America: My Time

Chapter 33 The Test (Part 1)

Chapter Thirty-Three: The Test (Part One)

“Mr. Morita, you flatter me. How could I be considered an important client of Sony? Game World is not as powerful as you make it out to be. It’s just a new company. We’ve come to Tokyo this time to ask for Sony’s full support!” John directly steered the conversation towards Game World, wanting to hear Akio Morita’s opinion!

"Sony won't have any problems with production capacity; at least it won't affect sales in the gaming world. In contrast, Panasonic and Hitachi are the companies you need to focus on!"

John nodded slightly. That was indeed the case. Sony chose arcade machines, which had the fewest sales but not much production capacity. The largest production capacity was for home consoles and handheld game consoles.

Akio Morita didn't explain the reason for the invitation, and John didn't ask. Instead, he chatted politely with Akio Morita, as if he knew nothing, and said calmly, "Thank you for your guidance, Mr. Morita!"

"It's not about giving guidance, just a normal exchange. It's not difficult to know how big the North American market is. As the president of Sony, I naturally know how big Sony's production capacity is. Even if you hadn't come to Japan, Sony wouldn't have held back the gaming world."

Clearly, Akio Morita has a deep understanding of the North American game market, and Sony has done a lot of work in this area. Sony's production targets weren't based on existing orders. This alone demonstrates how powerful Sony is under Morita's leadership—Panasonic and Hitachi can't compare! If Panasonic and Hitachi had the same level of awareness as Sony, they wouldn't need to worry about the game industry or rush to Japan to expedite production!

Compared to the cunning old fox Akio Morita, John was indeed far inferior. Faced with such a shrewd and calculating fellow, John had to admit that he was no match for him and said, "Mr. Morita, what brings you here today?"

"I wouldn't call it giving you guidance, I just want to deepen our cooperation!"

"Oh! Mr. Morita, how would you like to deepen our cooperation? In what areas would you like to deepen our cooperation?"

"There are many aspects to our cooperation. Dreamworld can't just design software all the time without getting into hardware research. You can see from the game world that you're not willing to build a factory in North America, so finding a contract manufacturer is an inevitable result. That's one of the possibilities for our cooperation. Another example is entertainment. Isn't Legendary Entertainment's record company a direction for our cooperation?"

Upon hearing these words, John finally understood Sony's, or rather, Akio Morita's, intention. Legendary Records wasn't collaborating; they were reminding him of Warner Music, their formidable enemy!

“Mr. Morita, Sony is interested in entering the North American entertainment market? You’ve come to the wrong person to cooperate with. Legendary Entertainment is just a small entertainment company; a large company like Columbia Pictures is the right choice for you!” In John’s view, Sony’s acquisition of Columbia Pictures in 1989 was not without preparation; it was the result of careful planning.

When John mentioned Columbia, Akio Morita was shocked. He couldn't believe John had just casually mentioned the name. Did John see through Sony's strategy? Akio Morita had always had ambitions for the North American entertainment market, and Hollywood was of paramount importance!

"This is truly a clever little fox; no wonder she has achieved such amazing results in such a short time!"

While John was talking to Akio Morita, the beautiful girls around him remained silent, as if they didn't exist. It was difficult for outsiders to know what they were thinking.

"No, Legendary Entertainment isn't as bad as you make it out to be. It's been able to withstand the pressure from Warner and continue to grow and expand under that pressure. It even has a branch in Japan. Legendary Entertainment isn't as weak as you make it out to be!"

"You flatter me, I don't deserve it. We all know what Legendary Entertainment is like. Legendary Entertainment is just an empty shell, both in North America and Japan. Legendary Entertainment doesn't have the resources of Sony!"

John and Akio Morita were playing a game of cat and mouse, constantly testing each other. After a while, although John was slightly at a disadvantage, he wasn't led by the nose by Morita and remained clear-headed. "People get older and their energy isn't what it used to be. There's no need for us to keep testing each other like this. Let's get straight to the point. Sony wants to cooperate with you fully. If we can get your strong support when Sony expands into North America!"

