for example.
Hmm... let's just take game X as an example.
It is said that the revenue sharing between the development and operation of Game X is 2 to 8.
Then, if Game X's revenue in its first month is 1000 million, then Game X's developer can directly take 200 million.
While it may seem like the operator received 800 million, this 800 million has to cover advertising, operations, and channel revenue sharing, so the actual amount they receive is probably only around 400 million.
This is assuming the operator has strong distribution channels and can attract most players to download the game from the official website and play it on the official server.
Even if a lot of publicity is done, but the final revenue does not meet the target, the amount received may be even less.
This is actually why many game developers choose to negotiate a 1:9 revenue sharing agreement with Tencent.
Let's take game X as an example again.
If GameX partners with Tencent, then with Tencent's promotion, the monthly revenue could reach 40 million. If GameX takes 10%, it can still get 4 million.
Conversely, Tencent, as the operator, may have spent 30 million on marketing and promotion to generate 40 million in revenue, and also invested a lot of channels and operations.
At this point, some little ones will definitely ask questions.
So why don't developers and operators share the profits?
Wouldn't it be more reasonable for everyone to split the profits 50/50?
Logically, this is reasonable, and such collaborations do exist in reality. However, in most cases, this is only possible if the companies cooperate very closely and trust each other implicitly.
Otherwise, they wouldn't sign such a contract.
Because this involves a very fundamental issue.
As a developer, how do you know if the operator is making money?
Let's find a better developer.
It's entirely possible to operate the game without making a single penny through reasonable means.
What can you, as the developer, do in this situation?
It is precisely because of the blood, tears, and lawsuits of our predecessors that this revenue-sharing model has become the mainstream.
Bilibili and DWorks, as multinational agents, naturally sign this type of contract.
Furthermore, due to the added benefit of Fate's IP, the contract signed at the time was awkward, with a 25% to 75% split.
It's a little higher than the normal level.
Lin Li has now proposed moving the Fate/Grand Order rebate event to the Chinese server, therefore the contract has been changed to 3:7.
This was actually within Chen Rui's acceptable range.
At that time, as long as we control the publicity and distribution costs, we can make more use of Bilibili's own channels and use fewer external channels.
If you can control costs, you can still make money.
As for the tiered division, that's even more acceptable to him.
However, it's still necessary to clarify the specific profit-sharing agreement.
How exactly are the tiers divided?
"It's very simple. We'll start with a base of 30 million in revenue. For every 20 million increase in revenue above that, we'll take an extra 20% of the excess, capped at 70%. What do you think?"
According to this agreement, before the 30 million, Lin Li would only receive 30%, which is 9 million.
However, after fifty million, for example, it reaches one hundred million.
The extra 70 million was allocated three tiers according to the rules, so Lin Li would take 70% of that, which is 49 million.
To put it in plain language.
Once the revenue reaches 7000 million, after deducting miscellaneous expenses such as channel and operation costs, the profits after 5000 million are basically substantial.
After hearing about the profit-sharing arrangement, Chen Rui looked at Lin Li with great surprise.
"Mr. Lin is so confident?"
"It's not that I'm confident, it's just that I'm thinking a bit more. After all, all of this money will be returned to the players as a percentage. If the game becomes a huge hit, wouldn't I be losing out if I didn't get a larger share back?"
"Okay, to be honest, I already find it incredible that the turnover can reach 30 million. If it can really reach 70 million... no, even if it only reaches 50 million, I'll gladly give up the extra 20%."
Chen Rui didn't believe that FGO's Chinese server revenue could break through the first hurdle, the 5000 million mark.
why?
Because the Battlefront Girls are so strong now, the revenue is only 30 million.
Honkai Impact 2 was also a phenomenal hit last year, but its revenue was only 20 million.
He also communicated with miHoYo, and miHoYo's internal expectation for a game of Honkai Impact 3rd's scale is no more than 50 million in revenue.
And the current status of FGO.
Even if Lin Li is currently making all sorts of exaggerated claims, like version updates and new game rebates, it doesn't matter.
Chen Rui felt that achieving a turnover of over 3000 million in the first month was already quite remarkable.
The statement that one cannot earn money outside of one's understanding may not be entirely true at times, but it does hold some truth at others.
Besides, it's come to this point already.
What else can we do if they don't agree?
After Lin Li acquired DEworks, he was already at a disadvantage in this negotiation.
So think about it carefully.
Chen Rui nodded.
