[Chapter 574: The Importance of Content]
The White System didn't place much emphasis on hardware; they rarely did OEMs and most of the time sold licenses directly. When it came to software, however, they had a completely different attitude -- extremely meticulous.
The same was true for gaming; the profit margins for Legendary Games were downright terrifying.
"Sir, are you sure you want to do this?"
"What's wrong? Don't you like it?" William White chuckled at the greasy old man.
"Sir, we already have an equity incentive plan in place. If we also share profits from creative ideas, won't that impact our bottom line?"
"Profit? When have I ever cared about profit? Let me tell you, Tom, I'm not satisfied with the gaming department right now. They lack the spirit of innovation, and in order to push them to try harder, this is something I have to do."
"Well, I admit the guys below are a bit too full of themselves. With this in place, competition among teams will become fierce."
"Tom, the folks at Japan are catching up. These guys are odd; it's like they were born to love electronics, and their imaginations are wild enough. If it weren't for the franchise restrictions, we'd already be in deep trouble. By the way, Tom, we need to implement a bottom-tier elimination system. I don't need teams and individuals who lack capability."
William White's corporate culture leaned towards a relaxed atmosphere. It clearly had hints of what would later become Google's culture. In retrospect, it might not be enough to just be indulgent. Americans can be quite lazy, and it won't work if you only use carrots; you'll need a whip too.
Tom left, sweating profusely. As the chief strategist, Filson had to voice his suggestions even if the boss didn't like them.
"Sir, if we push this forward, the guild might have objections."
"If they have objections, they can resign; they won't be getting a cent in severance. These guys are nothing but parasites. I'm running a business, not a charity."
Filson forced a smile; this might just be American culture. Otherwise, how could one explain the losses faced by steel mills?
Does America really not use steel anymore?
Clearly not. Not only is Japan exporting, but Europe is as well. From any angle you look at it, their costs are higher than ours.
The quality of steel from Japan is good, and their prices are cheap. Strangely, they don't resort to dumping; exporting steel to America is still a very profitable business.
This is true for steel, automotive, and even chemical industries. It's one thing to talk about these traditional industries, but the semiconductor industry is no exception. William White didn't want this bad habit to spread into the game development sector.
As a precaution, not only did he want the bottom-tier elimination, but he also needed to establish a subsidiary in Japan. Should things go south in America one day, William White planned to dissolve everything.
In his view, a good idea or a solid concept was far more satisfying than making an extra several million dollars. Great movies can become games, and great games can likewise turn into films.
"Filson, if we lose our ability to innovate, we'll soon become a company like IBM. To be honest, their current predicament is just the beginning."
"I understand, sir. I'll notify the legal department for follow-up. Without external competition, there will be some issues."
"Laziness, despair, and a lackadaisical attitude -- I really can't figure this out. Aren't the employees I hired supposed to be tech whizzes? In my mind, techies should be as aggressive as wolves on Wall Street. While they're young, they should be looking to make some money. It's really frustrating me; if it comes down to it, I'll just start over." After being William White's strategist for ten years, Filson understood very well that the boss was not joking.
"Right now, there's no need for that. I believe they will be greatly impacted this time."
...
As a publicly traded company, such an important plan couldn't go unannounced. A group of elites on Wall Street were baffled; they just couldn't comprehend how, when things were booming, he could still be dissatisfied. If more executives acted like him, what future would others have?
CEOs who consistently brought substantial returns to their companies typically face little scrutiny, and this instance was no exception.
And what about those unions that were jumping up and down in protest?
William White had never had a good relationship with them; they'd just kick up a fuss for a bit. Beyond that, any further actions would certainly lead to a purge.
In such an economic environment, losing a job equated to losing everything. Your mansion would be reclaimed by the bank. Your car and yacht would be auctioned off, and your wife would leave. To avoid all this, one needed to act decisively.
Countless predecessors' misfortunes had taught them that if you don't court disaster, you won't face it.
William White's radical approach was also due to the pressure he felt from Japan. Over the years, Japan's game providers had made remarkable advances. Simply suppressing them wasn't a long-term solution.
This current balance was hard-won. Unless absolutely necessary, it was best not to break the rules.
A good game can easily turn into a series. With time still on their side, they must widen the gap between both sides.
This was similar to movies -- the more series you have in hand, the stronger your competitiveness. Sooner or later, content providers would surpass hardware providers. What William White was doing now was merely a delay tactic.
He had met with the overseas department minister from Nintendo, and given the sensitivity of these players, William White could only express admiration.
No matter how much he wanted to delay, it could only last for three months. If it went on too long, there would surely be disputes. In fact, once they learned the basic configuration, those from Japan could start their preparations.
For a good game, the most important elements are the background and concept. When it comes down to the actual programming, everyone's level is pretty much the same.
...
"Dad, is the guild just going to let this slide? That seems way too naive."
"Hey, what do you know? They're scared. Others may care about those compensations, but William White doesn't. I think he's even a bit pleased by it."
"Geez, to lay off employees in this environment -- that's really something. Others are afraid to lose money, yet he's making such profits and still opting for layoffs. That's truly bizarre."
"Ha ha, I think this is the opportunity that guy has been waiting for. By the way, could you discuss with him whether some PS3 production can be moved to America? It's a business worth over a hundred billion dollars that's almost been messed up."
Senior Bush could say that because of his position. The Donkey wouldn't think that way; they might even believe that without Legendary World, there could be a Fantasy World. People always need entertainment, and since there's a demand, someone will engage in that kind of business.
Of course, right now they dared not bring up Legendary World. The stakeholders involved were too numerous; they didn't want to offend everyone at once. Most importantly, if things went poorly, William White might bail.
Just think about it: if America's richest man thinks it's unsafe, how should everyone else decide?
...
The combination of the stick and the carrot is indeed quite effective. Within just a few days, noticeable changes occurred among several companies.
Being eliminated was certainly frightening, but the profits the boss dangled were real. If you want the fancy cars and beautiful women, you'll have to work hard; otherwise, you'll end up on the streets. No one thinks the boss is joking -- if you don't want to be the one driving away the monkeys, it's best to put in a little effort.
*****
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