Silicon Valley Layout

There was a few seconds of silence on the other end of the phone, then Tom's tone became more serious. "It sounds like you want to solve more than just internal communication problems."

"Of course." Takuya sat up straight. "I've prepared three software programs and plan to establish a completely new, independent company in the United States to operate them."

He briefly explained his ideas for email clients, BBS, and instant messaging software.

"We can package and sell the email client to businesses or retail it to individuals. But the other two, BBS and instant messaging, I want you to make them freely available to internet users worldwide under the new company's name."

"Free?" Tom's voice rose instantly, filled with a businessman's wariness. "Takuya, what are you thinking? We're a business, not a philanthropist."

"Tom, this is what I'm thinking," Takuya carefully chose his words, "Imagine the current internet as a newly discovered American Continent, empty and devoid of life, with only a few explorers and scholars. There's not much anyone can do on this new continent. What we need to do isn't rush to strike it rich, but find the most convenient location, plant the Sega flag, and build the first town!"

"The BBS is our tavern, and instant messaging is the telephone line connecting every household. We use 'free' to attract everyone to settle in our town. Once they get used to living, communicating, and sharing here—with all the goldmine news coming from our tavern—then this town itself becomes an inexhaustible gold mine!"

There was no response from Tom Kalinske.

He was a marketing genius and instantly understood the ambition behind Takuya's words.

"Once we gather a user base," Takuya lowered his voice, like a devil's whisper, "GG, value-added services, user data— Tom, we'll always find a way to monetize it!"

"-My God." Tom finally found his voice, his tone a mixture of shock and fervor.

"So, you need to set up a new subsidiary as soon as possible," Takuya instructed. "You think of the name yourself. It has to be cool, like the names those geniuses born in garages in Silicon Valley would come up with. We need to make everyone think that this is an internet miracle that belongs to the United States themselves."

"I'll get on it right away!" Tom replied excitedly. "The company address will be in Silicon Valley."

Nakayama Takuya held the receiver further away and rubbed his ear.

He could picture Tom on the other end of the phone, waving his arms excitedly, his spittle practically flying across the Atlantic Ocean.

"Calm down, Tom." Takuya waited until Tom's excitement subsided before speaking slowly, "The town is nice, but it's not a peaceful wilderness around. There are hungry wolves and dragons."

There was a moment of silence on the other end of the phone, then Tom's voice turned serious. "What do you mean?"

"Our system, BBS and instant messaging, is essentially software; it runs on an operating system. Tom, which operating system is most widely used in the United States, or even the world?"

This question doesn't need an answer.

Tom: Kalinske reacted almost immediately, his excitement quickly cooling and turning into vigilance. "Microsoft's MS-DOS."

"That's right." Takuya's voice was calm. "The bigger the commotion we make by offering free access, the more attention we'll attract. He can be unreasonable and bundle something identical, or even worse, into his new system, then tell all users, 'Hey, my system comes with this, for free.' What will we do then?"

There was a deathly silence on the other end of the phone.

Tom had clearly considered that terrible prospect.

"This is just the visible dragon," Takuya continued, his tone completely flat. "There are also the invisible wolves of Wall Street. They'll pounce on us as soon as they smell blood. Once our user base and influence grow, they'll do everything they can to swallow us whole with capital, leaving nothing behind. Sega isn't short of money right now, but we're in the physical entertainment business. Compared to those financiers who play the numbers game, we're still too honest."

Tom's breathing became somewhat heavy.

He was a marketing genius and had naturally heard of Wall Street's infamous reputation.

"Therefore, we need allies. Or rather, we need a shield."

"You mean-"

"Once we've reached a certain stage of development, we'll proactively approach Microsoft," Takuya proposed. "After the new company is established, we can seek a round of financing. We can give up a small portion of our shares, say five percent, or even ten percent, and invite Microsoft to become our shareholder."

"What?!" Tom's voice rose another octave. "Inviting that dragon to sleep in our vault? Takuya, are you crazy?"

"No," Takuya chuckled, correcting him, "Tom, you must remember, what we're giving up is equity, the right to dividends, but definitely not operational decision-making power. We can cooperate with their system, even form an alliance, but the operational control of the software itself must remain in our hands."

Takuya paused, a sly glint in his voice. "Think about it, if Microsoft becomes our shareholder, wouldn't they make the same thing themselves to compete with us? That would be attacking their own assets. Besides, with Microsoft's prestigious brand, those hungry wolves on Wall Street would have to think twice before messing with us, wondering if they'd provoke an even fiercer dragon."

On the other end of the phone, Tom: Kalinske fell silent.

He was rapidly processing Takuya's idea.

After a long pause, Tom let out a long sigh on the phone, "My God— Takuya, you were right." Tom's voice carried a hint of relief. "I'll get on it right away! But, Takuya, dealing with those bastards at Microsoft and Wall Street is much more complicated than selling game consoles."

"I know." Takuya leaned back in his chair, watching the neon lights of Tokyo gradually illuminate the night view outside the window. "So, Tom, you need to find some reliable lawyers to help you."

"I understand," Tom nodded, adding, "The business in North America is growing and becoming more complex, and I can't handle it all by myself. The management team and Legal Department here also need to be expanded."

"North America will be the world's largest gaming market in the future, so this request isn't unreasonable, especially considering we also want to expand our internet business. Just write your application to the board, and I'll support you at the board meeting." Takuya agreed with Tom's plan.

After discussing the progress of projects being pursued at the United States headquarters, the two hung up the phone.