Smells So Good
Everyone knows that this hastily implemented promotion was a decision made by the president in a fit of rage.
If the results are unsatisfactory, it will be tantamount to bringing shame upon ourselves, and none of you here will have an easy time.
Yamauchi Hiroshi took the report without saying a word, his sharp eyes scanning the paper.
To everyone's surprise, the numbers were actually quite good.
Although it couldn't completely overshadow the market frenzy swept by Sega, it successfully regained popularity on the shelves of the Super Famicom.
The sales of those previously scarce third-party games were actually boosted by the huge discounts.
"Looks like there's still demand for cheap goods." Yamauchi Hiroshi's voice was unreadable as he tossed the report back onto the table.
The minister quickly bowed. "Yes! Perhaps it's because our discounts are large enough, coupled with SFC's brand appeal—"
"Alright," Yamauchi Hiroshi interrupted him. "The reason is simple: the economy is bad, and nobody has any money left."
He glanced around and said coldly, "Those guys who used to have money to travel everywhere are now stuck at home. What are they doing? Playing games is the cheapest option. A bunch of newbies who never played games before have flooded in. They don't care about factions or exclusivity; they just buy whichever is cheapest and try it out."
The executives in the conference room exchanged glances, their hearts filled with mixed emotions.
The president's words, though harsh, hit the nail on the head.
They were unwilling to admit it, but the success of this promotion was indeed due to the economic downturn and market expansion, or even—to the fact that it benefited from Sega's price-cutting trend.
It feels like watching your rival set up a banquet, and then reluctantly setting up another table, only to find that there are too many guests, and both tables are completely full.
They won, but not completely.
The electronics stores in Akihabara have become a carnival for fans of both companies.
"Plans changed! Major change!" The same little leader from last time was now holding up his note covered in writing, his face showing a look of utter disbelief. "Nintendo's gone mad too! The Legend of Zelda is on sale too!"
His friends immediately surrounded him, craning their necks.
"What? Then we don't have enough money?"
"Idiot! This is called a happy problem!" The leader slapped his companion on the back of the head. "We need to reallocate the budget! Kenta, hold off on your Final Fight, let's pool our money and get Zelda first! Ryosuke, don't buy those puzzle games yet, let's use the money to see if Namco has any bargains!"
The group of teenagers immediately launched into a new round of heated debate, while behind them, both Sega's blue cartridges and Nintendo's gray cartridges were being emptied at an alarming rate.
The store managers were grinning from ear to ear, constantly directing their staff to restock, chanting, "Fight! Let's fight! The fiercer the better!"
Sega Headquarters, Nakayama Takuya's office.
"Manager, Nintendo's promotions are doing about the same as ours." The Marketing Department section chief handed over the report, his expression somewhat complicated. "Our momentum has been somewhat diminished."
The assistant chimed in, a hint of resentment in his voice. "That old fox, Yamauchi Hiroshi, really knows how to take advantage. We painstakingly set up this stage, and he just comes up here to compete with us."
Nakayama Takuya flipped through the report, a smile appearing on his face.
He put down the documents and looked at the two of them. "Do you think this is a zero-sum game?"
The two were taken aback.
"No, this isn't it." Nakayama Takuya stood up and walked to the window. "Look at Japan right now. The economy is declining, and everyone is tightening their purse strings, afraid to spend money recklessly. What does our game mean to them?"
Without waiting for their reply, he continued, "It means getting the longest-lasting happiness with the least amount of money."
This is a market experiencing explosive growth, with far more new players than we imagined.
He turned around, looked at the two who had just realized what was happening, and smiled, "What Yamauchi Hiroshi is doing now isn't stealing our customers, but helping us educate the market. He's using Nintendo's brand and real money to tell those still hesitant newcomers—"
Playing games is cheap and fun, come and buy them!
"Every penny he spends is injecting vitality into the entire gaming market. Once these newcomers have tasted the sweetness of discounted games and developed a spending habit, what do you think they'll choose when our Chrono Trigger Mega Drive version hits the shelves next summer?"
The assistant's eyes lit up instantly. "They'll choose the best!"
"That's right." Nakayama Takuya sat back in his chair, tapping his finger lightly on the table. "Yamauchi Hiroshi is using money to help us screen and cultivate our future core users; we should be thanking him."
He picked up another document from the table, which was about the plans for a new Sega-CD release next year.
"Let him fight it out. With the global gaming market generally booming and numerous secondary markets, one or two commercial battles can't defeat Nintendo." Nakayama Takuya's lips curled into a smile. "Let's focus on our own business and take a long-term view."
"After all, the real show has only just begun."
As a result, during this nearly month-long promotional campaign, the entire Japan gaming industry was immersed in a near-frenzied excitement.
This war, started by Sega and forced to follow up by Nintendo, ultimately turned out to be won by these third-party manufacturers.
Not only did they clear out most of the inventory from the past two years, but the sales of newly released games also saw a steady increase, driven by bundled sales and a surge in customer traffic.
The sales records of retail stores have become the most eye-catching red in this bleak winter.
After finishing their daily inventory checks, the store managers couldn't help but bow in the direction of Sega and Nintendo's headquarters when they saw the astonishing numbers.
This trend quickly spread throughout the business world.
While newspapers' financial sections were still relentlessly reporting on manufacturing companies announcing layoffs and banks facing bad debt crises, the entertainment and technology sections were using the largest headlines to describe the booming gaming market. "A Miracle of Growth Against the Trend!"
The video game industry has become the hottest fireplace in the economic winter!
In an instant, countless eyes were fixed on this juicy piece of meat.
An atmosphere of despair permeates the offices of some software companies struggling in the economic downturn.
The company presidents were so worried that their hair was turning white as they watched the numbers in their company accounts dwindle.
"President," a young programmer mustered his courage and placed a newspaper with a game promotion ad on the conference table, "Should we—try making a game?"
"Making games? We make enterprise management software!"
"But—our clients are cutting budgets, yet people are lining up to buy games. We have a solid programming foundation; making a simple puzzle or shooting game should—shouldn't we have a chance?"
The conference room was deathly silent.
A few minutes later, the editor-in-chief picked up the newspaper, carefully read the report, and then looked at his company's dismal financial statements.
He slammed the newspaper down on the table.
"Call the Development Department in! Have a meeting! Let's discuss the necessary procedures for developing games for the Mega Drive!"
A single decision can determine the life or death of a company.
And such scenes are quietly unfolding in many corners of Japan.