bill Gates is sitting beside Feng Yu watching the telecast.
Bill Gates wants to use Gbox to retaliate against Sony and use it to enter the gaming console market in the future.
“The Gbox will come in a package, and it includes a console, two controllers, and ten games. Among the games, five are exclusively available for Gbox-1 and not available for other consoles now. This is because these games are from Wind and Rain Games. They include…”
Why did Sega fail? It is not because their console’s specifications are poor. It is because they don’t have good games. They were set up by Sony. The gaming company that was working with Sega had betrayed them and broke their contract.
The gaming company had released new games that are compatible with PSone and not on Sega’s console. Sega can no longer provide their customers with new games and only play older games on their console.
Although Sega had quickly signed contracts with a few gaming companies, many of these companies were acquired by Wind and Rain Games, and some were taken over by Microsoft.
Due to the ownership changes, some of the gaming companies’ plans were delayed, and Sega can no longer get back their market share.
Sega was only watching Sony and Nintendo but had not to notice Gbox. That’s why in their contracts with the gaming companies, they had not included any restrictions against Gbox.
This time, other than Sega, Sony, and Nintendo were also affected. Game companies will normally try to sell as many of their games as possible for profits.
But this time, some game companies had released games exclusively for Gbox and not for other consoles! Sony and Nintendo had to negotiate to purchase the rights or developed their own games.
But the game companies refused to sell. If Sony and Nintendo really want to purchase the games’ rights, they must wait until next year.
Feng Yu and Microsoft do not lack money and do mind earning less from the games. This made some games exclusive to Gbox, and many customers had to buy their consoles for these games.
Sony had walked this path when they launched their console, and Nintendo also has its own exclusive games.
At the initial stage, Kameda Masao had approached Feng Yu to discuss the possibility of making his games available for Gbox, but was rejected!
Are you kidding me? The PC games from your company should remain a PC version. Anyway, the USB controllers are already available for PCs. Isn’t it better for your customers to play your games with a mouse? Err… it is more convenient for your customers to play your games with one hand.
Sega still had a major flaw that caused their failure. Sega allowed such games to be used on their console, and many parents refused to buy their console for their children.
Although Sega felt this is not wrong, as games should be catered to all ages, most of their customers are young adults. These cartoonish games are also popular with kids.
However, Feng Yu will never let Gbox walk the wrong path. This console is for ordinary families, and 2D and 3D games are enough.
“Our Gbox-1 package will be selling at 399 USD…”
Nintendo and Sony’s consoles are selling at 289 and 299 USD, respectively, and Gbox-1 is selling almost 25%.
But the additional controller and games that come along with the console are worth more than the price increase, making Gbox-1 cheaper than Sony and Nintendo. The price of a game is less than 10 USD!
This is the result of Duan Yongping’s development team. They had worked hard to lower the cost, and at this price, there is basically no profits. But at least this product is better than Microsoft’s product in Feng Yu’s previous life. Microsoft suffered about 100 USD losses per unit sold, and their console still comes along with lots of problems.
When Ballmer handed the first Gbox-1 to a lucky audience, Gbox is officially on sales!
Sega Saturn