Chereads / Game Market 1975 / Chapter 48 - CH48 - Sell Atari

Chapter 48 - CH48 - Sell Atari

Ethan found Woz's words a bit perplexing, but his assistance brought joy to Ethan.

After a delightful breakfast, humming a tune and singing a song, Ethan started cleaning up the dishes at home.

Woz, the chubby guy, went to work at Hewlett-Packard as usual, but Jobs...

He followed Ethan into the kitchen.

At first, Ethan was a bit curious, but as he washed dishes and asked Jobs what was on his mind, Jobs didn't beat around the bush. Leaning against the door frame, he said, "Ethan, last night I did a quick calculation. The cost of making a computer motherboard with the 6502 chip should only be $250, while the Altair 8800 computer motherboard is priced at $439."

"I think you should get my drift, right?"

Jobs blinked at Ethan. "I just realized that Stephen's computer has tremendous business potential. And then you suggest that 6502 has an even greater business landscape?"

"Wow, that's quite a coincidence, isn't it?"

"And, I feel that, in your words just now, only half of it should be true, right?"

"Using 6502 for games? No! No! No! That's too extravagant!"

"So... what you really want to do is a computer, isn't it?"

"Hmm?"

Ethan chuckled at such a straightforward question.

"Oh, Steve," he elongated his voice.

With both hands supporting the sink, he exclaimed, "I really don't know what to say. I feel like we have a great understanding!"

Steve Jobs wasn't wrong. If he really got hold of the 6502, what he wanted to do would definitely prioritize supplying Apple.

The reason was simple: to maximize profits.

Think about it, a computer motherboard loaded with 6502 could be sold for over $300, while a game console could only be sold for $199.

With the CPU prices being the same, anyone would know that the former earns more.

As for the argument that the core selling point of a game console is games?

A computer's core selling point includes software too!

Once office software is developed, the profit wouldn't be lower than that of games.

So, Ethan didn't even consider such a question with no result, and besides, he wanted it all now.

In this situation, following the course of history, taking advantage of the high CPU prices to squeeze out profits from computers, and then, when CPU prices drop, repeatedly harvesting profits from game consoles, that's what a businessman should do!

If you have to describe it, it's like crossing the river by feeling the stones in the previous life.

"Yeah."

Ethan's acknowledgement made Jobs extremely happy. "This shows that our visions are the same!"

Before the words fell, he clenched his fist with one hand, pressed down, and made a cheering gesture towards Ethan.

"Hope you succeed!"

"I'll be waiting for your good news!"

"Wait!" Seeing the other person about to leave, Ethan quickly stopped him and said, "Don't be in such a hurry."

"Since you asked me a question, let's be fair. I want to ask you a question too."

"Sure," Jobs didn't mind, "Any question is fine."

"I want to know why you want to sell computers. Is it because they make money?"

Yes, Ethan had always been curious about this.

In his memory, the media in his past life always said that Jobs founding Apple was inevitable because he wanted to change the world from a young age. But this standard, overly typical American dream narrative... who would believe that? After all, Jobs wasn't some rich kid!

The likes of Ralph Baer, who had already achieved financial freedom, talking about dreams could be understood.

But Jobs, who was on the brink of survival, talking about dreams?

Wasn't that just nonsense!

Can't afford to eat, yet still fantasizing about a beautiful future?

It's really lofty to the point of making people want to cry!

So, when Jobs pierced through this layer of paper, Ethan wanted to know, what was this guy's original intention in founding Apple?

And with his inquiry, Jobs immediately blinked, puzzled. "Ethan, don't you know? I'm about to be unemployed..."

"Huh?"

Ethan was surprised. "What did you say?"

Jobs repeated, "I said I'm about to be unemployed."

"Because Nolan is preparing to sell Atari."

"What???"

This news raised Ethan's voice.

He looked at Old Jobs with some confusion, "Nolan is going to sell Atari?"

"When did this happen?"

Ethan's surprise wasn't unwarranted, as in his memory, Atari's most famous feat wasn't opening the doors to electronic games with the arcade machine "Pong," but rather, while bringing joy to North American folks, it also personally closed the door with "E.T. the Extra-Terrestrial."

