Arc 32E3’s Next-Generation Showdown

At E3, David and Paul covered major announcements from Konami, Namco, Square, Sony, Blizzard, Capcom, and Sega as developers competed to define the next generation of games. Sega’s presentation ended the stretch with its Model 3 reveal and a lineup spanning arcade hits and Jupiter games.

  • David tried Konami’s Contra: Legacy of War demo, gave it the lowest survey scores, and warned that its current state could damage the series.
  • Namco showed Soul Blade and Ridge Racer 3, then presented collections of classic games as reporters discussed the company’s limited revenue and costly development.
  • Sakaguchi Hironobu presented Trials of Mana and a new Final Fantasy VII demo, while Square announced that Final Fantasy VII would span four CD-ROMs.
  • Ken Kutaragi rejected multi-disc packaging and urged Sony to secure support and exclusivity deals, while David and Paul played Hudson’s ten-player Jupiter Bomberman demo.
  • EA presented FIFA 97 and NBA Live 96, and David and Paul discussed the company’s licensing history and its profitable PC version of Road Rash.
  • Tomonobu Itagaki demonstrated Dead or Alive, and Mike Mohan presented Diablo and Battle.net before Kazuo Hirai introduced PlayStation’s RPGs, Crash Bandicoot, and casual games.
  • Trip Hawkins presented Meridian 59’s subscription-based online world, while Nakayama Takuya directed Sega’s intelligence team to assess its rivals and prepare for future networking.
  • John Romero demonstrated Quake’s multiplayer and modding tools, Capcom presented its upcoming games, and Hisao Oguchi unveiled Sega’s Model 3 board, Virtua Fighter 3, and new Jupiter titles.
Chapters 778–802 Vol. 8 Read

Ch. 778Konami's Lean Years (Part 2)

Konami presented Contra: Legacy of War, a crude 3D entry developed by Appaloosa Interactive, and reporters criticized the company for outsourcing its flagship shooter and falling behind the new console era. After playing the demo, reviewer David condemned its controls, hit detection, and visuals, leaving Konami facing a harsh press response.

  • Konami showed a brief Contra: Legacy of War demo and announced that the Jupiter version would launch at the end of November, with the PlayStation version following the next year.
  • Reporters criticized Konami for giving the 3D Contra project to Hungarian studio Appaloosa Interactive and attributed its thin lineup to a delayed shift toward 32-bit development.
  • David played the demo at Konami's booth and struggled with its movement, shooting detection, jumping, and boss fight.
  • David gave the demo the lowest survey scores and warned a Konami staffer that the game could destroy the series if it remained in that state.
  • David recorded a scathing initial review, comparing Konami's presentation unfavorably with Nintendo's Super Mario 64 showcase.

Ch. 779Reheated Leftovers

Namco presented Soul Blade and Ridge Racer 3 for PlayStation, then drew ridicule by announcing collections of old arcade games. Reporters blamed the move on Namco’s weak merchandise business and the rising cost of competing in arcade hardware.

  • Namco showed Soul Blade footage and announced its home-console version.
  • Namco previewed Ridge Racer 3, highlighting its darker visuals and more realistic racing features.
  • Namco revealed Namco Museum and Namco Art Museum for several console and handheld platforms, prompting reporters to mock the repackaged classics.
  • After the presentation, reporters discussed Namco’s limited revenue from merchandise and its reliance on expensive arcade hardware development.

Ch. 780Final Fantasy VII

Namco’s leadership faced the shift from declining arcades to booming home consoles, while Square presented its new games at a press conference. The chapter ended with the unveiling of Final Fantasy VII for Jupiter as a four-disc release, stunning the assembled media.

  • Namco relied on low-cost game collections such as Namco Museum and Namco Art Museum to help fund long 3D-game development cycles.
  • Sakaguchi Hironobu presented Trials of Mana for Mega Drive, with a late September 1996 release date.
  • Sakaguchi Hironobu showed an updated Final Fantasy VII demo featuring Cloud, 3D battles, magic effects, and Bahamut.
  • Square announced Final Fantasy VII for Jupiter with a late 1996 release window and revealed that the game would span four CD-ROMs.
  • The journalists and analysts reacted with surprise and began considering the game’s enormous data and production costs.

