Accountability
Finally, a voice broke the silence.
"President Ohga," said Director Iwata, who was in charge of the home appliance business. His voice was mild and smooth, revealing little emotion. "We've all heard about what happened in Chicago. A... very lively press conference."
He paused, his gaze sweeping over Ken Kutaragi's bloodless face.
"Sony has become the focus of the world overnight, but the way we did it seems somewhat... inappropriate."
O
"Kutaragi- kun and Chubachi -kun demonstrated remarkable creativity in advancing the project, but it seems they overlooked a small detail in assessing the business risks. We may have placed too much trust in the credibility of our allies and neglected the human element behind the contract."
These words were perfectly worded, pointing out the problem while precisely pinning the responsibility on Ken Kutaragi and his direct superiors, completely avoiding mentioning President Norio Ohga made the final decision, and Nobuyuki Idei, who supported the video game business.
"Now, the name PlayStation has become a joke. All the money we invested and the talent we recruited has turned into a grand parade that benefits Nintendo and Philips."
Director Iwata sighed, a look of deep sorrow on his face.
"The best course of action now is to cut our losses. After all, we are novices in the video game business, so we might as well retreat to the area we are familiar with and just be a hardware supplier. This development investment was covered by Nintendo's initial funding, and even some of the CD-ROM development costs were shared by Sega, so the losses are still within a controllable range."
It's better to stop now than to drag the entire group into a quagmire.
These words drew nods of agreement from several conservative board members.
Sony was already burdened with huge debts after acquiring Columbia Pictures, and to gamble on a new field with an uncertain future is really not in line with their prudent approach.
Ken Kutaragi clenched his fists at his sides, his nails almost digging into his flesh.
He wanted to argue, but found that he didn't even have the right to speak.
He was a defeated general.
I object.
A calm voice rang out.
Everyone looked in the direction of the voice and saw Nobuyuki Idei, who had only been on the board of directors for a few years and was known for his sharp thinking.
He didn't look at the heartbroken Iwata, but stared directly at Norio Ohga, who sat in the main seat.
"I understand Director Iwata's concerns, but Sony, when did you learn to be a deserter?"
"We announced our entry under the watchful eyes of the world, and now we're running away with our tails between our legs because of a single mishap from our opponent? How much will the 'SONY' logo be worth then?"
Nobuyuki Idei stood up, walked to the conference table, placed his hands on the table, leaned forward, and let the light sweep over everyone present.
"Furthermore, how many people did we poach from Konami, Namco, Capcom, and the entire gaming industry to build SCE? They gave up their original positions, betting on Sony's future. Now we're telling them, the future is gone, go home? How are we going to account for this? How are these losses going to be reported in the financial statements? Everyone here knows better than I how badly the stock price will plummet!"
Director Iwata's expression was somewhat grim. "Then what do you suggest we do? Sell a machine that could be banned from sale at any time under an unusable name?"
"Of course not." A slight smile even appeared on Nobuyuki Idei's lips. "The solution has always been there."
He turned to Ken Kutaragi: "Kutaragi long will it take to redesign our prototype, stripping away Nintendo's licensed technology?"
Ken Kutaragi paused, the question piercing through the fog in his mind like a ray of light. He almost blurted out, "The core technology is all our own! Decoupling it is far less complex than designing from scratch, and the costs are far less. Aside from a few parts restricted by Nintendo patents, the rest is mature technology. The technical department at headquarters has already done a rough assessment; at most a year! No, if resources are sufficient, ten months!"
"Very good." Nobuyuki Idei then looked at the head of the Legal Department, "What are our chances of winning with the 'PlayStation' trademark?"
The legal director immediately stood up, adjusted his glasses, and said in a deep voice, "Very significant. This trademark originated from our collaborative project with Nintendo, but we were the creators, the namer, and the main investor. Nintendo's attempt to seize ownership is legally untenable. However, the litigation process will be lengthy; we estimate it will take about a year and a half."
"Did you hear that?" Nobuyuki Idei spread his hands. "The machine, ten months. The name, a year and a half. We use a year and a half to exchange for a bright and honorable future. But Director Iwata's suggestion is to let us spend our whole lives bearing the stigma of being a deserter."
"Absurd!" Director Iwata practically jumped up from his chair, his usually smooth face now filled with agitation. "Idei- kun, you're gambling the entire group's future on a lawsuit with an uncertain outcome!"
A year and a half? Do you know what that means? Columbia Pictures is still bleeding money from its debts. Where are we going to get the money and energy to fill this bottomless pit?!
"Yes, Idei, your thinking is too idealistic!" another director chimed in. "We are a listed company, responsible to our shareholders! We're not street thugs! Cutting our losses now is the most rational choice!"
"Rationality? What is rationality?" Nobuyuki Idei, raising his voice several decibels. "To hand back the talent we poached at great expense, and tell them that Sony is a company that doesn't keep its word, is that rationality?"
"Is it rational to let the whole world see us get played by Nintendo, and then slink back to our old ways?"
The tension in the meeting room grew increasingly palpable, the shouting nearly lifting the roof off.
That's enough.
Two words, neither too light nor too heavy, yet like a bucket of ice water, instantly extinguished all the flames.
Norio Ohga gently tapped the unlit cigar on the ashtray.
Thump.
A crisp sound silenced everyone.
He raised his eyes, but the light did not fall on anyone; instead, it seemed to penetrate the wall and gaze into the distance.
"Iwata- kun," he began slowly, "I have a question for you. When you walk into an electronics store, there are two televisions on the shelf. One is the latest product from a rising challenger, and the other is from an established manufacturer that's afraid to face the challenge. Which one would you buy?"
Director Iwata's face flushed instantly, his lips moved, but he couldn't utter a single word.
"Since when did we at Sony learn to be so timid and hesitant?" Norio Ohga's voice remained calm, yet it carried an undeniable power that made all the conservatives present feel suffocated.