Core Insights - The current era rewards stability and prudence in business practices [2][27] - Companies with strong cash reserves can navigate challenges more effectively [18][27] Group 1: Case Study of Nintendo - Nintendo revolutionized the gaming industry with the launch of Wii, selling over 100 million units and significantly increasing its market value [5][24] - The failure of Wii U led to substantial losses, with stock prices plummeting back to 10,000 yen and market value evaporating by over 85% [9][10] - Despite pressure from the market to cut costs and pivot to software, Nintendo's leadership maintained a conservative financial strategy, preserving cash reserves of over 1 trillion yen [17][18] - This financial stability allowed Nintendo to retain talent, invest in R&D, and explore innovative ideas without immediate pressure for profitability [20][21][22] - The successful launch of the Switch in 2017, which sold over 140 million units, marked a significant recovery for Nintendo [24][25] Group 2: Principles of Stability - Companies should maintain a robust cash reserve to ensure operational flexibility during downturns [27][35] - Stability encompasses three key aspects: capability stability, financial stability, and mental resilience [33][34][35] - The ability to adapt and learn new skills is crucial for long-term success in a changing market [34] - Financial stability provides the freedom to make choices without immediate economic pressure [35] - Mental resilience allows individuals and companies to navigate challenges while maintaining a clear strategic vision [36]

Core Insights - The gaming industry is witnessing a shift away from traditional gacha systems, with several games announcing the removal of card-drawing mechanics to enhance player experience and trust [1][18] - The decline in the market size of RPG gacha games in China has prompted developers to explore alternative monetization strategies [1][18] Group 1: Industry Trends - Many games, including "Er Chong Luo Xian" and "Huan Ta," are adopting zero-spending models, indicating a significant change in the approach to monetization [1][16] - Sensor Tower reports a three-year continuous decline in the market size of RPG gacha games, suggesting that traditional monetization methods are becoming less effective [1][18] Group 2: Case Studies - GungHo's "Puzzle & Dragons" has successfully removed the gacha system in its new title "Puzzle & Dragons 0," focusing on material collection and synthesis instead [3][6] - The new monetization model in "Puzzle & Dragons 0" resembles an IAA (In-App Advertising) game, allowing players to earn rewards through ad views [5][6] - "Er Chong Luo Xian" has been compared to "Warframe" due to its gameplay and monetization changes, which include removing stamina limits and the gacha system [9][11] Group 3: Competitive Landscape - "Huan Ta" plans to launch a new server that eliminates the gacha system, offering players free SSR weapons and focusing on player retention [13][16] - "Liu Tu Zhi Bin" has introduced a "youth server" that allows players to draw cards without spending money, while still offering optional paid features [16][18] - The introduction of new gameplay modes and monetization strategies aims to attract and retain players in a competitive market [12][18]