William White, a man with too much time on his hands, lived a rather outrageous life. He had everything important arranged for him, except for that treasure trove.
He was enjoying himself, but signs of a collapse were emerging in the video game market. In just six months, his shoddily made game cartridges sold astonishingly well.
However, that was the beginning of the end. Once licenses were opened up, there was no stopping capital from coming in. That's just how it is in the gaming industry -- anyone with a bit of programming knowledge thinks they can make a quick buck.
You didn't even have to worry about distribution. As long as the product was decent, someone would either buy it outright or invest in it. Frankly, the entry barrier was alarmingly low.
To be sure, with so much gaming software out there, some good products would emerge. But more than 90% were poorly made. If you didn't end up throwing up from playing, it could be considered a good game.
Treat consumers like fools, and there was only one outcome -- they voted with their feet. Faced with a sudden downturn in the market, many game developers failed to learn from the situation and instead doubled down on churning out junk.
The cost of game cartridges kept dropping, and the price was now below a dollar. If they really couldn't sell, they could always lower the price.
Soon, games at $4.99 started appearing, along with $9.99 four-in-one games. In short, the glory days of the gaming market were over, and it was headed downhill.
...
"Tom, don't worry about it. Just sell off our stock of cartridges, even if it means getting back a measly $0.99," he said.
"Understood, sir. I'll get right on it." The inventory wasn't large, and Tom was confident he could clear it out quickly. As for the future of the market, it was all up in the air.
William White and his company, Legendary World, anticipated today's situation. But they hadn't expected it to unfold so quickly.
When it came to the stock market, there really wasn't much to say. No matter how much you buy back shares, stock prices would still plummet. But this time, not many people dared to short sell.
...
The main culprit was, of course, the Justice Department. The American public easily accessed information thanks to NBC inundating them with coverage of the actual case.
However, there weren't too many problems across the Pacific. Simply put, everyone had different consumption habits. Word of mouth was vital over there, and stores were reluctant to sell subpar games.
Surprisingly, game console sales weren't significantly impacted. While they weren't flying off the shelves like before, they still sold well.
The Justice Department was indeed arrogant, but they couldn't be that arrogant. If they destroyed a company worth billions, the backlash they'd face wouldn't just be criticism.
Legendary World's aggressive promotions pushed the industry toward the brink. From that point on, people were just competing on price.
No more investments, no more programming -- everyone's first thought was simply how to clear out their stock.
A once-thriving company lay in ruins, and an entire industry had lost its luster.
When all of this happened right before people's eyes, it left them devastated. After news came in that the Asian market was largely unscathed, you could only imagine the public's outrage.
At this point, William White had nothing more to say. There was no need; the facts were indisputable.
Legendary World chose silence amidst the reporters' clamor. Their grievances didn't need to be voiced; everyone could understand it on their own.
...
"Wow, this could really backfire. Anyone who tries to play the antitrust card again is going to face some serious pushback," one executive remarked.
"Sir, isn't this a bit too harsh? William White's paper losses must be too significant."
"Paper losses? You're talking paper. How much paper do we have at Morgan Stanley? Does that really matter?"
In finance, paper assets are important, but the crucial point is being able to mobilize cash when it counts.
...
Game manufacturers in Asia felt deeply about what was happening. They found substantial justification for all of Legendary World's restrictions. An unregulated market wouldn't solve anything.
Without the warnings from relevant parties, they would likely still be quite happy right now. With Legendary World hitting a snag, they could have seized the opportunity.
But just think about it -- that's unrealistic. If they poked the bear now, trouble would follow.
They realized that all those tricks William White was playing might just be aimed at them. Just look at the PS2's partnership terms, and you could see how cautious he was of those partners across the ocean.
No matter how smug the Justice Department got, it wouldn't change a thing. Well, they could boast that without monopolies, game prices were dropping.
While that was a fact, it was a pity; players wouldn't accept that explanation. They wanted fun games, not this trash.
...
"Sir, the stock market in America is overheated. Shouldn't we short some of it?" one associate suggested.
"Pfft, Filson, while that's a good idea, I'm not planning to act on it. Everyone talks about how beautiful the emperor's new clothes are; I'm here to tell them the emperor isn't wearing anything. Don't worry, no one's going to thank me for it."
"Sir, shouldn't we at least secure the remaining stock's value?"
William White thought it over and shook his head firmly. He didn't intend to always be one step ahead. Just selling out early was enough to attract attention; if he started shorting, that would raise eyebrows even more.
"Filson, let's get ready but hold off on acting; we need to wait for the right moment."
"Got it."
*****
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