Head-to-Head

Late autumn in Kyoto, and the air was slightly chilly.

In the conference room at Nintendo headquarters, the meeting to schedule fourth-quarter game releases was underway.

"The initial success in the North American market is worth recognizing." Yamauchi Hiroshi spoke first, his voice low but naturally commanding. "The popularity of Super Mario Bros. proves that our content-first strategy is correct."

His gaze swept around the room. "Our top priority now is to accelerate the localization of our existing games and expand the North American NES lineup as quickly as possible. That is our foundation."

He deftly steered the topic toward Nintendo's core strengths, trying to lessen the impact of Sega's handheld console.

"As for handhelds..." Yamauchi Hiroshi paused, lightly tapping the tabletop with his fingers. "They're only succeeding because of Tetris. Other games can't sell like that, and a handheld with only one game will never amount to much."

He shifted his gaze toward Yokoi Gunpei in the corner. "Still, Sega has given us a reminder. If we use our powerful software lineup to develop a handheld with interchangeable cartridges, we may be able to extend the Famicom's glory into the handheld market. Yokoi, I'm assigning this task to you. At the next meeting, I want to see a feasibility report."

A flash of excitement passed through Yokoi Gunpei's eyes, and he immediately replied, "Yes, sir! I guarantee I'll complete the task!"

Though Tetris's terrifying sales figures had indeed shaken Yamauchi Hiroshi, they had also inspired a new idea—if Nintendo was going to make a handheld, it would make one with swappable cartridges and crush its rivals with its software advantage.

The meeting's focus quickly shifted to the coming winter sales season and the release plans for several highly anticipated Famicom games.

Among them, Namco's heavily anticipated Famicom version of Pac-Man, ported from the arcade hit, became one of the key topics of discussion.

Just then, the head of marketing rose, his expression somewhat grave, and reported, "President, we've received intelligence that Sega is secretly pushing forward a large-scale arcade project with massive investment. Its codename appears to be 'K.' We've heard that, in an unprecedented move, they've invited a well-known animation director and prominent manga artist for a cross-industry collaboration."

"Animation tie-in? Manga artist?" Yamauchi Hiroshi frowned, and his tapping fingers stopped. He had keenly caught the crucial information. Given Sega's scale of investment and this kind of crossover collaboration, it was definitely no small undertaking.

"Sega's ambitions are considerable this time," one executive murmured.

"Their target is most likely the winter season, or early next year. They want to make a major splash in the arcade market." The marketing director added, "This could divert players' attention and pose a potential threat to our winter Famicom game sales."

The conference room fell silent, and all eyes turned to Yamauchi Hiroshi.

After a brief silence, Yamauchi Hiroshi raised his head, his gaze sharp. "The release plan for the Famicom version of Pac-Man needs to be adjusted."

"Adjusted?" The executive in charge of publishing looked confused.

"Delay it." Yamauchi Hiroshi's tone was calm, yet carried unquestionable force. "The exact date is to be determined."

Several executives exchanged looks, unable to understand why such an important title would be delayed and made to miss the prime Christmas season.

Yamauchi Hiroshi seemed to see through their thoughts. The corner of his mouth lifted in an almost imperceptible curve. "First, we need to see Sega's hand in this 'K' project. In particular, its game genre, as well as the specific form and launch timing of this so-called animation tie-in."

He paused, his voice steady and powerful. "Pac-Man is an important piece on the board. We cannot play it lightly. We must use it at the most critical moment."

His gaze swept across the room. "Keep a close eye on every development involving Sega's 'K' project. Once we confirm the final launch date for the arcade cabinet of their 'K' project..."

A calculating glint flashed in Yamauchi Hiroshi's eyes. "Release Namco's Famicom version of Pac-Man three days before the game from the 'K' project."

"Three days earlier?"

"That's right." Yamauchi Hiroshi affirmed. "At the peak of their promotional buildup, use the Famicom version of Pac-Man, a major arcade port, to seize all the media coverage and players' attention. Disrupt their promotional rhythm, intercept their potential customers, and drastically reduce the impact of the 'major splash' they've carefully prepared."

