The birth of the Hong Kong Island family
Chapter 472 [The best-selling red and white consoles]
Time flies and it’s October in a blink of an eye.
Lin Ruidong came to Tokyo, Japan, and Hayao Nakayama told him the good news that the Famicom had sold 470,000 units in less than two months in Japan. That is, all the first batch of products were sold out, and the main game "Super Mario" 》is very popular in Japan, and the image of the plumber is deeply rooted in the hearts of the people.
"Okay, according to this development situation, we can exceed 3 million sales in the first year. From then on, the Japanese market will become our leading position." Lin Ruidong said happily.
As long as the Famicom succeeds in Japan, it will also become a dominant player in Europe and the United States, just like when the Atari 2600 was launched. In this way, his influence in the video game field of Audrey Company will surpass that of Atari President Onich, and it will be logical for him to serve as a senior executive in the group.
Although even without these achievements, relying on his mother's influence, he can still serve as a senior executive of the group, but it is obviously not that convincing to everyone.
Hayao Nakayama said: "Yes, when our Famicom came out, it also announced that other Japanese game manufacturers will always be under our feet. Such excellent hardware products and software products are a perfect pair. , "Super Mario" drove the sales of the "Famicom", and the "Famicom" helped "Super Mario"."
At this time, he already described his admiration for Lin Ruidong. According to his understanding, it was this young man who single-handedly promoted Atari's development in Japan. It is said that other senior leaders of Atari were even opposed to it. If this young man had not successfully planned "Cabbage Patch Dolls", "Donkey Kong", Game \u0026 Watch, etc., even if his mother was Audrey Hepburn, I believe he would have been hindered even more.
Now, he succeeded!
He is also successful, and he enjoys 10% of Sega's equity, so he is not exactly a 'wage earner'. Although he is so successful now, he dare not make an enemy of Lin Ruidong, because almost everything about Sega has the shadow of Lin Ruidong, and Lin Ruidong is the chief planner.
"Next step, in order to enrich the NES game software ecosystem, I hope you will invite Namco and Hudson to join our game software ecosystem. Of course, you must strictly follow the rights set by our game console software ecosystem. Due to the financial system', only 5 games can be released on external game console platforms each year."
The royalty system, although strict, ensures that the game remains rough and messy. Each game software company can only release 5 game software (a year) on Atari and Famicom platforms, which means that they will work hard to release the best five.
According to his father, the biggest reason why Atari 2600 still occupies more than 40% of the European and American markets is its game software. As for the hardware, it is simply not good enough. Many other brands of game consoles have technically surpassed the Atari 2600.
Things are different now. The advent of the Famicom is equivalent to being an era ahead of everyone. It is impossible for anyone to come up with the same excellent product in two years. As for two years later, the Famicom has become popular all over the world, so it is naturally not afraid of challenges.
Nakayama Hayao said: "In fact, Nintendo is also a good game software developer in Japan, but it is the two companies you mentioned, Mr. Ryan." They are not well-known and are just insignificant companies.
Lin Ruidong immediately said: "We can't cooperate with Nintendo unless they can accept the acquisition. By the way, even if we acquire them, we will poach their backbone even if it doesn't work."
The reason for his reaction was that he heard his father mention Nintendo, so he immediately regarded Nintendo as a rival.
Nakayama Hayao was stunned and said: "Acquisition?"
Lin Ruidong nodded and said: "It's an acquisition. I know something about Nintendo. This company once performed well in the field of primary electronic games, and then the game consoles also performed well in Japan. If they are willing to be acquired, we can strengthen Strength, one less competitor.”
He still has many products that need to be developed, such as the upgraded version of Game Boy of Game \u0026 Watch, which is like the upgraded version of Atari 2600 Famicom. In the field of handheld consoles, "Hong Kong Cube" is unbeatable, followed by "Donkey Kong", and these games are all funded by the Lin family.
In addition, there are CD game consoles and even more game software needs to be developed to allow Audrey Company to dominate this field.
Nakayama Hayao replied: "Then let me give it a try!"
Lin Ruidong said with satisfaction: "If you don't want to be acquired, then Nintendo is our potential competitor. Mr. Hayao Nakayama, I have recommended you to the board of directors as the global head of Sega Games. I hope we can work together to make Sega Games a video game." The new overlord of the field.”
Even after he takes on the role of a senior executive in the group, in addition to initiating the acquisition of Disney, the field of electronic games will also become his responsibility.
"Thank you Mr. Ryan for your continued trust. I will definitely live up to your expectations!" Nakayama Hayao said with his head lowered.
He admired this boss from the bottom of his heart, as if he had everything under control.
