An Opportunity to Acquire Sunrise (4,000 Words)

Nakayama Takuya had only been an advisor to the Arcade Division for two days when Sunrise approached him.

The call was made personally by President Ito, whose tone betrayed a barely concealed anxiety.

The chilling winds of the stock market crash have finally reached the animation industry from the financial markets.

The next day, when Takuya arrived at Sunrise headquarters, the entire management team was already sitting upright in the conference room, waiting for him, the Sega representative.

The head of the Marketing Department cleared his throat and distributed a stack of reports; the sound of paper scraping was particularly clear in the quiet meeting room.

"Please take a look, everyone. This is the data for the most recent month."

The numbers on the report are alarming.

"Everyone, the situation is very dire."

The head of the Marketing Department spoke in a hoarse voice, pointing to the reports.

"Since the stock market crash two weeks ago, on January 12th, Bandai's traditional toy sales have plummeted!"

"Our revenue sharing from related Google Ads campaigns has also shrunk significantly as a result."

"What's worse," he said with difficulty, taking a deep breath, "Is that several partners have already sent notices requesting delays in paying authorization fees, citing tight cash flow."

"This is not just a problem of declining revenue; we may face a large-scale risk of bad debts at any time!"

After he finished speaking, the conference room fell silent.

A senior finance executive, his face pale, couldn't help but suggest, "Shouldn't we—shouldn't we strengthen the commercial connection with merchandise in future animated works? Let's directly 'sell' products within the animation!"

"Nonsense!"

Before the words were finished, an angry voice rang out.

The executive in charge of communicating with the production team slammed his hand on the table, his eyes instinctively glancing warily at director Yoshiyuki Tomino sitting in the corner.

"Are you trying to ruin Sunrise's reputation?! Excessive interference in the creative process will only create resentment within the creative team, resulting in garbage that even fans will abandon! At that point, forget about selling toys, you won't even be able to maintain the ratings!"

"But what else can we do? Are we just going to watch the company go bankrupt?!"

"You--

Seeing that an internal argument was about to break out, President Ito rubbed his temples in exasperation and stepped in to smooth things over.

"Alright, everyone, say less."

"The quality of the work itself is not the problem; the viewership ratings are the best proof. The problem doesn't lie with the creative team; the current situation is caused by external circumstances. We can't put the cart before the horse and dump all the pressure on the creative team."

The president's words calmed everyone down, but what followed was an even deeper sense of powerlessness.

The president's words make sense, but the problem remains.

How to improve revenue? How to stabilize the cash flow? How to reduce the risk of bad debts?

The discussions have all boiled down to nothing more than urging Bandai to adjust its GG strategy or strengthen risk assessments of its partners—these are all conventional and ineffective measures that cannot solve the current predicament.

The meeting room fell into a suffocating silence once again.

Just then, President Ito turned his gaze to Nakayama Takuya, who had been silent since entering the room.

"Mr. Nakayama, you are a director of Sunrise and a representative of Sega. What are your thoughts?"

All eyes immediately turned to them.

Takuya sensed the gazes and knew he couldn't avoid them, so he cleared his throat and leaned forward slightly.

Have you guys heard of the "lipstick effect"?

"The lipstick effect?" someone asked, puzzled. "Nakayama -san, we make animations, we don't sell cosmetics."

A soft chuckle rang out, slightly easing the tense atmosphere in the conference room.

Leonard Lauder, the eldest son of Estée Lauder founder Esti Lauder, analyzed consumer data from the Great Depression in the United States during the 1930s and found that despite the overall economic downturn, lipstick sales rose significantly. He argued that under economic pressure, consumers turned to buying inexpensive but psychologically comforting products as an alternative to high-priced purchases.

He picked up the report and pointed to the data on it.

"Animation, toys, and games—these are all products that can provide emotional comfort and added value. The current decline in consumption is partly because people haven't recovered from the stock market crash, and partly because our products haven't accurately met their needs."

"The report says that Bandai's traditional toys are not selling well. But I ask you, what about Gundam models? Have the sales of model kits really declined so much?"

The Marketing Department manager paused for a moment, glanced at the data, and shook his head. "No, Gundam model sales are stable; it's just that the average spending per customer has decreased."

"That's right!" Takuya clapped his hands. "Of course Bandai's toys without a story aren't selling well now."

