0357 The rules of the video game industry are changing
Compared with home video game consoles, the arcade industry, which originated in the early 1970s, has a longer history, and the scale of the industry has naturally grown to a larger economy, growing to $8 billion in 1981, that is, this year.
EA's entry into this field began at the beginning of this year, and as a result, it was equipped with Motorola's MC68000 processor and its own display core Xiaobawang arcade machine, with the attitude of the most high-performance product, attacking the city everywhere and laying a lot of ground.
This devastating offensive is thanks to the rich and excellent game content such as "Pac-Man", "Space Invaders", "Donkey Kong", "Mario", "Thunderbolt", "Tetris" and so on.
Platformization is also one of the design goals of the Xiaobawang arcade machine, so its price is also the most expensive on the market, but with the feature of easy game change, and the quality of the game library, it quickly won the favor of customers.
Although it didn't get "Pac-Man" with millions of copies sold as in the original time and space, Atari's income was also enviable, exceeding $900 million, driving Warner's stock price straight to $70.
Atari's success is also due to high-quality game content, such as getting the license to the home console platform of "Space Invaders" early.
The performance of EA and Atari, the two giants in the video game industry, is breathtaking, and the huge gap between the two is even more overwhelming to onlookers.
People always like to summarize the success of learning, and EA's leading performance is no exception. The final conclusion is a series of articles.
For example, a robust hardware platform with the perfect match for technology and cost. Industry-leading game design and development capabilities......
As a matter of fact. These are all afterthoughts, and the peers have long seen it clearly, which can also be seen from the pertinence of the competition.
The relationship between many game companies and Atari is one-on-one, and the advertisements are extremely cynical, and the words are full of contempt and jealousy for "why can the Atari 2600, which is outdated in technology, make so much money".
As for EA's attitude, except for buying its products back and slicing them, everyone is often silent and has nothing to say.
Other than that. EA's current development trajectory is also very different from its peers, many game console manufacturers are seeing the current market is good, pouring in from other industries, while EA is bucking the trend, it seems to jump out of the circle of video games, and frequently acquire assets in traditional industries.
For example, the real estate used as a service center in major central cities, Hollywood's United States, major league teams, toy manufacturer Hasbro, independent TV station KTVU and so on.
EA's actions made peers feel a kind of maverick alienation, as if everyone was not in a trough for food.
After the earnings release, Warner optimistically predicted that Atari would grow from $75 million to $900 million in a few years, with a 60 percent increase next year. Even higher.
EA, on the other hand, lowered the growth rate to 40%.
Although due to the EA's chassis is already large. It's not easy to continue to develop by leaps and bounds, and it's reasonable to be cautious, but with its current market monopoly position, there's no reason to be so conservative, don't you see that Wall Street is very satisfied with you, the stock price has entered the $50 range.
If you don't understand, don't force it, anyway, with the EA as a listed company, more and more information is disclosed, and peers don't dare to expect to overturn this high-flying giant in the short term, but they have a malicious gaze on Atari's body, because everyone invariably thinks that their products are obviously better than Atari 2600, and there is no reason to let the other party live so moisturized.
Some of the data in EA's annual report blinded many people, so that the 65% asset-liability ratio was intentionally or unintentionally ignored.
But Tang Huan, who single-handedly created this game monster, is like a mirror in his heart, taking advantage of the good time now, sorting out the capital structure, and he should be able to go crazy and buy some assets in the end.
A boss who does not run in debt is not a qualified boss.
As for the dividends, let's wait until 1984, and now that the company is in the midst of an expansion period, the cash in hand is still of great use.
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?
There are all kinds of signs that history will repeat itself, and some of the things that Hawkins is reporting can be used as proof.
"The lawsuit between Atari and Activision has come to an end, and the judge ruled that Activision, as a third party, did not constitute infringement by developing games on the Atari 2600 platform." Hawkins frowned, apparently unaware of the impact this outcome would have on the industry as a whole.
Activision was founded by Jim Levy in the music industry - Jim? Levi and Atari's four top programmers: David Crane - David? Crain, LarryKaplan - Larry? Kaplan, Alan Miller - Alan? Miller, Bob Whitehead -- Bob? Whitehead.
In July 1980, Activision released its first product, a game cartridge for use on the Atari 2600 console.
The quality of the works of these four game developers can be imagined, and they are applauded and applauded, and they directly compare their old club Atari to the bottom and make them embarrassed.
In this regard, Warner's anger can be imagined, not only did it lose face, but every time Activision bought a game, it could also mean that it lost millions of dollars in revenue in disguise.
These traitors of Activision are simply sucking the blood of the old master, which is really hateful.
It is not difficult to guess the next development, Warner took Activision to court, eager to kill the other party.
Ass decides brains, and as far as the CEO's position is concerned, Hawkins certainly doesn't want his subordinates to one day. It's also a joke. The windfall profits that EA is currently making. It relies on the monopoly of its own technology.
After Tang Huan pondered for a long time, he shook his head slightly, "Third-party development of games is legalized, and the rules of the industry will begin to change. ”
Now many people are cheering about this, and even eager to try, the most exaggerated. Chicago-based food conglomerate, QuakerOats Company, has announced its foray into the video game industry. ”
Speaking of this, Hawkins had a look of disgust on his face, "This company is poaching people everywhere, it's just a-stirring stick that breaks the rules." ”
"As an industry leader, EA engineers should be in high demand, right?" Tang Huan asked with interest.
