Reborn Tech Maniac

Chapter 347 The rules of the video game industry are changing
Compared with home video game consoles, the arcade machine industry, which originated in the early 1970s, has a longer history, and the industrial economic scale has naturally grown accordingly. In 1981, this year, it grew to 80 billion US dollars.

EA entered this field at the beginning of this year. As a result, it is equipped with the Motorola MC68000 processor and its own display core Xiaobawang arcade machine.

This devastating offensive benefits from the rich and excellent game content of "Pac-Man", "Space Invaders", "Donkey Kong", "Mario", "Thunderbolt", "Tetris", etc., otherwise There is no hardware platform, even if the performance is superior to the crowd, it is also a rootless tree.

Platformization is also one of the design goals of Xiaobawang Arcade, so its price is also the most expensive in the market, but it quickly won the favor of customers due to the feature of easy game replacement and high-quality game library.

Although it did not get "Pac-Man" that sold millions of units like it did in the original time and space, Atari's revenue was equally enviable, exceeding 70 million U.S. dollars, driving Warner's stock price straight to [-] U.S. dollars. And go.

Atari's success is also due to high-quality game content, such as the early authorization of "Space Invaders" for home game consoles.

The performance of EA and Atari, the duo of the video game industry, is amazing, and the huge gap between the two is even more shocking to the onlookers.

People always like to sum up the science of success, and EA's leading performance is no exception, and the final conclusion lists many articles eloquently.

For example, a powerful hardware platform with a perfect match of technology and cost, game design and development capabilities that lead the industry...

In fact, these are all afterthoughts, and colleagues have seen it clearly for a long time, which can also be seen from the targeted competition.

The relationship between many game companies and Atari is a one-on-one confrontation, and the advertisements are extremely cynical, and the words are full of contempt for "how can the Atari 2600, which has outdated technology, make so much money" and jealousy.

As for the attitude towards EA, apart from buying its products back to slice and study, everyone often keeps silent and has nothing to say.

In addition, the current development trajectory of EA is also very different from that of its peers. Many game console manufacturers have come from other industries because of the current market conditions. Frequent acquisition of assets in traditional industries.

For example, real estate used as service centers in major central cities, United Artists in Hollywood, major league teams, toy manufacturer Hasbro, independent TV station KTVU, etc.

EA's actions made peers feel a kind of unique alienation, as if everyone was not competing for food in the same trough.

After the financial report was released, Warner optimistically predicted that Atari, whose performance would grow from US$7500 million to US$60.00 million within a few years, would increase by [-]% or even higher in the next year.

As for EA, it lowered the growth rate to 40.00%.

Although EA's chassis is already very large, it is not easy to continue to leapfrog development. It is reasonable to be cautious, but with its current market monopoly position, there is no reason to be so conservative. Haven't you seen that Wall Street is very satisfied with you? Shares have entered the $50 range.

If you don’t understand, don’t force it. Anyway, as EA, a listed company, discloses more and more information, colleagues no longer dare to hope to overthrow this superior giant in the short term. The eyes fell on Atari, because everyone agreed that their products were obviously better than the Atari 2600, and there was no reason to let the other party live so well.

Some data in EA's annual report dazzled many people's eyes, so that the asset-liability ratio of 60.00% was ignored intentionally or unintentionally.

But Tang Huan, who single-handedly created this game monster, has a clear mind. Taking advantage of the favorable time, he should sort out the capital structure, and he should be able to finally go crazy and buy some assets.

A boss who does not operate in debt is not a qualified boss.

As for the distribution of dividends, let’s wait until 1984. Now that the company is in the period of expansion, the cash in hand is still very useful.

Of course, I hope that at that time, the North American home game console industry will not collapse too badly.

But the question is, is it possible?

All signs are showing that history will repeat itself, and some of the situations that Hawkins is reporting can be used as evidence.

"The lawsuit between Atari and Activision has come to an end. The judge ruled that Activision, as a third party, develops games for the Atari 2600 platform, which does not constitute infringement." Hawkins frowned, obviously he did not understand this As a result, it will have an impact on the entire industry.

The founder of Activision is Jim Levy in the music industry-Jim Levy and Atari's four top programmers: David Crane-David Crane, Larry Kaplan-Larry Kaplan, Alan Miller-Alan Miller, Bob Whitehead -- Bob Whitehead.

In July 1980, Activision released its first product, a game cartridge for the Atari 7 game console.
The quality of the works of these four game development masters can be imagined, and they were well-received and well-received. They directly compared their old club, Yadari, to the embarrassment.

In this regard, Warner's anger can be imagined. Not only has it lost face, but every time Activision buys a game, it may also mean that it has lost millions of dollars in revenue in disguise.

These traitors from Activision are simply sucking the blood of the old master, which is really hateful.

The following developments are not difficult to guess. Warner took Activision to court, hoping to kill the other party.

The butt determines the brain. From the CEO's standpoint, Hawkins definitely doesn't want his subordinates to make such a fuss one day. EA's current huge profits are based on the monopoly of its own technology.

After Tang Huan pondered for a while, he shook his head slightly, "With the legalization of third-party game development, the rules of the industry will also begin to change. It will not be easy to be alone. EA needs to make some necessary preparations."

"Now a lot of people are cheering and even jumping to try it. The most exaggerated thing is that the Chicago-based food group, Quaker Oats Company-Quaker Oats Company, announced its entry into the video game industry."

Speaking of this, Hawkins showed disgust on his face, "This company is poaching people everywhere, it is simply a shit-stirring stick that breaks the rules."

"As a leader in the industry, EA's engineers should be in high demand, right?" Tang Huan asked with interest.