"You're getting old and your energy isn't what it used to be, so why are you still chasing after beautiful women? Who are you trying to fool? Who would believe your nonsense!" Although John was inwardly mocking Akio Morita's hypocrisy, he didn't show it at all.

"Sony's move into North America stemmed from its desire to acquire Columbia Pictures, but Coca-Cola beat them to it. Am I right? Otherwise, given Sony's strengths, entering the North American entertainment market wouldn't have been difficult; United Artists and MGM would have been excellent targets!"

"No, things aren't as easy as you make them out to be. Sony faces far more pressure than you think. Take GameWorld as an example; they've barely entered the gaming industry and are already being suppressed by giants. When Warner Bros. saw that they couldn't control GameWorld, they immediately stepped in. If it were Sony, they would face even more problems. That's why we need allies!"

John was well aware of the immense pressure Sony faced. Acquiring a Hollywood giant was never an easy task for any non-US company; it was subject to various constraints. Akio Morita's suggestion resonated with John. With Sony's assistance, his progress in Japan would be significantly less hampered, acquiring TV Tokyo wouldn't be difficult, and the record company would be even less of a problem!
"Mr. Morita, before making a decision, I'd like to know if Sony's target is Columbia Pictures? Are you aware of the potential consequences if the acquisition is successful?"

"Yes, Sony's target is Columbia Pictures and record companies. As for what kind of situation they will face, I understand and am well aware of it. This is precisely why I want to form an alliance with you!"

John sighed and shook his head, saying, "No, you don't understand the pressure you'll face. Hollywood isn't easy to enter. Hollywood's xenophobia is much more severe than you think. Most importantly, Hollywood isn't a normal business. Successfully acquiring it is one thing, but whether you can manage it well is another!"

In the 1980s, Japan was aggressively promoting its culture, and Hollywood became their target. During this period, they invested heavily in Hollywood, and it was from this time that Japanese culture began to incorporate elements of Hollywood!
At this moment, Akio Morita nodded thoughtfully in agreement. Although John was only eighteen, no one dared to underestimate him; Warner was a prime example, repeatedly proven wrong. John's vision and wisdom were beyond question, the companies he owned being the best proof!

Was John trying to be helpful in reminding Akio Morita? No, not at all. It's easy to understand what Hollywood is like. John believed that if Akio Morita really had such a plan, he would have already thoroughly investigated Hollywood. Most importantly, reminding him wouldn't have made a difference; the rules of Hollywood are what they are!

Are you worried that Sony won't be able to control the companies it acquires?

John had long suspected that Akio Morita might have ulterior motives, but he maintained his smile and replied, "I don't know if anyone else has noticed, but in my research, I discovered a very important issue: regardless of the size of the company, companies that are acquired will encounter a series of problems in the early stages. Even if the company's financial situation was very good before the acquisition, it is difficult to avoid losses, and some may even go out of business because of the acquisition!"

Akio Morita nodded and said, "That does happen, but most companies become better after mergers. As long as you find good managers, it's not a problem!"

"Oh, then congratulations to Sony for getting what they want! No problem with cooperation, but I'd like to know what I can get in return. It can't be that everything goes to Sony's advantage after the cooperation!"

When John asked what he could get in return, Akio Morita smiled faintly. He was satisfied with the outcome; as long as John agreed to cooperate, everything was fine.

"Legendary Entertainment and Phoenix Comics will receive help from Sony. With strong support from Japan, and in the US, if Legendary Entertainment produces movies, we can also invest in advertising, easing Legendary Entertainment's financial pressure! We believe that with Sony's strong support, Legendary Entertainment will quickly gain a foothold in Japan, saving Legendary Entertainment's development time!"

The temptation was very good, and John was satisfied. But John wanted more. If he could use Sony's power, his layout in Japan would be faster and he would avoid a lot of unnecessary trouble. Now was the best opportunity to test the waters. If he could get Akio Morita's help, he might even be able to take over TV Tokyo.

Of course, revealing their plans at this time would also carry significant risks; failure could impact the Phoenix Group's development! However, John felt this risk was worth taking and worth testing!
(End of this chapter)