An Awkward Nintendo
"What do you think?" Minoru Arakawa pointed to the draft on the table.
"We must join," Lincoln replied decisively. "CES is no longer keeping up with our development. And if Sega wins over all the third parties, we'll be isolated in North America. But the difficulty isn't in the United States, it's in Japan."
Minoru Arakawa sighed and rubbed his temples.
He knew his father-in-law, Yamauchi Hiroshi, all too well.
In that closed-off headquarters in Kyoto, the old man simply couldn't grasp the complexities of the North America market.
In his view, if a game is fun, it can sell well even at a farmers' market, so why spend a lot of money on an independent convention?
Nintendo's own First Heart Association can handle most of the issues.
"It's hard to explain over the phone," Minoru Arakawa said decisively. "Those old fogies won't budge until they see the treatment we received at CES with their own eyes."
"I'll go prepare the materials." Lincoln understood. "Those photos from CES, especially the leaky bucket next to our booth and the woman handing out flyers in a bikini next door—I took pictures of them all. I was originally planning to use them as evidence for a complaint, but now they come in handy."
"Bring it all. Bring it all." Minoru Arakawa gritted his teeth. "Bring the report on the establishment of the ESRB and the successful passage of Mortal Kombat through the hearings. I want those people in Kyoto to understand that this is United States, not the Japan they think can solve problems by bowing."
That afternoon, Minoru Arakawa temporarily handed over all affairs in North America to Lincoln Howard for safekeeping.
He boarded a flight to Tokyo carrying a briefcase stuffed with photos and data reports.
He was going to fight a battle even tougher than a business war to persuade that stubborn tyrant.
Nintendo Headquarters Kyoto.
Yamauchi Hiroshi sat behind the large mahogany desk, his gaze not lingering long on his travel-worn son-in-law.
The dictator of Nintendo showed no surprise at Minoru Arakawa's sudden return.
He knew Minoru Arakawa too well; this man had the shrewdness of a businessman flowing in his veins, not the stubbornness of a samurai.
In the United States arena, where there is only winning and losing and no sentimentality, he had long since thrown the so-called old-fashioned style into the Pacific Ocean.
"You flew back specifically for something like this?" Yamauchi Hiroshi's tone was unreadable.
Minoru Arakawa didn't say anything, but silently opened his briefcase and spread the stack of photos taken in Las Vegas on the table.
The photos are very realistic.
The first image is a giant Nintendo Mario statue, but the background is a yellowed ceiling dripping water; the second image is even more outrageous, with two bikini-clad, curvaceous blonde women standing next to Link poster, blowing kisses at the camera while holding up an advertisement for an adult video brand.
"Father, this is how we were treated at CES." Minoru Arakawa pointed to the photo. "In the eyes of the organizers, neither Sega nor Nintendo were even as prestigious as those vacuum cleaner vendors."
Yamauchi Hiroshi glanced at the bikini photo, his brow furrowing almost imperceptibly.
He was an extremely proud man. In his eyes, Nintendo was a leading company in the gaming industry. Now, a major game company was being forced to stand alongside red-light district salesmen, as if Nintendo had returned to the era of making Hanafuda (Japanese playing cards). This certainly made the old man unhappy.
"That was the organizer's negligence," Yamauchi Hiroshi scoffed. "Next year, let them change their seats."
"We can't switch. Home appliance manufacturers are the real money-makers at CES; we're just there to make up the numbers." Minoru Arakawa emphasized, "Nakayama Takuya has hit everyone's weak spot this time. If we don't join, next May, the whole world's media will be reporting on E3 in Los Angeles, while we'll be stuck in Las Vegas warming up the refrigerator scene."
Yamauchi Hiroshi remained silent.
He was well aware of the risks involved, but he loathed being led by the nose by Sega.
That nouveau riche who made his fortune in arcade games now wants to be the industry leader?
During the two days that the father and son were locked in a stalemate, news from the outside world flooded into the Kyoto headquarters like snowflakes.
First, Sony.
Nobuyuki Idei made a high-profile announcement that Sony Computer Entertainment would join IDSA as a co-founder.
This was within Yamauchi Hiroshi's expectations, after all, Sony and Nintendo are now bitter rivals, and the enemy of my enemy is my friend.
But then the situation spiraled out of control.
Square, Konami, Namco, Capcom —these major third-party companies, which usually rely on Nintendo for their livelihood, seemed to have conspired to line up Nakayama Takuya.
Even Panasonic, which is involved in the production of 3DO, and NEC, which produces the PC-engine, have joined in the fun.
In just three days, IDSA's list included almost half of the entire Japan game industry.
Nintendo has been isolated.
Nintendo quickly convened an emergency high-level meeting.
The directors lowered their heads, looking at the teacups in front of them, none daring to speak first and risk offending the authorities.
Everyone knows that if Nintendo is absent from this grand event, it's not just a matter of face; it also means losing its voice in setting future industry standards.
"President, the current situation—" a director mustered his courage to speak, but swallowed the rest of his words under Yamauchi Hiroshi's cold gaze.
Yamauchi Hiroshi tapped his fingers lightly on the table, the rhythm slow and heavy.
He was weighing his options. Joining meant bowing down to Sega; not joining meant cutting himself out of the industry.
"Arakawa."
After a long silence, Yamauchi Hiroshi finally spoke, his voice hoarse yet still authoritative.
"Exist."
Nintendo Co., Ltd. will never join that IDSA.
97
A collective gasp filled the conference room.
Minoru Arakawa's heart sank to the bottom. He was about to argue when his father-in-law raised his hand, stopping him from speaking.
"However," Yamauchi Hiroshi changed the subject, his gaze sharply fixed on Minoru Arakawa, "The situation in the United States market is unique. As the North America branch, you can make appropriate decisions based on the local business environment."
Minoru Arakawa paused for a second, then understood what the old man meant.
By not joining, headquarters preserved Yamauchi Hiroshi's face and the dignity of the Nintendo royal family; by having branch offices join, Nintendo maintained its voice in the industry and its ticket to E3.
That old fox.
"I understand." Minoru Arakawa breathed a sigh of relief, his back already soaked with cold sweat.
"And also," Yamauchi Hiroshi stood up, straightening his kimono, as if this crisis concerning the future of the industry was a trivial matter, "Give Enix a heads-up. Since everyone's on that stage, let them get involved too. I'm not comfortable with Nintendo being all alone in the association."
Minoru Arakawa nodded in agreement.
Enix is Nintendo's most loyal ally and a key player in counterbalancing Square.
The old man is trying to plant his own spies within IDSA; even if he's just going to show his support, he'll bring a knife with him.