"But Gundam models are different. For fans, they're not just toys; they're a symbol of their faith. They may have less money in their pockets, but their passion hasn't diminished."

"Therefore, my first suggestion is to propose to Bandai that they shift their business focus towards low-priced toys with intellectual property, such as developing more small-sized, low-priced candy toys or blind boxes."

"As for cash flow," Takuya changed the subject, "Why not re-license those old anime in Sunrise's library to video rental companies? Not just in Japan, but overseas too. No need for re-dubbing, just add local language subtitles. The cost is negligible; once sold, it's practically pure profit."

"There are also costs involved. We can consider expanding our animation outsourcing scale in mainland China. But it's not simply about outsourcing; it's about integrating the outsourcing ecosystem there, optimizing intermediate links, and reducing time costs. Of course, this also places higher demands on our contract design and quality control."

Inside the meeting room, some people had already begun writing furiously in their notebooks.

Takuya took a sip of water and offered his final suggestion.

"Finally, regarding the project. I know the Gundam series is Sunrise's mainstay, with huge investments. But during a period of tight funding..."

Could we appropriately reduce the scale of these high-investment projects, or adjust their production frequency, allowing for longer intervals between large projects, and instead focus on developing some medium- to low-cost original works?

"Although the return on investment isn't as high as for large projects, this not only reduces the pressure on our cash flow but also prevents viewers from perpetuating the impression that Sunrise is 'a company that only makes toy-themed anime,' thus reducing resistance from anime audiences and broadening our scope. Of course, this requires the finance and board of directors to develop a meticulous financial plan and carefully manage it."

The executives who were arguing earlier now look at Takuya with deep respect.

A series of well-reasoned and effective punches, each one hitting its mark.

He considered all aspects, including open source, cost reduction, risk avoidance, and brand image, and provided clear and feasible solutions.

"Clap, clap, clap."

President Ito led the applause, which quickly grew from sparse to enthusiastic, resounding throughout the entire conference room.

"Nakayama, I admire you! You've truly enlightened us old folks!" President Ito stood up, bowed slightly to Takuya, and spoke sincerely.

"President, you flatter me. I'm just offering some outsider's perspective."

Takuya responded modestly, his expression calm, as if his pivotal remarks were just a casual remark.

"No, this isn't just an outsider's opinion; it's invaluable advice!" President Ito waved his hand, looked around, and said, "Everyone..."

The directions proposed by the Nakayama consultants were all highly actionable. Following the meeting regarding videotape licensing, optimizing outsourcing chains, and adjusting project resources, each department immediately produced a concrete evaluation plan!

"Yes!" the crowd responded in unison, their morale noticeably improved.

After the meeting, everyone left one after another. Many people nodded to Takuya as they passed by, their eyes full of admiration and gratitude. "Nakayama -san, if you're not in a hurry, would you like to come to my office for a cup of tea?" President Ito extended an invitation.

"Of course, it would be my pleasure."

Inside the president's office, the secretary brought in two steaming cups of sencha (a type of Japanese herbal tea) and then quietly withdrew.

President Ito picked up his teacup but didn't drink. He simply watched the rising steam, and after a moment, he sighed, "To be honest, Mr. Nakayama, if it weren't for you today, this meeting would probably have ended in a sigh and lament."

"You're too kind. Sunrise has such a strong foundation, with a creative core like Director Tomino and a national-level IP like <Gundam>, the current difficulties will soon pass."

"Heh, I hope so." President Ito put down his teacup, a hint of weariness in his expression. "The plans you mentioned are all good, but—whether it's integrating the outsourcing industry or developing new low-cost projects, both require money."

"In the current climate, banks are tightening their purse strings. If it weren't for the consistently high viewership of Sunrise's anime lately, the banks might be coming to collect on their debts."

He looked at Takuya, a hint of inquiry in his eyes.

Takuya knew that the main topic was about to be discussed.

He didn't beat around the bush; he leaned forward slightly, looked directly into the other person's eyes, and spoke in a calm tone that carried an undeniable weight.

"President Ito, I'm here today representing both Sega and myself. Sega has always considered Sunrise its most important strategic partner, and we're happy to see our partner thrive."

He paused, giving President Ito time to process it.

"Therefore, if there are any funding issues, whether it's for Sunrise capital or investment needs, or if you, the president, have any personal needs,..."

