Chapter 228 Let Penguins Represent Lü Yao (6k views, please subscribe)

President Liu comes from the opposite side of Shenzhen and has a typical businessman's mindset. He would never spend money to research something if he could buy it ready-made.

Especially things related to the gaming industry.

Seeing that President Teng's expression was not good, President Liu continued to persuade him, "The profit margin of the game business is indeed very large, but its ceiling is not high. No matter how much more it grows, it will only be a market worth hundreds of billions, right?"

"Compared to our strategic direction, this is insignificant."

President Liu's words were not boasting, but the absolute truth.

During Liu's tenure as president of Tencent, Tencent earned nearly a trillion yuan in profits simply by investing in promising industries, helping them grow, and then collecting startup taxes.

Penguin's current investment scale is as high as trillions, and even Penguin's own stock is soaring. In the future, even if many of Penguin's own businesses shrink and wither, its market value will still be as high as 500 billion US dollars.

Even ByteDance, which has soared to new heights thanks to Douyin, can only catch up with Tencent, but cannot consistently surpass it.

However, it's hard to say who truly dominated the penguin world back then.

President Liu's words were correct, and the direction was right, but as the head of Tencent, President Teng could not let President Liu do as he pleased. Once President Liu's influence grew significantly, his position would be in jeopardy.

Apple's founder was ousted from Apple.

The founder of Lenovo was ousted from the company.

The founders of Taobao were also ousted one by one.

Similar examples are commonplace.

Mr. Teng certainly doesn't want to be kicked out of Tencent one day.

However, President Liu is indeed very important in Tencent's transformation strategy. The group's operation still cannot do without him, and the timing is not right to touch him... Therefore, President Ren's side cannot be touched under any circumstances, but President Liu will not stand idly by and watch President Ren's side be strengthened.

Mr. Teng had foreseen this situation. After a brief probe to ascertain President Liu's attitude, Mr. Teng made a decision: "President Liu's idea is very good, but we are, after all, an internet company, and we cannot lose our roots."

"How about this."

President Teng looked at President Liu: "President Liu, please continue to follow up on the acquisition of the overseas game development company. At the same time, our group's internal game development projects are also underway. We have enough strength to support two-pronged approach. This is also our consistent way of competing internally."

"I will personally take charge of our internal game development from now on."

Upon hearing this, President Liu couldn't help but smile, realizing that this was one of the plans that President Teng had prepared long before he arrived.

With President Teng personally taking charge, what else can President Liu say?

President Liu smiled and nodded, saying, "Great! I'm confident that with President Teng personally leading the charge, we'll achieve immediate success!"

President Liu used a double entendre here.

After congratulating President Liu, he continued, "But President Teng, I must also remind you that there are risks involved in you personally taking the lead. If we still can't beat Shangnan Guang'an, it will have a huge impact on our stock, and the group's shareholders will have something to say."

"Why don't you just bear with it and temporarily avoid the sharp edge of Shangnan Guang'an?"

Should I avoid him?
Mr. Teng is introverted but also proud, especially considering that he has such a vast business empire at his age.

Even if the opponent is Alibaba, Baidu, or Shanda and NetEase in the past, he has never been afraid. Now he has to avoid the sharp edge of a startup.

Mr. Teng smiled and said, "I know what I'm doing."

His main purpose in personally taking charge was to prevent President Liu from causing trouble behind the scenes, so that the team could operate more efficiently. As for how to do the specific tasks, that was naturally left to his subordinates.

Although Teng is also from a high-tech background, his technical skills are far inferior to those of Lei Jun of Xiaomi and Zhang Jun of ByteDance. Ultimately, the task of leading the team to overcome technical difficulties will fall to Ren Zhengfei.

Finally, Mr. Teng said, "If everyone has nothing else to do, let's end the meeting here."

He planned to call Mr. Ren to his office for a chat after the meeting, but then Mr. Teng saw Mr. Ren suddenly say, "Mr. Teng, and everyone else, I think we've all overlooked a problem."

All eyes immediately turned to President Ren.

Mr. Ren then said unhurriedly, "Does everyone remember what the rumors were about Shangnan Guang'an? They were leading a team to tackle several games, so they were recruiting a lot of people."

"The rumors at the time were that they were going to make a MOBA mobile game, and also a board game."

As he spoke, Mr. Ren displayed the PPT he had prepared before arriving on the large screen in the conference room. He continued, "But what happened next? Shangnan Guang'an launched a very simple game, but they managed to transform it into a novel and rich game through rapid and massive updates in a short period of time."

"Just when we thought the rumors we heard earlier were just misleading information, Shang Nan Guang'an pulled out 'Honor of Kings' and showed that he wasn't just spouting nonsense."

When Mr. Teng and Mr. Liu heard this, they couldn't help but frown.

