Recaps

Rumors of Sega’s moves and Bandai’s worsening finances spread panic through the company, while Yamashina Makoto suspected the board was plotting to remove him. In May, he faced the executives at another tense board meeting, with Mitsui Chuta watching him closely.

• Bandai employees feared layoffs and began seeking other jobs as rumors about Sega’s acquisition plans undermined confidence in the company.
• The Toy Division’s section chief could not reassure a distributor about Wing Gundam OVA shipments because Bandai lacked a license.
• Yamashina Makoto rejected calls from distributors and banks, then suspected the silent directors were preparing a coup against him.
• Yamashina Makoto resolved to strike first to protect his presidency and status as a major shareholder.
• At the May board meeting, Mitsui Chuta watched the exhausted Yamashina Makoto from across the conference table.

Yamashina Makoto pushed Bandai to resume merger talks with Sega, disrupting Mitsui Chuta’s plan to force him out. As Bandai’s managers secretly delayed the merger work, Yamashina confronted Finance section chief Yamada over a stalled asset report.

• Mitsui Chuta planned to wait until Bandai’s finances worsened before joining three directors to force Yamashina Makoto to resign.
• Yamashina ordered Bandai to restart merger negotiations with Sega and demanded a draft letter of intent within two days.
• Bandai’s middle managers obstructed the merger preparations by delaying legal reviews and overseas asset reports.
• Yamashina visited the Finance Department and demanded that Yamada explain why the asset report had not been submitted.
• Yamada promised Yamashina that he would submit the report by the following afternoon.

Yamashina Makoto cracked down on Bandai managers who were obstructing the merger, accelerating preparations to transfer the company’s assets to Sega. Mitsui Chuta tried to persuade Nakayama Takuya to stall the deal with an audit, but Nakayama rejected the plan and warned him to wait for instructions.

• Yamashina Makoto dismissed Yamada and a Legal Department deputy director, prompting Bandai employees to rush through their work.
• Mitsui Chuta feared Yamashina Makoto would complete Bandai’s asset consolidation and leave him without influence.
• Mitsui Chuta called Nakayama Takuya and urged Sega to reject Bandai’s financial statements and demand a third-party audit.
• Nakayama Takuya refused to sabotage Bandai, explaining that Sega wanted its experienced employees and warning Mitsui Chuta not to act rashly.

Mitsui Chuta delivered Bandai’s merger draft to Nakayama Takuya, who rejected the Mitsui Family’s premium share swap but kept his promise to give Mitsui a position overseeing Sega’s merged toy business. Nakayama instructed Mitsui to tell Yamashina Makoto to purge Bandai’s old leadership, warning that Sega’s legal team could investigate anyone who resisted.

• Mitsui Chuta brought Nakayama Takuya the merger letter of intent drafted by Bandai’s legal and finance departments.
• Nakayama Takuya said Sega would exchange the Mitsui Family’s shares at market price because Mitsui had failed to make Bandai’s share price fall as planned.
• Nakayama Takuya reassured Mitsui Chuta that the promised position managing the merged toy business remained available.
• Nakayama Takuya told Mitsui Chuta to convey that Yamashina Makoto must remove Bandai’s old executives from decision-making roles after the merger.
• Nakayama Takuya threatened audits and legal action against executives who resisted the purge.

Nakayama Takuya received Bandai’s merger proposal, then had Sega’s Legal and Finance departments expose its restrictive clauses. He rejected the draft and ordered outside consultants to begin work on the Bandai acquisition.

• Nakayama Takuya reassured Mitsui Chuta that Yamashina Makoto could remain president after the merger, then sent Bandai’s draft proposal for detailed review.
• Hoshino returned three days later with the draft covered in annotations and warned Nakayama Takuya that it could not be signed.
• Hoshino explained that Bandai’s proposed clauses would preserve its board’s control over personnel, finances, and core IP licensing.
• Nakayama Takuya shredded the proposal and ordered Hoshino to contact Richard at PricewaterhouseCoopers and McKinsey to establish a special Bandai acquisition team.

Nakayama Takuya ordered a strict audit and complete integration of Bandai under Sega, while offering Yamashina Makoto market value for his shares and a ceremonial president title. Yamashina accepted the personal concessions but grew angry as he read Sega’s marked-up rejection of Bandai’s proposed merger terms.

