The Tijuana Bottleneck

California, San Jose.

Outside a Best Buy store, a giant blue and white poster bearing the Sega logo covers half of the glass facade.

The demo area inside the store was packed with white teenagers carrying backpacks.

The hands-on demo of the GP2 also caused a sensation in North America.

However, the North America promotional strategy lacked the flashy, multi-pronged approach used in Japan.

There are no Pokémon Electronic Pet everywhere, nor are there any gimmicks like buying Pokéwalker to unlock hidden abilities.

It's not that the North America branch doesn't want to engage in joint marketing.

There is simply no stock available.

Sega Headquarters building, president's office.

Nakayama Takuya threw the summary report of the North America publicity campaign onto the table.

The paper slipped off the edge of the table and nearly fell off.

He reached out and pressed it down, tapping his knuckles twice on the cover.

"North America can only do routine promotional materials right now." Operations Director Hisao Oguchi stood across the desk, pointing to a set of data on the report. "The production capacity of the Electronic Pet is completely stuck at the Tijuana factory in Mexico. To ensure a hot launch in Japan, I've intercepted some of the North America stock and resent it back to Asia. The major distributors in North America are already furious."

Nakayama Takuya leaned back in his leather chair.

Complaining is useless; it's all for nothing if you can't build it.

He picked up the internal phone on the table and dialed Sega of America's transoceanic hotline directly.

After a few busy tones, the call was connected.

The loud roar of the press immediately came through the microphone.

You could faintly hear a few curse words shouted in Spain.

"Who is it?" Hatano's voice came through, extremely loud, clearly trying to drown out the background noise.

"I am Nakayama Takuya."

There was a moment of silence on the other end.

Then came a flurry of footsteps and the sound of doors slamming shut.

The machine noise was shut out, and only Hatano's heavy breathing could be heard through the microphone.

"President! Sorry, I was at the very front of the production line monitoring the yield rate." Hatano switched hands to hold the phone.

Nakayama Takuya picked up a pen and drew a circle on the sticky note in front of him.

"Distributors in North America are calling non-stop. How big is the demand for Electronic Pet?"

Hatano sighed heavily on the other end of the phone.

"The shortage is huge. The contract manufacturers in Tijuana are in too much trouble."

"Tell me more."

Hatano pulled out a chair and sat down, the test report in his hand rustling loudly as he squeezed it.

"These Mexicans are so slow! And their yield rate is nowhere near that of the OEM factories in East Asia. I tried to implement piece-rate pay here, but they got upset and insisted on being paid by the hour. Last week, the screen lamination for a batch of Electronic Pet had a scrap rate exceeding 15%. I haven't done anything else these past two days; I've just been in the workshop supervising their operating procedures one by one."

Nakayama Takuya stopped writing.

He was well aware of the pain points of building factories across borders.

The North America market has huge demand, and without taking advantage of Mexico's cheap labor and geographical location, the production capacity of Japan and Shenzhen alone would not be able to fill this gap.

"If we can't lower the yield rate, then we'll use manpower." Nakayama Takuya gave the direct order, "Talk to the local OEM owner, recruit people, expand the production line. Sega will pay for the equipment. Maximize the shifts, three shifts a day."

But labor costs—

"This round, we're not looking at costs, we're only looking at production capacity." Nakayama Takuya interrupted him, "The GP2's launch can't afford any mishaps. There are less than two months left until the simultaneous North America launch of Pokémon Ruby and Pokémon Sapphire. Before that, the accompanying Electronic Pet must fill the shelves of Walmart and Best Buy. Without the groundwork laid by the Pokéwalker console and related collaborations, the hype surrounding the handheld's release will be greatly diminished."

Hatano gritted his teeth.

"Understood. I'll book two more local electronics assembly plants this week and bring the molds over directly."

Nakayama Takuya threw the pen he was holding back into the pen holder.

"Hatano."

"Exist."

"Sega has now acquired Bandai." Nakayama Takuya placed his fingers on the table, interlacing them. "We hold the most derivative IP in the world. Cartridges, as the storage medium, will remain the dominant force in the handheld console market for at least the next decade. What does that mean?"

There was no answer on the other end of the phone; Hatano waited for further comment.

"This means that electronic toys and peripherals based on handheld consoles will experience explosive growth. North America, as the world's largest consumer market, represents a pie bigger than imagined."

Nakayama Takuya revealed his trump card.

"After we fill the production gap in the Electronic Pet, hand over your work there and head back to Tokyo."

Hatano's breathing was messed up.

