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Chapter 99 - Chapter 99

It was still the same office, still the same three people. But this

time, the old man wasn't angry. Instead, he crossed his legs and leaned

back in his chair.

The fat subordinate standing in front of him held a document and began

to read:

"Judging from the patent licensing fees we've received over the past two

months, game companies in North America are almost wiped out.

After Pac-Man release, North America market became incredibly

enthusiastic about the game. They love that little yellow figure racing through the maze, gobbling up

dots.

I personally like the ghosts, each with its own distinct personality,

chasing one another across the screen.

With more and more Pac-Man arcade machines being installed, other

companies don't even dare to launch new products. They're afraid that their boring games will just rot in the warehouse

once they're made."

These words made the old man smile and nod.

"The entire group wiped out? Oh, that's outrageous," he said with a

chuckle. "If someone had told me a few years ago that one game could

dominate the entire North American market, I wouldn't have believed it.

Video games are no different from movies or novels --- they're all

man-made creations. And because they're man-made, no single one can

appeal to everyone. People's tastes and hobbies are too diverse.

But... Pac-Man really is different.

When I first saw it --- when I heard the professors gasp in surprise at

the press conference --- I realized that this game was a true fusion of

inspiration and technology. Its appeal lies in both its creativity and

its technical execution --- something ordinary people had never

experienced before.

When inspiration and technology meet like that, this kind of market

response is perfectly natural.

No matter where they live, people are still people --- and people are

always curious. When the media hails something as a miracle, everyone

who hears about it wants to see it for themselves.

So with that advantage, Pac-Man's success was inevitable --- and of

course, impossible to copy."

The boss's words left the fat and thin subordinates stunned. They glanced at each other, both of them clearly surprised.

Though they tried to hide it, the old man noticed and smiled, still in

good spirits.

"What is it?" he asked lightly. "What's with those looks?

Can't I, as a human being, feel joy and admiration?"

"Yes!"

"Ethan Jones has ignored us several times before, but this time feels

different, doesn't it?

Back when Snake came out, it left us doubtful. Later, Ralph Baer kept

us from collecting royalties. But Pac-Man? It has nothing to do with

us. Isn't this a slap in the face to the entire industry?

And if everyone's been slapped, doesn't that mean no one's been singled

out?"

The old man spread his hands and smiled at the two of them.

His words left subordinates dumbfounded. But after only a moment's

hesitation, the fat man was the first to recover. He grinned and said, "Boss, I think you're right.

The people hit hardest by Pac-Man were the arcade machine makers. We make home consoles --- we haven't been affected at all."

The thin man's expression turned complicated. He even instinctively took

a step to the side.

Because right now, he felt as if his boss had gone mad --- and worse,

his colleague was infected too. It was as though the IQ of everyone in

the office had plummeted, leaving him the only sane one.

Of course, this awkward little movement did not escape the old man's

notice.

Seeing the different reactions on their faces, he stopped joking around.

Instead, he picked up the document lying on the table and shook it

lightly.

"Take a look at this. This is a document the chairman sent me a few days

ago --- a directive from our parent company, Philips.

When I read it, I finally understood why they've been keeping such a

close eye on us --- especially our home console business."

His words made the fat man stop teasing and the thin man straighten up,

suddenly serious.

Both stepped forward and took the document. When they opened it, their

brows furrowed. It read:

From Philips HQ Effective immediately, you must monitor

real-time changes in the North American game market and seek

opportunities to acquire game companies struggling due to the rise of

Pac-Man. This includes --- but is not limited to --- (publisher of

Tanks) and Midway Games (publisher of Asteroids).

"Boss... what does this mean?"

The subordinates looked at the old man, clearly puzzled. But the old man

didn't explain. He simply smiled and said, "Turn the page."

Following his instruction, the two men lowered their heads again. The

content on the second page made their pupils contract in shock:

Philips HQ Directive -- Continued We have strategically decided to discontinue the Odyssey 300 product.

You may continue selling existing stock, but you must also accelerate

the research and development of the next-generation console. While no

strict technical direction has been set, you may continue using ROM

cartridges as the storage medium.

However, we also expect you to design a LaserDisc interface for the

Odyssey.

When they read the word LaserDisc, both men immediately looked up at

the same time.

"What Philips means..." the thin man blurted out, , "...is that they

want our Odyssey to become a *multifunctional home entertainment

device?!"

The old man smiled and nodded. "Yes. You're absolutely right."

Philips wants to make our Odyssey a comprehensive home entertainment

system.