Mr. Ren continued, "Can I now make an assumption—that the ultimate goal of Shangnan Guang'an is not actually to make games?"

President Liu was completely baffled, while President Teng's heart skipped a beat.

Mr. Ren slowly said, "The thing that Mr. Lü from Shangnan is best at is not development, but traffic generation... So what is the thing that people who are good at generating traffic best at?"

After listening, Mr. Teng said in a heavy tone, "Develop a platform."

Mr. Ren nodded and said, "That's right, we should build a platform."

Games are like online novel readers; people always have a certain level of liking for something at a certain stage, and then after that age, or because of being busy or forced by life, people gradually stop reading novels.

But even if someone stops reading novels one day, there will always be people who read novels.

The same applies to games.

Although games have always had a bad reputation, in the internet age, games are called electronic waste.

In ancient times, playboys who indulged in activities such as hawking, walking dogs, playing with crickets, and stringing beads were considered idle and unproductive.

But games are something that has developed almost alongside human history.

No one will play games forever, but there will always be people playing games.

The number of games a company can ultimately create is limited, but there are many companies in the world that make a living and build their businesses by making games, just like Steam today.

Upon hearing this, President Teng couldn't help but pinch the bridge of his nose, and President Liu, who had always seemed nonchalant, also frowned.

The essence of building a platform is actually the same as running a company, so Shangnan Guang'an cannot be viewed simply from the perspective of making games.

There are now comprehensive gaming platforms similar to Steam in China, such as Origin and Blizzard. Tencent also has its own gaming platform, TGP, but currently only Tencent's own games are available on this platform.

Furthermore, TGP's release has sparked dissatisfaction among many players.

TGP was created after eliminating a significant number of game launchers. A few years ago, the "game launchers" used by LOL players could change skins locally. These launchers severely impacted the revenue of League of Legends, so the people who developed these game launchers were sent to jail.

In addition, TGP is tied to the game's launch and offers benefits such as equipment, items, experience boosts, and game assistance, resulting in decent user growth for TGP.

However, TGP has not yet grown into a comprehensive gaming platform.

After hearing what Mr. Ren said, Mr. Teng realized that they should at least take the initiative in this area.

So Mr. Teng continued, "Then the work of the Interactive Entertainment Business Group will be divided into two parts and three major areas. Mr. Liu, you will continue to acquire game companies, while I will personally take charge of developing a comprehensive game platform and creating a MOBA mobile game that can surpass 'Honor of Kings' as soon as possible."

This is a notification, not a discussion.

President Liu had nothing to say, so he could only smile and nod in agreement, then look up at President Ren across from him.

Mr. Ren also looked back and smiled as a gesture.

At this president's meeting, President Ren did not gain anything, nor did he fight for anything. However, President Teng, who is extremely good at balancing emotions, has begun to show some bias. His personal leadership is only to hope that the project will not be interfered with by too many external factors.

The weakening of the president's faction and the support for the veteran faction are expected to occur in the near future.

In fact, everyone here understands this principle.

So they are all competing and striving, using their own methods to gamble on a future.

……

Two days later, on Cuizhou Island in the heart of Nanhu Lake.

In May, Shangnan is lush with green grass and birdsong, the sunshine is clear and gentle, and the island in the center of Moling Lake is especially beautiful and refreshing.

Right now, Lü Yao, Rong Nianqing, Gan Xiaoxi, Wang Shu, and Zhu Junyan are gathered here, drinking tea and relaxing.

Gan Xiaoxi, dressed in a bright and cheerful dress, lay on the edge of the garden pavilion, sunbathing. Wang Shu, on the other hand, wore a dark red, almost black silk slip dress. The dark red slip dress reflected the unique luster of silk, which complemented Wang Shu's fair skin, creating a striking contrast.

Rong Nianqing was much more conservative.

Despite the beautiful weather, she was still wearing long sleeves and trousers, and instead of going out to bask in the sun, she leisurely lay under a parasol, sipping her drink.

Zhu Junyan and his female companion were happily playing in the water on the other side.

As for Lü Yao...

He was mixing soft drinks.

Soon, Lü Yao served the prepared drinks to Rong Nianqing, Gan Xiaoxi, and Wang Shu. Then he lay down by the waterside, took off his colorful Hawaiian-style shirt, and sunbathed with his chest exposed and eyes closed.

He's been working out a lot lately, and a slightly tanned complexion would look better on him.

Before the launch of the new MOBA mobile game, Lü Yao was under immense pressure, especially waiting for Tencent to make a mistake. He didn't know if Tencent would take the bait, or even how big a fish they would catch. Lü Yao was constantly on edge. Only after the game's successful launch and its huge success in the market did Lü Yao finally feel relieved.

Today is the fourth day since the release of the new MOBA mobile game, and the data for the fourth day is not as exaggerated as in the previous days.