"Back to Tokyo?"

"Yes." Nakayama Takuya opened a drawer and took out a new global production capacity plan. "When you come back, meet with Terauchi."

Terauchi is responsible for the entire OEM system in East Asia and Southeast Asia, and it currently accounts for the vast majority of Sega's production capacity.

Hatano and Terauchi have a long-standing, covert rivalry within the company.

"Sit down with Terauchi and clarify the global supply chain coordination." Nakayama Takuya pushed the planning diagram to the center of the table. "The factory in Mexico can't function without core electronic component suppliers from East Asia. Terauchi has the raw materials, and you have the wiring. Competition is acceptable, but we must cooperate on the overall direction."

"I understand," Hatano immediately replied. "I will come up with the best solution for integrating with the East Asia supply chain."

Nakayama Takuya pointed to the Europe section of the planning map.

"Not just Mexico," Nakayama Takuya stated, outlining the next steps. "In the next two years, we're considering setting up several small production centers in Europe. Europe has a strong pool of skilled workers, and although wages are bound to rise in the future, they'll primarily be responsible for absorbing high-value-added precision peripherals and special versions of mainframes, as well as the supply chain for some technically challenging and high-value-added precision components. This business will also be placed under your management at that time."

Hatano's hand gripping the microphone tightened suddenly.

Production capacity layout in Europe.

This is tantamount to handing over the other half of Sega's global manufacturing empire to him.

Competition aside, President Nakayama Takuya is truly willing to delegate authority and provides substantial benefits.

"Don't worry, President!" Hatano's voice rose eight octaves, his previous fatigue vanishing completely. "I'll submit the preliminary research report from Europe next month. As for the production capacity in Tijuana, I swear on my word: 800,000 Pokémon Pokéwalker will be delivered to major distribution centers in North America by the 15th of next month!"

"Very good." Nakayama Takuya glanced at his watch. "Go ahead and do it."

The call ended.

Nakayama Takuya picked up the water glass on the table and took a sip.

Hisao Oguchi watched him from the side.

"It looks like Hatano- san will be sleeping in the Terauchi now," Hisao Oguchi shook his head. "Won't Terauchi have something to say about handing over the Europe production center to him?"

"The Terauchi manages the core market, Hatano tackles the tough challenges overseas." Nakayama Takuya put down his water glass. "A horse running on two fronts needs strength. Sega will take even bigger steps in the future. Without this level of production capacity, no matter how good the pre-launch marketing is, it's all just castles in the air."

He stood up, walked to the floor-to-ceiling window, and looked down at the bustling traffic on the streets of Tokyo.

"Stabilize logistics, and the rest depends on how much of a stir GP2 can make in its North America debut."

Night deepened.

Setagaya District, Nakayama family Residence.

In the living room, a long string of advertisements targeting enterprise clients is playing on the television screen.

These consulting firms that handle tax planning and bankruptcy liquidation are now all major financial backers of TV Tokyo's late-night programming.

With the viewership base established by "The Silver Tycoon," advertising revenue for late-night slots doubled again.

Nakayama Takuya took off his suit jacket, casually draped it over the back of the sofa, and loosened his tie.

Eri came out of the kitchen carrying a plate of sliced melon, placed the plate on the coffee table, and sat down next to him on the sofa.

He handed her a small fork.

"You're already in front of the TV so early today?" Nakayama Takuya, offering a piece of melon.

"My father called specifically to tell me to check the performance of the new drama before its premiere." Eri leaned closer to him, took the remote, and turned up the volume.

"After ' The Silver Tycoon ' finished airing, didn't the advertisers cause any trouble because of the change in the show?"

"What's with the fuss? They're lining up to give the station money right now." Eri chuckled. "Several companies almost got into a fight in Father's office over who would get the title sponsorship for the first two weeks of the premiere."

Nakayama Takuya swallowed the melon in his mouth.

Which show is it this time?

"Yes, Minister," Eri looked at him, "That United Kingdom political comedy you strongly recommended before."

Nakayama Takuya stopped what he was doing, somewhat surprised.

"So soon? I thought my father-in-law would save it for the year-end election, or for a bigger scandal to break out in the cabinet, before using it as a trump card."

Eri pulled out a tissue to wipe her hands.

"We can't wait until the end of the year. The station's hotline has been ringing off the hook these past few days. Everyone's calling to ask when this show will start airing."

Broadcast.

Nakayama Takuya became interested.

"The trailer looks really good?"

