Cashing Out

Late June, Sega Headquarters, president's office.

Nakayama Hayao sat behind a huge desk, an unlit cigar between his fingers, his eyes fixed on the two documents in front of him.

One document is a report on Sega's investment submitted by the Finance Department.

The other document was top-secret intelligence that he obtained from within the Ministry of Finance by using his personal network.

Every number and every leverage ratio on the report felt like a red-hot branding iron, searing his nerves.

The names and factional affiliations on that intelligence report completely confirmed the alarmist remarks Takuya had made in the study two weeks prior.

That's not a prediction; it's something that will actually happen in the not-too-distant future, though we don't know exactly when!

"Knock knock."

There was a knock on the door.

"Come in."

Nakayama Takuya pushed open the door and entered, carrying a cup of freshly brewed hot tea.

He gently placed the teacup beside his father, glanced at the documents on the table, and calmly asked, "Father, are the results in?"

Nakayama Hayao looked up at his son with a complex expression, a mixture of amazement, lingering fear, and immense pride. "Takuya, you were absolutely right."

His voice was a little hoarse.

"The leverage is too high. If stock or real estate prices stagnate, the daily interest alone could crush us."

"And then there's the central bank personnel. The frontrunner for the next governor is Mieno Yasushi —his policy inclinations are extreme austerity."

Nakayama Hayao leaned back in his chair and exhaled a long breath.

"We're like blind people running wildly along a cliff edge, and you're the only one who opened your eyes."

Takuya's expression remained unchanged, as if he had everything under control.

"So, it's time to let those who are still dreaming feel the chill."

"The board of directors, I'll show them what real risk is." A new, ruthless glint rekindled in Nakayama Atsuo's eyes. He picked up the phone and dialed his secretary.

"Immediately notify all directors that a board meeting will be held next Friday."

A week later, in the Sega boardroom, all the company's key figures were present.

The air was filled with the aroma of coffee and a barely perceptible tension.

Nakayama Takuya sat at the end of the table next to his father.

His presence had become so commonplace that many board members didn't pay much attention to it.

"The meeting begins." Nakayama Atsuo's voice was steady, yet carried an undeniable authority.

He didn't beat around the bush and directly presented the expansion plan of Tom Kalinske, the new president of Sega of America.

"The North America market has huge potential; Konami Teenage Mutant Ninja Turtles ' million-selling game in a week is the best proof. We must seize the opportunity, acquire high-quality IPs, and recruit some top-notch game development studios. This will require a large sum of money."

He paused, his gaze sweeping across the entire room.

"I propose that the Asset Management Department immediately begin liquidating some of our stock and real estate holdings to recoup funds and fully support our overseas operations."

No sooner had he finished speaking than Director Hoshino in charge of stock investments, spoke up almost immediately, his tone laced with sarcasm.

"President, did I hear that right? Cash out? Now?"

He glanced at Director Sugiura in charge of real estate, beside him, and the two exchanged a knowing look.

Director Sugiura cleared his throat and continued, "President, I'm not afraid to speak frankly. Over the past two years, our investment returns in the financial markets..."

This is more than the Arcade Division has earned in the past decade. This is a boon to us from the times, a real gold mine! How can we give up this goose that lays the golden eggs just because of an uncertain plan in North America?

These words, like a thorn, pierced the heart of Takahashi, the director in charge of the arcade business, and his face instantly turned ashen.

Hoshino added bluntly, "How much money can you make selling game cartridges? Compared to the daily gains in the stock market, that profit is negligible. We should increase leverage instead of cowering and backing down!"

The atmosphere in the meeting room instantly became tense.

Nakayama Takuya watched coldly from the sidelines.

He knew that these people had been completely numbed by the false prosperity of the bubble era; in their eyes, real industry was a burden, while financial speculation was the future.

Just then, Director Hattori, who had been silent all along, gently tapped the table.

"Hoshino -kun, Sugiura- kun, please calm down."

He gestured to his assistant to project a document onto the screen.

"This is a risk-return assessment I've revised based on the central bank's latest discount rate."

The glaring red numbers and the rapidly plummeting profit curve instantly grabbed everyone's attention.

"As you can see, over 60% of our investment portfolio utilizes high leverage, some of which is even borrowed from overseas banks. If the Japanese yen depreciates, we will face a double whammy of interest rate and exchange rate losses!"

"Most importantly, after the interest rate hike, our nominal yield has been halved!"

A collective gasp filled the conference room. For the first time, the directors who had remained neutral showed expressions of shock on their faces, Hoshino and Sugiura's expressions also turned grim.

But they refused to admit defeat. Hoshino argued, "Risk and reward go hand in hand! This is just a temporary adjustment; the market will adapt quickly! To cripple ourselves for such a small fluctuation is cowardly!"

"Coward?"

Nakayama Hayao finally spoke. His voice wasn't loud, but it struck everyone's heart like a heavy hammer.

He slowly stood up, his gaze sharp as an eagle's, fixed intently on Hoshino.

"I have some news here."

"Chief Satoshi Sumita has only six months left in his term. His successor has already been decided internally: Mieno Yasushi."

"This name may not be familiar to some of you."

A cold smile curled at the corners of Nakayama Atsuo's lips.

"But his faction, and his policy philosophy, are determined to actively suppress rampant speculation in the market!"

He believes that the current Japan economy is a reckless gamble that must be ended!

Boom!

This insider information from the heart of politics exploded like a bombshell in the conference room!

The color drained from Hoshino and Sugiura's faces instantly, turning them deathly pale.

They may question market analysis and risk assessments, but they would never dare to question the will of those at the top of power!

That's not market volatility; it's an impending, unstoppable political storm!

The meeting room was deathly silent.

After a long while, Nakayama Hayao sat back down in his chair, his voice returning to its calm tone.

"I'll reiterate: liquidate some high-risk assets to recoup funds. Who's in favor? Who's against?"

This time, no one dared to voice their opposition.

Hoshino and Sugiura seemed to have all their strength drained away, slumping into their chairs and nodding with difficulty.

"Let's deal with the ones with the highest leverage first."

Nakayama Hayao glanced at them, knowing that going too far could be counterproductive.

"Good."

He glanced at his son without showing any emotion. Nakayama Takuya kept his head down the whole time, as if he was taking notes. But Nakayama Atsuo knew that all of this was within the calculations of Kirin son.

The meeting ended, but Nakayama Hayao knew in his heart that this was only the beginning.

A superstorm sweeping across Japan is already on the horizon, revealing its menacing side.

Sega, on the other hand, must get ahead of the storm and sail into a safe harbor.