CH59 - Party & Second Bonus

"Welcome, my friend! Steve Jobs, welcome to my party!"

"Hi, Barbara, nice to see you! Your outfit today looks great, and it really suits your hairstyle."

"Oh, so you're Mr. Vinton? Nice to meet you! I'm Ethan Jones... Oh, yes, Evelyn is my sister... Is this your wife? Mrs. Foster, hello..."

"Hello, Chuck! Here we meet again. Oh... why do you look so much better? Is it because things are resolved?... Haha, I didn't expect the law to cure ailments!"

August 16, 1975, Saturday.

The clear sky and pleasant weather set the perfect mood, but what stirred more excitement than the natural surroundings was a three-story villa in Palo Alto, the Bay Area. The place was buzzing with people at this moment.

Men and women of different ages and styles gathered, some because of Ethan Jones, others in response to Evelyn Johnson's invitation, all celebrating the success of "Snake Game."

Though months had passed since the release of "Snake Game," the party was deemed essential.

From Ethan Jones' perspective, it was an excellent opportunity to maintain relationships.

For Evelyn Johnson, it was a delightful way to enjoy life.

Their perspectives might differ, but as long as the goal was the same, they could enjoy the moment together.

As for why the party was held in Palo Alto...

The story behind it was quite interesting.

In the first round of bonuses from "Snake Game," Evelyn Johnson received close to two hundred thousand dollars. Not wanting to hand over most of it to the IRS, tax avoidance became her only choice. Personal tax strategies were limited – either invest or buy property. With no exciting projects available for investment, she chose to buy a house near the school, and this villa was her optimal choice.

The house was excellent, with six thousand square feet of living space, meeting all her needs. The front driveway and backyard garden made it the most eye-catching residence in the bustling downtown area.

Most importantly, the price was only one hundred and sixty thousand dollars!

"160,000 dollars? Is it that cheap?" Barbara couldn't believe it, sitting on the sofa, looking around, and exclaiming, "My place costs 180,000! And it's not as big as this!"

"That's because your place is closer to Stanford!" Vinton Cerf, wearing a hearing aid, spoke up, "How much time does it take to drive from your home to Stanford? And how much from here to Stanford?"

"But can the difference be twenty thousand dollars?"

"How could it not? Don't you often tell students that a lawyer's time is money?"

"Oh, Vinton, we're not in class now! Also, please lower your voice; I can hear you!"

The loud conversation between the two professors amused Ethan.

Vinton Cerf had some hearing issues and needed to wear a hearing aid regularly. His wife also had hearing difficulties, so even with the aid, their communication relied on yelling. Over time, his speaking style became headache-inducing, much like arguing.

Evelyn had shared this little story with Ethan. The girl advised him to speak louder when communicating with Vinton, not to scare him. Barbara obviously disliked this speaking style, as she was a soft-spoken person.

Shaking his head with a smile, Ethan shifted his gaze and was surprised to find Woz, the chubby guy, surrounded by other teachers. Curious, he went closer and overheard the conversation.

"Wow! Woz, do you actually know Evelyn's brother?"

"Uh... yes... we're friends..."

"Oh! Then you can't sell those little toys to the school through them again..."

"I won't, I won't." The chubby guy shook his head frantically.

This dialogue amused Ethan, prompting him to ask if the chubby guy had some unknown dark history. Hearing the question, several Stanford teachers immediately explained that, taking advantage of his position as an HP employee, the guy often sold quirky toys used for pranks to Stanford students.

Items like electronic chickens, electronic dogs, electronic bombs...

Since everyone knew about his situation, even Lockheed or Principal Fred Terman couldn't do much. They could only communicate with him when he made jokes, but that was the only option!

Helpless, Ethan burst into laughter, patting Woz's shoulder and praising him.

After the joy, he changed direction, going to listen to Mr. Foster and Chuck Peddle's stories on the side.

Half an hour later, Thomas' voice echoed in the courtyard.

"Guys! I've lit the barbecue! You can come over for a grill!"

Ethan and the others rushed into the backyard like a swarm.

Parties in Los Angeles might be extravagant, but normal gatherings were not that flamboyant.

Eating, drinking, singing, and dancing – that was the mainstream.

At 11 a.m., the gathering began. During the barbecue, Ethan even performed a few acts, played the guitar he learned in his previous life, creating a sensation. Even Evelyn, Thomas, and Linda were curious. When did Ethan learn this?

To this question, Ethan just brushed it off, saying he learned it during his silent three years.

This answer satisfied Evelyn, but Thomas and Linda, well, their daughter didn't even ask, and they didn't bother either.

Ethan's performance prompted others to showcase their talents.

Mr. Foster whistled, Wozniak told some jokes, Jobs, from somewhere, pulled out a harmonica, playing a Beatles tune. As for Evelyn, she sang a few songs by Barbara Streisand.

The lively gathering continued for a long time, until the evening sunset appeared, and they bid farewell to each other.

