Recaps

After the PC Engine sold 500,000 units in its first week, Sega’s directors discussed the threat and renewed their confidence in their upcoming 16-bit console. Nakayama Takuya proposed the name Mega Drive, which Nakayama Hayao and the board approved.

• The PC Engine launched on October 30 with two games and sold 500,000 units in its first week.
• Sega’s directors reacted to the sales, then discussed the PC Engine’s high price, limited game lineup, and reliance on Demon-God War.
• The directors reaffirmed their strategy of attracting third-party developers and building a steady lineup for Sega’s new console.
• The board debated names for the console, including Super Sega System, Sega Advanced Entertainment, and Sega Universe.
• Nakayama Takuya proposed Mega Drive and explained its meaning, and Nakayama Hayao officially approved it as the console’s name.

After the PC Engine’s strong launch, Yamauchi replaced Nintendo’s direct game-design oversight of third-party developers with mandatory financial reporting, provoking outrage among the companies. Their presidents met to consider alternatives, including Hudson, NEC, and Sega’s rumored 16-bit console.

• Yamauchi called an executive meeting and decided Nintendo would stop placing content consultants at third-party studios but require developers to report project finances for review.
• Kawasaki Eikichi, Nakamura Masaya, and other third-party presidents received Nintendo’s notice, while Konami developers welcomed the recall of their consultant and Kozuki Kagemasa faced the new financial demands.
• Kawasaki convened the presidents of SNK, Namco, Konami, Capcom, and Taito, where they condemned Nintendo’s financial oversight but acknowledged their dependence on the Famicom and NES.
• Nakamura offered to introduce the gathered presidents to Hudson and NEC, and Kozuki revealed that Sega was secretly developing a powerful 16-bit console.
• The presidents began considering ways to diversify their business rather than rely solely on Nintendo.

Sony and Sega launched a synchronized global advertising campaign for DDR, drawing crowds with popular songs and dance footage and raising expectations that it would become a phenomenon. Yamauchi reviewed reports of the campaign at Nintendo headquarters, recognizing the scale of the threat.

• Shigeo Maruyama reviewed reports confirming Sony’s global DDR ads had launched successfully, then continued overseeing game mastering and arcade preparations with Ken Kutaragi and Sega.
• Young people in Shibuya, Times Square, and London stopped to watch DDR ads featuring popular local songs and expressed eagerness to try the game.
• Japanese television programs and social media picked up the advertising campaign, while media outlets predicted DDR would become a major hit.
• Nintendo executives presented Yamauchi with reports of the worldwide response to Sony and Sega’s campaign, and Yamauchi silently considered the threat it posed.

Dance Dance Revolution became a global hit, drawing new players with its music, choreography, and arcade spectacle. At Sega, executives celebrated its rapid profits but recognized that their own home-console distribution remained weak.

• Players in Tokyo, New York, and London tried DDR, with A-Ken losing to a difficult song before demanding another turn and a girl in New York impressing the crowd with improvised dancing.
• DDR’s visuals, music, and accessible idol-group tracks attracted large numbers of players, including women who had rarely visited arcades.
• Sega’s finance director reported that the first shipment of fifty thousand machines had nearly sold out, additional orders topped one hundred thousand, and the project had recovered its early costs within three days.
• Nakayama Takuya and the Sega executives credited Sony’s publicity, music licensing, and arcade network for helping DDR succeed worldwide.
• Director Yoshikawa warned that Sega’s limited home-console distribution, including its dependence on distributors such as Tonka Toys, kept its games from reaching more users.

Sega executives accepted Nakayama Takuya’s proposals to broaden Mega Drive sales channels, while Sega and Sony launched a global DDR championship that drew massive interest. In Los Angeles, CBS anchor Mark Thompson reluctantly received the assignment to cover the city’s DDR competition.

• Nakayama Takuya proposed partnering with Sanrio and Mattel and selling Mega Drive consoles through Pokémon Center stores, and Sega’s board approved immediate negotiations.
• One week after DDR’s release, Sega and Sony announced the DDR Global City Championship, with its global finals scheduled for January 9, 1988, at National Kasumigaoka Stadium in Tokyo.
• Players worldwide responded enthusiastically to the tournament announcement, and sign-ups surpassed ten thousand within a week.
• CBS assigned Mark Thompson to cover the Los Angeles DDR qualifiers and finals, and he viewed the job as an undignified use of his journalistic skills.

Mark Thompson initially treated CBS’s DDR championship broadcast as a lowbrow assignment, but soaring ratings convinced him that the competition had major appeal. He secured control of CBS’s follow-up coverage as city championships began around the world.

• Mark Thompson and reporter Sarah Chen covered the packed Los Angeles DDR City Championship qualifiers for CBS.
• Mark was impressed by contestants who blended DDR steps with street dance, Latin dance, and ballet.
• Director Bob told Mark that the broadcast ratings had surpassed those of a football preseason game, and viewers called asking for more coverage.
• Mark requested detailed interviews and research, then gave the broadcast more informed commentary as the competition continued.
• The broadcast set a ratings record for its time slot, and Mark proposed an interview, rebroadcasts, and coverage of the global finals.
• Mark persuaded CBS management to approve his plans and keep him in charge of the DDR coverage series.

Sega secured Toshiba’s chip supply and prepared the Mega Drive launch while Nakayama Takuya proposed a limited DDR home system. The DDR Global Finals drew overseas visitors to Japan, prompting government officials to reconsider video games’ cultural and economic influence.

