Bandai Bows Its Head

Upon learning that Nakayama Takuya had returned to Tokyo, Mitsui Chuta of Bandai paid him another visit.

This time, the location was no longer the quiet, upscale restaurant from last time, but Sega Headquarters, Takuya's Managing Director's Office.

The balance of power has quietly shifted.

The composure and probing of the previous time were gone from Mitsui Chuta's face; in its place was an undisguised weariness and anxiety.

The gift he brought also seemed particularly heavy.

"Nakayama. Nakayama, I apologize for disturbing you." Mitsui Chuta bowed slightly, his posture much more humble than the last time he did at Kitcho.

"Mitsui- san, please have a seat." Takuya personally poured him a cup of hot tea, a warm yet measured smile on his face. "My last trip to United States was rushed, and after returning, I was busy with engagement matters, and then went to United States to handle various affairs. I haven't been able to visit you since. Please don't mind."

His words were both polite and an inadvertent reminder that his previous statement about being "busy" was not an excuse.

Mitsui Chuta chuckled twice, picked up his teacup and took a sip; the scalding tea seemed unable to warm his icy palms.

He didn't beat around the bush, because he knew that in front of this young man, any unnecessary preamble would only make him look more embarrassed.

"Nakayama. Nakayama, your words last time were very helpful to both President Yamauchi and me." Mitsui Chuta put down his teacup, his tone serious. "Bandai —has indeed encountered some trouble."

He took a deep breath, as if he had made up his mind.

"With the current economic downturn, Bandai's traditional mass-market toy market is shrinking severely. The company has decided to cut this part of the business to streamline operations, but the financial pressure is simply too great."

At this point, Mitsui Chuta's posture seemed to slump a little more.

"Therefore, I am here today representing the Bandai Board of Directors, with the utmost sincerity, to seek a deeper collaboration with Sega."

Takuya listened quietly, his fingers tapping rhythmically on the desk, making a soft, rhythmic sound that seemed to resonate with Mitsui Chuta's heart.

"We hope to engage in a share swap with Sega," Mitsui Chuta uttered with difficulty, then added, "At the same time, Bandai is willing to sell another portion of its shares to Sega in exchange for your financial support to help us overcome this difficult time."

"In addition, we hope that Sega and Sunrise can provide Bandai with more licenses for anime and game characters."

After saying all that in one breath, Mitsui Chuta seemed to have all his strength drained away, and even beads of sweat appeared on his forehead. He nervously watched Takuya's reaction. This was already laying all of Fangdai's cards on the table.

For a moment, the only sound in the office was the soft hum of the air conditioner.

Takuya's smile remained unchanged. He picked up his teacup, gently blew on the steam, and after a moment of contemplation of a trivial matter, he slowly spoke.

"Mitsui- san, your presence representing Bandai demonstrates your company's boldness." He first acknowledged the other party's attitude, then changed the subject with a hint of amusement, "However, cutting traditional businesses is a drastic measure. I've heard that this has created considerable resistance within Bandai."

A thought flashed through my mind, Chuta Mitsunami my back tensed instantly.

He hadn't expected that Takuya was so well-informed about the internal workings of Bandai.

"Just some... just some normal business adjustment discussions," he offered a weak explanation.

Takuya smiled and stopped asking questions. His all-knowing composure only made Mitsui Chuta feel even more pressured.

"Regarding the share swap and acquisition, Mitsui -san, this isn't a decision I can make alone." Takuya put down his teacup, leaned forward slightly, and reassured him, "However, I personally have high hopes for this collaboration. I will submit this matter to the board of directors and do my best to make it happen. Given the relationship between our two companies, I think the board has a high chance of approving it."

Hearing these words, Mitsui Chuta's tense nerves finally relaxed, and he let out a long sigh of relief, his face showing heartfelt gratitude.

"Then—I'll leave it to you, Nakayama!" He stood up and bowed deeply to Takuya.

Early July, Sega Headquarters.

The atmosphere inside the top-floor conference room was solemn.

Seated on either side of the long conference table were the company's directors, with Nakayama Hayao at the head of the table, his expression calm and his gaze piercing.

All eyes were on Nakayama Takuya at the reporting desk.