• Nakayama Takuya instructed Hoshino to bring in outside firms for a comprehensive audit and dismantle Bandai’s management structure, while offering Yamashina Makoto compensation and a ceremonial title.
• Hoshino returned Bandai’s draft proposal to Mitsui Chuta, who took it to Yamashina Makoto at Bandai headquarters.
• Mitsui Chuta relayed Nakayama Takuya’s insults and Sega’s demands, including a joint PricewaterhouseCoopers and McKinsey audit and the removal of Bandai’s independent decision-making authority.
• Yamashina Makoto relaxed when Mitsui Chuta explained that Sega would buy out his shares at market value and let him retain the president title.
• Yamashina Makoto read the red-marked draft clauses and realized Sega had rejected Bandai’s proposed protections for its board, finances, and core IPs.

Yamashina Makoto purged Bandai executives who opposed the Sega merger while reassuring lower-level employees that Sega’s takeover would protect their jobs and improve working conditions. He then began scrutinizing old company accounts, ordering an investigation into Takano’s unexplained expenses.

• Yamashina Makoto ordered the Security Department chief removed and demanded dismissal notices and demotions for everyone involved in drafting clauses that undermined the merger.
• Yamashina Makoto directed Mitsui Chuta to spread news that Sega would take over Bandai and match its employee benefits, easing lower-level workers’ fears and raising their hopes.
• Security Department guards watched the deputy head of the Legal Department pack his belongings, while Ota and other directors hid as Yamashina Makoto’s purge spread through the executive offices.
• Yamashina Makoto examined five years of Bandai records and ordered Finance to investigate thirty million yen in North American expenses approved by Takano without invoices.

Yamashina Makoto used Bandai’s merger with Sega to purge executives who might obstruct him and strengthen his own position. By the next morning, his investigation committee had publicly listed numerous conservative faction leaders for suspension and investigation.

• Yamashina Makoto ordered Mitsui Chuta to investigate Director Takano and other executives, threatening to send anyone implicated in wrongdoing to the Metropolitan Police Department.
• Mitsui Chuta’s security guards seized Ota as he tried to destroy documents, while Takano burned confidential papers before guards captured him too.
• Conservative executives met in Ginza and discussed fighting Yamashina, but feared Sega’s auditors and legal team would help him crush them.
• Yamashina Makoto posted a notice establishing a special review committee and listing executives for suspension and investigation.
• A conservative section chief saw his name on the list and collapsed as employees ignored and mocked him.

Sega’s audit team aggressively took control of Bandai’s finances and records while Yamashina Makoto helped expose secret accounts. In Tokyo, Nakayama Takuya and Hoshino discussed Sega’s offshore bets against the Thai baht, and the chapter ended with Moody’s downgrading several Thai banks.

• Richard led a joint PricewaterhouseCoopers and McKinsey team into Bandai Headquarters and began a sweeping audit.
• Yamashina Makoto helped Richard open directors’ safes and uncover hidden accounts.
• Nakayama Takuya confirmed that Sega had closed its domestic Thai baht positions and moved its bets into offshore NDFs in Singapore and Hong Kong.
• Hoshino said Director Takahashi had invested one hundred million US dollars through secret offshore accounts.
• A trader reported that Moody’s had downgraded several major Thai commercial banks by two notches.

Nakayama Takuya kept Sega’s Thai baht positions open while preparing for a lavish E3 display that he could not attend. As Sega tightened its control over Bandai, Sotsu’s Matsushima feared his company would lose its chance to negotiate favorable terms.

• Hoshino asked what to do as the Thai baht continued to fall, and Nakayama Takuya ordered him to wait until Thailand abandoned its fixed exchange-rate system before closing positions.
• Nakayama Takuya approved the E3 materials checklist and told his assistant to give Director Oguchi the budget and support needed to make Sega’s booth spectacular.
• Nakayama Takuya stayed in Tokyo because he needed to oversee the currency operation and two acquisition battles.
• At Bandai, Yamashina Makoto and Sega’s audit team crushed internal resistance, frightening Sotsu’s leaders.
• Matsushima told Honda that Sotsu had to accelerate negotiations with Sega before Bandai’s restructuring drew Sega’s attention and funds away.

Matsushima accepted Sega’s revised Sotsu acquisition terms, prompting Nakayama Takuya to prepare an ambitious slate of projects for after the deal closed. At E3, John Carmack then announced the release of Universal Engine 1.0’s codebase.

