"Allen, there's something I'd like to consult you about, to hear your opinion."
Phil Smith spoke to Lin BaoCheng with a solemn expression.
"Go ahead," Lin replied, somewhat puzzled at Phil's seriousness.
"It's like this — I also want to make games, to start a game company. What do you think?"
Phil asked cautiously. Galaxy Games was making so much money that he naturally had the idea of starting his own company. But he didn't want to risk damaging his relationship with Lin and losing his exclusive distribution rights.
Being the exclusive distributor of Galaxy Games was extremely profitable — visible, guaranteed income. Starting a game company, however, carried no certainty of profit, and even if profitable, the amount was unpredictable. He didn't want to risk losing a sure thing for an uncertain venture.
"That's your freedom, Smith. I have no objection," Lin said calmly. He and Phil were only business partners. It was normal for Phil to want to enter the industry after seeing the profits. The gaming industry never lacked competitors. Lin didn't believe a newly founded company by Phil could threaten Galaxy Games, so he had no reason to oppose it.
Phil asked nervously: "Allen, you won't stop giving me games to distribute because of this, will you?"
"If that's your concern, rest assured — that will never happen. Our cooperation will continue," Lin said firmly, giving Phil peace of mind. Changing distributors could affect arcade sales, and Lin had no reason to do that.
"Then thank you, Allen," Phil said happily. Then he added: "Allen, Thomas — how about you both invest some money too, and we start the company together?"
"If Allen is willing to participate, Goldman Sachs would be very happy to invest," Wade Thomas said, looking at Lin. Phil had already spoken to him beforehand. But without Lin's involvement, Wade had no confidence. Only if Lin joined would Goldman agree to take a stake.
Seeing them both looking at him, Lin said: "Smith, Thomas, you know I already have my own game company, and many other businesses. I can't devote energy to building another game company."
Phil quickly replied: "Allen, that's fine. Once the company is founded, you won't need to manage it. You'd only need to give some advice on game development."
"Yes," Wade Thomas agreed, nodding.
Lin didn't answer immediately. Instead, he asked: "Smith, are you thinking of making arcade games?"
"That's right," Phil admitted.
"Compared to the arcade market, I actually see more potential in home console games — the market brought by the Atari VCS," Lin said. "So if we're founding a company, it shouldn't enter the arcade market. It should focus on game software development, selling through the Atari VCS platform."
Phil frowned slightly: "The Atari VCS platform seems too small."
"Allen, surely the arcade market is bigger," Wade added. At present, arcades were indeed larger than home consoles.
"In my view, home consoles are the future of the gaming market," Lin said. He decided to reveal a little: "To be honest, Galaxy Games is already developing its own console. Our main business will shift there. Right now, more people play arcades, yes. But I believe in the future, more will play at home. Home consoles let you play without going to an arcade."
"That makes sense," Wade said thoughtfully. It was indeed more convenient.
Phil then suggested: "Allen, how about this? At first, the company develops arcade games, but only the software — not the hardware. The finished machines can be made by Galaxy Games. Then, once your console launches, if sales are strong, the company can switch to developing console games. How about that?"
"That works," Lin nodded. He agreed to help found such a company because it would mean another content developer for his future console.
Although Galaxy Games would review all third‑party games before allowing them on its console, more developers were always better. Only with enough developers could the best games be selected.
"Allen, since you don't object, then it's settled," Phil said happily. With Lin involved, the company would surely thrive.
Lin asked: "How will shares be divided?"
"Allen, how about you take 40%?" Phil proposed. Lin was clearly the most important figure. Without a large stake, he wouldn't be motivated.
"Alright, I have no objection," Lin nodded. Forty percent was already substantial.
"I'll take 35%, Goldman 25%. Is that fine?" Phil looked at Wade. In truth, Goldman was optional — Lin and Phil had enough capital themselves.
"I think Goldman should take 20%. I personally will invest 5% and join you," Wade said with a smile. The company had strong chances of success, so Wade wanted to be a small shareholder himself.
Lin and Phil didn't object. Wade's personal gain would come at Goldman's expense, not theirs. With Goldman holding 20%, it was still enough to secure their help when needed.
The three then discussed the company's name, deciding on United Games Company.
The registered capital would be US$10 million, each contributing according to their shares.
Lin would invest US$4 million — a trivial sum for him.
Daily management would be handled by Phil Smith. Lin only needed to provide advice on game development. Matters like founding the company, finding offices, hiring staff — none of that required Lin's involvement.