Later, Lin Ruidong inspected Sega. In the past three years, he has been traveling to Japan almost every month for more than a week at a time.
Now that he has finally "showed his prominence", Atari's high-level people were speechless after trying the "Famicom", knowing that the situation was over. The development of the Atari 2600 is about to stop, some hardware engineers will be fired, and some hardware engineers will stay and become employees of Sega Games America.
In short, Atari, which was originally arrogant, will now be 'defeated' by its subsidiary, and Lin Ruidong will next integrate the two companies - turning the son into the mother, the group will focus on video games on Sega, and Atari Will become a game software company.
The other side.
Nintendo was on the verge of bankruptcy. Since Sega's game console cost only 14,800 yen and was one version ahead of other Japanese game consoles, it immediately caused a well-known blow to all Japanese game manufacturers, and Nintendo was no exception.
Nintendo has always relied on "copycat products" to make profits. For example, after the launch of Atari 2600, Nintendo also launched a game console at the end of 1976; after the launch of Atari's electronic game watch, Nintendo also launched similar products; Atari After the launch of Li's Game \u0026 Watch, Nintendo also launched similar products.
However, due to the loss of opportunities and the lack of good enough game software support, Nintendo's profits are relatively weak and it is difficult to support high research and development expenses.
This means losing the opportunity step by step.
An excellent product does not require specific talents, just like the Famicom does not necessarily have to be dominated by Hengjinjunping. What it really requires is huge research and development expenses.
The reason why Nintendo was successful in the previous life was because of the success of the console Color TV Game 6, the handheld Game \u0026 Watch, and the game watch, which created favorable conditions for the development of the 'Famicom'.
In this life, Nintendo lost the market for handheld Game \u0026 Watch and game watches (these two Atari products are produced and sold in Japan through Sega). As for the Atari 2600, it did not enter Japan because the price was too high.
Nintendo's conference room.
President Hiroshi Yamauchi convened a meeting with hardware leaders Yokogawa Gunpei and Uemura Masayuki, as well as software leader Shigeru Miyamoto and others.
"The sales volume of Sega games has exceeded 500,000 units. According to this sales, their annual sales are equivalent to the total demand of the entire Japan (without considering the increase, the market will actually be enlarged). I have called everyone here today. I want to think of a way for the company to avoid bankruptcy!"
Hengjin Junping said: "To develop a product as good as the Famicom, it will take nearly two years and a lot of research and development funds. But what is certain is that we can develop it. After all, Sega's R\u0026D personnel are originally We are Japanese engineers. The components of the Famicom are also produced in Japan (the casing is not, but made in Hong Kong)."
Masayuki Uemura said: "Although the hardware can be developed, the reason why the Famicom is so popular is because of Super Mario."
In fact, there are still patent issues, but this thing has room for maneuver.
Everyone looked at Nangong Meng, the person in charge of game software, because the pressure was on him.
Namco understands that "Super Mario" simply takes video games to a new level, and it is difficult for such a classic game to be born again.
"Games such as "Super Mario," "Golf" and "Baseball" were all developed on the basis of 8-bit consoles, and they are worthy subjects for us to learn from. If we want to develop similar products, it will also require a lot of funds and risks. "
Hiroshi Yamauchi's face became unhappy. Both hardware and software were talking about funding, but Nintendo was now at the end of its rope.
"I will take care of the funding. Even if it is a loan, we must become a representative of the Japanese game industry. Sega Games is not a Japanese company, and we will not let them dominate the Japanese game industry. So, everyone, this is our Empire of Japan's Self-respect, please redouble your efforts.”
Directly showing national integrity finally inspired everyone's confidence.
Sega Games was founded in Japan in the early years, and its current president is also Japanese. However, everyone in the industry knows that this is an American-controlled company. The parent company behind it is Atari Games, and the capital behind it is Aodai. Li Company - the world's largest toy manufacturer.
Just one day later, Lin Ruidong came to Nintendo with Nakayama Hayao.
Hiroshi Yamauchi was a little surprised. He didn't expect anyone from Sega to come to Nintendo, and the two sides met in the conference room.
Lin Ruidong said straight to the point: "President Hiroshi Yamauchi, we have discovered infringement of your company's handheld products."
Hiroshi Yamauchi blushed, as if he was being slapped in the face.
After feeling guilty for a moment, he pretended to be calm and said: "Mr. Ryan, President Zhongshan, doesn't your company have legal affairs? Do you need to personally negotiate such matters?"
Lin Ruidong said: "We didn't call legal affairs because we didn't want to make a big deal out of the matter and wanted to resolve it through negotiation!"