"This isn't your average trailer." Eri raised an eyebrow, her tone tinged with pride for her father. "The night before last, WBS News at the station compiled economic data from last year to the end of this month."

She started counting on her fingers.

"Prime Hashimoto's financial reforms not only failed, but also led to the bankruptcy of large corporations. The unemployment rate hit a record high. The news program pointedly listed these figures and the government's policy mistakes one by one."

Nakayama Takuya nodded.

This is typical of TV Tokyo; their financial news is always outspoken.

"Then what?"

Near the end of the news broadcast, the host didn't say a word and immediately cut to a three-minute segment titled "Yes, Minister."

"That's a fragment." Eri became more and more excited as she spoke.

"My father had someone add narration and Japanese subtitles. The footage showed how United Kingdom bureaucrats used complicated official documents to fool the Prime Minister, and how the Prime Minister changed his policies from morning till night for the sake of votes; it was all edited together."

Nakayama Takuya understood instantly.

Having just finished watching the real-life mess of the Japan cabinet, I immediately came across the hypocrisy of the politicians and the absurdity of bureaucracy in the drama.

Without the station saying a single word, the audience can connect the two on their own.

Advanced black humor.

The dissatisfaction with reality was precisely channeled into this drama.

"My father-in-law's tactic of using someone else's strength against them was brilliant," Nakayama Takuya, leaning back on the sofa. "Using a news program to build up the emotional tension for the drama. He has a complete grasp on the audience's psychology."

"The audience feedback has been exceptionally positive." Eri picked up her water glass and took a sip. "They feel that this drama is a series of slaps in the face to those Kasumigaseki. That unspoken understanding, that mutual understanding without words, has made them extremely excited for the upcoming episodes."

The commercials on TV ended on time.

A lively symphonic theme song begins.

The screen showed an image of London's Big Ben, followed by a cut to government offices in Whitehall.

The first episode of "Yes, Minister" has officially begun.

at the same time.

Inside a cramped studio apartment in Chiyoda Ward.

Suzuki slammed himself heavily onto the tatami mat, roughly tearing off his tie and throwing it aside.

As the head of the legal department of a medium-sized manufacturing company, he made three trips to the Ministry of International Trade and Industry today in order to approve a corporate bailout loan.

The result was predictable.

The clerk at the window spent a full half hour explaining a bunch of administrative jargon he couldn't understand, and finally concluded: the materials were incomplete, go back and fill them out again, and come back next week.

The company's cash reserves won't last until next week.

"Damn it—" Suzuki cursed, got up, walked to the refrigerator, opened the door, and took out two cans of chilled Asahi beer.

When the pull tab is pried open, foam overflows.

He tilted his head back and took a big gulp; the icy liquid flowed down his throat, but it couldn't extinguish the raging fire in his heart.

The television was on the whole time, stuck on a TV Tokyo channel.

Suzuki had only wanted some noise to get rid of the damned silence.

On the screen, the newly appointed United Kingdom Secretary of State for the Executive Office, Hacker, sits confidently behind his large desk.

Standing opposite him was his Permanent Under-Secretary, Sir Humphrey.

With a flawless fake smile on his face, Humphrey began to report on a plan to streamline government staff in an extremely standard and monotone tone.

"Minister, we fully support your streamlining plan. However, before implementing this plan, we must first establish an inter-departmental coordination committee, then appoint a group of investigators to conduct preliminary investigations, and then—"

Humphrey rattled off a list of over a dozen useless agencies and outrageously cumbersome procedures.

Suzuki's hand, holding the beer can, froze in mid-air.

He stared at the screen.

Humphrey's face gradually overlapped with that of the Ministry of International Trade and Industry clerk from earlier that day.

After hearing this long report, Minister Hacker in the show was dumbfounded and bluntly said, "Humphrey, you've created all this bureaucracy just so you can do nothing, right?"

Humphrey gave a slight bow, his tone remaining respectful.

"Minister, we are proceeding cautiously. Within the government system, 'proceeding cautiously' means postponing it until the next election."

Suzuki paused for two seconds, then suddenly burst into loud laughter.

"Hahaha! Yes! That's exactly the kind of face I have!"

He slapped his thigh, spilling a few drops of beer onto his pants without even noticing.

That's incredibly accurate.

This is almost a direct recording of what happens in Kasumigaseki's office.

Suzuki downed the remaining half-can of beer in one gulp, feeling utterly satisfied.

All the pent-up frustration from the day was instantly punctured by this biting line, turning into a satisfying, cold laugh.

He simply leaned against the foot of the bed and stared intently at the television.