• Matsushima accepted Honda’s revised valuation proposal and agreed to move quickly on Sega’s stock-swap acquisition of Sotsu.
• Nakayama Takuya told Director Hattori to finalize the contract and prepare a joint planning meeting for Sega, Sunrise, and Sotsu staff.
• Nakayama planned to launch Yu-Gi-Oh! trading cards and anime, secure resources for Detective Conan’s first theatrical film, and advance other projects with Sotsu’s industry connections.
• Hisao Oguchi arrived at the E3 opening, confident that another company would draw the headlines before Sega did.
• John Carmack opened E3 by announcing that Universal Engine 1.0’s codebase had been declassified.

Carmack unveiled UE 1.0, whose free-to-start licensing and asset store let small teams build impressive 3D games cheaply. Hisao Oguchi toured the packed South Wing Hall, where investors and publishers competed to fund the developers using the engine.

• Carmack announced that UE 1.0’s rebuilt systems and cross-platform tools were ready, then left the stage as the audience erupted in applause.
• David explained to Paul that UE 1.0 charged no upfront licensing fees and let developers buy and sell assets and plugins through its store.
• Hisao Oguchi entered the South Wing Hall and saw a four-person French studio demonstrate a 3D game built with inexpensive store assets and plugins.
• An EA investor offered the French studio up to three hundred thousand dollars to complete its game.
• Hisao watched a small team demonstrate a space strategy game using UE’s multithreaded scheduling and asset-store textures.
• A Ubisoft talent scout offered the strategy-game developers five hundred thousand dollars and QA support in exchange for exclusive publishing.

UE1.0 drew investors and reporters to small developers’ games at the Atlanta expo, while Sega planned to use the engine ecosystem to strengthen Jupiter’s software library. In Los Angeles, high school students read about the new games and compared Sega’s lineup unfavorably with Sony’s.

• Small and mid-sized developers showcased ambitious UE1.0 games, drawing investors and reporters away from Sony’s presentations.
• Hisao Oguchi told Nakayama Takuya that the South Wing Hall was packed with interest in the small studios’ games.
• Nakayama Takuya ordered Hisao Oguchi to showcase Sega’s first-party games and have Sega’s publishing division recruit promising teams.
• Three high school students bought Electronic Gaming Monthly and read its coverage of a French team’s Jupiter game and Sony’s exclusives.

After E3, gamers around the world struggled to afford the flood of upcoming games, while Sega’s leadership reviewed the show’s strong reception and prepared to deliver its packed lineup. Nakayama Takuya urged Hisao Oguchi to pace himself as Sega moved into the work ahead.

• Players in North America and Japan counted their money and cut games from their wish lists as E3’s crowded release schedules overwhelmed their budgets.
• Hisao Oguchi brought Nakayama Takuya a report on E3, noting that Sony’s third-party demos drew shorter lines than Sega’s and that the media focused on UE-engine projects.
• Nakayama Takuya told Hisao Oguchi to keep the Development Department on track as Sega released its E3 games one by one.
• Nakayama Takuya warned Hisao Oguchi not to exhaust himself and reminded him to protect his health.
• Hisao Oguchi thanked Nakayama Takuya and said he understood.

Nakayama Takuya’s Sega investment team profited heavily after Thailand abandoned its fixed exchange rate, and Takuya warned that Japan’s economy could worsen next. That night, he joined Eri to watch the first broadcast of a drama he had recommended.

• The Bank of Thailand abandoned its fixed exchange rate, and the Thai baht plunged as investors rushed to close their short positions.
• Nakayama Takuya ordered Hoshino to close Sega’s short positions in batches and transfer the profits to offshore accounts in Hong Kong within three days.
• Director Takahashi and Director Hattori learned that their investments had earned net returns of over two hundred percent, and Nakayama advised them to keep their funds overseas.
• Nakayama Takuya joined Eri to watch the first broadcast of The Greed of Man and assess the dubbing team’s work.

Takuya and Eri watched the premiere of The Greed of Man, a Hong Kong drama TV Tokyo bought the rights to air alone. Eri was drawn into its intense story as Takuya assessed the Japanese dubbing, and the chapter left the premiere underway.