"That concludes the cooperation request put forward by Bandai's Director, Bandai Mitsui Chuta." Takuya closed the document in his hand, his voice echoing clearly in the meeting room. "In summary, there are two points. First, they hope to exchange shares with Sega. Second, they are willing to sell another portion of their shares to us in exchange for financial support."

As soon as he finished speaking, a barely suppressed commotion arose in the meeting room.

"This is great news! Bandai couldn't hold on any longer and has come knocking on our door!"

"Strike while the iron is hot! This is a once-in-a-lifetime opportunity to bring Bandai into our system in one fell swoop!"

Several radical board members were already getting restless, their faces flushed with excitement.

In their view, this was tantamount to their competitors offering a surrender.

Nakayama Atsuo didn't speak, but simply picked up his teacup, gently blew away the foam, and kept his eyes alert to his son, waiting for him to continue.

Takuya raised his hand and gently pressed it down.

The meeting room fell silent instantly.

"I completely understand the feelings of the board members," Takuya said calmly. "However, I personally believe that now is not the best time to swallow Bandai."

"Oh?" One of the directors frowned. "Executive Director Takuya, what do you mean? This is a once-in-a-lifetime opportunity."

Takuya smiled slightly, his gaze sweeping across the room before finally settling on the face of the director who had asked the question.

"Bandai is like a leaky ship. If we jump on now, we'll not only have to help plug the holes, but we'll also be tossed around with it. What's more, there's a group of sailors on board who are unaccustomed to the environment and could mutiny at any moment."

He paused, giving everyone time to process what he had to say.

"I've received information that Bandai faces significant internal resistance to its decision to cut its traditional toy business and aggressively expand into the electronics sector. As you all know, their Game Development Department is unreliable, its decisions entirely dependent on the whims of upper management. Such a company is riddled with internal conflicts; if we intervene now, we'll only become a sucker for a mess and incite resentment throughout the company."

These words instantly calmed down the board members who had been acting impulsively.

"So what do you mean?" Nakayama Atsuo finally spoke, his voice low and probing.

"What I mean is, let's play the long game and catch the big fish." Takuya's eyes lit up. "Bandai's problems are rooted in their corporate culture and decision-making level; they can't be completely changed by just one economic downturn. If we help them this time, they'll recover, and given the restless nature of their upper management, they'll inevitably fall into crisis again in a few years."

"That will be the time for us to truly reap the rewards."

"As for now," Takuya held up two fingers, "Sega's own cash flow is very healthy. This money should be used wisely, such as developing our own new arcade machines or consolidating our position in the North America market, rather than trying to fill Bandai's hole."

"Therefore, I suggest that we conduct a small-scale share swap and capital injection. Give them a little reward, help them through their current difficulties, make them grateful to us, and lower their guard. This will maintain our alliance and facilitate the cultivation of factions close to Sega, thus planting a deeper seed."

Takuya finished speaking, the entire conference room fell into a quiet discussion, with everyone verifying the feasibility of Takuya's plan using the information they had and the information from others.

A barely perceptible hint of approval flashed in Nakayama Atsuo's eyes.

"Ahem." After the discussion had subsided, Nakayama Atsuo cleared his throat and broke the silence. "Everyone, you've all understood Takuya's analysis. Does anyone have any objections?"

The group looked at each other, then shook their heads.

"I agree with Special Secretary Nakayama's view; a steady and pragmatic approach is the best strategy."

"Indeed, acting too hastily can easily lead to a backlash."

"That's settled!" Nakayama Atsuo declared decisively, then turned his gaze to a director beside him, "Yoshikawa, this negotiation..."

It's all up to you now.

Director Yoshikawa, who was in charge of the company's legal and investment affairs, stood up and bowed slightly. "Yes, President."

He wore a confident smile; his impressive previous acquisition of Sunrise made him adept at this type of business.

Director Yoshikawa then looked at Takuya and said half-jokingly, "However, with Executive Director Nakayama setting the tone so well, I, as the negotiator, am under a lot of pressure."

Takuya laughed, "Director Yoshikawa is too modest. With you taking charge, we're all waiting to hear good news."

The atmosphere in the meeting room immediately Panasonic.