Hiroshi Yamauchi replied: "I think it's better to let professionals like legal affairs handle it. After all, I believe we have not infringed the law!"
It is difficult to identify infringement. After all, the entire machine definitely does not have patent rights. Only some small areas have infringement, but this is an area that must be controlled when producing a handheld console.
Of course, for example, Atari's cross keys, joysticks, light guns, etc. are very clear patents. As long as a game manufacturer uses them, they must pay patent fees.
Of course, this patent only works in Europe, the United States and Japan, and other places will not pay you patent fees.
Nakayama Hayao smiled and said: "President Yamauchi, we are actually here to seek cooperation."
One of them was a good person, the other was a bad person. They were obviously prepared. Because Lin Ruidong felt that his father valued Nintendo very much, so he planned to strangle Nintendo in the cradle, so he decided to come and meet in person.
Hiroshi Yamauchi said: "How to cooperate?"
Nakayama Hayao said: "Becoming our game software supplier, but we have two conditions."
Hiroshi Yamauchi knew that there would be no pie in the sky, so he calmly said: "What are those two conditions?"
Hayao Nakayama said: "First, Sega is willing to acquire 51% of Nintendo's shares at a high price; second, Nintendo's hardware department joins Sega and gives up hardware research and development."
Hiroshi Yamauchi stood up in anger, and then said: "You are making trouble unreasonably!"
Lin Ruidong said at this time: "Nintendo has exhausted its funds and is on the verge of bankruptcy. As for the birth of the 'Famicom', you have no hope of turning around. Even if you develop similar products, it will only be two or three years later, and the market has already been destroyed." Sega owns it, and you also face the risk of infringement. On the contrary, if Nintendo joins Sega, it can become a software vendor that we focus on supporting. I believe President Hiroshi Yamauchi also understands that hardware does not make money, but software. And our biggest software The company's annual profit has reached 30 million US dollars, which is the company that developed "Hong Kong Cube"."
The last sentence is the real key!
Famicom and white consoles have already occupied the market, and subsequent products will hardly threaten its position, unless they are CD game consoles or 32-bit game consoles. However, these cannot be developed in just one generation, not to mention requiring huge financial support.
Hiroshi Yamauchi calmed down, and then he said: "We will not agree to be acquired. I believe that when Sega comes to us, it must regard us as a rival, so even if it means a huge loan, I will not let you monopolize the market. "
Nakayama Hayao left a business card and said: "President Yamauchi, making money is the real purpose of running a business. If you have figured it out, you can come to us at any time. There is room for discussion on the shares. We also have 49% Okay, as long as you hand over the hardware department to us."
Then Lin Ruidong and Nakayama Hayao stood up and left.
On the way, Lin Ruidong said with a smile: "The reason why I want to acquire Nintendo is because of their talents, so if possible, try to poach the core players such as Junping Hengjin and Shigeru Miyamoto."
In fact, he doesn't really value Yokojin Junpei. After all, the successful development of red and white functions has shown that Sega's talents are very mature (a small number of American R\u0026D personnel joined in the early days, most of them Japanese engineers); his real purpose is , dismantling Nintendo.
After all, the opponent that his father likes must be right.
Hayao Nakayama nodded and said, "Well, I'll give it a try. In short, Nintendo is our biggest potential rival in Japan."
Lin Ruidong smiled and said: "Well, although I believe that in two years' time, Sega's annual profit will reach 300-500 million US dollars, sweeping the world's video game manufacturers, but I will still keep an eye on potential opponents."
Nakayama Hayao was stunned, and then said: "Mr. Ryan is so optimistic about the Famicom, "Super Mario", etc. You know, Panasonic's profit is only 400 million US dollars."
Lin Ruidong said: "Sega will surpass Panasonic's profits. In addition, I will consider listing Sega in Japan in the future, and I am also considering Sega's employee stock ownership plan. In short, I will not treat everyone badly. .”
Atari 2600 generated annual sales of 2 billion U.S. dollars that year, and its profits that year also reached more than 200 million U.S. dollars, accounting for half of Audrey's profits. Nowadays, the red and white consoles are obviously much easier to popularize. The important thing is that the revenue from game software is the majority.
Nakayama Hayao was overjoyed and said: "From now on, everyone will definitely go all out!"
He holds 10% of the shares. If he can really surpass Panasonic, he will also become Japan's top entrepreneur. He did not doubt that Lin Ruidong was lying. After all, Atari had created a sales record of 2 billion, so Sega naturally had more hope. After all, the superiority of the Famicom and "Super Mario" was obvious.
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