Three hours later, at home in Palo Alto. Wearing an apron and busy in
the kitchen, Ethan cracked four eggs into a bowl and added some fresh
milk.
After whisking the mixture until smooth, he strained out the foam and
egg veins, then set a pan on the stove and melted a tablespoon of
butter.
He poured in the egg mixture, stirring slowly over low heat, and turned
off the flame when it was about half-cooked. Sprinkling a touch of white
pepper over the soft, creamy scrambled eggs, he transferred them onto a
plate and carried them to the dining room.
By the time Ethan brought out the last dish, the table was set with a
hearty dinner---steak, salad, soup, and scrambled eggs.
In his previous life, after cooking such a meal, Ethan would have taken
out his phone, snapped a photo, and shared it on Moments. He would want all his friends to know that his cooking skills were still
top-notch.
But now, without the Internet or social media, the only thing left was
to entertain himself---and admire his own work.
Oh no. There's someone right next to me. Why am I not getting any
reaction at all?
"Hey, hey! Give me some reaction here! Dinner's ready!"
Snapping his fingers, Ethan drew Evelyn's attention away from the papers
she was absorbed in.
Startled, she looked up at him blankly, then instinctively glanced at
the table. When the beautifully arranged dishes and their tempting aroma
finally registered, she blinked, snapped out of her daze, and offered a
belated compliment.
"Oh, Ethan, are you done? You really worked hard on this\~"
"..."
"How perfunctory."
Ethan pursed his lips, letting his displeasure show. Evelyn quickly
changed her tone. Putting her hands together and widening her eyes
dramatically, she exclaimed, "Oh my God---what a wonderful dinner! And
all my favorites!
Oh, Ethan---did you make all of this just for me? Thank you so much---"
"..."
The overly theatrical performance almost made Ethan choke. Her tone was so exaggerated, it practically reeked of insincerity.
"Okay, okay!" Unable to take it any longer, he raised his hands in mock
surrender. "Evelyn, please spare me. I don't need the praise anymore.
Let's just eat."
He placed the knife, fork, and spoon neatly on the plate and pushed it
toward her.
Seeing his helpless expression, Evelyn couldn't help but laugh. She got
up, dragged her chair closer, and sat down beside him with a thump. Waving the document in her hand, she explained with a smile, "Oh, Ethan don't be mad It's not that I was ignoring you. It's just...
the proposals in these two cooperation agreements really shocked me!"
She emphasized her point, almost gasping. "The terms are insane! Fifteen
million dollars? A twenty-million-dollar contract just like that? Is
this because they have too much money? Or just because they can? Do
other countries really have game markets this big?"
Indeed, after Evelyn came home from school, Ethan had handed her Sega's
and Nintendo's letters of intent. After all, Snake Game wasn't his
project alone. If it was going to launch overseas, Evelyn needed to be
informed.
And while Ethan appreciated her taking it seriously, she had gotten so
absorbed in reading that she'd gone completely quiet.
Because he knew the whole story, Ethan didn't mind. He simply slid her dinner plate back in front of her, picked up his own
knife and fork, and cut into the steak.
"Of course other countries have massive game markets," he said casually.
"Businessmen are driven by profit. If this deal weren't lucrative, why
would they come to me? What, are they just giving us free money? Are
they crazy?"
"That's true," Evelyn agreed, nodding.
"Then what do you think we should do?" she asked.
At the same time, she added, "I suppose you have no plans to go
independent with this, right? At least not at this stage?"
Evelyn was absolutely right. When it came to the overseas distribution
rights for Snake Game, Ethan really did plan to sell them. It wasn't that he didn't want to handle it himself---it was simply
that they didn't have the strength to do so yet.
"Exactly!"
As he placed a freshly cut piece of steak on Evelyn's plate, Ethan
nodded. "We're in no position to talk about running overseas operations
ourselves. I knew this back when I was working at Magnavox. Sega spent
fifty years and over twenty million dollars just to build a complete
arcade production line in Japan and Southeast Asia. That kind of time
and financial investment is far beyond what we can afford right now."
"As for setting aside our worries and building our own factory?" He shook his head. "That's even more impossible. Remember what happened
to Atari when they tried it?"
After the success of Pong, Atari founder Nolan Bushnell believed he
was the chosen one. He immediately started dreaming of exporting games
and capturing global markets. His first target was a country with a
thriving economy and strong consumer base.
But after confidently establishing a branch in Japan and pouring
millions into it, Atari quickly discovered that Japan was a closed
market, one where foreign investors were unwelcome. Their impulsive decision violated the local business rules, which led to
heavy sanctions and organized boycotts.
In the end, Atari had no choice but to admit defeat and withdraw.
