The Tightening-Fillet Spell

The sales figures of 500,000 PCEngine units in its first week quickly reached Kyoto's Nintendo Headquarters Kyoto.

Yamauchi Haku quickly convened a meeting with the senior executives.

Yamauchi Haku's face remained ashen, but a rare hint of solemnity appeared deep in his eyes.

He didn't erupt in fury like last time; instead, his fingers tapped rhythmically on the table, producing a monotonous "tap, tap" sound, each sound like a hammer blow to everyone's heart.

"500,000 units"

An executive repeated the number with difficulty, his voice filled with disbelief.

"Such sales figures were achieved in just two weeks solely through an animated collaboration like ' The Demon-God War '."

This certainly exceeded our initial estimates.

Yokoi Gunpei adjusted his glasses, his eyes behind the lenses gleaming with analytical light.

This once again proves the huge boost that collaborations with popular anime series can provide for initial market promotion.

"However, as we previously predicted, the high price of PCEngine at 24,800 Japanese yen and the current predicament of only having two launch titles remain their fatal weaknesses."

"How long the craze for <The Demon-God War> will last remains to be seen. Once the novelty wears off and the subsequent game lineup can't keep up, this momentum will inevitably decline rapidly."

Shigeru Miyamoto nodded in agreement, his tone calm and composed.

"Yes, the explosive growth in the short term is certainly astonishing, but the war for home consoles is ultimately a long-term positional war. It's a contest of the ability to consistently deliver high-quality games and the stable ecosystem built around them."

Yamauchi Haku tapping stopped.

His sharp gaze swept over the crowd, and he spoke slowly, his voice deep yet carrying an undeniable authority.

"The emergence of PCEngine, and its initial market performance, served as a wake-up call for us."

"But that's not enough to shake Nintendo's foundation."

"However, this also exposed some problems we had with third-party management in the past."

An executive in charge of third-party liaison looked slightly embarrassed and cautiously responded.

"President, we previously dispatched 'game content consultants' to some key third-party development teams with the intention of helping them improve quality and ensure it conforms to the overall tone of the Nintendo platform."

"But in practice, it did—well, cause some unnecessary friction."

He carefully considered the wording, trying to take some of the responsibility, yet he dared not completely deny the president's original intention.

"For example, at Konami, I heard that some of their young developers were quite critical of the revisions suggested by our consultants, feeling that it interfered with their creative freedom and even affected the development schedule."

"In retrospect, this approach of directly sending people to be stationed here was indeed overkill and may have damaged the trust between us and our important partners."

Yamauchi Haku snort, which was tantamount to acknowledging the existence of this viewpoint.

"Since direct guidance based on content is ineffective and can easily backfire."

His eyes sharpened, and his tone carried an undeniable determination.

"Then let's try a different approach."

"To ensure that the software quality of Nintendo platforms continues to lead the way, and to guarantee the healthy and stable development of our important third-party partners, preventing them from falling into financial difficulties due to blind expansion or poor project management, which could affect the supply of games to our platform."

He changed the subject, his voice now carrying a "sincere" tone of "thinking of you."

"I have decided, effective immediately, to adjust the cooperation and management model for third-party developers."

"We will no longer directly assign 'game content consultants' to oversee specific game design processes."

Upon hearing this, the executives breathed a slight sigh of relief, thinking that the president was finally going to relax some of the controls.

However, what Yamauchi Haku next made them jump to their throats again.

Instead, we will shift our monitoring focus from "game content creation" to "project financial health."

"All third-party developers who have signed royalty agreements with Nintendo must, starting next month, regularly report to Nintendo the detailed financial status of all game projects they are developing for the Famicom or future Nintendo platforms."

Specifically, this includes, but is not limited to: the amount of reserve funds at project launch, the availability of subsequent funding, and regular expense reports.

A cold smile curved at the corners of Yamauchi Haku, as if he could already see those third parties unable to escape Nintendo's control.

"This report will be professionally evaluated by Nintendo's Finance Department."

"We will 'assist' them in mitigating potential financial risks, allowing developers to 'focus' on developing games for Nintendo, ensuring the smooth completion of every project, and contributing to the prosperity of our shared market."

Nintendo's Legal Department, Finance Department, and third-party liaison departments are extremely efficient.

Within a few days, a well-written, detailed document, full of "professionalism" and unquestionable authority, titled "Notice on Strengthening the Transparent Management of Funds for Cooperative Development Projects," was delivered via encrypted fax and express mail to the desks of the presidents of all third-party game developers who had signed cooperation agreements with Nintendo.

The official documents conveyed a sense of "goodwill" ostensibly for the benefit of the partners, ensuring they could "focus" on developing games for Nintendo, and a "sense of responsibility" to "jointly maintain market order."

However, the company presidents who received this notice all felt a chilling cold and intense humiliation.

Tokyo, SNK headquarters.

As President Kawasaki Eikichi stared at the documents slowly being ejected from the fax machine, the fat on his face twitched violently with rage.

He grabbed the thin piece of paper, his eyes blazing with fury.

"This is outrageous!"

A roar shook the office windows so loudly they shattered.

He slammed the notice onto the expensive mahogany desk; the paper bounced up from the force and then fell back down.

"What do they take us, SNK?"

Is it a branch office of Nintendo? Or their accounting department?

1

"We even have to report our own company's accounts to them line by line. What exactly is that old bastard Yamauchi Haku Ueshi trying to do?!"

"Does he think he's the Shogun?!"

Kawasaki Eikichi paced back and forth in his office, his chest heaving violently.

"We work so hard to develop the game, and we want Nintendo to dictate how and where we spend the money?!"

