A New Direction for Arcades (4,000 words)

Although Sega had made many preparations and even made adjustments in advance for the economic downturn, the impact was still inevitable.

The first to feel the chill were the arcade business overseen by Director Takahashi.

In the arcade sales department's meeting room, the ashtray was already overflowing with cigarette butts, but Director Takahashi still impatiently lit a new one.

Even the swirling smoke couldn't conceal his gloomy and dejected face.

He pushed a data report in front of Nakayama Takuya.

"Executive, please take a look."

"Passenger traffic has declined for three consecutive weeks, accumulating to over 15%!"

"Although the revenue decline isn't too significant, that's because before there were so many people that you had to queue, now it's barely full. But..." He took a deep drag on his cigarette, his eyes filled with anxiety.

"The trend has already formed! This is the most frightening thing!"

He glanced at the composed Nakayama Takuya, then at Yu Suzuki beside him with a furrowed brow, his tone tinged with barely suppressed anxiety. "The home consoles we made are now stealing our arcade business."

These words carried a hint of resentment, but they were also true.

Takuya's gaze swept over the report, but he didn't speak immediately.

He knew that Takahashi's anxiety was not only about the company's performance, but also about himself.

Director Takahashi's core business is the arcade game business, and the shrinking of this business is tantamount to weakening his influence within the company.

Takuya put down the report in his hand and turned to Director Takahashi.

"Director Takahashi, there's no need to be so pessimistic."

Upon seeing Takuya's response, Director Takahashi sat up straight.

"It is an inevitable fact that Japan's economy is now in a downturn."

"Under these circumstances, trying to salvage games with low attendance rates will only be counterproductive. We should now focus on games that are currently performing well in terms of revenue and analyze the current market characteristics."

Takuya refilled the teacups in front of Director Takahashi and himself, then continued, "Director Takahashi, which games in the arcades have the highest coin-operated rates right now? Which games are best at retaining players?"

"This..." Director Takahashi's spirits lifted, and he quickly flipped to another document. "Currently, the most popular are Super Motorbike, <Taiko no Tatsujin>, and <Art of Fighting>."

"While DDR is very attractive to players, its difficulty deters many, resulting in a relatively stable player base."

He added, "Fighting games like Art of Fighting haven't declined too drastically due to their intense competition and the lively atmosphere of arcades. But the most resilient are games like Super Motorbike, which feature large-scale hydraulic motion-sensing devices."

"Its graphics aren't even as good as some titles on the Mega Drive, but the driving experience is something home consoles can never provide. Its coin consumption is consistently very high!"

At this point, Yu Suzuki sharply raised his head and said in a deep voice, "I understand. The performance of home consoles is catching up rapidly, and our traditional advantage in 2D games is being erased. The future of arcade games must take a differentiated approach, providing a unique experience that you can't play at home!"

Takuya nodded approvingly, his eyes filled with admiration as he looked at Yu Suzuki.

As expected of Yu Suzuki, he grasped the concept immediately.

"Suzuki- san is right, differentiation is the foundation of the future." Takuya's gaze swept over the two of them, then he changed the subject, posing a deeper question, "So, in order to achieve this differentiation, in which direction should our next generation of arcade board develop? What are your thoughts, Suzuki -san?"

Takuya then turned the question back to him.

This problem is exactly what troubles Yu Suzuki.

He fell into deep thought, his finger unconsciously drawing circles on the table. "There are two directions, but both are difficult."

"One is 3D." A glint of light flashed in Yu Suzuki's eyes at the mention of this term, but it quickly dimmed again. "I've seen the technology from Argonaut Software, the company we've invested in. It has a bright future and is perfectly suited to Sega's style, which emphasizes fast-paced, impactful action."

"However, current 3D technology is still very crude, with a small number of polygons and rudimentary textures. To create a satisfactory work, the investment is enormous. It's simply impossible to cover the development costs for just one game."

"What about 2D?" Director Takahashi asked eagerly.

"2D—" Yu Suzuki shook his head, "There's still room for improvement, but the screen resolution is what it is now. All we can do is work on the number of colors and the number of scroll layers. The ceiling is clearly visible."

Silence fell over the meeting room once again. Director Takahashi's gaze shifted back and forth between Yu Suzuki and Takuya, as if he were looking at his last straw.