When millions of dollars couldn't even buy them a proper foothold,
Ethan---who didn't have nearly that kind of capital---wasn't about to
risk overseas expansion himself.
Ethan had told Evelyn this story before, so when he brought it up again,
she immediately smiled.
"Yeah I get it," she said.
"Why not?" Ethan replied with mock seriousness. "Our colleagues have
already provided us with a negative example. The least we can do is pay
our respects to their sacrifice---and express our heartfelt gratitude
for their failure. Deepest condolences."
He even winked at her as he said it.
"Pfft---"
The playful remark sent Evelyn into peals of laughter. Tossing the
documents aside, she finally picked up her knife and fork and cut into
the steak. But the moment the nearly-rare meat hit her tongue, her brows
knitted instinctively.
She glanced at the steak's still-pink center, then at Ethan, who was
happily enjoying his meal, and could only shake her head helplessly
before finishing her bite.
"So," she asked through a mouthful of steak, "which company do you want
to work with?"
The question made Ethan pause. After swallowing, he frowned slightly,
lost in thought.
"To be honest, it's a tough call," he admitted. "If we're talking about
market reach, I'd choose Sega. They not only have branches in Japan and
Southeast Asia, but also their own distribution channels in Europe.
Their global logistics are definitely stronger than Nintendo's.
But if we're talking about the depth of a single market, then I'd go
with Nintendo. Japan is the second-largest electronic gaming consumer
market in the world after North America. A deeper focus on that market
could bring us even greater profits. And Nintendo---well, they've been
in Japan for nearly a hundred years. If anyone knows how to fully tap
into that market, it's them."
"What?" Evelyn was taken aback by Ethan's words. "Nintendo is that powerful? I thought it was just some ordinary
Japanese company!"
That reaction was understandable. Americans of this era actually knew
very little about Nintendo. In fact, before Mario ever became the face
of a certain plumber-themed craze, few people in the U.S. had even heard
the name "Nintendo."
But that was perfectly normal. After all, Nintendo at this point was
still focused on its domestic market and hadn't seriously expanded into
America.
However---just because the locals didn't know about it didn't mean
Ethan, would ignore it. While organizing his thought, he began
explaining Nintendo's accomplishments to his sister:
"Nintendo was founded in the late 1800s. At first, they specialized in
hanafuda---a uniquely Japanese card game. At their peak, they
practically monopolized the entire hanafuda market in Japan.
When they hit the ceiling in that field, they looked for new business
opportunities and introduced Western-style playing cards to Japan.
Before Nintendo, no company in Japan had been making Western playing
cards, so they naturally gained a monopoly advantage.
Not only that, they partnered with Disney, obtained official character
licenses, and printed classic Disney characters on their playing cards.
That deal turned their playing card business into a massive success."
Ethan paused, then continued. "Later, Nintendo ventured into the toy
industry. They had an engineer named Gunpei Yokoi, who invented several
blockbuster toys---each selling over a million units in a single year.
Oh, and remember the light gun that came with the Magnavox Odyssey?
That was his invention too. That one product alone earns Nintendo tens
of millions of dollars every year."
"Wait---what?!" Evelyn's eyes widened. "They made Magnavox's light gun?"
Ethan nodded with a grin. "Yep. That was them."
The "light gun" they were talking about was the peripheral used for
shooting games. When a target appeared on the TV screen, the player
could aim, pull the trigger, and hit the target virtually.
Though it sounded advanced, the technology had actually been around
since the 1960s---and Gunpei Yokoi had been the one to invent it.
"Wow that's honestly incredible," Evelyn murmured, impressed. She had never expected Nintendo to be this formidable.
As Ethan spoke, her curiosity got the better of her. "Ethan, how do you even know all this?" she asked, then quickly added
her own guess.
"You weren't exactly paying attention to them back when you were working
at Magnavox, were you?"
"Something like that." Ethan just smiled at her.
"So then... you're leaning toward Nintendo?" Evelyn asked.
But almost immediately, another thought struck her. "Wait a minute.
Don't you think it's weird that Sega and Nintendo both showed up at the
same time?
Why would they both come to buy the publishing rights for Snake Game
at exactly the same moment?"
Ethan shook his head. "I don't know why Sega showed up now. But... are
you saying Nintendo's timing might have something to do with Magnavox?"
"Well... you were the one who humiliated them," Evelyn said, frowning
slightly, clearly thinking it over.
Her words made Ethan laugh. "Oh, sister, you're overthinking it.
Magnavox doesn't have that kind of pull. They could never influence
Nintendo like that."
Even so, the timing of both Sega and Nintendo's appearance puzzled Ethan
as well. It really was too much of a coincidence.
But after digging through his memories of his previous life, he
concluded it was probably just that---a coincidence.
