Chapter 13: Yamauchiura's Fury
The review and rating of EGA magazine was reprinted by the Los Angeles Times, and with the special livestream at the time, the sales of the Playbox (later shortened to PB), which was slowly approaching the whole number, quickly surpassed 10 million units.
Fortune magazine's response was so swift, and as soon as the news of PB console sales of tens of millions came out, Fortune calculated an account for Caesar in the current issue.
"$188 per PB, assuming more than half of the manufacturing costs, the profit is set at $90.
The profit of 10 million PBs is $900 million.
Depending on the content of the game, a cassette can cost anywhere from $19 to $39. Take a median value, $29 a plate.
Half of the development and production costs are deducted for each cassette, and the profit is $15.
Note: After watching Caesar's live broadcast, all of us in the magazine agreed that the so-called game development cost is only Caesar's labor fee.
FFF has sold 37 million cartridges to date, with a total profit of $555 million.
The combined profits of the console and cassette are 1.455 billion, and after all kinds of taxes and employee salaries, FFF has a net income of about a billion dollars.
It is important to note that this figure is taken without taking into account the sales of game merchandise and the advertising revenue from the live broadcast of the MTV game channel.
We haven't counted Garfield, Transformers, City Hunter, Alien, Groundhog Day, Time and Space Heroes, MTV, and Unplugged Concert Shares, all of which have direct and peripheral revenues, and we haven't counted them all.
We're just counting the revenue of the gaming industry, which is led by PB consoles.
Caesar's annual revenue from gaming alone is twice that of Hollywood, and three times the annual ticket revenue of the three major leagues of baseball, basketball, and American football combined!
This is a thirteen-year-old industry leader who achieved a miracle of wealth in just one year in the 1981-1982 fiscal year.
Thirteen-year-old "Mr. Caesar von Lawrence Lee" is a true American hero, the face of the standard American dream. ā
Far away in Kyoto, Japan, Yamauchiura put down the "Fortune Japanese Edition" in his hand, raised his palm and patted his head, as if he could pat away his troubles with a few hard strokes.
Getting up and going to the window, looking out at the street scene, Yamauchiura's eyes were full of frustration and unwillingness.
Under his leadership, Nintendo shook the gaming world with the release of handheld game consoles in '80, and the critically acclaimed arcade game Donkey Kong in '81.
The continuous success has strengthened Yamauchiura's confidence to follow the path of gaming.
Just as he was about to mobilize funds and enter the home console market in a big way, Caesar and FFF flew sideways like a fateful "disaster" and slapped Nintendo and his Yamauchi on the head.
I thought of a design plan, and as soon as I declared it, I was immediately told that the patented technology had already been registered.
In the end, I simply looked at the game-related patents one by one, and found that 99% of the patents in this field were registered by FFF a year and a half in advance, and the rest were only a few outdated patented technologies of Atari.
With just the controller and buttons patented, Nintendo found it difficult to come up with a design that was more popular with gamers than the ones registered by FFF.
And with the technology that Nintendo is now mastering, it is simply impossible to make a host with better performance than FFF's PB console, even if it is shit lucky, the engineer suddenly opened his mind and designed a better console, and Japan's current production process cannot beat the mass production process.
Even if it is mass-produced, the cost cannot be as low as that of the PB host.
At $188 hosting, Yamauchi Ura couldn't even think of it.
Doesn't FFF sell one and lose one?
Think about the Atari 2600 selling for $200 in 1977. That's $200 in the United States in 1977.
In 1981, FFF released a PB mainframe, which was at least ten times more powerful than the Atari 2600, and the cost was much higher than the materials used for the case and handle, but the price was reduced by $12.
The R&D cost of the Atari 2600 is more than 100 million US dollars, and no one knows the R&D cost of PB, and even Li Yu, Caesar's uncle, does not have any information about PB R&D.
Yamauchiura sent a lot of people to collect information about the FFF company, but it can be said that there is basically no gain.
The company is in the name of Caesar's mother, and in fact Caesar is the CEO.
There are only 26 employees in the entire FFF company, which is mainly responsible for promotion and liaison with retailers.
There are nearly 2,000 people in the factory under FFF, which is responsible for working overtime to produce PB consoles and burn game cartridges, and the person in charge is Li Yu.
And then there's the same thing as the financial numbers disclosed by Fortune magazine.
This is all information that everyone can know if you ask a little bit, and there are deeper things that no one knows at all.
For example, who was responsible for designing the Playbox console? It is said that Caesar is in charge......
Who else is on the design team besides the person in charge? Caesar is said to have done the design work alone, just as he did designing the game independently.
How much money did it cost to design a PB host? How long does it take? Where's the real yĆ n room? There was no news or clue at all.
Yamauchi Ura was no newcomer to business, but he couldn't figure out why such a mysterious company existed.
And the other party is as if Asumasu was specially sent to oppose him, blocking all the ways that Nintendo can go in terms of home consoles.
Even if he is determined to release FC as originally planned, not to mention the point of releasing a console with outdated functions, it is impossible for the patent of the handle D-pad to bypass the FFF company.
If FFF didn't authorize it, Nintendo would end up using Atari's arcade-like stick sticks.
Thinking of the arcade, Yamauchiura gritted his teeth at Caesar.
Originally, even if you didn't enter the home console market, you could still make a big impact on arcade game development.
The popularity of Donkey Kong on arcades allowed Nintendo to gain experience and confidence in arcade machines. They have reason to believe that their company can go far in the arcade market.
However, Caesar's revelation of the hidden danger of the arcade in the live broadcast was like a bombshell, hitting the aircraft carrier of the arcade market at once.
Parents quickly sided with Caesar, and they would rather spend two or three hundred dollars on a PB console and cassette for their children than play arcades without supervision.
After the content of this program spread to Japan, parents were more supportive of Caesar's remarks, and the strictness of the education of the next generation of the Eastern people is unimaginable to Westerners.
In addition, the penetration rate of arcade halls in Japan is much higher than that in Europe and the United States, which is even more worrying for Japanese parents.
In the United States, you can put a "Double Dragon" and a "Thunderbolt" in the corner of the grocery store, so that children can use change while running errands for their parents.
Japanese students who want to play arcades have to go to special arcade halls, which are smoky and chaotic environments that are simply hotbeds of disease and crime.
It can be said that Caesar's few complaints destroyed most of the arcade industry.
Because of the characteristics of arcade machines, which are "far from parental control", "content is not censored", and "big money cannot be broken without spending small money", no one has ever noticed it before Caesar.
Of course, the people who may be aware of it are arcade industry insiders, who know that arcade machines have these defects, just to make money.
Thinking of these things, Yamauchi Ura hated Caesar to the core. He really wanted to ask Caesar in person, you don't want to enter the arcade market, and you don't want anyone else to eat this bowl of rice!?
Now the road of home consoles and handheld computers has been blocked by FFF patents, and arcade halls have been closed down by a few words from Caesar, and it is bleak.
Nintendo wants to eat the bowl of games, so it has to sell to other game platforms, and there is only one way to go as a third-party game developer.
Now the only platforms that are worthy of Nintendo's game development are FFF's PB console and the personal PC platform that is favored by some industry insiders.
Yamauchi Ura patted his forehead again, he really didn't want to cooperate with any company or platform related to Caesar.
He was afraid that he could not hold back his anger.
[Tian shamelessly asks for collection and recommendation votes~]