America: My Time

Chapter 48 The Game Sells Like Hotcakes

Chapter Forty-Eight: Game Sales Boom
Before the summer vacation even arrived, the popularity of arcade games excited everyone who was waiting to see what would happen. Without Game World even having to promote their games, the market was booming, and orders poured into Game World like rain. Orders for arcade games, home consoles, and handheld game consoles increased several times over in an instant.

Faced with this sudden surge in sales, John couldn't help but breathe a sigh of relief, all the pressure vanishing.

At this moment, Sony in Japan was also shocked. Although they had previously determined that arcade machines had an advantage over Atari in the gaming world, they did not expect it to be like this, directly sweeping the entire North American gaming market.

Even the old man Akio Morita was shocked. Sony had received an even bigger order, an order beyond imagination. Sony had been producing arcade machines at full capacity, but it still couldn't meet the market demand in North America and still needed to increase production. This surge made Akio Morita value his promise to John even more.

"Boundless potential"—that's Akio Morita's assessment of the gaming world, and also of John. Even just the opening scene was enough to demonstrate the astonishing potential of the gaming world. Although home consoles and handhelds hadn't even launched yet, massive sales were already a foregone conclusion, unchangeable by anyone. Atari failed, and failed miserably. Warner Bros. also failed, and failed miserably. All their underhanded tactics failed to achieve their intended effect, and were even exploited by their enemies!
Akio Morita, who had been in the business world for decades, naturally understood that if arcade games sold well in North America, they would definitely sell well in Europe, and Asia would be no exception. If they didn't seize the opportunity, they would be letting themselves down. A lot of money was right in front of them, and Sony's production potential was once again stimulated to a stronger force.

Compared to Sony's all-out effort, the pressure on the other two companies instantly increased exponentially. Panasonic and Hitachi finally understood why John had chosen to personally come to Japan to put pressure on them. It was all about confidence in the North American market, and facts proved his choice correct. Faced with such immense order pressure, Panasonic and Hitachi unleashed their full potential, operating their machines at full capacity, working 24/7. They both saw the enormous financial prospects!
The arcade boom brought the name of the gaming world back into the ears of Wall Street tycoons, forcing them to accelerate their efforts. The massive sales of arcade games alone caused the gaming world's valuation to skyrocket several times over, with some pricing it at a billion dollars. And this was just the beginning; if home consoles and handheld game consoles were to sell like hotcakes again, this valuation would explode even further!
The game world will be going public soon, and Wall Street giants are all vying for the lucrative opportunity of underwriting the IPO, and even more so, they want to acquire a portion of the shares before the listing.

For a time, invitations to parties flooded the game world, but unfortunately, the game world showed no signs of going public or having any such plans, which greatly disappointed many people.

There is indeed no need for the game world to go public now. The game world does not need funds to expand. On the contrary, it has huge funds that it cannot use up. Under such circumstances, why talk about going public? Is there any need to go public?
While it's true that American companies are expected to share profits, Game World is a new company, less than a year old. No, more accurately, less than six months old, yet it's already valued at a billion dollars. This is just from the phenomenal success of one product; everyone understands it's a company with immense potential. Acquiring shares early means reaping greater profits!
One after another, Wall Street giants approached John, pitching their plans—specifically, plans for Legendary Entertainment and plans to underwrite the IPO of Game World—but none of them received a response. While those giants' plans were appealing, they weren't suitable for John, nor for Legendary Entertainment.

Finally, Morgan appeared before John, and their plan surprised him. While other Wall Street giants were pitching MGM, Paramount, and Columbia, Morgan was pitching Universal. Morgan not only promoted the film industry but also offered television options: ABC and NBC. Regarding the IPO of the gaming world, Morgan said nothing and made no mention of it.

"Hahaha, Morgan is Morgan. They're all here for the game world's IPO, and their marketing plans are just for show, used to generate buzz. But Morgan is considering the development of Legendary Entertainment. Amazing! It's just a pity that I can't afford your grand plan right now. How much does Universal Pictures cost? How much do ABC and NBC cost? It's simply not something I can acquire. I appreciate your good intentions!"