Ch. 781The First Morning Ends

After Square’s four-disc announcement drew praise at E3, reporters discussed the day’s major console and PC presentations over lunch. At Sony’s booth, Ken Kutaragi recognized Sega’s support for Square as a challenge to PlayStation’s approach to game capacity.

  • Sakaguchi Hironobu ended the morning press conference after reporters reacted to Square’s four-disc game announcement.
  • David, Paul, and the photographer discussed Nintendo’s price cut and Super Mario 64, Westwood’s Red Alert, and the transition facing arcade companies.
  • Ken Kutaragi’s assistant reported that the media praised Square’s high-capacity approach as a standard for next-generation games.
  • Ken Kutaragi said Sega was using Square to make PlayStation’s capacity limits look like a technical barrier, and his assistant asked whether Sony should promote multi-disc games.

Ch. 78210-Player Battle?

Ken Kutaragi planned to counter Nintendo and Square by expanding PlayStation’s game lineup, while Hudson unveiled Jupiter Bomberman, a ten-player local battle game for Sega’s Jupiter console. The media tried the game, and David was eliminated before getting revenge on Paul as a UFO pilot.

  • Ken Kutaragi rejected multi-disc packaging and urged his assistant to secure support and exclusivity deals with Namco and Konami.
  • David and Paul visited Hudson’s booth, where producer Shigeki Fujiwara presented Jupiter Bomberman and its ten-player battles, evolving dinosaur mounts, and single-player modes.
  • David joined nine other reporters to try the game, but Paul used a Power Glove to throw a bomb at him and eliminate him.
  • David took control of a UFO and slowed Paul with a Muddy Water Bomb, allowing another player to knock Paul out with a Spike Bomb.

Ch. 783Hudson's Surprise

At E3, David and Paul played Hudson’s ten-player Bomberman demo, which drew large crowds with its chaotic party battles. Hisao Oguchi and Shinichi Nakamoto discussed the game’s design and Sega’s decision to reject Hudson’s proposal for online play, leaving the debate over the internet’s future unresolved.

  • David used a purple dragon and a penetrating bomb to eliminate Paul, but later lost to a young Japanese player’s rubber bomb.
  • David and Paul praised the fast, accessible battles as players and reporters crowded around the demo booth.
  • Hisao Oguchi and Shinichi Nakamoto watched the busy booth and discussed how Bomberman’s ten-player gameplay filled a gap that 3D games could not.
  • Shinichi Nakamoto explained that the team had overcome concerns about crowded visuals by using an ultra-widescreen layout, high-contrast colors, and Jupiter’s 2D processing.
  • Shinichi Nakamoto recalled that Sega Managing Director Nakayama had rejected Hudson’s proposal for modem-based online battles, and Hisao Oguchi explained the technical and network problems behind the decision.

Ch. 784Shelved Online Features

Hisao Oguchi and Shinichi Nakamoto discussed why Hudson had shelved online play for Jupiter Bomberman and praised its local multiplayer strategy. At the Los Angeles convention, David and Paul watched EA present FIFA 97’s motion-captured 3D gameplay and indoor football mode, followed by NBA Live 96.

  • Hisao Oguchi explained that Japan’s network costs and technical limitations made online games impractical, and Shinichi Nakamoto agreed that Nakayama Takuya had been right to shelve the modem feature as an internal experiment.
  • Hisao Oguchi and Shinichi Nakamoto observed how Jupiter Bomberman’s quick ten-player matches drew crowds and predicted that its July 15 release would boost Jupiter console and peripheral sales.
  • David and Paul joined the media gathering for EA’s presentation, where CEO Larry Probst introduced FIFA 97.
  • Larry Probst demonstrated FIFA 97’s full-3D players animated with motion-capture data and its six-on-six indoor football mode.
  • After FIFA 97’s demonstration, EA presented NBA Live 96.

Ch. 785EA's Annual Cash Cows

EA showcased its sports games and announced a PC remake of Road Rash, prompting David and Paul to discuss the profits PC releases offered compared with console games. The chapter recounted how Trip Hawkins had used reverse-engineered Genesis technology and the threat of an antitrust fight to secure favorable terms from Sega, ending with EA winning independent cartridge production and a 60% royalty discount.