However, the number of new users of MOBA mobile games has been growing slowly in the past few days. As of today, the number of newly registered users of MOBA mobile games has exceeded 70 million, with an average daily active user count of around 27 million.

Revenue is certainly not as impressive as before, with daily revenue of less than 100 million, and at its lowest point, it was less than 30 million.

This is still the case when the game has just been launched. People are interested in it and willing to spend money to play. As time goes by, the number of new users and revenue of this game will continue to decline.

Once the game is running stably, a daily revenue of ten million would be considered incredibly impressive.

Even so, Lü Yao plans to give away the heroes and high-quality skins that he will be launching next to users by giving them away through completing tasks.

He doesn't plan to make money from this game for the first six months, or even for the next six months. Providing players with a better and more enjoyable experience is the main goal that the MOBA mobile game project team will pursue in the coming year.

Only in this way can they gain more market share as quickly as possible.

A year is enough time for players to accumulate enough virtual assets in the game. By then, it will be somewhat unrealistic for other competing games to compete with their MOBA mobile game.

After basking in the sun for a while, Gan Xiaoxi suddenly asked, "Hey, you seem really relaxed lately. Looks like you're determined to win the upcoming market competition."

Lü Yao lay lazily on the beach chair and said, "I've worked so hard for so long, can't I enjoy myself?"

Gan Xiaoxi chuckled and said, "Alright then, I'll share the information I've gathered with you in a few days."

Lu Yao immediately changed his tune: "But then again, if you keep me updated on the news in advance, I can still rest as usual, so it won't affect anything."

Gan Xiaoxi was amused and, clutching her stomach, bounced on the beach chair like a mermaid who had come ashore.

Rong Nianqing, also under the parasol, laughed and said, "You really don't want to be idle for a moment."

Lu Yao helplessly spread his hands: "There's nothing I can do. President Gan has already said it all. He doesn't know how upset I am."

Rong Nianqing asked curiously, "Based on your company's revenue in the past few days, as well as user activity and recharge, the annual revenue of your newly launched game is estimated to be only around 5 billion. After deducting various operating costs, the net profit is estimated to be only half."

In Rong Nianqing's view, spending so much effort and energy on this 2 billion yuan a year is somewhat unprofitable.

Lü Yao's talents should be applied to a broader range of fields, such as the smart home sector she is currently developing.

Rong Nianqing continued, "This amount of money is too little for your talents. If you dedicate yourself to working with me in the smart home and home decoration sector, the prospects are much broader."

Her team calculated that even if she only occupies a portion of the market share, the smart home industry she is currently investing in will generate hundreds of billions in revenue in the future.

Not to mention industries related to home renovation.

Rong Nianqing has registered an interior design company. As long as the purchase of home furnishing products under Huasheng Life reaches a certain amount, they will be responsible for providing design plans to help homeowners with the renovation. They can even help homeowners contact more professional construction teams to ensure the quality of construction.

According to Rong Nianqing's investigation, he found that most decoration companies on the market are of varying quality, and it is common for them to take kickbacks, replace the high-quality materials purchased by the homeowners with inferior materials, and even steal materials.

Therefore, Rong Nianqing provided guarantees for this issue, and with the reputation of Huasheng Life, Rong Nianqing's development in the home furnishing industry is booming.

Next, she even plans to buy or take control of home decoration material production factories, creating a complete industry chain from materials and decoration to smart homes.

This is a market worth trillions.

Although its profit margin is very low, it involves a large number of employees and industries, which is exactly what Rong Nianqing needs now.

After Rong Nianqing told Lü Yao about these future business plans, Lü Yao reminded her, "I don't think it's necessary to connect all the links. Many factories in the home decoration market are already doing very well. It's all about competing for existing market share. If we take over all the links ourselves, it's easy to tie up the production capacity in our own hands."

"So I think you should focus all your efforts on developing smart home devices, Mr. Rong."

Most smart home devices are electrical appliances, and electrical appliances have a lifespan. It's normal to replace them every few years. Even if a product isn't of good quality, it might not break down for several years. However, when a new product comes out, people with sufficient financial resources will still want to replace it.

When it comes to electrical appliances, the newer the better, of course.

Second-hand appliances often have many parts that can be disassembled and recycled, creating a cycle.

But the home improvement market is different. No matter whose house is renovated, people intend to live there for a long time, so the repurchase rate is very low.

Moreover, the real estate market won't stay prosperous forever. When the real estate market collapses in the future, the home decoration market will face extreme difficulties.

After listening to Lü Yao's explanation, Rong Nianqing pondered and said, "Hmm, what you said does make sense."

She's recently been somewhat blinded by the rapid and positive development of Washington Life and the increasingly fierce real estate market.