As it was customary in the U.S. to bring gifts to parties, Evelyn's new home was flooded with gift boxes. Considering the party's theme was celebrating the success of "Snake Game," Ethan and Evelyn had prepared special gifts for the guests.

Ethan had Jobs go to Magnavox to order twenty "Snake Game" consoles, and then he and Evelyn signed their names on the panels, packaging them as gifts for everyone.

This fact delighted Vinton Cerf and his colleagues, as in this era, anyone involved in computer research played electronic games. It was their best pastime in daily life. As for Barbara the lawyer...

"Oh, Ethan, how do I take this huge arcade machine home?"

Looking at the machine as tall as herself, Barbara crossed her arms, looking helpless.

"It's okay, Barbara. I'll take you home."

Thomas responded quickly, summoning his pickup truck.

At the same time, he said to the people around, "Who else finds it hard to carry? I'll take you too!"

"I might not be good in other aspects, but service is top-notch! Just tell me your needs; no need to be polite!"

...

Joyful times are always short-lived; after the party ends, everything returns to normal.

In the following two weeks, nothing significant happened. Except for Evelyn starting school, various matters proceeded smoothly.

Chuck Peddle's company successfully started the production of the 6502, and the first batch of two hundred chips reached the hands of Steve Jobs and Steve Wozniak. With the arrival of the chips, Apple I officially entered the production phase. Of course, the name "Apple" was what Ethan casually called it, as Steve Jobs hadn't yet thought about starting a company; he was still figuring out how to sell the yet-to-be-named Apple I.

For Ethan, these trivial matters were of no importance. Let Steve Jobs and the others handle them; his main concern was the emptiness surrounding him.

Every day he woke up, contemplating what to do.

Ah, these days were truly dull!

However, when September 10 arrived, a call from Nolan Bushnell brought some excitement. He informed Ethan that the second bonus for "Snake Game" had been distributed, and Ethan needed to reconcile.

This fact made Ethan even more helpless because he hadn't spent the first bonus yet!

Although he said he didn't need it, his actions were honest. After hanging up the phone, Ethan eagerly headed over.

When he arrived at Atari, the bear hug that greeted him nearly squeezed the life out of him.

"Oh, Nolan, I'm suffocating!"

Ethan patted Nolan Bushnell's back, hoping he would let go.

Nolan Bushnell, on the other hand, was ecstatic, yelling, "Oh, Ethan, if this is making you suffocate, then wait until you see the financial report later. Your head might burst with excitement and skyrocketing blood pressure!"

This statement filled Ethan with anticipation. Following Nolan Bushnell into the office, the document almost made him laugh endlessly. It detailed the performance of "Snake Game" in the central and eastern regions of the United States over the past three months.

The general overview was as follows:

Although Ethan didn't make a statement about the distribution of the first bonus in the previous negotiation, Nolan Bushnell chose to cooperate with Midway Games and Chicago Coin, two electronic arcade companies from Chicago.

However, the final agreement reached with them differed from the documents Ethan had seen before.

At Nolan Bushnell's request, Midway Games and Chicago Coin had to sell the "Snake Game" electronic arcade at a price of $1,300. They were obligated to provide board exchange services at a rate of $450 per board. This was to prevent price chaos in regions close to Texas, especially in the areas of the central United States.

After all, when merchants from Texas initially ordered the circuit boards for "Snake Game," the price offered by Atari was $400 per board. If the price set by the agents was lower than the original factory price, how could Atari continue doing business in the central region?

Therefore, control over pricing was crucial.

With the increased retail price, Nolan Bushnell and the negotiated profit-sharing percentages also rose accordingly.

For every electronic arcade machine sold, Atari would take 18% of the sale price.

For every circuit board sold, Atari would take 20% of the sale price.

In both cases, Ethan share increased to 15% and 18%, respectively.

Although Atari seemed to be making $39 on every electronic arcade machine and $9 on each circuit board without doing much, Ethan's share had increased. When Atari sold the electronic arcade machine at an external price of $1,200, Ethan's share was $180. Now, with the sale price set at $1,300, Ethan's share increased to $195. He magically gained an extra $15.

Since his own interests were elevated, Ethan didn't bother scrutinizing Nolan Bushnell and his team's share.

After all, they had increased the contract and added a bit of hardship pay, which was acceptable.

In the past three months, Midway Games and Chicago Coin sold a total of 3,722 electronic arcade machines, generating revenue of $4,838,600. They also sold 5,899 circuit boards, earning $2,654,550 in revenue.

After a simple calculation, Ethan and Evelyn's share of the bonus amounted to $1,203,609

When this figure appeared, Ethan couldn't help but laugh continuously!

For the past three months, during which he had done almost nothing, he had gained a bonus of over six hundred thousand.

This was very enjoyable!

Wait, no...

In the past three months, he had actually done something!

He had effortlessly gained a MOS 6502! Easily obtained Jobs' promise!

Haha...

He tried not to laugh too much!

Hehehe~

:)