Chapter Twenty-Seven: Blizzard Entertainment

"I disagree with the acquisition! I believe we should establish our own company. At present, all our funds come from the futures market, but Weihua has also mentioned that opportunities like those from January to April this year won’t reappear in the next few years, and much data indicates that our country’s economy is on the decline. This is actually the perfect time for us to step into real industry, especially since we have ample funds. Besides, Nintendo is all the way in Japan, far from us. We have no control over it. Are you suggesting one of us should move to Japan?" Mary asked.

"I also support setting up our own gaming console company!" Jessie declared. In Weihua’s heart, he too hoped to create a gaming console company. This was an experiment. In the future, he planned to produce VCRs, communication products, computer components, and other electronic goods—trends that would dominate future electronics expos. He would need a large number of managers, and using a gaming company to train and gather talent was also laying the groundwork for what was to come. However, he currently had no one to manage the gaming company, as he and the three women still had to complete their studies. So he voiced his concern. Upon hearing this, Kathleen said:

"If we decide to establish our own gaming company, we can simply hire someone to manage it—a professional manager. We could use a headhunting firm to help us find talent in this field, so there’s nothing to worry about. However, I think acquiring a domestic company would be simpler. There’s no need to acquire a Japanese one!" (Note: The term ‘professional manager’ may not be historically accurate; please disregard.)

"No more discussion. I’ve decided—we’ll set up our own gaming company. This will be our first attempt, and in the future, we’ll establish many more industrial companies. It’s a good opportunity for us to gain experience. Tomorrow, we’ll begin preparations. I’ve already thought of a name for our new gaming company: Blizzard." Weihua made the final decision, and thus was born Blizzard, destined to become the world’s largest gaming company.

Each of them had their own roles: Weihua was responsible for the technology behind the cartridge-based consoles; Jessie handled the patent applications—not just in the United States, but also in Japan and throughout Europe. Kathleen took charge of company registration, while Mary continued to manage investments.

Weihua worked tirelessly for over a month. With the data preserved by the bio-computer, he possessed the ultimate cheat code. Within that month, not only did he successfully design the cartridge-based console, but he also programmed several exclusive game cartridges, including the future classic Tetris, as well as Super Mario, Tank Battle, and Contra. Jessie completed the patent applications within a few days, and then moved on to selecting a factory location, choosing suppliers, and recruiting workers, technical staff, and managers. It wasn’t until August 1974 that Blizzard was formally established, and the first cartridge-based console rolled off the production line.

In September 1974, Blizzard’s consoles and game cartridges officially went on sale. In the first month, seventy thousand consoles and two hundred thousand cartridges were sold, giving Blizzard a spectacular start. Each console sold for $180, each cartridge for $40, with a profit margin of $120 per console and $25 per cartridge. The company’s first month’s profit reached a staggering $134 million. (Note: The profit figures for the cartridge-based console are fictional; please disregard.)

Blizzard’s astonishing profits stunned Jessie, Mary, and Kathleen—and even Weihua himself. Only then did he realize how Nintendo in the seventies and eighties managed to leave Japanese giants like Sony and Panasonic behind—the profits from monopolizing the industry were simply too high. Having tasted the first fruits of success, Kathleen devoted herself entirely to Blizzard. Since Jessie could not neglect her studies to handle patent applications in Japan and Europe, they hired a law firm to take over, allowing Jessie to focus on this task. Weihua took charge of overall strategy, and from then on, their division of labor became increasingly clear.

By September, everything at Blizzard was running smoothly. Weihua and the three young women found themselves with much more free time, so they resumed their morning exercise routine, which had been interrupted by their busy schedules. One morning, Weihua was running with the three women close behind when a girl caught up from behind. She quickly reached Weihua’s side and said,

"Weijun, it’s been a long time!"

Weihua turned to look and saw that it was Sakurako Kinoshita. He promptly replied,

"Miss Sakurako, it’s been a long time! How have you been? I’ve been kept quite busy lately—have you already enrolled?"

"Thank you for your concern, Weijun! I’ve passed the entrance exam and am now a student at the academy. I heard from my cousin that you’ve been very busy recently, so I didn’t want to disturb you. Now that you have more time, can I finally consult you on martial arts? I’ve been waiting for this chance for a long time!"

"Weihua, who is she?" Kathleen asked. Jessie and Mary also gathered around, and Weihua had no choice but to stop and introduce them all.

"Sakurako, this is Kathleen, this is Jessie, and this is Mary. All three are my friends and important business partners. My success is due to their help." Then he said to the three women,

"This is Miss Sakurako Kinoshita from Tokyo, Japan, cousin of the head of the Kinoshita Dojo, Kinoshita Nosuke. She’s now a student at MIT as well, so she’s our junior. You’ll have many opportunities to interact in the future. The Kinoshita family sent Miss Sakurako to America to facilitate cooperation with us. From now on, she’ll be responsible for communication and coordination between us and the Kinoshita family. Japan will be a key area for our future investments."