Chapter 201: Chapter 201: Disney's Attention - Part 2
He was fortunate not to burst into laughter, because what came next was Roy Disney painting a picture of a potentially beautiful future—
"The world's first truly profitable video game was Atari's 'Pong.'"
"In three years, they sold eight thousand units."
"At a price of a thousand dollars each, the revenue here is eight million."
"But according to incomplete statistics, the arcade version of 'Pong' should have shipped between twelve to fifteen thousand units in our country alone, because once Atari's imitation was successful, other companies also copied the product, and this game alone generated two hundred million dollars in revenue in our country, with each machine generating a profit of over thirteen thousand dollars!"
"Looks like a scary number, right?"
"For those who bought the machines, the return on investment is thirteen times!"
"To quote a European philosopher, this profit could kill a person four times over!"
"But since 1975, the numbers related to video games have become even scarier!"
Roy Disney patted his thigh, laughing, "The best-selling video game of 1975 was your 'Snake.'"
"Atari claimed a total of ten thousand units shipped, including many circuit boards, but whether this number is true or false, I am skeptical."
"Because at the peak of 'Snake's' craze, during the summer of 1975, our Disney parks in California actually saw a decline in foot traffic! Both adults and children were off playing your game, which surprised me so much that I ended up buying dozens of units for the park!"
"And in that year, 'Snake' actually generated three hundred million dollars in revenue."
"Ten thousand machines, three hundred million in revenue, what does that represent? It means the earning power of each machine doubled from the previous thirteen thousand dollars!"
"Last year was even scarier, your 'Pac-Man' generated five hundred million in the market!"
"This year, 'Star Wars'…"
"Will be even higher!"
Roy Disney locked eyes with the two of them.
His cloudy pupils filled with envy.
Seeing that they had no intention of speaking, he continued on his own: "I don't know if you have this feeling, but the video game market is booming. In just a few years, the video game industry's output value might surpass the entire Hollywood!"
"Or in other words—"
"Traditional film and television entertainment will tremble in the face of video games!"
"Because no matter how hard we in the film and TV industry try, we can't catch up with the pace at which video games make money! You're not just making money; you're practically robbing it!"
Roy Disney continued to pour himself a drink.
Then he toasted Ethan and Evelyn.
Seeing Ethan shake his head not drinking, Evelyn politely took a sip before he gulped down his drink, continuing, "I have evidence to back up my statement."
"Mr. Jones, you just mentioned on stage that 'Star Wars' could reach five hundred million in box office? Although I don't know your basis, I now assume this prediction will become reality."
"When 'Star Wars' reaches five hundred million in box office, how long will it take?"
"One year, two years, three years?"
"Five years, eight years, ten years?"
"It must be a long-term screening process, possibly through several rounds of re-releases."
"Otherwise, it couldn't possibly achieve this box office figure!"
"But what about you?"
"'Pac-Man' earns five hundred million in a year!"
"That's in one year!"
Roy Disney's voice trembled.
Because this was a number unimaginable to all Hollywood companies! But Ethan had something to say.
However, before he could speak, Evelyn chuckled and said, "Oh, Mr. Disney, your basis is somewhat biased. Although our 'Pac-Man' generated five hundred million in value within a year, the vast majority of the revenue had nothing to do with us."
"It was earned by the arcade owners."
"Or rather, it was earned by the land manufacturers."
"So, in a way, we're all working for the land manufacturers, right?"
"Yeah~Yeah~Yeah~" Evelyn's words made Roy Disney nod in agreement, "You're absolutely right, Miss Johnson." But the next second, he laughed again, saying, "But that's only temporary, right? Your current concessions are just cultivating the market."
"In the future, possibly within a few years, you'll earn even more."
"I don't understand what you mean." Evelyn turned to look at Ethan.
Ethan also showed a bewildered expression.
Their feigned ignorance did not escape Roy Disney's notice, who also laughed, "Oh, you two, I've said it before, I must be the person in the world who understands video games the best right now."
"I say you can earn more because the direction of Magnavox and Atari is correct."
"Home video game consoles are the real channel through which game companies make money!"
"After you mature the market, you will definitely launch your own home console!"
"That's when you start raking in the money."
"Games like 'Pac-Man' and 'Star Wars', priced at nineteen ninety-nine, aren't expensive, right?"
"If you sell a million copies, that's nineteen million nine hundred thousand in revenue!"
"Sell ten million copies, and that's one hundred ninety-nine million!"
"And I believe your games can sell at least twenty million copies in our country!"
"As for why…"
Roy Disney held up two fingers, "First, because you already have a fan base. Who in America doesn't know your games are fun?"
"Second…"
"It's because you have no competitors! Atari and Magnavox have been beaten by you! When the top brass have been replaced, it takes time to recover to the previous state. To continue competing with you? If they're not out of their minds, they wouldn't even consider it!"
"If we have to make a comparison, after launching the home console, your machines would be like mobile Disney parks, able to continuously extract profits from both adults and children!"
"Wow—" Roy Disney's words made Evelyn exclaim in surprise.
The girl looked at Ethan, smiling, "So we're that powerful now?"
"I had no idea."
"Me neither."
Ethan shrugged, "Maybe because we don't have a Disney park?"
Though he said that, Ethan was secretly astonished. Roy Disney might truly have grasped the essence of the matter. His eagerness to crush the new machines from Atari and Magnavox was to seize the new high ground of home consoles.
That indeed is a market bigger than Hollywood, or rather…
A legitimate trillion-dollar market, of which there are few.
And those that make money fast…
Are even rarer.
"Mr. Disney, I think I understand what you mean now," Ethan said. "You're very bullish on the video game market and want to join in, right?"
"Yes, but not exactly."
Since Ethan was willing to talk, Roy Disney directly stated his intended deal, "We want to join, but we won't make games ourselves, nor do we wish to hire others to make them, because we know, you are the best people we can find."
"So, a partnership is what we want to engage in right now."
"And for the compensation... we'd like to pay in a different form."
He picked up a postcard on the table, "Indeed, 'Snake' and 'Pac-Man' are two great characters. If handed over to Disney, we could help you make even more money."
"We could create a story for them, craft animations, to enhance their influence."
"After all, to the public now, they're just characters being controlled. We need to clothe them in a friendly exterior to make the paper characters become three-dimensional."
"After that, whether it's crafting toys or selling clothes and accessories, that would all become a natural thing to do, just like, say, your family runs an orchard growing navels? Then don't bother exporting them, just process them locally, whether it's orange juice or soda, and then slap a 'Pac-Man' little orange label on it, put it out for sale…"
"These derivative products are very profitable!"
"Or say, the green little snake in 'Snake' eats apples, right?"
"You could also make apple-flavored juice or soda, or even apple pie, and other apple-related products, then brand them with the snake logo."
"With a complete story, I guarantee your products will sell like hotcakes!"
"If you're still worried, I can even sign a guaranteed sales contract on behalf of Disney with you!"
"All your derivative products can be sold in Disney parks!"
"Disney only takes a ten percent venue fee, the rest is all yours!"
"As long as you're willing to take our game orders!"
"How about it—"
"Deal or no deal?"
With that, Roy Disney straightened up.
As if sobered up, his eyes blazed with intensity.
And on his face…
Was written the lure of money!
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