America: My Time

Chapter 87 Another Test
Chapter 87 Another Test

The storm in the United States quickly spread to Japan and soon became known to Japanese conglomerates. Different people saw different problems in this storm: some saw a struggle for profits, some saw hostility between competitors, and others saw conflicts between companies.

Upon learning of the turmoil in the United States, Akio Morita felt very heavy-hearted. He had another discussion with John, wanting to hear John's views and to gain a deeper understanding of the reactions of Hollywood and various forces in the United States.
"John, I've also learned about what's happening in the US. Congratulations on defeating Warner and achieving final victory this time!"

“Mr. Morita is wrong. Legendary Entertainment has not defeated Warner Bros., and Legendary Entertainment’s enemies are not just Warner Bros. This counterattack is the entire Hollywood’s backlash against outsiders. Even I, as a fellow American entertainment professional, have encountered such resistance when I tried to acquire Universal and NBC. You should understand how much pressure and impact Sony will face if it acquires Columbia Pictures. You need to prepare in advance. Even with Legendary Entertainment’s help, you need to be cautious and personally coordinate the relationship!”

Is this something that can be solved through coordination? No, coordination can't solve the problem. To gain a foothold in Hollywood, you need strength. Only with sufficient strength can you gain the respect of other Hollywood giants and make them back down. Neither coordination nor compromise can solve the problem, and John is well aware of this, but he won't say it directly. Everything needs to be controlled and faced by Sony himself.

"Oh! In your opinion, what does Sony need to do to integrate into Hollywood, to gain their approval, and to be accepted by them?" Akio Morita asked John calmly, as if he already knew about this situation!
"I don't know what Sony should do, after all, I'm not with Sony and I don't know their preparations. But for Legendary Entertainment, which I control, this is a major battle, a battle we cannot afford to lose. The hatred between Legendary Entertainment and Warner Bros. is irreconcilable; it was already destined when the gaming world crushed Atari. We have no way out!"

After saying this, John pondered for a moment, then continued, "Sony's situation is unique. If it were just acquiring Columbia Pictures, there wouldn't be too many problems. As long as the timing is right, success is inevitable. How to integrate into Hollywood requires preparation. There are many issues, such as management personnel and funding. Just like the agreement Legendary Entertainment made with Morgan before acquiring Universal and NBC, to purge the top executives of the two companies in preparation for taking over the company. How Sony chooses is up to you. Will you retain the existing management team or purge them?"

John gave Akio Morita a choice: acquiring Columbia Pictures wasn't too difficult. With the right timing and a bit of investment, it would be a natural progression. The real challenge was how to manage Columbia Pictures. Legendary Entertainment opted for a purge; Sony's choice was theirs to decide.

Upon hearing John's words, Akio Morita nodded thoughtfully and said, "This is indeed a difficult problem. A purge is needed, which requires a new management team. Without a purge, it will be difficult to take control of the company!"

John smiled calmly and said, "This is the price. Nothing comes without a price. There's no need to rush into a decision for Sony. You have plenty of time to consider and prepare. It's not too late to make a choice when you're ready. Unlike Legendary Entertainment, which had no choice but to purge the management of both companies, which is why they're in this predicament and facing so much pressure!"

Akio Morita naturally understood that Sony had time to prepare, but they didn't know much about Hollywood. Acquiring Columbia Pictures would put immense pressure on them; once the acquisition was made, Sony would have to pay a huge sum, and even more would be needed for subsequent management. Sony had ample experience in record sales, but it lacked significantly in film management, which was Legendary Entertainment's weakness. Even seeking advice wouldn't be of much use, at least in Morita's view.

Since Akio Morita didn't ask him for advice on film studio management, John naturally wouldn't bring it up either. Legendary Entertainment and Sony weren't true allies; they would eventually become competitors, so there was no need for him to provide Sony with too much help!
The conversation with Akio Morita quickly shifted from the acquisition to Japan itself. Morita himself was somewhat puzzled by John's investments in Japan. While the expansion of Phoenix Comics and Animation, and Legendary Records, was understandable, the investments in mineral water and aquaculture seemed rather baffling, not to mention the investments in clothing, and now even the expansion into cosmetics, which Morita found even more perplexing.