The Atari Crash should be a story that old gamers have heard.

And now, Jobs told him that Nolan Bushnell was planning to sell Atari?

This...

"Does the Atari collapse have nothing to do with Nolan Bushnell?" Ethan wondered. While he acknowledged the possibility, he felt that something was amiss.

As he pondered, Steve Jobs shrugged and explained the situation. After Magnavox formally sued Atari, the company's leadership was in despair. It was evident to everyone that they were heading for a sure defeat, and Atari would exit with a hefty fine.

Although eventually, thanks to Nolan Bushnell's efforts, Atari reached an out-of-court settlement with Magnavox, the fact that they couldn't release new games for a year left Nolan feeling disheartened. He wanted to sell the company while it still had value, avoiding leaving with nothing after bankruptcy.

In the days following the lawsuit, Nolan contacted several potential buyers, including Disney and MCA, both showing interest in Atari. Disney, especially, with its natural arcade marketing appeal. Disney parks were the perfect place to showcase electronic arcade games, having a fanbase that readily embraced new things and unmatched purchasing power.

Disney offered a purchase price of twenty million for the valuable Atari, while MCA, also venturing into the gaming field, bid twenty-two million. Nolan was about to agree, as it would secure at least fifteen million for him.

"But..." Steve Jobs paused, saying, "There was an unexpected turn of events."

"Nolan asked me to attend a trade show just to write his sales pitch, but unexpectedly, I found you there."

"When Nolan saw the 'Snake Game,' he wanted to close that deal first. He believed that a successful agency deal could make Atari more valuable."

"And now, this is the most valuable moment for Atari."

Ethan got it. No wonder during the negotiations, Nolan Bushnell and Don Valentine quickly changed the agency contract to one year after he confronted them. He initially thought he had intimidated them with a tough stance, but it turned out they just wanted to increase the company's value.

So, they wanted the giants to see that Atari and Steve Jobs maintained a good working relationship. Business was business, Ethan thought, shaking his head.

"So, you want to find an exit for yourself? Start your own company?" He refocused on Steve Jobs.

"Of course!" Steve nodded. "I've realized people like me are only suited to run our own companies. Working for someone is impossible because I always feel the boss is an idiot."

"Alright," Ethan nodded. "One last question. When did you find out about this?"

Steve frowned at this question, took a moment to recall, and then said, "Ethan, I swear, I only heard about it this month. And Nolan didn't tell me; it was a friend of mine, someone special in MCA."

"I apologize, but I can't reveal his name due to his unique position in MCA. We have a great relationship, but because of business secrecy, I need to keep it confidential."

"Okay, okay, no accusations here. Thanks for the information," Ethan clarified and added, "Good luck. If you need any help, just let me know."

"Thanks, brother," Steve sighed in relief, raising his right fist. "I won't be polite with you."

"Feel free," Ethan said, and they bumped fists.

As the crisp sound echoed, both of them smiled.

Steve Jobs then left the house. Whether he was going to work or not, Ethan wasn't sure. However, when the sudden roar and excited screams erupted, along with the eerie howling enthusiasm, Ethan marveled. He never expected the birth of Apple to be so hasty and the involvement so straightforward.

"Is this a done deal?"

"It seems like it?"

Ethan mumbled to himself, eyes narrowing into a smile. But the next second, he felt a bit uneasy. He had a sense that Nolan Bushnell had played a trick on him.

"I hope it's just a feeling."

TL Note:

After Magnavox sued Atari, Nolan wanted to sell Atari, which is something that happened in reality. The reason is quite simple – Nolan wanted to find a good parent for Atari because he felt he couldn't withstand Magnavox's lawsuit. As for approaching Disney, that's straightforward too. Nolan is a big fan of Disney, and when he went to California, he actually wanted to find a job at Disney, but it didn't work out. Even though he failed in job hunting and selling the company, in the end, when he sold Atari and opened a restaurant, the logo for his restaurant was still a mouse. This truly reflects a deep and enduring love.