New Authority, New Strategy
The news that the MD sold nearly two million units in its first month was like a shot in the arm for Sega, injecting energy into every corner of the Sega.
A palpable sense of joy and anticipation for an even brighter future permeated the entire company.
In the corridor, the employees walked briskly, their conversations always tinged with laughter.
The name of Executive Director Nakayama Takuya was repeatedly mentioned in these successive reports, and his reputation within the company reached an unprecedented level.
A few days later, on the top floor of Sega Headquarters, in the boardroom that symbolized the company's highest authority.
This is the first board meeting held since the release of the MD.
President Nakayama Hayao sat in the main seat, his weathered eyes sweeping over each of the directors present, finally settling on his son.
At the start of the meeting, without any unnecessary pleasantries, he went straight to the first agenda item in a deep and powerful voice.
"Before we begin today's regular agenda, I have something to announce."
All eyes immediately focused on him.
"On behalf of the entire board of directors, I would like to formally commend Executive Director Takuya for his exceptional talent in the development of the Mega Drive console, the creation of the launch game lineup, and marketing strategies."
There was a hint of pride in his voice.
"From the core concept of the console to the construction of the launch game lineup, and then to the disruptive marketing strategy, Takuya's contributions are the fundamental reason why the Mega Drive was able to achieve initial success."
"In recognition of the outstanding contributions made by Nakayama Takuya to the MD project, the Board of Directors has decided, effective immediately,"
The authority of Operations Executive Director Nakayama Takuya has been increased, allowing him to participate more deeply in the discussion and formulation of the company's overall strategic plan.
Nakayama Hayao paused, each word spoken with resounding conviction.
"Executive Director Nakayama Takuya will be more deeply involved in the discussion and formulation of the company's overall strategic plan, and will have the power to make independent proposals at board meetings."
A slight commotion arose in the meeting room, which was then replaced by a deeper silence.
This is not merely an elevation of authority, but an official certification of status.
Takuya's name was called, and he stood up from his seat.
He didn't look around to catch those complicated gazes, but simply bowed deeply to his father in the main seat and to all the board members.
These seasoned veterans of the business world looked at Takuya with a newfound scrutiny and seriousness.
Someone started clapping for Takuya, and soon the entire conference room was filled with enthusiastic applause.
As the applause subsided, Takuya began to speak, his voice clear and humble.
Thank you all for your recognition. I dare not claim all the credit for this.
"MD's success is the result of the tireless efforts of the Hardware Development Department, Game Development Department, Marketing Department, Production Department, and all colleagues throughout the company, as well as the unwavering trust and support given to me by my father and the board members."
"I just did some minor work at the right time."
He bowed again, attributing all the credit to the team.
The somewhat subtle expressions on the faces of the senior directors present eased, and their gazes toward Takuya held a new level of genuine approval.
This young man not only possesses ability, but also a composure and demeanor far beyond his years.
He glanced around, his gaze briefly meeting each director's, and calmly analyzed, "I believe the key to our victory in the first battle lies in seizing an opportunity created by technological advancements and market demand at the right time. We grasped the needs of players, provided features far exceeding those of our competitors, and offered players what they truly desired but couldn't obtain elsewhere. Furthermore, we united a vast number of third-party developers with an unprecedentedly open approach. This proves our strategy was correct."
He succinctly analyzed several key factors in MD's success, from chip selection to the strategy of opening up to third parties, and the combination of different types of chips in the initial lineup.
His clear logic, keen insight, and the youthful vigor that shone through his composure earned him nods of approval from many of the older directors present.
The awards ceremony seemed to be coming to an end, and the atmosphere in the meeting room became more relaxed.
However, Takuya showed no intention of sitting down.
"MD has had a good start, but this is just the beginning."
Just when everyone thought his humble remarks were about to end, Takuya abruptly changed the subject and proactively moved on to a new topic.
"President, esteemed board members."
He raised his voice slightly, drawing everyone's attention back.
"Regarding the company's future, I have a somewhat immature strategic plan, which I would like to present to you here."
