Hidden Worries Over Cost

When Hideo Kojima followed Takuya into Sega's Hardware Development Department, he was immediately captivated by the scene before him. The air was filled with a unique aroma of solder, circuit boards, and coffee, along with a tense yet exciting atmosphere. Technicians were busy around several oddly shaped machines, their screens flashing with complex data and graphics, accompanied by the sounds of keyboard clicks and hushed discussions.

"This is—" Hideo Kojima's gaze was fixed on the screen of one of the machines running a demo program. A brightly colored warrior, far more complex in design than any of the eight characters he had ever seen, was fluidly running, jumping, and wielding a sword. The background was a multi-layered scroll forest, with the layers of leaves and the hazy distant mountains rendered with exquisite detail. The details in the image were far more refined than anything he had ever seen on the MSX2 or FC. The impact of the image made him feel as if a completely new creative dimension had unfolded before him.

"This is the next-generation home game console we're secretly developing," Takuya, his voice brimming with undisguised pride. "A 16-bit CPU, Motorola's MC68000, and a dedicated Z80 chip for sound effects. More powerful graphics processing, a 512-color palette, and far more memory than existing consoles."

A bespectacled technician beside him skillfully operated the screen, which displayed a variety of amazing effects: smooth multi-layered scrolling, rotation and scaling simulating 3D effects, and the computing power to handle dozens of moving objects simultaneously. A huge BOSS appeared, occupying half of the screen, and bullets rained down, but the protagonist nimbly dodged them, and the picture remained smooth.

Hideo Kojima stared in disbelief, instinctively taking a few steps forward, his fingertips almost touching the cold screen. This functionality—it's incredible!

The game ideas that he had to compromise or even abandon due to the limitations of the MSX2's capabilities were suddenly activated in his mind, surging forth with boundless energy.

All of this seemed within reach in front of this powerful 16-bit mainframe.

The creative desires that had been ruthlessly suppressed by Konami and Nintendo staff found an outlet at this moment and surged forth. A fiery light rekindled in Hideo Kojima's eyes, a yearning for the unknown and an ultimate pursuit of creation. He almost forgot the disappointment of Metal Gear's temporary shelving, his entire mind occupied by this new possibility.

"How about it, Kojima -san?" Takuya looked at Hideo Kojima's barely concealed excitement and fervor, and chuckled inwardly. Sure enough, to deal with a producer who values his work so much, you have to use something substantial. "With this, don't you see a lot of progress on what you're thinking about?"

Hideo Kojima abruptly turned to look at Takuya, his eyes filled with disbelief and an almost greedy longing. "Takuya- kun, this machine—can it really achieve the effects demonstrated earlier?"

"It can only get better." Takuya patted the prototype's casing. "This is just an early prototype; there's still a huge amount of room for software optimization and hardware adjustments. I think, with your talent, Kojima -san, you'll definitely be able to create a truly great work on this."

Hideo Kojima's breathing quickened; he could almost see countless novel game ideas coming to life on this machine. He licked his dry lips and asked, "Can I—can I start brainstorming games for this platform right now?"

"Of course," Takuya laughed, "That's why I brought you here, Kojima -san!"

He briefly introduced some of the confirmed features of the new console, as well as Sega's initial ideas for the future direction of game development, and also greeted the heads of the various development teams.

Then, he "dropped" Hideo Kojima into this environment full of creative development.

"Kojima. Kojima, you are welcome to tour the area freely and interact with our technical staff at will."

"Experience it, think about it, and see what this new console can bring to your creativity."

I won't bother you anymore.

After saying that, Takuya quietly left, leaving Hideo Kojima alone, like a curious child who had wandered into a candy store, greedily absorbing all the information about the new 16-bit mainframe.

After settling Hideo Kojima, Nakayama Takuya went straight to the core conference room of the Hardware Development Department.

While the performance of the new console can certainly ignite the passion of creators, the cold, hard cost figures are equally crucial in determining its market fate.

The head of the Hardware Department reported the latest progress to Takuya with a serious expression.

"Executive Director, thanks to our team's efforts over this period, we have completed the initial integration and optimization of the various modules. Currently, the estimated production cost per unit of the new mainframe is around 26,000 Japanese yen."

Upon hearing this number, Takuya raised an eyebrow almost imperceptibly.

26,000 Japanese yen.

This number was quickly compared in his mind with his memories of his past life.

When the Mega Drive was officially released on October 29, 1988, its pricing strategy was quite aggressive, aiming to offer better value for money in competition with Nintendo's Famicom.

However, we are still some time away from 1988, and while he believes this cost figure is quite well controlled, it is still too high for users.

This means that if the new Sega console were to be released almost a year earlier than in its predecessor, and the final price were based on this cost, its price competitiveness in the market would be greatly reduced.

Especially when directly competing with Nintendo, which has already released the Nintendo (FC) four years ago and has a huge user base, price is often a crucial factor in tipping the market balance. Keep in mind, the FC hasn't been discounted yet; its current cost is far below its retail price. A price war is something to be wary of.

Although he was not entirely satisfied with the cost figure, Takuya knew that technological upgrades and the natural decline in component prices would take time.

He also cannot put excessive pressure on the hardware team in his eagerness to control costs, causing them to compromise on performance, stability, or quality control.

That would be drinking to quench thirst.

Therefore, he did not express strong dissatisfaction on the spot, but pondered for a moment.

"26,000 Japanese yen?"

He tapped his fingertips lightly on the table, his gaze sweeping over the key technical personnel in the conference room.

"Could I have a copy of the cost breakdown report for each major component?"

The head of the Hardware Department immediately handed over a detailed cost analysis report that had been prepared in advance.

Takuya took the report and began to review it carefully.

His gaze swept across the dense array of numbers and technical parameters, his mind racing as he tried to find a breakthrough from a higher level.