"Who exactly is the president of this company?!"

Almost at the same time, in the president's office of Namco.

Nakamura Masaya frowned deeply, his fingertips gripping the notice as he read each word over and over.

His anger wasn't as outwardly expressed as Kawasaki Eikichi's, but the gloom in his eyes was even more intense than the impending rain outside the window.

"Amount of reserve funds, status of funds received, and detailed expense report"

He muttered these words under his breath, a bitter, cold smile playing on his lips.

"Yamauchi Haku, this is treating us third parties like we're not independent companies."

"This is blatant financial surveillance, a disguised form of annexation!"

He gently placed the document on the table, turned his gaze to the window, and seemed to be thinking about something.

The 500,000 units sold in the first week of PCEngine became exceptionally clear in his mind at that moment.

Perhaps it's time for Hudson and NEC to have deeper contact.

Putting all your eggs in the hands of Nintendo, an increasingly domineering tyrant, is far too risky.

Meanwhile, inside a Game Development Department at Konami.

Several young developers were huddled together, discussing in hushed tones.

"Have you heard? That Nintendo 'advisor' who was always interfering with our project seems to have been recalled."

"Really? That's great! I've had enough of him!"

"Now it's peaceful. We can finally polish the game according to our own ideas."

Their faces beamed with relaxed smiles, as if a Oyama that had been pressing down on them had been removed.

Unbeknownst to them, an even greater and heavier burden had been quietly transferred to the shoulders of their president, Kozuki Kagemasa.

At that Kozuki Kagemasa was facing the notice, his face ashen, and he remained silent.

Night falls, inside a secluded private room in a Tokyo ryotei (traditional Japanese restaurant).

The presidents of several influential third-party game companies in the home console market have gathered together in a rare event.

The instigator was none other than SNK President Kawasaki Eikichi, who was burning with rage.

Participants included Kozuki Kagemasa Nakamura Masaya of Namco, Konami, Kenzo Tsujimoto Kenzo of Capcom, and the president of Taito Corporation.

After several rounds of drinks and dishes, the atmosphere in the private room remained oppressive.

Kawasaki Eikichi put down his wine glass and slammed it heavily on the table.

"Everyone, I'm sure you all received Nintendo's notification, right?"

Everyone nodded silently, their expressions grim.

"That Yamauchi Haku has gone too far this time!"

Kawasaki Eikichi's voice was filled with barely suppressed anger.

"In the past, we could tolerate them sending some kind of 'consultant' to criticize our game content, since the game was sold on their platform and they had to guarantee quality, so we just had to swallow our pride and accept it."

"Now look what's happened, they're going to do to check our books!"

"Are they treating us like thieves, or like disciplining three-year-olds?"

"What right does Nintendo have to interfere in our company's internal finances?!"

"Who exactly is the president?"

This question, filled with humiliation and anger, was like a spark thrown into boiling oil, instantly igniting the resentment in the hearts of everyone present.

"Kawasaki is right!"

Even Tsujimoto Kenzo, who has always been at odds with SNK because of Takado Yoshihiko Capcom, suddenly slapped his thigh. The usually composed man could not hide his excitement at this moment.

"We invest money, build teams, and take risks to develop games, and Nintendo not only enjoys the royalties, but now they want to reach into our pockets to see how we spend our money?"

"This is an absolute disgrace!"

The president of Taito also sighed, his tone full of helplessness and indignation.

"FC's market share is too high; we have no choice but to back down."

"However, this paternalistic financial control has severely trampled on our dignity and right to independent management as an independent enterprise."

"If this continues, what's the difference between us and Nintendo's contract manufacturers?"

Nakamura Masaya picked up his sake glass, took a sip, and looked deep into his mind.

"Ladies and gentlemen, anger is anger, but we must admit that in the home console market, Nintendo's FC and NES are still the absolute hegemons."

"Openly breaking ties with them will benefit none of us."

His words cooled the tense atmosphere slightly.

Everyone fell silent; they all understood this cruel reality.

Kozuki Kagemasa, his voice low.

"President Nakamura is absolutely right. But, are we just going to let Yamauchi Haku do whatever he wants forever?"

"This time it's financial monitoring, what about next time? Will they just ask us to hand over the company seal next time?"

His words carried a hint of self-deprecation, yet they also revealed the deeper anxieties of the crowd.

Nakamura Masaya put down his wine glass and glanced at everyone.

"The tougher Yamauchi Hiroshi is, the more it shows he feels pressured by the uncertainties in the market."

"While the emergence of PCEngine currently presents numerous challenges, it at least proves that Nintendo is not the only option in the market."

He paused, then lowered his voice even further.

"I have maintained some private contact with the Kudo Brothers of Hudson, as well as with NEC."

"If any of you are interested, I can act as a go-between. At the very least, it's never a bad thing to learn more about the situation."

The moment these words were spoken, the atmosphere in the private room instantly became tense.

A glint of light flashed in Kozuki Kagemasa's eyes as he continued.

"As for new options, I'm sure you all don't know yet."

"Sega also seems to be secretly developing a brand new 16-bit console."

"I've received some information from Zero Engine; it's said to be incredibly powerful, far surpassing the PC Engine, and might even pose a real threat to Nintendo's future console plans."

This news was like a bombshell, exploding in everyone's minds.

Sega? The Sega that reigned supreme in the arcade market but suffered repeated defeats in the home console market?

Do they really have the ability to challenge Nintendo's dominance?

Despite their doubts and uncertainties, a thought quietly began to sprout in the minds of these presidents who were struggling to breathe under the pressure of Nintendo.

Don't put all your eggs in one basket.

Especially when the owner of the basket starts to take them less and less seriously.