Chereads / Video Game Tycoon in Tokyo / Chapter 453 - The heaven-sent opportunity for Surui Electronics

Chapter 453 - The heaven-sent opportunity for Surui Electronics

The game carrier used by the GSL handheld is still in the form of cartridges.

And what's used inside are flash memory chips.

On the other hand, Surray Electronics insists on using discs because they want to promote their own standards.

As of now, it's hard to say which model is more feasible.

Discs can be low in cost, while cartridges in flash memory form can be very portable and convenient, but the cost is somewhat higher than discs.

Takayuki believes that cartridges are obviously better in the handheld form. Players can carry many cartridges to play different games at the same time. However, even if it's just CDs, it's not possible to carry too many around, which doesn't quite fit the portable style of handheld consoles.

Moreover, future developments can prove that cartridges are indeed a more reasonable form for handheld consoles. In the future, cartridges can also be very low-cost and have advantages over discs in various aspects.

However, cartridges have a fatal problem: the material production output is always unstable, and flash memory manufacturers are also very fond of creating trouble.

There are often news reports of fires, saying that production capacity will decrease. Later on, people would joke that if those manufacturers aren't making money, they could just set a fire at home.

As to whether these fires are real or fake, Takayuki is not sure and cannot make a judgment.

But now, the production of cartridges is obviously affected by this.

"We have quickly contacted other flash memory manufacturers, but this period of time will lead to a slowdown in cartridge production, and some regions may face shortages."

Takayuki frowned. Fortunately, the manufacturing of storage chips in the game console and the manufacturing of cartridge storage are separate. If they were done by the same company, it would indeed be possible to be in big trouble.

Also, they haven't made those simple casual games into cartridges, otherwise it would occupy more of the cartridge production line, which would have an even greater impact.

"Do we have an estimated time? I want to know how long it will take to restore production capacity."

"It's estimated to take at least three months to possibly restore previous production capacity."

It would take three months to restore the current production capacity, making it even more difficult to expand production capacity.

For delayed product deliveries, if they exceed the contract period, the flash memory factory will definitely have to compensate.

However, previous cartridge productions were relatively short-term contract orders, and flash memory factories have always been very tricky in this regard, never signing long-term contracts, always preparing for price hikes.

But cartridges are the lifeblood of the current Gamestar Electronic Entertainment handheld console. Without cartridges, the console is just a piece of scrap metal.

And it's too early to promote network digital games now; the soil is not mature enough.

But at the moment, there's no better solution.

"Then contact the second manufacturer immediately and distribute the cartridge production."

The head of the outsourcing department nodded. "That can be done, but I'm worried about another thing."

"What is it?" Takayuki asked.

"It's very likely that other manufacturers will raise the price of cartridges, which will increase our manufacturing costs."

Takayuki said, "But this is necessary. We must meet the players' demands, rather than letting players lose the opportunity to play our games because of cost issues."

The head asked, "Can we propose increasing royalties for third-party game companies? Let them share some of the cartridge manufacturing costs?"

Takayuki immediately shook his head upon hearing this. "No need. They can afford this amount of money. Our royalties are already not low, and increasing them would burden them further. This would damage our reputation. Increasing the cost by a few dollars for a cartridge just for the sake of it is not worth it."

"Okay, I understand. I'll go contact if there are other flash memory manufacturers willing to take over immediately."

After the person in charge left, Takayuki fell into thought.

Flash memory manufacturers causing such accidents in the future is inevitable because they have seemingly legitimate reasons.

Unless he directly acquires a flash memory manufacturer and only serves his own industry, he wouldn't have to worry about any accidents.

Expanding the entire industry chain, developing chips, developing various components is obviously not realistic, even if Takayuki's funds are abundant, he cannot cover the entire industry chain. Even superpowers cannot achieve this.

However, if he wants to choose a physical industry as the core, flash memory chips are obviously the best choice.

This is one of the fastest-growing physical industries foreseeable in the future, with relatively low technological content, low labor costs, and only needing to produce cartridges for their own products.

So this does seem like a feasible idea, but it would require quite a bit of money. Would his current three to four billion dollars be enough for this venture?

In Takayuki's memories from his past life, it seemed that a company's acquisition of Intel's flash memory business cost about seven billion dollars.

But that was almost after 2020, by which time flash memory chips were one of the hottest physical industries at the time. Now, the price might not be that high, and he doesn't really need to venture into the flash memory industry; he just wants to start a cartridge factory exclusively for himself.

So perhaps three to four billion dollars would still be enough, but then the plan for his theme park would have to be postponed.

Unless he earns more money.

The incident of the cartridge contract factory of Gamestar Electronic Entertainment catching fire is unlikely to cause much of a stir outside the industry.

But within the industry, it spread almost immediately.

Especially to YOO's Nagao, who almost jumped with excitement upon hearing the news.

This is simply a heaven-sent opportunity.

If things go according to the normal routine, then the release speed of Gamestar Electronic Entertainment's electronic games will inevitably encounter problems, and this gives him an opportunity.

So he immediately contacted Hayakawa Ujito.

"Hayakawa, have you heard about the problems with cartridge production at Yooxing Electronic Entertainment?"

Hayakawa had just finished a meeting, and coincidentally, the topic of his meeting today was this. Upon hearing Nagao's call, he immediately nodded and said, "I know. It seems that there will be some problems with Gamestar Electronic Entertainment's cartridge production this time."

Nagao immediately said excitedly, "This is our good opportunity. We can take advantage of this to expand production again. If players want to play Gamestar Electronic Entertainment's games but there are no cartridges, their demand for entertainment will definitely not decrease. This way, we can take advantage and grab some users, right?"

Hayakawa Ujito said, "It makes sense, but I don't think Takayuki will sit back and wait for death easily."

"Regardless of whether he will sit back and wait for death, let's seize the opportunity first!"