  • EA demonstrated its sports games with retired NBA stars and announced a PC remake of Road Rash.
  • David and Paul compared console royalties and manufacturing costs with the higher profits from PC game sales.
  • The chapter described how Trip Hawkins ordered EA engineers to reverse-engineer the Genesis hardware and create compatible games without Sega's authorization.
  • In 1990, Hawkins confronted Sega North America's executives with EA's games and threatened an antitrust case if Sega blocked them.
  • Sega compromised, granting EA the right to manufacture Genesis cartridges and a 60% discount on royalties.

Ch. 786Entanglements from a Previous Life

The chapter explains how Nakayama Takuya blocked Electronic Arts from bypassing Sega’s licensing rules through TMSS, trademark law, and a broad third-party software library, forcing Hawkins to sign Sega’s standard agreement. At an exhibition, Larry Probst presented the PC version of Road Rash, whose upgraded graphics impressed some observers while others criticized it as a lightly refurbished old game.

  • Nakayama Takuya had Sega add the TMSS hardware lockout and register its startup message as a trademark, preventing Electronic Arts from bypassing Sega’s licensing system without risking trademark infringement.
  • After Hawkins’s technical team reported that cracking TMSS would trigger legal trouble, Hawkins abandoned his planned confrontation at the 1990 exhibition.
  • Sega attracted major Japanese developers by offering favorable licensing terms and cartridge manufacturing rights, reducing its dependence on Electronic Arts.
  • Hawkins flew to Tokyo and signed a standard third-party licensing agreement, paying Sega the full royalty rate for Electronic Arts games on the Mega Drive.
  • Larry Probst demonstrated the PC version of Road Rash, prompting mixed reactions from reporters who debated its improved presentation and unchanged gameplay.
  • Paul told David that Electronic Arts could cheaply reuse old code and sell the updated Road Rash at a high price, making the PC release highly profitable.

Ch. 787Tomonobu Itagaki

David and Paul watched Tecmo unveil a new 3D fighting game starring Ryu Hayabusa and Kasumi, and were surprised by its polished graphics and combat. The demonstration ended with Kasumi slamming Ryu Hayabusa to the ground.

  • David and Paul discussed Electronic Arts’ PC version of Road Rash, which would support LAN play and launch in autumn.
  • David predicted Tecmo would present a new arcade fighting game, and Paul questioned whether the company had the technical resources for 3D development.
  • Tomonobu Itagaki took the stage in sunglasses and a leather jacket, then launched a trailer featuring Ryu Hayabusa and Kasumi.
  • Tecmo showed Ryu Hayabusa and Kasumi fighting in real-time, with smooth animations, detailed models, stable frame rates, and polished combat feedback.
  • Kasumi finished a combo with a throw that slammed Ryu Hayabusa to the ground.

Ch. 788Dead or Alive Uses Model 2 Too?

Tecmo presented Dead or Alive, prompting reporters to identify Sega’s Model 2 technology and speculate about the business alliance behind it. Blizzard then took the stage, announced strong Warcraft II sales, and began a CG reveal of a new world.

  • Tomonobu Itagaki demonstrated Dead or Alive, whose detailed 3D graphics and exaggerated character physics impressed the media.
  • Paul and David concluded that Dead or Alive used Sega’s Model 2 board and discussed how Sega could benefit from licensing its technology to Tecmo.
  • Tomonobu Itagaki announced that Dead or Alive would reach arcades in November 1996 and left without taking questions.
  • Mike Mohan reported that Warcraft II: Black Tide and its Dark Portal expansion had surpassed 1.5 million global sales and praised the Left-Hand Grid Mapping controls.
  • Mike Mohan introduced an entirely new Blizzard world, and the lights went out as a gloomy CG animation began.

Ch. 789Diablo Trailer

Blizzard revealed Diablo, a horror-themed action RPG built around simple mouse controls, randomized dungeons, and loot. Mike Mohan also announced Battle.net, leaving the media impressed by Blizzard’s new game and its plans for online matchmaking.

  • A dark, oppressive cinematic introduced Diablo without showing a specific villain.
  • Mike Mohan demonstrated Diablo’s isometric combat, where players clicked to move and attack and monsters dropped gold and equipment.
  • Mike Mohan explained that Diablo used randomly generated dungeons, monster configurations, and equipment attributes to encourage repeated play.
  • Paul and David praised Blizzard for simplifying controls and designing an intuitive interface.
  • Mike Mohan announced Battle.net, an online platform for finding players and entering dungeons together.