He defied public opinion and supported the Nakayama father and son in developing the M home console, in exchange for preferential resource allocation in the arcade business.

Now is the time for the home console division to "give back".

Takuya felt his gaze, hesitated for a moment, and finally spoke.

"Takahashi -san, Suzuki -san, we can try a different approach."

The two were puzzled by what Takuya said, exchanged a glance, and then turned their questioning gazes back to Takuya.

"Actually, we can think of it this way: the enemy of our arcade games isn't home consoles, but rather 'identical experiences.' And our bottleneck isn't technology, but rather 'cost sharing.'"

Takuya held up three fingers.

"So, I have three ideas."

Takuya raised his first finger. "First, 2D performance must continue to improve. We'll upgrade based on the System-18 Board."

Our goal isn't just to be better than the Mega Drive; we want Nintendo's Nintendo Famicom, released this year, to be left far behind when facing our new board.

"We want all third-party developers to understand that if they want to make top-tier 2D games, they can only do so on Sega's arcade platform."

"I've already had the Hardware Department obtain the SFC configuration information; you can request it anytime."

Takahashi's eyes lit up.

"Moreover, the R&D investment in this area won't be too large; it's just a matter of piling up existing technology and hardware. The corresponding increase in hardware costs might be significant for home consoles, but it won't be a problem at all for arcade machines."

Takuya raised his second finger. "Second, enhance the haptic experience. Add those add-ons that provide a unique experience, such as a steering wheel..."

The light gun, motion-sensing motorcycle, and flight joystick are all modular.

"A unified interface and data signal standard will facilitate plug-and-play functionality on different circuit boards. The home console division will cover a portion of the funding for this part of the research and development."

He turned to Takahashi and smiled slightly, "This will not only make arcade games more fun, but also accumulate a lot of technology. When the cost of components decreases in the future, this technology can then be used to improve home consoles."

"Home consoles will eventually have similar expansion kits added, and some may even become standard features. I will have the home console division share the R&D costs for this."

The worry on Director Takahashi's face instantly dissipated, and he relaxed completely.

The competition for resources between the Arcade Division and home console divisions has always been the main internal conflict, Takuya's words directly dispelled his biggest concern.

When the MD was being developed, it used the technology of the System-16 Board. The home console division later gave the Arcade Division a large sum of research and development funding.

Finally, Takuya's gaze fell on Yu Suzuki, his eyes filled with trust and encouragement.

He raised his third finger.

"Third, 3D. Suzuki- san, go for it."

Yu Suzuki suddenly looked up.

"I know that current 3D technology is not mature and is very expensive."

"But the future definitely belongs to 3D. We need to invest money now, not to make a game, but to seize the initiative in 3D technology!"

"As for money—" Takuya laughed, a smile so confident it was almost blinding, "Suzuki- san, don't just focus on the Game Development Department. The applications of 3D technology far exceed your imagination. Sega's investment in Argonaut Software is precisely for these broad application scenarios."

"You don't need to worry about R&D costs. I'll bring in the Arcade Division, the home console division, the Software Development Department, and even the animation studios we collaborate with—anyone that's even remotely involved—to share the burden!"

"We can even license our mature technology to partners in the animation industry or other game developers, and have them pay a technology usage fee!"

Yu Suzuki's eyes lit up.

Cost, risk, market—these were the problems that plagued him, but Takuya shattered them all with a grand business vision he had never imagined!

All that remains is the path of technology.

Director Takahashi breathed a long sigh of relief, looking as if he had become ten years younger. He picked up the report on the table, stood up, and said, "I understand! I'll go and convey the meeting's message to the Arcade Division immediately!"

Just as Director Takahashi disappeared from the conference room doorway, a hand, with undeniable force, pressed down on Takuya he was about to stand up.

Yu Suzuki leaned forward slightly, staring intently at Takuya. "Don't even think about leaving."

"You just said you wanted to do 3D, that's definitely not a spur-of-the-moment thing."

"You must already have a complete blueprint in your mind regarding what kind of game you want to make and to what extent."

Don't tell me you didn't. If you don't satisfy my curiosity today, I won't let you go.

Seeing Yu Suzuki's impatient, even somewhat unreasonable, manner, Takuya amused and exasperated.