In order to satisfy game engineers in terms of both interests and honor, Tang Huan set up a corresponding incentive system at the beginning of EA's establishment.

The packaging of each game released is similar to a record, with the names of the producers, programmers and other participants printed on it, but this name is not a real name, but a nickname given to oneself by the individual to prevent competitors from following suit. poach people.

In this way, in addition to getting extra bonuses based on project performance, engineers also take care of their honor.

However, no matter how well thought out the means of winning people's hearts are, it may not be foolproof.

Just like the martial arts in the world can only be broken quickly, as long as the spoilers are willing to pay the capital and lure them with high profits, they can always find a breakthrough.

Therefore, Tang Huan does not think that his EA can be completely monolithic.

However, his mind is very relaxed.Technology is not everything. Once a threat that is not within the scope of calculation emerges, the cash flow that Zheru has been preparing will come in handy, eliminating the opponent in the bud.

In the Internet era of the original time and space, many promising emerging companies were bought by Apple, Google and other giants with large amounts of cash to obtain their latest technological achievements.

"Some people have indeed left, but the level is limited, so it will not affect the overall work." After Hawkins finished speaking, his face showed a dumbfounding expression, "I have communicated with them, and many of these people were actually promoted from ordinary engineers to project managers. Seduced by job promotion."

"It's understandable to prefer a chicken head to an oxtail." Tang Huan laughed, "It seems that the gold content of EA engineers is quite high."

……

In order to acquire Pacific Bell, the largest subsidiary of AT&T, Tang Huan had previously established a company called Galaxy Communications, and the first batch of committed funds from all parties had already been put in place.

Among them, the Kuwait Investment Committee is US$20 billion, the Singapore Government Investment Corporation is US$18 billion, the various Japanese consortiums are US$23 billion, Tang Huan is US$27 billion, the Wang family of Baodao, and Warren Buffett, Motorola, etc. Other U.S. investors totaled $12 billion.

Although this financing ability is not as good as that of the well-known private equity investment company Kohlberg Kravis Roberts Co.——KKR, such an acquisition scale is enough to write a strong stroke in the history of the 1980s.

"When some shareholders of AT&T saw the money, they were drooling on the ground." Zhuang Menghua described it vividly.

Since the little girl was admitted to Harvard from Xiangjiang, Tang Huan naturally placed high hopes on her and tried to help her find some internship opportunities in big companies.

With the acquisition of Pacific Bell, Zhuang Menghua once again got a job as a handyman, and at the same time, he was also responsible for keeping an eye on Tang Huan's subtle movements.

"If you are so tempted, why does the negotiation progress seem to have stalled?" Tang Huan asked casually while flipping through the documents.

"Isn't this because things were accidentally exposed to the media some time ago? Some guys became timid, afraid of being pointed at the spine and said that they were too greedy and only cared about their own interests." Zhuang Menghua felt deeply amused. answer.

"So they are entangled in some twigs?" Tang Huan snorted disdainfully, "The US Department of Justice, the US Federal Communications Commission and other official checkpoints have passed, but in the end they were held back by these guys .”

At this time, Tang Huan happened to see some clauses, and Tang Huan picked up a pen to give some instructions.

AT&T hopes that after Galaxy Communications acquires Pacific Bell, it can continue to tacitly purchase equipment from its subsidiary Western Electric, otherwise, it will not be able to use the technological achievements of Bell Labs.

Tang Huan swiped his pen and wrote, "Don't take Bell Labs as a threat. It is a treasure in your eyes, but it is not indispensable to me."

Zhuang Menghua poked his head for a few glances, and suddenly laughed, "Isn't it appropriate for you to write documents like this?"

"If I don't write like this, I can't express my dissatisfaction." Tang Huan casually added an exclamation point at the end of the sentence.

The next clause was that AT&T wanted to buy a stake in Fangyuan Computer at a price of $10 per share.

Tang Huan became more and more upset when he saw it, and immediately gave a quick answer, "We are not Apple Computer, and you are not Xerox. History will not repeat itself. If you want to buy shares, the price is 20 US dollars per share, and this It's still a friendly price, don't be ungrateful."

"Between the lines, there is a strong resentment." Zhuang Menghua, who was deeply amused, laughed even louder.

"My Fangyuan Computer Company, if it goes public in 1983 as planned, its value will definitely be more than 150 billion US dollars, no worse than Pacific Bell. They want to take such a bargain, have they considered my IQ?" Tang Huan was annoyed Put a cross on this clause.

"You do have the capital to disrespect AT&T." Zhuang Menghua stopped laughing and nodded seriously, "Who told you to use only two 'telephone can get rid of the shackles of cables' and 'telecommunications network' 'The future is data and not just voice' can coax so many people to scrape together over $100 billion for you."

"Kids, don't use words indiscriminately. This is not coaxing, but cooperation." Tang Huan wrote at the end of this document while talking, "My patience can only be reserved until December, and I hope to reach an agreement as soon as possible."

"Bring this document to the people at Goldman Sachs. I don't want to waste time, let alone have long nights and dreams. Let them work hard." Tang Huan handed the document to Zhuang Menghua and solemnly ordered.

……

The autumn COMDEX in the second half of this year is scheduled to be held in Las Vegas on November 11 for three days and last until November 19.

With the success of COMDEX in business operations, the influence of the industry summit forums organized by COMDEX has gradually increased. If anyone has the opportunity to say a few words on such an occasion, it definitely shows that he has a widely recognized reputation in the industry. status.

Undoubtedly, Tang Huan is one of the heavyweight speakers. The theme of his discussion on industrial development this time is "From Data Processing to Network Communication".

(End of this chapter)