Plotting (Part One)

He straightened his back. The easygoing air he had shown in front of his family quietly faded, replaced by a sharpness beneath his calm. His eyes were bright, like a lens brought into focus.

"Father, Katsuya." He spoke, his voice clear and steady as it echoed through the quiet study. "The multiplatform development and release of Tetris can indeed bring us considerable short-term profits, and it can also improve Sega's image in players' minds to a certain extent, especially outside the arcade field. But this, just as you said, only solves our 'burning-eyebrows crisis.' Or rather, it buys us a little time and ammunition."

"If we want to truly change the battle, to turn heaven and earth around, we need a longer-term, more aggressive combination of punches."

Hayao said nothing. He only looked at him with eyes as deep as an ancient well, his fingers unconsciously tapping lightly on the armrest, signaling for him to continue.

Katsuya also showed a focused expression.

"I believe Sega needs to work on five fronts at the same time."

Takuya raised one finger.

"First, technological upgrading and replacement."

"We must immediately, and in secret, launch a next-generation—meaning 16-bit—home console development project."

"There is only one goal: to comprehensively surpass Nintendo's Famicom in core performance and establish an overwhelming technological generational advantage."

"When our 16-bit console comes out, we have to make the Famicom look like an antique from the previous era."

This proposal made Katsuya's brows rise unconsciously. A 16-bit console? Even if he was not a practitioner in the game industry, he knew that the investment would be no small sum.

Takuya raised a second finger.

"Second, software reserves."

"In coordination with the development of the 16-bit console, we must immediately begin vigorously developing arcade games compatible with the new generation of 16-bit boards."

"These games must first earn profits for us in the arcade market. More importantly, they will become the 'ammunition depot' for our future 16-bit console."

"When the console goes on sale, we can quickly port these mature arcade blockbusters over, forming a powerful launch lineup and avoiding the awkward situation of a new console facing a shortage of software after release."

He paused, then raised a third finger.

"Third, cash is king."

"Developing a 16-bit console, carrying out market promotion, and supporting software development all require enormous funds."

"Therefore, the company's existing business lines—especially the highly profitable arcade Sales Department, as well as our cooperative businesses with CSK and other companies—must maintain stable operations, and even need to expand further, without being limited to the game industry. Sega itself has strong software and hardware development capabilities. Simply making games is not enough."

"We must ensure that the company has ample cash flow and capital reserves. This is the fundamental guarantee supporting us in winning this hard battle."

Hayao's fingertips tapped lightly on the sofa armrest, not quickly, showing that he was listening and thinking seriously.

Takuya raised a fourth finger, his tone becoming even sharper.

"Fourth, external harassment."

"We cannot let Nintendo expand comfortably, especially in the North American market they are determined to seize."

"We must use every possible means—marketing, public relations warfare, channel competition, and even some methods 'outside the rules'—to delay, interfere with, and even sabotage Nintendo's NES promotion plans in North America."

"The purpose is to consume their resources and energy, strike at their market reputation, and win time and space for our 16-bit console. We must ensure that when our new console lands in North America, that market will not be an iron plate."

These words carried undisguised aggression, making the air in the study seem to grow a few degrees heavier. When Katsuya looked at his younger brother, there was more than surprise in his eyes; there was also a trace of worry.

Takuya raised his final finger, his gaze burning.

"Fifth, sow discord and divide them."

"Nintendo may be powerful, but that doesn't mean they have no weaknesses. Their policies toward third-party developers are notoriously harsh: high royalties, strict content review, and cartridge production under their control. They have shifted almost all the risk of being the console manufacturer onto the third parties. It's impossible for those people to have no resentment."

"All of these may become openings we can exploit."

"We should actively make contact with those third-party developers who are dissatisfied with Nintendo, or who have potential but are being suppressed, and try to turn the key forces among them. At the very least, we must shake the foundations of their cooperation with Nintendo."

"We have to think of ways to dismantle the Famicom's powerful software ecosystem. As one wanes and the other waxes, we will weaken their core advantage."

After the five-point strategy had been laid out, the study sank into a long silence.

Takuya's plan was bold, radical, interlocked at every ring, and full of risks, yet it also depicted a thorny road that might lead to victory.

Katsuya looked at his younger brother, his heart filled with shock. He had never imagined that Takuya, who usually seemed somewhat flighty, could actually conceive such a grand and aggressive business strategy. This had already gone beyond the scope of simple game development and risen to the level of the company's overall strategy.

Hayao's gaze was deep as the sea. He leaned back in his chair, his fingers stopping their tapping, his sharp eyes repeatedly examining Takuya, as if he were getting to know this younger son of his all over again.

A technological leap, software reserves, funding guarantees, external interference, internal division... Of these five links, not one would be easy to accomplish. Combined together, they were an enormous test of Sega's existing resources, execution, and decision-making courage.

Only after a long while did Hayao slowly speak, his voice low and powerful.

"A 16-bit console... interfering in North America... stirring up third parties..."

He repeated several key points word by word, as if weighing their heft.

"These moves of yours sound like they're linked ring to ring, but the resources each step will consume are hardly insignificant. Some of the work will also greatly test Sega's unity."

He did not directly express approval or opposition, but the doubt from before had lessened in his tone, replaced by an unprecedented measure of gravity and deep thought.

He was silent for a moment, seeming to weigh something, when he suddenly asked, "You just said, interfering with the North American market... specifically, how do you plan to do it?"

His question was very concrete. It was no longer a general test, but the true beginning of a discussion on feasibility.

Takuya did not answer immediately. He only met his father's scrutinizing gaze, his eyes calm and confident.

Hayao looked at him for a long while, then slowly stood and paced to the window. With his back to his two sons, he looked out at the heavy night beyond.

"Forget it. This strategy... needs to be considered at length. You don't need to get mixed up in the board's affairs right now. I'll go talk to David about North America."

His voice came through the night, carrying a trace of fatigue that was hard to detect, yet also holding a certain resolve.

"However, the direction you mentioned... might be right."

"There are some things that, whether we do them or not, we'll have to face sooner or later."

He did not give a clear answer. He did not say he agreed, nor did he say he disagreed.

But these words had already faintly revealed Sega's reflection on its current conservative strategy, as well as his serious consideration of the bold vision Takuya had proposed.

The atmosphere in the study quietly changed amid the silence.

"Then, when it comes to you specifically, do you have any plans?" Nakayama Hayao raised his head and asked.