This usually easy-going gaming master was now like a child who hadn't gotten his candy.

"Suzuki -san, you..."

"Stop talking nonsense and get to the point!"

Helpless, Takuya had no choice but to sit back down, pick up the now-cold tea on the table, and slowly sip it.

Seeing Yu Suzuki scratching his head in frustration, Takuya stopped keeping him in suspense.

"Alright, I'll say it." Takuya put down his teacup. "With our current technology, high-precision polygon modeling and complex texture mapping are not yet possible."

"But that doesn't mean we can't make fun 3D games."

The key is to play to your strengths and avoid your weaknesses.

I have two ideas; please listen to them.

Yu Suzuki immediately pulled out his notebook and pen from his pocket, adopting an attitude of listening attentively.

Takuya held up one finger.

"The first one, a race car."

"It's similar to your <Outrun>, but the perspective could be expanded to include a first-person view."

"Imagine it, Suzuki- san," Takuya's voice was full of seduction, "What the player sees is no longer their own taillights, but the steering wheel in the driver's seat, and the track rushing backwards through the windshield!"

"A sense of speed! We want the ultimate sense of speed!"

"Leveraging the powerful computing capabilities of our substrate, we achieve a stable and extremely high frame rate, coupled with smooth 3D visual effects and object scaling, creating an unprecedented immersive experience."

"The track and vehicles were all constructed using low-poly models."

"For distant scenery, we dynamically load it, so it only appears when needed and leaves an outline when not needed, thereby reducing the computational burden on the hardware."

Yu Suzuki's eyes grew brighter and brighter as his pen slid rapidly across the notebook, making a "rustling" sound.

"To avoid the weaknesses of texture mapping, we can make the track background nighttime. Shuto Expressway Bayshore Route in Japan, at midnight..."

Isn't this a paradise for those underground car enthusiasts? Let's turn roads like that into our racetracks.

"In the pitch-black night, with city lights flashing by on both sides, all the player has to do is floor the gas pedal, weave through the traffic, and feel the adrenaline rush!"

"This experience will be something no home console can replicate!"

"Wangan Line," Yu Suzuki muttered to himself, his pen flying across the notebook as he began reciting technical terms like "dynamic loading," "collision detection," and "force feedback," completely absorbed in a state of frenzied creation.

Takuya waited quietly for him to process the information for a moment before raising his second finger.

"The second direction: combat."

Yu Suzuki looked up abruptly, a hint of doubt in his eyes. Fighting? Like in * Fatal Fury *? How would you do that in 3D?

"I know what you're thinking." Takuya saw through his thoughts. "Our 3D fighting game is different from fighting games like Fatal Fury and Art of Fighting."

"The arena in those games is, in essence, a two-dimensional line."

Takuya drew a straight line on the table with his finger.

"And our arena will be a true 'space'!"

He drew a circle with his hand.

"Characters are no longer 'paper dolls' that can only move left and right and jump; they can move 360 degrees on a three-dimensional arena."

Dodge, retreat.

"The dimension of combat has become a true 3D space!"

Yu Suzuki, his pen momentarily still!

"Furthermore, to differentiate ourselves from those comic book-style fighting games, our fighting game emphasizes 'realism'!"

"We've faithfully brought real-world martial arts styles into the game! Japan Judo and Karate, South Korea Taekwondo, Thailand Muay Thai, and the many styles of China Kung Fu!"

"Every move, every punch, every kick has a traceable pattern and a set of rules."

"With future hardware advancements, our graphics and animations will become increasingly realistic. And our game, built on the foundation of 'realism,' will grow stronger with each technological advancement!"

"It won't become outdated; it will only become more realistic and more stunning!"

"Great! Great!" Yu Suzuki stood up excitedly. He paced back and forth, then suddenly stopped next to Takuya and slapped Takuya on the shoulder with such force that Takuya winced.

"Real combat. -- How about we call this project ' Virtua Fighter '?"

A light like never before shone in Yu Suzuki's eyes. He wrote down the last few words, closed the notebook, and excitedly patted Takuya on the shoulder.

"What's your brain made of, you idiot? Alright, it's settled! Tonight at the izakaya, my treat!"

After saying that, he rushed out of the conference room like a gust of wind, leaving only a sentence that echoed in the corridor.