Sega can help. We're not a bank, we're allies.

He pronounced the word "ally" with exceptional clarity.

President Ito's pupils contracted sharply upon hearing the word "ally."

His fingers, gripping the teacup so tightly that his knuckles turned white, were oblivious to the slight simmering of the hot tea.

Having navigated the turbulent business world for decades, how could he not hear the immense weight behind those two words!

What Sega wanted was not just simple financial support.

What they want is the entire Sunrise!

This is no longer an implication, but rather an explicit declaration.

President Ito's Adam's apple bobbed. The impassioned speech in the conference room overlapped with the calm yet determined look in the young man's eyes.

He suddenly realized that from the moment Takuya stepped into the conference room, he and the entire Sunrise board of directors had already fallen into his carefully woven web.

First, he subdued everyone with swift and decisive measures, then revealed his true intentions in a private meeting.

One thing leads to another, leaving no room for respite.

The current situation of Sunrise is visibly deteriorating. Even though Takuya gave a lot of practical suggestions at the meeting, they cannot bring Sunrise cash immediately.

After a long while, President Ito exhaled a long, long breath, as if he wanted to expel all the struggles and exhaustion in his heart.

He slowly put down his teacup, his once straight back seemingly collapsing at that moment.

He smiled bitterly, his gaze towards Takuya incredibly complex, containing admiration, resentment, and inner turmoil, but mostly a sense of resignation at the inevitability of the situation.

"Nakayama- san - Sega, you guys won."

"No, President Ito."

Takuya's lips curled into a faint smile as he leaned back on the sofa, regaining his composed demeanor.

"It's 'us,' we'll win together."

"President Ito, don't you know my style?"

"Am I the kind of person who would be aggressive towards allies? Sega simply believes in Sunrise's development and production capabilities, and hopes that Sunrise can get rid of the interference from Fangdai, which can cause problems at any time, and develop steadily so that we can make more money together in the future. We are not seeking complete control, and you will remain the president of Sunrise."

Upon hearing this, President Ito paused, then seemed to rekindle the same entrepreneurial passion he had when he first started the Mushi Production.

He extended his right hand and clasped it with Takuya's.

"Then, Mr. Nakayama, I look forward to your guidance in the future." After saying that, he shook his head vigorously.

"President Ito, I look forward to your guidance in the future." Takuya also tightened his grip slightly.

The next day, when Takuya entered his office, his assistant was already waiting respectfully at the door and handed him a new document.

"Nakayama Special Advisor, here is the financial assessment report you requested regarding the major game companies during this stock market crash."

Takuya took the document, casually flipped through the report, and his gaze fell precisely on that familiar name.

The report shows that Bandai's situation is even worse than Sunrise's, with an even higher risk of its cash flow drying up.

The assistant whispered a reminder: "Boss, Bandai has recently expressed their intention to seek cooperation with us through some channels."

"Ignore it."

Takuya's tone was as indifferent as if he were talking about an insignificant ant.

His fingertips tapped lightly on the name "Bandai," a hint of coldness flashing in his eyes.

Back then, on behalf of Sega, he offered them the "glue-free assembly" technology solution, which was capable of changing the entire model toy market.

And the result?

Bandai's arrogant management team accepted an enormous favor but didn't even offer a formal thank you. They even dared to use it as leverage to take advantage of Sega in future collaborations.

Now you're thinking of asking for help?

It's too late.

"Remind our people to politely decline any contact from Bandai," Takuya commanded calmly. "Let them struggle in this quagmire a little longer. Once they truly understand what 'respect' means, then we can discuss further 'cooperation.'"

"Yes!" The assistant's heart skipped a beat, and he immediately understood what his boss meant.

Takuya shifted his gaze from Bandai's name and continued scanning downwards.

Hudson... PC-Engine sales have plummeted, the honeymoon period with NEC is coming to an end, and there are already signs of disintegration.

Namco, Taito, Konami —once dominant names in the stock market—are now trembling in the chill of the stock market crash, their stock prices plummeting.

Many games that were considered outdated by 1990, whether arcade or console, were being abandoned by players, and sales and coin-operated games remained stagnant.

Takuya's fingertips lightly traced over several names, his eyes deep and unfathomable, like a shark that had caught the scent of blood, scrutinizing its next meal.