They looked at their superior, eager for more answers.

The old man wasn't trying to hide anything. Slowly, he rose from his

chair, using the armrest for support. As he walked toward the window and

gazed out at the world beyond, he began to speak.

"Actually, when the board of directors called me in a few days ago, my

reaction was the same as yours.

It was only then that I truly understood why Philips acquired our

company. Their core purpose was simple --- to use us as a vehicle to

promote their LaserDisc video technology across North America.

You've all heard of LaserDisc technology. It was developed from optical

video recording technology first introduced in 1963. By 1969, Philips

had already succeeded in developing it, and by 1972 they were ready to

bring it to market.

But you must understand --- a new standard faces countless obstacles

before it can enter every household. The very first barrier is the old

standard that already dominates the industry. A monopoly already exists,

and the only way for technology companies to break it is to push the new

standard themselves."

He paused, then turned slightly. "So, after much consideration, they

chose us.

And the reason is simple: LaserDisc relies on analog video signals ---

and until now, only Professor Ralph Baer's home console in North America

used video signals at all.

That natural compatibility pleased Philips, and so they moved to acquire

us back in 1974.

Their original plan was straightforward --- add a LaserDisc port to the

Odyssey console and use it as a way to bring their video disc products

into American homes.

But to make that possible, Odyssey itself needed to maintain a strong

presence in the market."

He stood in front of the window for a long moment, then suddenly turned,

smiling at his two subordinates.

"So..." he asked softly, "do you know why they're angry at Ethan Jones?"

The subordinates instinctively nodded. If they couldn't see the truth by

now, they really would be fools.

Why had Philips suddenly taken such an interest in Ethan Jones? Why had they started questioning the company's performance?

It was all because of the Snake Game's popularity. If Snake had been

developed by their own Magnavox Electronics, they could have used it to

push Odyssey sales to new heights.

And with Odyssey's sales soaring, Philips would have the perfect

platform to introduce the LaserDisc standard to the American market.

Once every household had an Odyssey console with a LaserDisc

interface...

Philips could start lobbying Hollywood studios to distribute films and

TV shows on LaserDisc.

At that point...Philips would control the entire home video market.

But unfortunately...Ethan Jones didn't belong to them. Losing the genius

behind Snake had made Philips furious.

After all, who would willingly throw away such a golden marketing

opportunity?

"So..." the fat man muttered, "Philips doesn't care if Ethan Jones signs

a deal with Nolan Bushnell?"

The thin man swallowed hard. "They don't care how much we've already

spent suing him?

Were all those interrogations just Philips venting their anger?"

The old man was silent for a few seconds. Finally, he shook his head and

said quietly,

"You're right... but you're also wrong.

Philips cares very much about Snake. That's why they're holding us

accountable for losing it."

But at the same time, they realized that losing Snake Game --- or

rather, the rise of Ethan Jones --- had actually given them, and

Philips, a better opportunity.

The subordinates exchanged confused looks.

The old man smiled and continued: "A few days ago, when the chairman

called me in, he told me that Philips is very happy right now.

Happy that there is now a single dominant force in the arcade market.

When Ethan Jones single-handedly dominates arcade games, every other

company with great ideas will inevitably struggle --- short on funds and

short on market share.

Some of them might try to follow in Ethan Jones's footsteps and develop

CPU-based arcade games.

But most will shy away, afraid of the high costs and technical

difficulties, and simply give up.

That's when we can swoop in, acquire those companies on the verge of

bankruptcy at very low prices, port their once-famous games to the

Odyssey, and bring those talented developers into Magnavox."

He paused, his voice gaining strength. "Right now, we're the only

company making home consoles on the market.

At the same time, there are countless game companies out there too

scared to make new arcade machines.

All we need to do is take their great ideas, put them on our consoles,

and we can invade every household in North America in no time!

And that---" he smiled, "---is exactly what Philips wants to see."

The subordinates couldn't hold back their laughter. They weren't just

relieved their jobs were safe --- they were thrilled.

Using North America as the foundation to set the global standard for

video playback?

If that worked, wouldn't Magnavox become an untouchable monopoly?

At that point, they'd just be lying back, and their own salaries and

benefits... would skyrocket!

"So, you're saying Ethan Jones releasing Pac-Man is actually good for

us?" the fat man asked, incredulous.

"He's disrupted the entire industry --- and given us a second life?"

Then he quickly added, "I'll start gathering information on game

companies --- find out which ones are planning to pivot and which are on

the verge of bankruptcy."