Just then, Gan Xiaoxi jumped out and shouted, "Hey, what's this? You guys are chatting now. Lü Yao, do you still want to know what's going on in Shenzhen?"

Lü Yao laughed and said, "Then you go ahead, we're all listening."

Hi!

Gan Xiaoxi felt a tickle in her teeth when she heard Lü Yao say that, as if she really wanted to share it with them.

She gave a light snort and said, "I'll tell you since you made me a drink~"

"News has come from Shenzhen that after the CEO meeting of Tencent's top management, they made two plans. There are rumors that Tencent's senior CEO flew to Finland overnight after the meeting."

Finland?

Lu Yao thought for a moment. Was he planning to acquire the Finnish game company "Supercell"? That company made "Clash Royale" and "Clash of Clans," and those two games were indeed quite fun, but ever since Tencent bought the rights to distribute them, the games have become both grindy and pay-to-win.

Lü Yao had played it before and even criticized it.

To be fair, this game company has a very strong art style and capabilities. I wonder if my return from studying abroad in the future will affect Tencent's operational strategy.

After the brainstorming session, Lü Yao continued, "What about the other contingency plan?"

After taking a big sip of the icy, sweet drink made by Lü Yao, Gan Xiaoxi sighed and said, "Tencent's CEO is personally leading the team to create a game that surpasses yours."

Ha ha.

What's the point of having CEO Teng personally take charge?

Back then, Tencent even personally endorsed "Dou Zhan Shen," but what was the final result? It was still canceled.
Lu Yao speculated that what Teng did was essentially to endorse Tencent's Interactive Entertainment Group and reduce external interference.

Lu Yao was aware of the conflict between the veteran faction and the president's faction within Tencent.

Ren Zhengfei, currently the president of the Interactive Entertainment Business Group, will also serve as the president of the Online Media Business Group. After Tencent announces another strategic upgrade and organizational restructuring in 2018, Ren Zhengfei will be fully responsible for the management and development of the Platform and Content Business Group and the Interactive Entertainment Business Group, and will also serve as the Group's Chief Operating Officer and Senior Vice President.

Mr. Ren, who is currently only in the upper management of Penguin, will become a super bigwig in Penguin's core decision-making team in the future.

This should have been a personnel change that Tencent had kept hidden deep inside, but because of Lü Yao's appearance, the intention behind this personnel adjustment should have been exposed in advance, which means that the struggle for power within Tencent will become more intense.

Mr. Teng's personal endorsement will definitely have an effect, but whether the project can be successfully completed is hard to say.

Even if it can be successfully produced...

Lü Yao was not afraid.

It's already mid-2015. By the time they concentrate their efforts on creating a game that rivals or even surpasses Guang'an, it will be 2016 at the earliest.

In 2016, ByteDance's Douyin will be launched. At the same time, another thing will happen in 2016, and if that thing is handled well, it might even uproot Tencent!

After Gan Xiaoxi finished speaking, she turned her head to look at Lü Yao and found that Lü Yao was not as serious as she had imagined, but rather seemed relaxed.

So she asked with particular curiosity, "You're not afraid at all, you're so confident?"

Lu Yao put his hands behind his head and laughed, "It's not that I'm confident, it's that the game has progressed to the point where both sides have already laid out their pieces and their strategies have taken shape. What follows is a head-on clash."

Gan Xiaoxi was very curious: "So what's your next move? Tell us!"

Lu Yao spread his five fingers and laughed, "I have at least five game projects under development."

ha?
Gan Xiaoxi sat up abruptly, puzzled: "Five?"

How did this guy manage to accumulate so many game projects?

Lu Yao continued, "I plan to release all five games within the next three years."

To be precise, all five games were launched before April 2018. Most of these games were developed and prepared for release by both PC and mobile platforms.

In 2016, a management document for the approval of mobile game licenses was introduced. This document will become a ban from April to November 2018, and the approval process for launching mobile games will be completely cut off.

They say it's for the benefit of teenagers, but in reality... those who know, know.

Therefore, Lü Yao needs to launch all the games before April 2018.

Gan Xiaoxi asked in bewilderment, "Five games in three years? That's an average of one game every seven months? Are they really that competitive?"

Lü Yao laughed and said, "Games are just a way for me to attract traffic. My purpose in making games is to build a game distribution platform. However, the game platform is only a mid-term plan for me."

When Rong Nianqing heard that Lü Yao was going to set up a game publishing platform, she couldn't help but nod. This was indeed a promising venture. Huasheng Life itself was a platform disguised as a supermarket, and the role that a platform could play was very powerful.

Lu Yao continued with a smile, "However, our current publicity isn't enough. Next, I plan to have Tencent endorse my game company."

what?
Gan Xiaoxi was immediately filled with questions.

Have your competitors endorse you? What were you thinking?
(End of this chapter)

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