"John, is it really okay for your companies to diversify their investments like this? Rushing into unfamiliar industries might just waste time, energy, and even more money!"

“Indeed, these investments won’t be profitable in the short term, and they require a certain amount of capital investment. However, for Legendary Entertainment and Phoenix Group, this is essential. Whether it’s the film studio or the television station, they both need costumes and makeup. If the film studio and the television station were to handle this themselves, it would be a waste of time and energy. Investing in a costume and makeup company would easily solve all the problems. And as you know, I also have Elite Agency, which needs to cultivate some idols. This also requires investment in costumes and makeup. It’s better to advertise for ourselves than for others!” Hearing John’s explanation, Akio Morita found it even more incomprehensible. If these were just small issues, investing money and energy to build a company seemed absurd. Moreover, the current luxury goods market wasn’t ideal. But seeing John’s expression, Akio Morita could only sigh. He didn’t have John’s ability to foresee how hot the luxury goods market would be in Japan in the future. During the bubble economy era, luxury goods were rampant in Japan!
“John, haven’t you thought about developing in the personal computer field? Dream World has great potential. Investing your money in personal computers would be much better than investing in clothing and cosmetics. Dream World also has the capability and the potential to do so. If you’re willing, we can cooperate!”

Is Akio Morita really so kind as to share his personal computer research with Dream World? No, he wants to leverage Dream World's technological power, but unfortunately, he's made a mistake; John will never agree!
John shook his head slightly and said, "This can't be done. In Japan, Sony can research personal computers without restrictions, but it won't work for Dream World. Dream World already has an advantage in software, and even monopolizes the personal office software market. If it joins in the research and development of personal computers, it will face suppression from giants like IBM and Apple, and may even trigger anti-monopoly investigations!"

Akio Morita did not give up his persuasion despite John's refusal. He smiled calmly and said, "Does Nvidia, which was spun off from Dreamworld, collaborate with Sony on personal computer research?"

"In my plan, Nvidia is not going to make any progress in personal computers, but to conduct research in the field of auxiliary chips. Neither Dream World nor Nvidia will directly compete with IBM, Apple and Intel at this time and under these circumstances. Dream World will only conduct research on professional minicomputers and workstations, while Nvidia will conduct research on GPUs. After all, compared with those giants, Dream World and Nvidia are too weak in terms of resources!"

Would John really abandon his research on personal computers and CPUs? No, he said that only to reject Akio Morita and to mislead him. He dared not be careless with that old fox, Akio Morita, lest he be outmaneuvered.

"It's such a pity. If we had collaborated, we could have made great strides in personal computers! With Dreamworld's software capabilities combined with Sony's hardware research, we might have been able to bypass the influence of companies like IBM and Apple and develop our own personal computer system!"

"That's true, but it's not feasible in reality. The development of the game world has already provoked Warner Bros.' fierce counterattack and is suffering many impacts. If Dream World also gets involved in research it's not familiar with, it will face an even stronger counterattack. Compared to Warner Bros., IBM and Apple are much more powerful!"

Faced with John's refusal, Akio Morita could only sigh and nod, saying, "That's true. Dreamworld is indeed not in a position to compete with computer giants like IBM and Apple right now. But having missed the initial stage, it will be even more difficult for Dreamworld or Nvidia to enter the personal computer market again, and they will face more obstacles!"

John smiled calmly and said, "The development direction of Dream World and Nvidia has never been personal computers, so this so-called obstacle does not exist. The core of Dream World is software, and the core of Nvidia is chips. Personal computers are not under consideration, so there is no such thing as obstacle!"

John dismissed Akio Morita's claims. Although IBM and Apple were currently very strong in the personal computer market, and their positions would be shaken in the future, and the US would never be the center of personal computer production, John didn't care about Morita's ridiculous words at all!

(End of this chapter)