In the afternoon, before 2:30, Atari's president Nolan Bushnell arrived early for his visit.
Bushnell wasn't alone — he brought his secretary with him.
"Welcome, Mr. Bushnell." "Pleasure to meet you, Mr. Lin."
Lin BaoCheng and Nolan Bushnell shook hands.
"Let's talk in my office," Lin said, leading Bushnell and his secretary inside. Isabella went to prepare coffee for them.
Seated on the sofa, Bushnell didn't immediately get to the point. Instead, he chatted: "Mr. Lin, your New Century Software doesn't look like a game company. What exactly do you do?"
"Mainly developing computer applications to make office work easier," Lin replied vaguely. He didn't elaborate — not because he feared competition, but because there was no need.
Bushnell nodded: "Computers are spreading fast. Apple's personal computers, in terms of price and size, are convenient for both businesses and individuals. I believe PCs will become more widespread. Mr. Lin, your software will have a huge market."
"Looks like we think alike," Lin said, a bit surprised. He pointed to the personal computer on his desk: "That's Apple's PC. Compared to IBM or Wang's big machines, it's much smaller. I believe it will be welcomed into households."
"Exactly. Our company bought several," Bushnell agreed. Apple's PCs were weaker than large computers, but for small businesses and individuals, they were sufficient — cheaper, smaller, and practical.
"Boss, Mr. Bushnell!" Isabella entered, placing coffee before them and sitting nearby.
Bushnell now turned serious: "Mr. Lin, I think you know why I'm here. Atari wants the rights to Galaxy Games' Hong Kong Blocks and Pac-Man, to port them to our consoles."
Lin was surprised by Pac-Man being included, but it made sense. The arcade hit was even more popular than Hong Kong Blocks. Though Hong Kong Blocks was better suited for consoles, Pac-Man would still sell well. Atari naturally wanted both.
Lin shook his head: "Mr. Bushnell, my stance is clear. I will not authorize these games to Atari."
"Mr. Lin, don't reject so quickly. Hear Atari's offer," Bushnell pressed. "We're willing to pay 8 million USD for the rights, plus 20% of cartridge sales — not profit, but sales price. At 40 USD per cartridge, you'd earn 8 USD per unit."
"Atari VCS has sold about 400,000 units. That's at least 400,000 potential customers. Cartridges usually outsell consoles — a million copies is possible."
"And that's just current sales. As VCS sells more, the market grows, and cartridges sell even better."
"Mr. Lin, if you authorize us, between the fee and sales share, I guarantee you'll earn at least 20 million USD in two years. I can even sign a contract guaranteeing that minimum."
Twenty million USD was enormous. Many companies didn't make that in a year. Even Apple and Microsoft weren't valued that high yet.
Lin admitted he was tempted — not by the 20 million, but by the 20% sales share.
He knew Atari VCS sales would explode next year, after competitor Fairchild Semiconductor exited the industry.
Though VCS had only been out for half a year, the cartridge concept wasn't Atari's invention. Fairchild's "Channel F" had pioneered it, but Atari popularized it. Fairchild upgraded its model, competing with VCS.
In early 1979, Fairchild, struggling financially and believing video games were outdated, abandoned the business. By summer, it was acquired by French investors.
That exit, combined with public realization they could play at home instead of arcades, triggered Atari's boom.
By late 1979, Atari VCS had evolved into the Atari 2600. With Fairchild gone, sales reached over 2 million units.
And cartridges always outsold consoles — that was where the real profit lay.
Thus, licensing Hong Kong Blocks and Pac-Man could easily earn Lin over 100 million USD next year. How could he not be tempted?
A hundred million, for just two licenses. No effort, no investment. Atari handled the market. Easy money.
Anyone would be moved. Lin was no exception. But after the temptation, he regained his composure. He still intended to refuse.