He remembered first learning about Nintendo back in school during a
course on financial investment. The teacher had introduced the class to
long-term blue-chip stocks held by various government pension funds.
When talking about the Japanese market, the teacher had specifically
singled out Nintendo---because for many years, Nintendo had been a
money-printing machine in Japan, second only to Toyota.
With its consistently high price-to-earnings ratio for over a decade,
Nintendo became a prime case study for financial professionals.
Even Nintendo's success could be summed up in one sentence--- right partner.
After all, the Yamauchi family who founded Nintendo had their start with
the Mitsui Zaibatsu! Later, when they began selling hanafuda, they
latched onto another giant---Tachimoto's "Tobacco King," Murai Yoshihei!
When Ethan remembered these facts, he realized he'd been worrying too
much. Even if Magnavox was powerful and annoyed with him, there was no
way they could move Nintendo.
Because Nintendo wasn't just a game company---back then, it was
practically a monopoly. Magnavox trying to "instruct" them? Might as well ask for the keys to Nintendo HQ while you're at it. Do they really think they have that kind of pull?
As for Sega... Ethan had just been sued by Magnavox---how could he and
Sega possibly have a cozy, friendly partnership now?
he didn't tell Evelyn all of this. He simply said that the likelihood of
Magnavox pulling the strings behind everything was very low.
And Evelyn? She wasn't interested in corporate drama anyway. Once Ethan gave her a brief explanation, she simply nodded and said, "Since you think it's fine, then I'll leave the decision to you. Just
tell me when it's time to sign."
"Are you sure?" Ethan asked, though her answer was exactly what he
expected. He knew Evelyn hated business negotiations.
Still, he couldn't help teasing, "Aren't you afraid I'll sell you off?"
"Do you dare?" Evelyn rolled her eyes, raised her left hand, and made
a fist.
"I wouldn't dare," Ethan admitted immediately.
"Hmph" Evelyn gave a satisfied hum, as if celebrating a small victory.
she was content, Ethan finally stopped joking and revealed his plan:
"Here's what I'm thinking, Evelyn. Give Nintendo the exclusive agency
for Snake Game, and hand over the rest---everything outside North
America and Nintendo's share---to Sega. If they accept, great. If Sega refuses... then we'll just have to
strategically give up those smaller markets.
"After all, North America and Japan together already make up over 80% of
the global video game market. Choosing Sega just to scrape up the
remaining scattered regions wouldn't be cost-effective."
Evelyn had no objections to Ethan's plan. So, the next day at work,
Ethan called Sega founder David Rosen.
But the moment he laid out his proposal, David Rosen grew noticeably
cold. He rejected Ethan's "leftovers" in a stiff tone and insisted that
global agency was Sega's bottom line.
That result left Ethan deeply regretful. Since they couldn't reach an
agreement, there was nothing left to do but part ways.
After that, Ethan dialed the number Hiroshi Yamauchi had left for him. To his surprise, Nintendo's president personally rushed to the Stanford
Industrial Zone within half an hour.
"Oh, Mr. Jones! I'm so glad you chose Nintendo!" Hiroshi Yamauchi expressed his excitement as soon as they met. "I hope we can have a pleasant partnership moving forward."
Ethan extended his hand and shook his firmly. Though they had reached a
consensus with Nintendo, the contract would not be signed for another
three days.
The reason was simple: Japanese companies were famously meticulous about
contracts. For any vague or ambiguous terms, they would insist on adding
detailed written clarifications.
Thus, a contract that could have been wrapped up in a few dozen pages
often turned into a document hundreds of pages long.
And as for this kind of overly meticulous process.
Ethan could only shrug helplessly. Fortunately, he didn't have to handle
it personally---an external lawyer would take care of the entire
process.
All Ethan had to do was wait for the contract to be finalized and give
it a quick review.
Note:
1. Atari entered the console market in 1973. In 1974 they sold the
company and its assets to Namco for US$5 million; Namco later
became Atari's agent in this story. (Source: Silicon Valley
History.)
2. Nintendo's success had deep roots. The Yamauchi family's
great-grandfather ran a lime shop in Kyoto during the Edo period and
had ties to the Mitsui zaibatsu. Fusajiro Yamauchi (originally
Fukui) married into that family; their lime shop became Mitsui's
exclusive Kyoto supplier and handled much government infrastructure
work, including projects for Kyoto University Hospital. The shop
still exists as Haitaka.
3. Murai Yoshihei---known as a Meiji-era tobacco magnate---had a close
relationship with Fusajiro Yamauchi.
4. The light-gun patent does belong to Nintendo; based solely on that
technology, they earned significant annual revenue (reported as tens
of millions in the 1970s).