It was a ruthlessly effective move. The conference room fell quiet again, and everyone silently admired the president's foresight and scheming. Though it sacrificed Namco's best release window, in Yamauchi Hiroshi's business logic, third parties always existed to serve the platform strategy. Besides, if a console maker was giving them a chance to eat, they ought to count their blessings.

"Then it's settled." Yamauchi Hiroshi made the final decision.

Ironclad Formation Building, Ota Ward, Tokyo Metropolis—Namco headquarters.

President Nakamura Masaya's office.

The marketing representative sent by Nintendo was impeccably dressed in a suit. A professional smile rested on his face, but his tone carried a formulaic detachment.

Using a set of carefully polished diplomatic phrases, he relayed Yamauchi Hiroshi's decision to Nakamura Masaya.

"President Nakamura, regarding the release arrangements for your company's Famicom version of Pac-Man, President Yamauchi has given the matter careful thought and has some new ideas."

The representative spoke unhurriedly. "The main consideration is that competition during the Christmas period at year's end is exceptionally fierce. There are too many outstanding titles, which could easily dilute players' purchasing power. In order for a high-quality game like Pac-Man to receive more concentrated market attention and promotional resources..."

He paused and watched Nakamura Masaya's reaction. "President Yamauchi believes that appropriately delaying the release window and avoiding the most intense competition will have little impact on a game like Pac-Man, which has a solid fan base and an excellent reputation. On the contrary, it will better highlight its unique value and maximize sales."

The smile on Nakamura Masaya's face barely changed, but the light in the depths of his eyes instantly dimmed, even taking on a trace of chill.

Avoiding competition? Highlighting its value? What a nice way to put it!

He sneered inwardly, instantly understanding Nintendo's true intentions beneath those pretty words. Sega's "K" plan was making such a huge stir, and Namco was also in Tokyo, so naturally they had heard about it. Nintendo was clearly using Namco's flagship product as cannon fodder without hesitation in order to snipe Sega in the arcade market!

How important was Pac-Man to Namco? What did the Christmas season mean for game sales? Could Nintendo possibly not know? Whenever third parties released games, Nintendo would cautiously estimate sales to control risk and never dare manufacture even one extra cartridge. They were counting on Christmas and New Year, when young people had more spending money and stronger urges to buy, to sell a great many more cartridges—yet Nintendo could delay it with a casual word! This was outright hegemony!

"President Yamauchi's considerations naturally come from a strategic perspective." Nakamura Masaya's voice remained calm, but his tone conveyed restrained persistence. "However, Pac-Man is the absolute cornerstone of Namco's entire winter lineup. Our entire company has invested immense effort and resources into it. All our original marketing plans and promotional buildup were designed around a pre-Christmas release. This window is crucial to achieving our annual sales target."

He made one final attempt, hoping Nintendo would take the vital interests of its third-party ally into consideration.

However, the marketing representative's attitude was very clear. He merely repeated his earlier explanation politely, then added, "This is President Yamauchi's final decision. We hope President Nakamura Masaya will understand and cooperate with Nintendo's overall strategic arrangements."

The implication was clear: there was no room for negotiation.

Nakamura Masaya fell silent. The hand resting on his knee unconsciously clenched into a fist.

He clearly realized that before this set of "rules" created by Nintendo, a third-party developer like Namco had no right to bargain. An arm could not twist a thigh; if they resisted, they might not even get a sip of soup.

Slowly loosening his clenched fist, he forcibly suppressed the anger and humiliation surging within him. A polite smile returned to his face. "Since it is President Yamauchi's decision, Namco will naturally cooperate with our full effort. We also thank Nintendo for giving Pac-Man such thorough consideration."

The representative nodded in satisfaction, seemingly quite appreciative of Nakamura Masaya's "sense of the bigger picture," then rose to take his leave.

The office door closed softly.

The smile vanished from Nakamura Masaya's face at once, his expression dark enough to drip water.

He walked to the window and looked down at the busy street below, his eyes icy. Nintendo's tyrannical conduct was like an invisible chain, tightening around him until he could barely breathe.

He, Nakamura Masaya, would remember this debt. Nintendo... your enemies might not be unable to become Namco's friends. His gaze seemed to travel toward distant Tokyo.