America: My Time

Chapter 17 Ambition
Chapter Seventeen Ambition
"Games are a minor matter; game consoles are the real issue. As long as there are patent barriers, the accompanying games are no problem at all!" In John's mind, game consoles are the most important thing, and patents are the most crucial. As long as he releases the Famicom and handheld game consoles first, he can lock down the development of Japanese games through patents and take control of the situation. Now the time is ripe.

"Alright, it seems you're not going to give up this career. Now you need to consider how to develop it. Should you merge all the companies together to form a true entertainment group, or continue to develop independently like this? You need to make this decision yourself; no one else can make it for you!"

"Father, the entertainment group matter isn't urgent yet. I need your help to acquire a small film company with distribution capabilities, provided that it doesn't incur heavy debt!"

“Oh my God, John, do you know what you’re doing? You already have enough companies. You can’t keep getting distracted like this. If you keep expanding endlessly like this, your energy will be scattered, and you’ll only destroy the foundation you’ve built up! What you need to think about now is how to produce your own game consoles, not keep expanding the number of companies. Having more companies won’t bring you more profits!”

"Father, I know how to handle game console production. I never intended to manufacture them myself. Although manufacturing them myself would be more profitable, I don't have the capability, the capital, or the time to build a factory. I simply can't manage a large company with production capabilities. From the very beginning, we need to plan the production situation carefully. Considering both the production process and profits, contract manufacturing is the best option. In the entire game industry, my biggest enemy isn't Atari, but Nintendo of Japan. Japan's production costs are much lower than ours, giving them a huge cost advantage."

"Your enemy isn't Atari? You think Nintendo can surpass Atari? Are you kidding me? Atari is the giant of the gaming industry!" At this moment, Smith seriously doubted whether John had been blinded by success and made such an irrational decision and judgment!
John confidently stated, “No, I’m not joking, it’s the truth. Atari may seem like a giant in the gaming industry, but they’re internally chaotic. Most importantly, they shouldn’t have been acquired by Warner Bros. Those people at Warner Bros. don’t understand the gaming market at all; they’re giving completely wrong directions. Atari won’t last long before it runs into trouble, even collapsing. The Japanese game companies are different. They have unwavering conviction, a terrifyingly crazy spirit, and a lower cost advantage than us. If it comes down to production, no one can compete with them. For example, we struggle with overtime alone. If a product sells well, is it even possible for our local companies to have employees working overtime? It’s simply impossible; it’s not feasible from top to bottom. Japan doesn’t have this problem. Their employees can work crazy overtime for the company. You can see this from my comic book company; that’s a fundamental difference!”

"Okay, even if you're right, you've thought about which company to use for manufacturing, and you've thought about how many of your game consoles you can sell. There are only two best sales periods in the North American market: the Christmas season and the summer season. Missing either one will affect the sales for the whole year. You're making entertainment, you're making games, that's very important, you're racing against time."

"I've thought about it. I can't use Japanese game companies like Nintendo. I can't let them use the production of my game consoles to make huge profits and develop themselves, and then use those profits to compete with me for the game market. In my opinion, the only Japanese companies I can use are Sony and Hitachi, these electronics companies. They have enough technology and production capacity. As long as the profit is big enough, they won't refuse. Of course, there may be unexpected situations!"

A year earlier, John wouldn't have chosen electronics companies like Sony and Hitachi to manufacture his products; he would have used Japanese game companies like Nintendo. But now, that's not possible. Nintendo has already started developing its own Famicom. Although the game world has patent barriers, given enough time, Nintendo still has the opportunity to bypass its own patent walls. That's the biggest problem: you can't cultivate your own enemies!
Upon hearing this, Smith nodded and said, "It seems you've already considered the production process comprehensively, which means you don't intend to integrate the game world into Legendary Entertainment Group. Tell me your plans!"