The two reached a consensus on the most crucial point.
The atmosphere at the dinner table became much more harmonious again.
"Brother Chen is very reasonable. Also, I have another request. FGO is going to undergo major reforms, and we at Spark Games just acquired DEworks, so we're a bit short on cash..."
"So when signing the supplementary contract, um... what was that term again?"
"Prepaid operating expenses"
Yao Meng added a very understanding sentence.
"Oh, right, prepaid operating costs."
"Brother Lin Li, you tell me how much you need."
Chapter 94 Bilibili is a great place [Bonus chapter for recommended votes]
At this point, Chen Rui had given up all hope.
Moreover, for him, Lin Li's series of actions were actually more beneficial than harmful to the FGO Chinese server on Bilibili.
On the one hand, Chen Rui still has a lot of confidence in Xinghuo Games' development capabilities.
Before the Chinese server was launched.
Dramatic reforms, coupled with the return on investment based on fate.
Making a fortune now seems impossible, but making a small profit is still quite good.
It's much better than he expected that Bao Si would be available when the Chinese server launched.
Furthermore, to be fair, he still has a lot of faith in Spark Games' development capabilities.
Even if things don't go well, communicating with Spark Games is still better than DEworks.
Seeing Chen Rui's straightforwardness, Lin Li smiled broadly and held up his hand, making a three-pointer.
"three million?"
Lin Li shook his head.
Chen Rui frowned.
"thirty million?"
Lin Li shook his head again, but this time he didn't wait for Chen Rui to speak again.
Instead, he spoke.
"Three hundred million."
"How many!?"
"Three hundred million!"
"JPY?"
"Renminbi (RMB)".
"Good heavens, you're really ruthless, Brother Lin! You're planning to use my money to acquire DEworks?!"
The atmosphere at the dinner table was like a mischievous child suddenly opening the window in a heated home in Northeast China during winter.
It cooled down instantly.
Chen Rui tried hard to glean something from Lin Li's expression.
But at this moment, Lin Li's face showed only seriousness.
Just as Lin Li said when he met Chen Rui.
Even if Chen Rui hadn't come to see him today, he would have gone to find Chen Rui anyway.
Although a series of operations were carried out.
Lin Li finally succeeded in acquiring DEworks yesterday for 50 billion yen, 10 billion yen less than expected.
Even so, Lin Li simply didn't have that much cash on hand.
Since the launch of the Battlefront Girls in February of this year.
Up to now, the monthly turnover is approximately 3000 million.
By early September, the total turnover had reached approximately 210 million yuan.
The Japanese server launched in June, and so far it has averaged nearly $5 million per month, or 30 million in revenue, accumulating to nearly 100 million.
It looks like a lot, but not all of it is profit.
You also have to factor in R&D, marketing, salaries, acquiring the engine team, and the worst of all, Apple's commission...
Lin Li has been recruiting new soldiers almost continuously since February, and the headquarters has also been recruiting at full capacity to ensure that the daily production of the Battlefront Girls can keep up.
The recent establishment of Spark Tokyo Studio involved spending money to hire Gen Urobuchi, Kinoko Nasu as supervisor, and Joe Hisaishi as producer for this demo.
Money paved the way all the way.
So, the more you earn, the more you spend.
The landlord's family truly had no surplus grain.
But the reason Lin Li still dared to acquire DEworks was that he had already planned his escape route.
One of the possible escape routes is this sucker in front of us... wait, no, I mean the God of Wealth.
Although the God of Wealth looks a bit angry now.
~~~
After seeing off the furious Chen Rui, Lin Li remained completely calm and continued to eat leisurely.
On the contrary, Yao Meng seemed somewhat uneasy.
"President Lin, do you think Chen Rui will agree or not? According to the contract, we have to pay DEworks by the time the handover is completed this month at the latest."
Lin Li glanced at the still swaying curtain.
"He will agree. He even agreed to a share of the profits. He just doesn't understand why we took his money to acquire DE and then came back to negotiate with him. To be honest, if it weren't for Bilibili, I wouldn't even want the money."
Although these words seem outrageous, they are actually Lin Li's true thoughts.
If it weren't for Bilibili backing Chen Rui, Lin Lizhen might not have continued to cooperate with Bilibili, even with a tiered revenue-sharing agreement.
"Don't be fooled by Bilibili's current size; in the future, Bilibili will become even bigger... big enough that its size alone will be enough to make investors burn money."
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