• Eri told Takuya that TV Tokyo had bought The Greed of Man outright after other TXN stations refused to share the costs.
• Takuya explained that financial companies bought late-night Game Gear slots because the drama's stock-market story appealed to viewers worried about protecting their money.
• TV Tokyo began airing The Greed of Man, opening with Ting Hai throwing his four sons from a rooftop.
• Eri was shocked by the brutal opening, and Takuya explained that Ting Hai was the villainous male lead and that the scene was a flashback.
• As the story shifted to the past and introduced Fang Jinxin, Ting Hai, and Luo Huiling, Eri became engrossed while Takuya praised the Japanese dubbing and localization.

After The Greed of Man hooked Eri, financial professionals in Kabutocho discussed its parallels with the Southeast Asian currency crisis. TV Tokyo then drew rival bids from Nomura Securities and Daiwa Fund for the drama’s top advertising slot as panic over the falling Thai baht spread.

• Eri praised the first episode of The Greed of Man and eagerly planned to watch the next one.
• At Daiwa Securities, a supervisor and traders compared Ting Hai’s short-selling to speculators profiting from the Thai baht’s collapse.
• The traders said the drama had captivated their families and sparked conversations about finance and market manipulation.
• Nomura Securities’ representative offered to raise its advertising budget by fifty percent to secure the first mid-roll slot for a month.
• The representative learned Daiwa Fund had also bid for the slot and promised Nomura would offer ten percent more.

Nakayama Takuya learned that The Greed of Man had doubled its ratings and brought TV Tokyo a surge in advertising revenue and financial-program viewers. As the show’s popularity spread, Japanese office workers also discussed its story alongside the financial crisis.

• Nakagawa Jun told Nakayama Takuya that The Greed of Man’s second episode had doubled the first episode’s ratings.
• Nakagawa Jun explained that the drama’s opening scenes resonated with viewers shaken by the Thai baht’s collapse, and that word of mouth had drawn in audiences beyond finance professionals.
• Major securities firms and fund companies fought to buy TV Tokyo’s nighttime GG slots, generating profits that far exceeded the station’s costs.
• Nakagawa Jun told Nakayama Takuya that the drama had also boosted daytime financial-program ratings as viewers debated whether the Southeast Asian Financial Crisis would reach Japan.
• At an izakaya near Shimbashi Station, Tanaka and Sato discussed Ting Hai’s victory over Chen Wanxian and the show’s hold on their families.

As the Thai baht crisis threatened Japanese banks with Southeast Asian bad debts, Takahashi moved to protect his factory by transferring accounts and repaying loans early. The bank faced a growing run as companies withdrew funds, and Yamada froze when the branch president’s hotline rang.

• Tanaka and Sato discussed how the Thai currency collapse and Japanese banks’ Southeast Asian exposure threatened businesses and savings.
• Takahashi ordered his finance chief to secure credit from other banks, repay the endangered bank early, and move the company’s liquid funds.
• Yamada failed to convince Takahashi to keep the company’s main account at the bank.
• A bank employee told Yamada that twelve companies wanted to transfer their accounts and five planned to repay loans early after watching TV Tokyo’s analysis.
• Yamada saw a Nomura Securities advertisement promoting a new risk-avoidance product alongside The Greed of Man.
• The branch president’s normally silent red hotline began ringing, and Yamada hesitated to answer.

Nakayama Takuya and Eri enjoyed a rare date while TV Tokyo’s broadcast of The Greed of Man drew record ratings and a flood of public interest. After dinner, they headed to the packed premiere of Princess Mononoke, leaving their evening together poised to continue.

• TV Tokyo’s ratings surged as executives, investors, and viewers clamored for advertising slots, interviews, reruns, and LaserDiscs of The Greed of Man.
• Nakayama Takuya sent Kazuki and Miki to stay with his mother, Miyuki, and took Eri out for a long-awaited evening together.
• At dinner, Eri teased Takuya about his role behind TV Tokyo’s success, and he jokingly put on a villainous persona before telling her he would always be eighteen with her.
• Takuya and Eri finished their yakiniku and walked hand in hand through Shinjuku toward the crowded Japanese premiere of Princess Mononoke.

Nakayama Takuya and Eri watched Princess Mononoke, which moved Eri and impressed Takuya with its use of computer graphics alongside hand-drawn animation. After discussing the film’s message and appreciating their quiet life together, they decided to go collect Kazuki and Miki from Grandma’s house.

