Steady Progress

The Sega Development Group Three office was as sweltering as an asphalt road on a midsummer afternoon, with everyone working at a fever pitch. The room was filled with the clatter of keyboards, heated discussions, and the occasional burst of test sound effects.

Nakayama Takuya bent over his workstation, his eyes fixed on the code scrolling across the screen while his fingers danced over the keyboard. The project codenamed "K," Fatal Fury, had reached the crucial stage of producing a demo.

After their initial stumbles, the development team had unleashed astonishing efficiency and creativity.

"Takuya, Terry's moves have been integrated very smoothly—more smoothly than we expected!" The team member responsible for program optimization ran over excitedly to report, fine beads of sweat dotting his forehead as though he had just finished a marathon.

Nakayama Takuya looked up, the corners of his mouth lifting into a satisfied smile. "Excellent work! Keep it up. We should have no problem completing a presentable demo version by the end of the month."

"Yes!" The team member gave a spirited salute before turning and running back to his workstation.

Nakayama Takuya stretched and rubbed his slightly aching neck.

Just then, a voice came from behind him. "I say, Takuya, you've got it pretty easy. Don't you need to write any code?"

Without turning around, Nakayama Takuya knew it was Yu Suzuki, a friend he had met not long ago. He turned around with a smile. "Says you. Did Development Group Two run out of work after finishing Hang-ON? You come around to Group Three every day."

Yu Suzuki shrugged, walked over to Nakayama Takuya, and patted him on the shoulder. "That's only because your game is so captivating. I can't help wondering what it would be like if fighting games could take place in a planar space—or even a 3D space."

Takuya shrugged as well after hearing that. "Then make it when the technology matures."

He sighed inwardly. As expected of one of Sega's pillars—he was already thinking along the lines of Virtua Fighter.

He picked up his coat and put it on. "Take your time looking around. If you have any ideas, you can tell Shimizu. I'm heading to Tatsunoko first."

Before long, Takuya drove to Tatsunoko.

The walls were covered with character design sheets and scene concept art for Fatal Fury.

Director Oba Kotaro was in the midst of a heated discussion with several key artists over the storyboard script.

"The force behind this punch needs to be more exaggerated in the animation. It should emphasize the impact of street fighting!"

"No, Director. I think it should be toned down a little and retain some sense of realism from martial arts. That would better suit the original manga artist's style. Besides, these frames aren't an important fight scene at all—they're just a simple transition to establish the character."

Amid the argument, Takuya stepped in at the right moment.

"Director Oba, I think Udagawa's idea makes a lot of sense. If the transitional fights are too exaggerated, there won't be enough visual contrast when we get to the core fight scenes. It would also help distinguish ordinary fighting from the fighters' fantastical special moves. Of course, that's only my humble opinion. What do you think, Director Oba?"

Oba Kotaro pondered for a moment, then nodded in agreement with animation director Udagawa Kazuhiko's suggestion. "Indeed, handling it this way will better highlight the climactic moments of the story. It seems I brought over quite a few habits from when I worked on Urusei Yatsura. I really didn't notice how unsuitable they were. Udagawa, I'll have to trouble you to remind me more often from now on."

Seeing that Oba Kotaro had accepted his suggestion, Udagawa Kazuhiko was delighted and continued with his key animation review work.

By the time Takuya left the animation studio, it was already evening.

When Takuya returned to the Sega building and passed by the marketing department, he happened to overhear two employees chatting.

"Did you hear? Namco's Famicom version of Pac-Man seems to have had its release delayed."

"Really? That's their main winter title. Why would they suddenly change plans?"

"Who knows? I heard it was Nintendo's decision, supposedly to avoid some kind of competition..."

Takuya's steps paused slightly.

The Famicom version of Pac-Man had been delayed?

Considering the animation promotion for Sega's own "K" project through Tatsunoko and Shueisha, along with Nintendo's usual overbearing style, he understood immediately.

This was no coincidence. That old fox Yamauchi Hiroshi had caught wind of the threat posed by Project K. This was a targeted commercial strike.

A barely perceptible cold smile tugged at the corner of his mouth.

He felt no anxiety whatsoever. If anything, it felt somewhat... just as planned.

Nintendo's reaction proved the weight of Project K. In fact, that very reaction was precisely what he wanted.

It seemed he needed to give them a little more bait.

A countermeasure that would use their own momentum against them and expand Project K's influence began quietly taking shape in his mind.

Meanwhile, in the top-floor conference room at Sega headquarters.

The atmosphere was as heavy as the lead-gray sky outside the windows.

Sega's third-quarter board meeting was underway.

David Rosen, who had hurried back from North America, stood wearily before the projection screen and reported the latest market data.

"Gentlemen, I regret to inform you that the situation in the North American market... is not optimistic."

There was a trace of hoarseness in his voice.

"Driven by the immense popularity of Super Mario Bros., Nintendo's NES has successfully reversed its previous negative public perception. Sales have begun showing strong momentum, placing enormous pressure on the promotion of our Master System."

On the projection screen, cold sales graphs mercilessly displayed Sega's predicament in the home console market.

The conference room fell deathly silent.

Many directors frowned deeply, their expressions grim.

The optimism and hopes they had once held for the home console market were shattered by harsh reality.

The bleak prospects of confronting Nintendo head-on in the home console sector left many of those present deeply worried and discouraged.

Nakayama Hayao sat at the head of the table, his face as still as water, revealing neither joy nor anger.

His sharp gaze swept across the dejected and anxious faces before finally settling on his trusted director in charge of sales. He gave a slight signal.

The sales director understood at once. He cleared his throat and rose to his feet.

"Everyone, the predicament in the North American market is precisely why we can no longer passively trail behind Nintendo."