Chapter 75: Acquisition of Atari (3)

Is it more than $300 million?

It's a lot, but it also depends on who you compare it with, if you compare it with the current company, it's really a lot; But if compared with this company, when it reached a peak of more than 2 billion, it is really not much, but it is a lot of money. Pen ~ fun ~ pavilion www.biquge.info

However, after making a lot of money, it was a terrible winter, which froze to death all American game companies, including Atari, and instead allowed Japanese game companies to dominate the United States, and the profits of one company were equivalent to the output value of Hollywood in a year!

Thinking of the tragic situation of Atari in the future, Ye Kai couldn't help frowning, the decline of Atari, in addition to market factors, also has a lot of problems, under internal and external troubles, the decline of Atari is reasonable.

And the reason why Ye Kai wants to buy this company, in addition to fancy his R&D team, Atari's market share before its decline is also what he values, according to Atari's market share, as long as it continues to be maintained, with the memory of Ye Kai's previous life, what will happen to Nintendo and Sega in the future?

Since this is the case, Ye Kai began to think about Atari's future outlet, what should he do to save Atari's predetermined fate in his previous life?

In the previous life, Atari rose from Fairchild and gave way to the world, the right time, and the right people.

The game's engineers, who have accumulated two years of development experience, have also developed a deep understanding of the true performance of the 2600 hardware, and have developed a number of high-quality games, and the public has begun to notice the benefits of the 2600: fun, cheap, and many games. At this time, its competitor Fairchild Semiconductor actually thought that video games were becoming obsolete, so it made the decision to withdraw from the video game market.

Fairchild's actions led to Atari's market share growth wildly in 1979. With its great features and a large number of premium games on exclusive platforms, the Atari 2600 became the best-selling Christmas gift of 1979 - at least one million units of the 2600 were sold that year. At this time, Atari was just like its name, constantly "calling for food" in the market.

In such an increasingly favorable situation, Atari ignored the feelings of its employees, causing employees to leave and set up another company to seize the market with the original company, and then dragged the owner into a lawsuit, which was called Activision.

However, the management, blinded by the company's development prospects, did not wake up from this failed lawsuit, but instead focused more firmly on marketing, while ignoring the management of the company itself, which finally led to tragedy.

Atari's defeat in the lawsuit has attracted many companies that simply want to "make money" to get involved in the video game industry. Although in 1982, the total sales of video games in the United States reached $3.2 billion, and Atari accounted for the vast majority. But no one could have imagined that three years later, the market would shrink to less than 4% of its original sales (in 1986, video game sales totaled less than $100 million in the United States)

An unprecedented number of game studios and developers flocked to the market during the year. Seeing Activision's success, everyone wants a piece of the video game market. But in fact, there were not so many game developers in the United States at that time, and these new game companies did not hesitate to spend a lot of money to hire game engineers from competitors in order to release new games. Worse still, they try to figure out how to develop games through "reverse engineering" – hardware decompilation.

Before Atari lost the lawsuit against Activision, it never thought about how it could control the quality of games published by third-party developers. Most of the engineers in charge of game production in the new company have no experience in games, and they are only thinking about "making money", so they can only make a lot of shoddy games.

Among these low-quality game developers, the most representative is the food companies that can't even beat the eight poles, and they have entered the industry and added a video game development department. The game division released 14 games, and all 14 of them were bad games of utterly poor quality -- and the video game development department survived less than a year before being forced to shut down.

However, in such a situation, the company's management made a bold decision to produce 12 million boxes of Pac-Genie cassettes with only 10 million Atari 2600 units. In the end, Atari sold only seven million boxes.

At the same time, the price of personal computers began to fall, which dealt an unprecedented blow to the video game market, and Atari, a Silicon Valley upstart, began to face unprecedented difficulties this year. To add insult to injury, the company's management did not pay attention to it and give appropriate countermeasures, but let the opponent use his means!

Although the consequences of allowing the other side to use their means did not directly destroy the American video game industry, it contributed to the later American coldness towards video games, and the market for second-generation video game consoles was completely destroyed in the depression。。。。。

As a result of the recession, the world's center of video game development shifted from the United States to Japan, and by the time North American consumers regained confidence in video games in 1987, the industry had already become Japan's Nintendo.

The clever Nintendo completely learned the lesson of Atari's failure and became cold-blooded and domineering.

But Nintendo, which is cold-blooded and domineering, has become a game producer with global influence, the world's largest video game console manufacturer, launching more than 250 games and selling more than 2.4 billion games.

And Ye Kai, who is familiar with the history of Nintendo's development, decided to follow the path that Nintendo took in his previous life and apply this successful way to his own company.

Ye Kai, who was thinking about Atari's future path, had no idea that the company he was about to take over had bigger surprises waiting for him, so much so that Ye Kai, who knew the truth, shouted in his heart that the $300 million was too well spent.

Ye Kai, who was still in the dark, sorted out his manuscript while thinking, preparing to end his retreat and cultivation, and he was about to set off tomorrow.

The next day, bidding farewell to the reluctant Teresa Teng, Ye Kai left home, and after meeting with the team of lawyers waiting in the Swiss bank and the three future beautiful presidents, he took a car to the New York airport, boarded a plane to California, and went to Silicon Valley near California.

Silicon Valley is located south of San Francisco Bay in northern California, USA, and was famous for the design and manufacture of silicon chips in the early days. Later, other high-tech industries also flourished, and the name Silicon Valley now refers to all high-tech industries in general. Silicon Valley is an important electronics industry base in the United States and the world's most well-known electronics industry center.