Everyone was stunned by these words.
Even Nakayama Atsuo's eyebrows twitched almost imperceptibly.
The Panasonic atmosphere in the meeting room instantly turned serious again.
Takuya took a deep breath, his gaze sweeping over everyone present, before uttering a single, resounding word.
"I call it a ACGN Comprehensive Layout Strategy."
ACGN?
This is a completely unfamiliar combination of letters.
The board members looked at each other, their faces filled with confusion.
Takuya didn't rush to explain, but instead threw out a premise they couldn't ignore.
"I believe that all the board members have already reviewed the draft of the 1987 fiscal year report, especially the data regarding the Pokémon series."
Many directors began to look serious; they had indeed seen that astonishing figure.
"The profits generated by a game IP through its animation licensing, comic book publishing, and related toys have far exceeded the profits from the game itself in a short period of time, and will continue to generate profits for us for a long time to come."
"This tells us that the value of a successful IP extends far beyond the game itself and can be expanded into many other areas."
The meeting room was completely silent, except for the clear and powerful voice of Takuya echoing in the background.
"A stands for Anime, or animation."
"C stands for Comic, meaning comic book."
"G stands for Game."
"N stands for Novel."
Each word was like a nail, hammering heavily into the hearts of everyone present.
"This is currently the most popular cultural content medium among young people in Japan. Furthermore, this content is rapidly expanding its influence globally along with economic and cultural exchanges between the East and West. This is a unique advantage for Japan."
"Therefore, my idea is that Sega cannot be content with simply being a top-tier game developer and hardware manufacturer."
"We should focus more on acquiring and even creating more original IPs with high added value."
He paused, giving everyone time to think, before clearly breaking down those four words.
"And around these IPs, we will conduct parallel development and in-depth operation across multiple industries, including animation, comics, games, and novels."
He clearly broke down the meaning of the four letters ACGN, each word like a nail, hammering into the hearts of everyone present.
"This will not only open up countless new profit growth points for the company, but also, like Pokémon, build an unbreakable brand moat for us, greatly enhancing our ability to resist any market risks."
He paused for a moment, giving everyone time to process this revolutionary concept.
Then, he broadened his horizons to a wider world.
"As the Cold War situation gradually eases, economic and cultural exchanges between Japan and Europe and the United States will only become more frequent and convenient."
This is an unprecedented golden age.
"This is an excellent opportunity for us to expand our global IP investment and operation strategy. We must not limit our vision to just our local market."
Takuya's proposal was like a thunderclap, exploding in the silent boardroom. The strategic vision and business acumen he displayed far exceeded everyone's expectations of an executive director.
For a moment, you could hear a pin drop in the meeting room.
On the directors' faces, a complex mix of surprise, contemplation, shock, and even a hint of disbelief lingered.
Nakayama Hayao listened quietly to his son's entire account.
His stern face betrayed no emotion whatsoever.
After a long silence, he finally spoke, breaking the frozen moment.
"Takuya's ACGN strategy is insightful and bold."
He first gave his approval, setting a tone that the entire proposal should not be underestimated.
But then he changed the subject.
"However, this strategy is too far-reaching, and will have an immeasurable and far-reaching impact on the company's future resource allocation and development direction, so it must be approached with utmost caution."
His gaze became unusually serious, sweeping across the entire room.
"I propose that this strategy not be put to a vote at this meeting."
"This has been designated as a top priority issue, to be fully discussed and reviewed at the first board meeting after the official release of the 1987 financial report."
He looked at Takuya, his eyes deep.
"During this period, all information regarding Takuya- kun's ACGN strategy must be kept strictly confidential."
"No information may be disseminated outside the board's purview in any form, so as to avoid unnecessary market speculation or giving competitors an advantage."
"You all also take this time to gather relevant information to assess whether the direction of this strategy is correct and how feasible it is."
Nakayama Hayao's words were both a display of caution as a company president and a protective gesture as a father.
None of the directors present objected to the proposal; they all agreed.