The thin man nodded vigorously. "I'll contact the technical department

and have them explore adding a LaserDisc port to our next-generation

console --- or even building a LaserDisc player directly into the

Odyssey."

Their decisiveness pleased the old man. He nodded with satisfaction,

then waved them off.

"Go. Get to work."

But just as they were about to leave, the thin man suddenly stopped, a

thought flashing in his mind.

"Boss, there are two more things."

"What is it?" the old man asked, still in a good mood.

"Will our next-generation Odyssey use a CPU?"

"Of course."

"Then..." the thin man hesitated.

The old man immediately understood and replied, "Choose Intel."

"Understood." The thin man nodded.

"What's the second thing?" the old man asked.

The thin man hesitated again before speaking, clearly uneasy.

"What if... Ethan Jones decides to make a home console too?"

Though he didn't want to bring up the worst-case scenario, someone had

to say it out loud.

"If Ethan Jones builds a console, all of us together might not be able

to stop him.

Because his creativity is just... too strong."

These words made the old man smile faintly. He nodded and said,

"Do you really think Ethan Jones can still keep producing brilliant

ideas after creating both Pac-Man and Snake?"

"Oh---Do you really believe what Steven Spielberg says?

Spielberg was clearly just flattering him. Ethan Jones is just a man,

not a god!

I'm certain he doesn't have any more brilliant ideas left in him!"

Those absolute words made the thin man swallow hard.

His hesitant expression made the old man chuckle and shake his head.

"Alright, alright. Philips has already prepared for the worst.

They've considered the possibility that Ethan Jones might come up with

new ideas.

But after their assessment, they concluded that while he does pose a

threat, it's not a major one.

Philips is currently developing a new technology with Sony that will

allow optical discs to store data.

Think of it as a CD version of a ROM cartridge --- with several times,

perhaps even ten times, the storage capacity.

When that technology arrives, no matter how creative Ethan Jones may be,

the entire industry will still have to use our platform.

So, all we at Odyssey need to do is hold on until that technology is

released.

And that shouldn't be too difficult, right? After all, Ethan Jones is

still busy having fun in the arcade industry.

And even if the North American market reaches its limit, there's still

plenty of opportunity for japan to expand.

If I'm not mistaken, Nintendo is the licensing agent for Snake Game,

isn't it?

Oh, this really is divine favor for us at Magnavox Electronics!

Go call our old friend Hiroshi Yamauchi. Tell him that Ethan Jones's

Pac-Man has swept across North America and is projected to earn over a

billion dollars.

Tell him the MOS 6502 he owns is the best CPU in the world for both

arcades and consoles.

And then..."

A bright smile spread across the old man's face.

"Trust me --- Yamauchi will be furious with him."

The subordinates couldn't help but grin as well.

Because they knew one thing for certain--- *the future looked very

promising.

Note:

① In reality, Philips acquired Magnavox with the goal of promoting its

own video disc standard. They secured the North American patent in 1978,

and Magnavox machines continued to be sold into the 1990s.

② CD-ROM technology was jointly developed by Philips and Sony.

③ You may have heard the story of the console war of the 1990s. In

short: Sony originally partnered with Nintendo to develop a game

console, intending to use it to promote their CD standard.

However, when Nintendo found the contract terms unfavorable, they broke

the deal and instead collaborated with Philips to work on a console

project. Sony, left on its own, developed its own console --- and the

PlayStation was born. Nintendo suffered a major loss, while Philips, who

played the role of "third party" in this drama, effectively lost its

chance to dominate the industry.

But in fact, long before this well-known story, Philips had already made

two attempts in the 1970s to set industry standards.

As mentioned earlier, Philips used Magnavox (actually PolyGram) to

promote both the video disc standard and the compressed optical disc

standard. In other words, the first company that tried to leverage video

games to set industry-wide standards was not Sony --- it was Philips.

So why did Philips fail?

There were two main reasons:

1. Bad luck: The Odyssey console simply couldn't compete with

 Atari's dominance in the market.

2. Worse timing: When Philips introduced CD-ROM technology in 1982,

 they planned to release a second-generation Odyssey in 1983. But the

 infamous E.T. video game disaster of Christmas 1982 collapsed the

 entire North American game market. Atari's downfall spooked Philips

 so much that they canceled the Odyssey 2 project entirely.

Thus, by the time Philips partnered with Nintendo, it was already their

third attempt to set a new industry standard.

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