• Nakayama Takuya escorted Eri into the packed theater, where they watched Princess Mononoke in silence with the captivated audience.
• Eri wept as Ashitaka risked his life to save San, while Nakayama Takuya studied the film’s visual effects and recognized its CG technology.
• After the credits, Eri reflected on San and Lady Eboshi’s struggles and said Ashitaka’s call to live together had strengthened her resolve to keep living.
• Nakayama Takuya comforted Eri and explained that Miyazaki Hayao had shown reality’s cruelty while still offering hope.
• Eri said she missed Kazuki and Miki, and Nakayama Takuya suggested they go to Mother’s place and bring the children home.

Sega and Sotsu finalized their acquisition agreement, with Sotsu’s name and team set to remain in place under Sega. Nakayama Takuya planned to discuss Gundam with Sotsu and Sunrise while Bandai faced an unforgiving audit.

• Matsushima and Suzuki confirmed the final agreement’s terms and signed for Sotsu as Sega’s share price continued to rise.
• Nakayama Takuya signed the acquisition documents and welcomed Sotsu into Sega.
• Nakayama Takuya invited Matsushima and Suzuki to a Ginza celebration with President Yamaura of Sunrise to discuss Gundam plans.
• Nakayama Takuya said they would leave Bandai to handle its own troubles as auditors from McKinsey and PricewaterhouseCoopers uncovered Bandai’s hidden bad debts and dead accounts.

Yamashina Makoto accepted that Bandai would come under Sega’s control and ordered the company’s corruption and mismanagement exposed. Richard then revealed a suspicious payment tied to the failed Pippin project, and Yamashina agreed to write it off and cooperate with the investigation.

• Mitsui Chuta told Yamashina Makoto that Richard’s appraisers were inspecting the warehouse and that Planning Department employees were resisting the handover.
• Yamashina Makoto ordered security to expel and fire the dissenting employees, then showed Mitsui Chuta an audit report detailing unsold toys and questionable spending.
• Yamashina Makoto said Sega wanted a clean Bandai and accepted that the company would take the Nakayama name, while he planned to exchange his shares for cash.
• Richard told Yamashina Makoto that the North American Branch had lost a three-million-dollar advance payment on equipment for the abandoned Pippin project.
• Yamashina Makoto identified Takano as responsible, ordered the loss written off as a bad asset, and promised full cooperation with Richard’s investigation.

Richard oversaw Bandai’s audit and restructuring as Yamashina Makoto cooperated with Sega’s takeover. At Sega Headquarters, Nakayama Takuya then met with Sotsu and Sunrise executives to discuss Gundam plans and the Macross franchise.

• Richard told Yamashina Makoto that Sega would require a clean balance sheet and that Bandai’s valuation could be reduced by the audit findings.
• Yamashina Makoto accepted Richard’s message that Nakayama Takuya approved of his clean-up work, while Bandai employees welcomed the removal of corrupt managers.
• A week later, Yamashina Makoto signed off on dissolving Bandai’s Planning Department, Overseas Business Department, and IP Management Committee, with Sega taking over their personnel.
• Nakayama Takuya met with Hattori Kiyoshi, Matsushima, and Yamaura Eiji at Sega Headquarters and ordered Sotsu to coordinate the Gundam follow-up plans without delay.
• Nakayama Takuya brought up Super Dimension Fortress Macross, and Yamaura Eiji described the success and strong merchandise profits of Macross Plus and Macross 7.

Nakayama Takuya proposed a long-term exclusive partnership with Big West and Studio Nue to develop Macross, while helping them resolve the franchise’s tangled copyright dispute. He planned to challenge Harmony Gold’s claimed rights in North America and Europe, leaving Sega poised to negotiate from a stronger position.

• Nakayama Takuya told Matsushima to secure Macross rights through an exclusive partnership rather than insist on buying the copyright outright.
• Matsushima and Yamaura Eiji explained that Big West and Studio Nue would not surrender ownership and that Tatsunoko Production’s old contract had left Macross’s rights unclear.
• Matsushima described how Tatsunoko had sold overseas rights to Harmony Gold, which used Macross in Robotech, making Big West and Studio Nue wary of developing new works.
• Nakayama Takuya said Sega would help Big West and Studio Nue reclaim the copyright and argued that Harmony Gold was the key to weakening Tatsunoko’s position.
• Nakayama Takuya ordered Sega’s North American lawyers to clarify Harmony Gold’s rights and directed Big West and Studio Nue to register Macross Plus and Macross 7 trademarks in Europe and North America.