Ch. 790Kazuo Hirai

David and Paul watched Blizzard’s presentation and discussed Battle.net’s potential before attending Sony’s briefing, where Kazuo Hirai outlined PlayStation’s position and unveiled its software plans. The presentation continued with a trailer for a fairy-tale game whose title had not yet appeared.

  • David called Battle.net Blizzard’s trump card, and Paul discussed how Blizzard and Westwood were expanding PC gaming in different ways.
  • Mike Mohan ended Blizzard’s demonstration and announced that Diablo was planned for release at the end of the year.
  • David and Paul reviewed Sony’s competitive position before Kazuo Hirai opened Sony’s four o’clock presentation.
  • Kazuo Hirai said PlayStation had shipped more than six million units worldwide by May and argued that future game lineups would determine the competition.
  • Kazuo Hirai presented Arc the Lad II, noting that G-Craft had developed it independently and that it was set for release in June 1996.
  • A second trailer showed a red-haired prince exploring a castle and meeting a talking dragon.

Ch. 791RPG Triple Feature

Kazuo Hirai presented three PlayStation RPGs and Naughty Dog’s Crash Bandicoot, showing Sony’s strategy of diversifying its game lineup and building an original platform mascot. David recognized the technical strength behind the games but questioned whether Crash could rival established characters like Mario.

  • Kazuo Hirai introduced PoPoLoCrois Story, a hand-drawn RPG adapted from Yosuke Tamori’s manga and animated with Production I.G.
  • Kazuo Hirai presented Wild Arms, a Western-inspired RPG from Media.Vision, completing Sony’s showcase of three distinct RPGs for the year.
  • David and Paul assessed Sony’s RPG lineup, noting its studios’ limited reputations and Sony’s effort to cultivate development partners through PlayStation exclusives.
  • Kazuo Hirai unveiled Crash Bandicoot, and Naughty Dog demonstrated its fast-paced linear stages as David and Paul compared its approach with Super Mario 64.
  • Kazuo Hirai explained that Naughty Dog’s real-time data-streaming technology loaded textures and models from disc as players advanced through stages.

Ch. 792Targeting Casual Players

Kazuo Hirai presented PlayStation as a platform for casual players, using PaRappa the Rapper, Everybody's Golf, and Intelligent Qube to show how accessible games could attract a wider audience. Sony’s press conference ended with a broad release lineup, but David and Paul felt the presentation lacked a single standout title, though Crash Bandicoot’s technology might interest the press.

  • Kazuo Hirai introduced trailers for PaRappa the Rapper, Everybody's Golf, and Intelligent Qube as fun games for a broad audience.
  • Kazuo Hirai said PlayStation aimed to welcome casual players as well as hardcore gamers.
  • David recognized that Hirai’s presentation had clearly positioned PlayStation as a mass-market platform.
  • Kazuo Hirai announced that more than forty games would reach PlayStation in the second half of 1996.
  • David and Paul judged Sony’s press conference informative but lacking a major standout, while noting Crash Bandicoot’s technical potential.

Ch. 7933DO's Last Stand

Trip Hawkins presented Meridian 59, a 3D graphical MMORPG, as 3DO's attempt to reverse its failing fortunes. The demonstration introduced its multiplayer world and subscription model, leaving the audience reacting to the proposed monthly fee.

  • Trip Hawkins took the stage and presented Meridian 59 as a fully 3D graphical MMORPG.
  • Players formed a party, fought monsters, collected loot, traded items, and could join guilds or take on other roles in the game's social world.
  • Hawkins explained that client-side prediction would let players use dial-up connections as slow as 14.4 kbps.
  • Hawkins announced that the game would be available as a free download, with players paying a monthly subscription of 9.95 US dollars to access the server.

Ch. 794The First Day Ends

David and Paul assessed 3DO’s risky monthly subscription plan for Meridian 59, contrasting it with Blizzard’s free Battle.net and buy-to-play approach. After E3’s first day, Hisao Oguchi began Sega’s intelligence briefing, but Nakayama Takuya urged him to prioritize the team’s well-being and foster a supportive creative workplace.