In order to satisfy game engineers in terms of interests and honors, at the beginning of EA's establishment, Tang Huan set up a set of corresponding incentive systems.
For each game released, the packaging resembles a record. The names of the producers, programmers, and other participants are printed, but this name is not the real name. Rather, it is a nickname given to oneself by an individual to avoid competitors poaching people according to the map.
In this way, in addition to the additional bonuses according to the project performance, the engineers can also take care of their sense of honor.
However, no matter how thoughtful the means of winning over people's hearts and minds are, they may not be foolproof.
Just like the world's martial arts are only fast and unbreakable, as long as the spoiler is willing to pay the capital and lure him with heavy profits, he can always find a breakthrough.
Therefore, Tang Huan does not think that his EA can completely form a monolith.
However, his mentality is relaxed. Technology is not everything, once a threat emerges that is not within the scope of calculation, the cash flow that Zheru has been preparing will come in handy and nip the opponent in the bud.
In the Internet era in the original time and space, many promising emerging companies were bought by predators such as Apple and Google, who had a lot of cash, to obtain their latest technological achievements.
"There are people who do leave, but the level is limited, so it doesn't affect the overall work." After Hawkins finished speaking, there was a crying and laughing look on his face, "I have communicated with them, and many of these people were actually seduced by the promotion from ordinary engineers to project managers. ”
"It's better to be a chicken's head than an oxtail, understandable." Tang Huan laughed, "It seems that the gold content of EA engineers is still quite high." ”
……
In order to acquire Pacific Bell, the largest subsidiary of AT&T, Tang Huan had previously set up a company called Galaxy Communications, and the first pledged funds from all parties had already been put in place.
Among them, the Kuwait Investment Commission is $2 billion, the Singapore Government Investment Corporation is $1.8 billion, the Japanese consortium is $2.3 billion, Tang Huan is $2.7 billion, the Wang family of Treasure Island, and Warren? Warren Buffett, Motorola and other U.S. investors, totaling $1.2 billion.
Although this financing capacity is not comparable to that of the well-known private equity firm Kohlberg Kravis Roberts Co. - KKR, such a acquisition is enough to write a significant record in the history of the 1980s.
"Some AT&T shareholders saw the money after that. The saliva is going to run down to the ground. Zhuang Menghua described it vividly.
Since the little girl can be admitted to Harvard from Xiangjiang, Tang Huan naturally has high hopes for her, and tries to help her find internship opportunities in some large companies.
With the acquisition of Pacific Bell this time, Zhuang Menghua once again got a miscellaneous job, and also took on the responsibility of paying attention to the subtle dynamics for Tang Huan.
"If you are so tempted, why does the negotiation progress seem to be a little stagnant?" Tang Huan asked casually while flipping through the documents.
"Isn't it because some time ago the matter was accidentally exposed in front of the media, some guys have become timid, afraid of being pointed at the backbone, too greedy, only looking out for their own interests." Zhuang Menghua replied with deep amusement.
"So they're just tangled up in some of the trivia?" Tang Huan snorted disdainfully, "The official checkpoints such as the U.S. Department of Justice and the U.S. Federal Communications Commission have all passed, but in the end, these guys have been held back." ”
At this time, when he happened to see some terms, Tang Huan picked up the pen and gave some instructions.
AT&T hopes that after Galaxy Communications acquires Pacific Bell, it will continue to purchase equipment from its subsidiary, WesternElectric, or not, it will not want to use the technology of Bell Labs.
Tang Huan wrote with a stroke of his pen, "Don't take Bell Labs as a threat, it's a treasure in your eyes, but it's not indispensable to me. ”
Zhuang Menghua poked his head and looked at it a few times, and immediately laughed, "It's not appropriate for you to approve the document like this, right?" ”
"If I don't write like that, 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 shares in Radius for $10 per share.
Tang Huan became more and more unhappy, and immediately replied little by little, "We are not Apple Computer, you are not Xerox, history will not repeat itself, if you want to buy shares, it is the price of $20 per share, and this is still a friendship price, don't appreciate it." ”
"Between the lines, there is a thick sense of resentment." Zhuang Menghua, who was deeply amused, laughed even louder.
"My Fangyuan computer company, if it is listed in 1983 as planned, will definitely be worth more than 15 billion US dollars, no worse than Pacific Bell, they want to pick up such a bargain, have they considered my IQ?" Tang Huan annoyed and punched a cross on this clause.
"You do have the capital to be so unfazed by AT&T." Zhuang Menghua suppressed his laughter and nodded solemnly, "Whoever let you use only two 'telephones can be freed from the shackles of cables and move to call' and 'the future of telecommunications networks is to transmit data and not just sound', can coax so many people to make up more than $10 billion for you." ”
"Don't mess with words, children, this is not called coaxing, but cooperation." Tang Huan said as he wrote at the end of the document, "My patience can only be reserved until December, and I hope to reach an agreement as soon as possible." ”
"I don't want to continue to waste time, let alone dream a lot at night, so I let them work hard." Tang Huan handed the document to Zhuang Menghua and solemnly instructed.
……
The fall COMDEX in the second half of this year is scheduled for November 19 in Las Vegas and lasts for three days until November 22.
With the success of COMDEX's business operations, the influence of the industry summit forums organized by COMDEX has gradually increased, and whoever has the opportunity to speak a few words on such occasions definitely shows that he has a widely recognized position in the industry.
Undoubtedly, Tang Huan was one of the heavyweight speakers, and the theme of his discussion on industrial development was "From Data Processing to Network Communication". (To be continued......)