"While games are part of entertainment, they're not suitable to be merged with Legendary Entertainment Group because they involve technology. Legendary isn't just an entertainment group; it's Legendary Entertainment Media Group. It needs to have both entertainment and media, like Warner, otherwise it will be at the mercy of others. The group needs not only records but also film, animation, television networks, newspapers, publishing, and retail. It's just that I don't have that kind of capital right now; I need time to accumulate it!"

Shocking! Smith and Anna were stunned by John's words. They hadn't expected their son to have such ambitions, wanting to become a media and entertainment giant like Warner and create a trust-like closed loop. In fact, all media groups are doing this nowadays, striving to perfect their own systems!

"So you want Phoenix Comics in Japan to operate independently, and you have your own considerations. Have you thought about how to control this company? Being constantly separated from Legendary Entertainment Group will bring you a lot of trouble, and you won't be able to provide financial support to Legendary Entertainment, which will also affect its listing value!" "I've thought about it. One media group isn't enough, so I'll establish another, developing the domestic and overseas markets separately. I've never intended to divert Phoenix Comics' funds to Legendary Entertainment, or even to withdraw funds from Japan. The record company only needs to acquire some small record labels and expand continuously, focusing on its own profits. The record company doesn't need to generate profits for the group now; it only needs to expand and accumulate more copyrights. Actually, the real money-makers in the entertainment industry are the film industry. The profits from a blockbuster movie can't be matched by publishing or records. I need to keep Phoenix Comics' funds in Japan to prepare for investments in other areas there. Separating it from Legendary Entertainment Group is essential, and the same goes for animation. If possible, next time I go to Japan, I'll establish a media group in Hong Kong and integrate Phoenix Comics into it."

My entertainment empire is not limited to records and publishing, nor is it limited to the domestic market. Separating the domestic and overseas markets is the best choice, so that I won't be swept up by others or ambushed by those old guys!
"It's not difficult for you to acquire a film company; California has no shortage of such companies. But have you considered how much you actually know about the film industry? And don't you already own a film company? Do you think Hollywood giants will give you opportunities to grow? They'll just watch a new entertainment conglomerate emerge without any reaction!"

Smith felt he couldn't keep up with John's thinking and thought John's choices were too crazy. He had only just achieved some success and was already fantasizing about instant success and wanting to develop further. This was not good; it showed a lack of respect for the market.

Seeing his father's expression, John couldn't help but sigh inwardly. Fortunately, he hadn't revealed more of his plans. If he had told his father that he was eyeing Universal Pictures, had plans to acquire theaters, or even had ideas for building his own sales channels, his father probably wouldn't have been able to accept it.

John may have shortcomings in handling specific matters, but he has no problem with the big picture. He has foresight, knows what will happen in the future, and has countless resources as his trump card.

In the entertainment industry, John is not afraid to compete with any rivals. As long as he can get through the difficult initial stage, everything will be fine. His vast entertainment resources are enough to overwhelm all enemies, whether in Europe and America or Japan!
“Father, it is precisely because I understand this that I have made the decision to separate the domestic and overseas markets. The threat from media giants has always existed. If I rush to build a conglomerate, it will be the most dangerous thing, as it will arouse the vigilance and suppression of Hollywood giants! Right now, a game world is enough to annoy Warner. If I were to integrate other industries into Legendary Group, not only would I suffer a full-scale suppression from Warner, but I would also be attacked by other Hollywood giants. I cannot withstand such suppression right now. I have no ability to resist the strangulation of industry giants. I need time to accumulate!”

John thought more deeply about Legendary Entertainment than Smith. No matter the cost, he couldn't abandon his plan and had to execute it firmly. He had to keep the reins of power and not be controlled by others. The power of the media and entertainment group was far greater than his father had imagined!
The most crucial first step in building a media and entertainment group was to acquire Universal. Among the Hollywood giants, only Universal was the most suitable for them, and only Universal could meet all their needs.

Universal's parent company, MCA, not only owns Universal Pictures but also a television group, publishing houses, television networks, and record labels. By acquiring Universal's parent company, one can integrate all the entertainment companies under their control! This day will come soon enough. As long as their plan can be realized, nothing else will be a problem, and no force can stop them!

(End of this chapter)