"No, things aren't as difficult as Mr. John thinks. Funding isn't a problem either. If possible, Morgan is willing to provide a guarantee for you; it's not a difficult matter for Morgan. Legendary Entertainment doesn't need to be acquired entirely; a controlling stake is sufficient!"

John shook his head slightly and said, "I admit that Morgan has put in a lot of effort and has done a thorough understanding of Legendary Entertainment, but Legendary Entertainment either doesn't acquire at all, or it must be a complete acquisition, which Legendary Entertainment doesn't have right now. However, that doesn't mean we can't cooperate!"

"Oh, does Mr. John want to take the game world public?" The Morgan representative immediately became excited; this was a big deal.

"No, Game World is not ready to go public yet. It's just a new company. Although it will go public, it will take time. I know you're all here for Game World's IPO, but I want to know your capabilities. You can't expect to get everything you want just by coming here with a plan like this. That's too frivolous!"

"Mr. John, please state your requirements. I believe there's nothing Morgan can't do!" "Very well, Morgan is Morgan. I am indeed very interested in your plan, but we are indeed lacking in strength. You are all well aware of the current situation of Legendary Entertainment. Directly acquiring Universal and ABC is beyond our capabilities, not only due to financial constraints but also because of our lack of control over the companies. I would like to ask Morgan to help me acquire several companies: Dick Clark Television Productions, MTV, ESPN Entertainment & Sports, and Vanity Fair magazine!"

John paused, then added, "What I want is a full acquisition, not a controlling stake. If Morgan can do that, then we have a basis for cooperation! Let me see Morgan's capabilities; whether you accept or not is up to you!"

“I understand. Morgan will do all of this. Mr. John, be prepared to take over. The transaction will be completed by the end of the year at the latest. This is my promise to you on behalf of Morgan!” It must be admitted that Morgan’s representative, Jimmy, was very decisive and made a direct statement. This is not something that ordinary people can do. John was well aware of how much pressure this was under.

“Alright, I’ll wait and see. I hope Morgan won’t let me down. With this collaboration, there will surely be another one.” Although John didn’t say what the next collaboration would be, the other party understood what he meant.

If Morgan completes the acquisition, the gaming world is very likely to go public next year, which is great news for Morgan representatives. Once this first step is taken, things will be much easier. It is believed that it will not be long before Universal and ABC television networks also become Morgan's businesses.

Jimmy returned to Morgan with this good news, which was a huge opportunity for the entire firm. Other giants had failed, but Morgan had succeeded. Although it was just the beginning, it was a good start, and Morgan would naturally not give up.

"Good, very good. We have finally gained the upper hand in this battle. It seems that the kid is really clear-headed and has not been blinded by the huge benefits. He knows when to advance and when to retreat!"

“Boss, I don’t understand why John wants a complete acquisition. Wouldn’t it be easier to acquire a controlling stake? And a controlling stake requires less capital. If we at Morgan were to handle it, it would be easy to achieve!”

"It's good that you don't understand. If you did, you wouldn't be standing here. That kid has a strong desire for control. Although he's very successful in the entertainment industry, he doesn't have a solid foundation, and he's too young to control those giants. Do you think anyone would listen to him even if he successfully controls Universal and ABC? Since he can't control those two companies, why waste his time, energy, and huge sums of money? Settling for second best is the most sensible choice."

Do you really think his demands are that simple? Look at this: Dick Clark Television Productions has experience producing television programs, MTV is a professional entertainment network, ESPN also has entertainment, and Vanity Fair magazine goes without saying. He's perfecting his own entertainment company and starting to gain control. This way, the cost is minimal; even if it fails, it won't have a significant impact on him. This caution alone is enough for us to treat him with utmost care!

"I understand now. No wonder he rejected the offers from those giants and our plan as well. He's really something, thinking things through so deeply!"

"No, Jimmy, you don't understand. You only see the surface and don't see the depths of the matter. If this kid can succeed in any two of these four companies after this acquisition, then when he acquires Universal and ABC, no one will dare to underestimate him. He will have enough prestige to control the overall situation. These four companies are just his first tentative step, a test for television networks, and also the beginning of Legendary Entertainment."

(End of this chapter)