  • David and Paul discussed the potential revenue and risks of Meridian 59’s monthly subscription, including the burden of internet fees on players.
  • Hawkins announced that Meridian 59 would launch on both 3DO and PC in the third quarter, and David contrasted 3DO’s subscription model with Blizzard’s free Battle.net and buyout model.
  • Hisao Oguchi arrived at Sega’s intelligence room and began summarizing Nintendo’s N64, Sony’s casual-games pitch, and other E3 developments for Nakayama Takuya.
  • Nakayama Takuya stopped Hisao Oguchi’s report and told him to let the intelligence team eat before continuing their work.
  • Nakayama Takuya advised Hisao Oguchi to avoid bureaucratic pressure and build a supportive environment where Sega’s staff could use their talents.

Ch. 795The Art of Commanding Subordinates

Nakayama Takuya organized Sega’s E3 intelligence briefing after encouraging the team with a meal, then assessed Nintendo’s N64 and Sony’s PlayStation. The briefing ended with Sega recognizing Mario 64 as a model for 3D interaction and Sony’s appeal to casual audiences as a strategic concern.

  • Nakayama Takuya reflected on Sega’s stronger position and warned Hisao Oguchi not to underestimate Nintendo or Sony.
  • Nakayama Takuya served Japanese meals to the intelligence team, strengthening their sense of belonging before the briefing.
  • Hisao Oguchi set rules for a concise meeting focused on important intelligence and Sega’s assessment of it.
  • The Nintendo team reported the N64’s price, limited cartridge capacity, and simultaneous June 23 launch, while praising Super Mario 64’s 3D controls and physical interactions.
  • Nakayama Takuya told Hisao Oguchi to make Mario 64’s controls a research target, while arguing that Jupiter’s installed base and disc capacity gave Sega an advantage over Nintendo’s cartridge strategy.
  • The Sony team reported on Kazuo Hirai’s presentation, including three RPGs, Crash Bandicoot, PaRappa the Rapper, and Everybody’s Golf, and noted Sony’s effort to reach casual players.

Ch. 796Sega's Intelligence Briefing

Nakayama Takuya and Sega's executives assessed Sony's expansion into casual games, Tecmo's Dead or Alive, and the future of online gaming before preparing for Sega's press conference. Meanwhile, GamePro's David worked on a concise review of Super Mario 64 for the next day's edition.

  • Nakayama Takuya warned that Sony was targeting casual consumers and directed Sega to promote Hudson's Jupiter Bomberman while making room for casual and puzzle games.
  • Hisao Oguchi and Nakayama Takuya discussed Dead or Alive and Sega's strategy of licensing its Model 2 technology to bind developers to its ecosystem.
  • Nakayama Takuya ordered Sega's North American technical team to study Battle.net's architecture as preparation for future console networking.
  • Nakayama Takuya scheduled coffee with Mr. Sakaguchi to discuss Final Fantasy VII promotion and told Sega's departments to prepare for the next day's press conference.
  • David drafted GamePro's Super Mario 64 review, focusing on the game's $199 price and analog-stick controls for the next day's edition.

Ch. 797The Media's Progress

As reporters covered E3, David and Paul saw how online briefs could deliver news faster than print while drawing readers to a special issue. The chapter leaves Tommy loading Silicon Valley Online from his Berkeley dorm, hoping to find E3 news.

  • David and the editor-in-chief assigned Square's four-disc Final Fantasy VII story to the front page and Nintendo's N64 coverage to page two.
  • Paul showed David Silicon Valley Online's E3 Express page, where free news briefs promoted Computer Gaming World's upcoming E3 special issue.
  • The editor-in-chief ordered David to contact headquarters about creating a similar homepage.
  • David and Paul analyzed how Sony's casual PlayStation games and Tecmo's Dead or Alive on Sega's Model 2 signaled broader industry strategies.
  • At ten that night, Tommy connected to Silicon Valley Online from his Berkeley dorm and began searching for E3 news.

Ch. 798Rapidly Developing Online Information

Tommy and players across North America and China eagerly shared Silicon Valley Online’s breaking E3 reports, including news about the N64’s price, Final Fantasy VI’s four-disc release, and Blizzard’s free Battle.net. As online communities spread the news faster than print magazines, Tommy kept refreshing the page for more updates.

  • Tommy read Paul’s E3 news briefs and called Josh to share the N64’s $199 price, Final Fantasy VI’s four-disc format, and Battle.net’s free matchmaking.
  • Tommy told Josh that Tecmo’s Dead or Alive had been shown on Sega’s Model 2 board, and Josh asked him to print the report for their lunch meeting.
  • A Tsinghua University student translated E3 news from Silicon Valley Online and posted it to Shuimu Tsinghua BBS, where readers quickly debated the reports.
  • The BBS replies multiplied as players discussed the news and the coming console war, while traditional gaming magazines were still preparing their E3 issues.
  • Tommy made more calls, then refreshed the crude webpage again, hoping the reporter would upload another update.

Ch. 799Quake

At E3, John Romero demonstrated Quake’s fully 3D gameplay, multiplayer support, and upcoming editing tools. The presentation left reporters and industry attendees looking toward the game’s June release.

  • David and Paul entered E3 with press passes after seeing players try to get past security.
  • David and Paul reached the main stage as the crowd gathered for the first major event of the day.
  • John Romero introduced Quake and demonstrated its real-time 3D graphics, combat, and movement.
  • Romero explained that Quake supported up to sixteen players over LAN or modem connections.
  • Romero announced that id Software would release its internal level editor and scripting-language tools alongside Quake.

Ch. 800The Beginning of the MOD Era

Romero announced that Quake would support extensive player-made modifications, leaving developers and reporters excited about the possibilities. At Capcom’s press conference, executives revealed Resident Evil’s sales and PlayStation port, introduced the CPS-3 arcade board and Red Earth, and showcased upcoming CPS-2 games, ending with a huge response to X-Men vs. Street Fighter.

  • Romero announced that players could modify Quake’s assets and gameplay logic, encouraging them to create new kinds of games.
  • David and Paul discussed Quake’s mod support as an ecosystem that could extend the game’s lifespan, then stayed for the next press conferences.
  • A Capcom executive said Resident Evil had sold more than one million copies in two months and announced that its PlayStation port was progressing toward release in two to three months.
  • Capcom introduced its CPS-3 arcade board and demonstrated Red Earth, its first game, slated for release at the end of the year.
  • Capcom presented upcoming CPS-2 games, including Super Puzzle Fighter, Mega Man 2: The Power Fighters, and X-Men vs. Street Fighter, which drew the loudest cheers.

Ch. 801Capcom Digs Deep into Arcades

David photographed Capcom’s new arcade games after journalists praised their visuals and on-site appeal. He returned in time for Hisao Oguchi to unveil Sega’s Model 3 Board and its claim of generating one million polygons per second.

  • Paul and David discussed Capcom’s continued investment in arcades and the appeal of X-Men vs. Street Fighter.
  • David went to Capcom’s booth and photographed X-Men vs. Street Fighter and Red Earth amid the crowd of reporters.
  • David returned to the main stage before Sega’s press conference began.
  • Hisao Oguchi introduced Sega’s presentation and shifted attention toward 3D gaming.
  • Hisao Oguchi unveiled the Model 3 Board and announced that it generated one million polygons per second.

Ch. 802Sega's Lineup Was Still Deep

Hisao Oguchi showcased Sega’s Model 3 arcade technology and announced new Jupiter games and release strategies at a presentation. The lineup ended with Kirby, leaving the breadth of Jupiter’s upcoming games on display.

  • Hisao Oguchi demonstrated Virtua Fighter 3’s advanced graphics and physics, announcing its American arcade release for autumn.
  • Hisao Oguchi revealed that Ghost in the Shell would launch in mid-July alongside Manga Entertainment’s videotape release, with promotion in Blockbuster stores.
  • Hisao Oguchi announced that Sakura Wars 2 would use two CD-ROMs to support clearer cutscenes, branching stories, and full voice acting.
  • Hisao Oguchi presented Jupiter games including Pro Soccer World PSW 1996, The Second Super Robot Wars Alpha, and Metal Slug 4.
  • The presentation showed Kirby sucking in a monster and spitting out a star.
Arc 32 of 42
Arc 32 of 42