• Terauchi and Hatano reported that Toshiba had accepted Sega’s bulk chip prices and promised priority supply beginning in January 1988.
• Sega activated its OEM factories, finalized the Mega Drive’s launch games, and set its release date for February 13, 1988.
• Nakayama Takuya proposed a limited DDR home edition with an external LD player and dance mat, using small-batch production and preorders to avoid excess inventory.
• After the DDR champions and runners-up from sixteen cities were settled, Japanese embassies received a surge of tourist visa applications from young people seeking to attend the Tokyo DDR Global Finals.
• A Japanese Foreign Ministry analysis revealed that the visa applicants were coming for the finals, leading officials to reassess Sega, Sony, and video games’ influence.

The DDR Global Finals brought players and spectators from around the world to Tokyo, where Sega and Sony turned the tournament into a massive televised spectacle. Marcus and Jamal won the championship with a creative paired performance, while the event left broadcasters, sponsors, and a Ministry of Foreign Affairs official impressed by its reach.

• Foreign players flooded Tokyo’s arcades before tens of thousands gathered at National Kasumigaoka Stadium for the finals.
• Yoko Oginome opened the event with “Dancing Hero,” and the host announced scoring based on visual appeal, execution difficulty, game score, and audience cheers.
• Isabella impressed the crowd with flamenco, Liam dazzled with fast footwork and breaking, and Marcus and Jamal performed synchronized partner stunts.
• Marcus and Jamal’s performance drove the audience-cheer score past its record and carried them to the championship, with Liam placing second and Isabella third.
• Sega and Sony’s executives celebrated the tournament’s success as broadcasters and sponsors benefited from its global audience.

After Sega announced the Mega Drive and revealed Pokémon Grand Adventure - Pokémon Land, Nintendo prepared to counter the new console with its most powerful game. Yamauchi Haku ordered Super Mario Bros. 3 to launch on the same day as the Mega Drive, setting up a direct showdown on February 13, 1988.

• After the DDR Global Finals, Nintendo executives approved a media campaign announcing that Super Mario Bros. 3 was nearing completion, and its screenshots drew players' attention back to Nintendo.
• Sega aired a promotional video announcing the Mega Drive as a true 16-bit console and showcasing games including Pokémon Grand Adventure - Pokémon Land.
• After reviewing a report on Sega's secret development and preparation, Yamauchi Haku ordered Shigeru Miyamoto to schedule Super Mario Bros. 3 for the Mega Drive's launch day.
• Sega announced that the Mega Drive would launch on February 13, 1988, for 20,980 yen.
• Nintendo announced that Super Mario Bros. 3 would also launch on February 13, 1988, igniting a showdown between the game and Sega's new console.

Nintendo pushed retailers and major chains to give Super Mario Bros. 3 exclusive promotion, while Sega’s Pokémon-based retail ecosystem resisted its pressure. A young Nintendo analyst grew uneasy about Sega’s apparent lack of activity in Tokyo, suspecting it was concentrating resources for a decisive move.

• Morisato pressured Manager Takeda to sign Nintendo’s top-priority sales contract, and Takeda removed his Mega Drive preorder sign in exchange for a promise of a high Mario 3 allocation.
• The Pokémon Center shopkeeper refused Morisato’s offer, explaining that Pokémon merchandise and events drew the family customers who sustained the store.
• Morisato reported the refusal to Nintendo, prompting its Marketing Department to reassess the Pokémon IP’s commercial strength.
• Nintendo secured exclusive convenience-store deals with 7-Eleven and Lawson and outbid Sega for prominent shopping-center promotions, while Sega raised prices and then withdrew.
• Maeda’s report noted that Sega fought Nintendo in several cities but barely promoted itself in Tokyo; his superior dismissed the concern, though Maeda suspected Sega was saving resources for an unknown decisive move.

Sega’s Pokémon campaign transformed Tokyo into a citywide spectacle and tied its upcoming game to the anime, while Nintendo answered with a nationwide Super Mario Bros. 3 trial-play campaign. Sega’s broader lineup and polished previews of games still in development left Shigeru Miyamoto questioning whether Mario could withstand the new generation’s full assault.

• Sega’s Pokémon models appeared across Tokyo, prompting a citywide search and drawing headlines that eclipsed Nintendo’s Mario advertisements.
• Pokémon anime Episode 65 introduced Giovanni and Armored Mewtwo, then linked their mysteries to the upcoming Pokémon Adventure game in a new animated ad.
• Yamauchi ordered a nationwide Super Mario Bros. 3 trial-play event after Nintendo’s staff saw the scale of Sega’s Tokyo promotion.
• Sega opened trial play for Pokémon Adventure and four other launch titles, while its Akihabara store also showcased polished demos of Phantasy Star and The First Super Robot Wars.
• Shigeru Miyamoto reviewed Sega’s lineup and worried that Mario 3 could not stand alone against the new generation’s broader assault.

Yamauchi Hiroshi forced Enix to release Dragon Quest III ahead of Sega’s Mega Drive launch, but the resulting nationwide disorder and a report of bundled sales turned the release into a public-relations disaster for Nintendo. As Sega exploited the backlash, Yamauchi Haku ordered Shigeru Miyamoto to apologize to the public, two days before Super Mario Bros. 3 faced Mega Drive.

• Yamauchi Hiroshi persuaded Enix to release Dragon Quest III on February 10 and scheduled Super Mario Bros. 3 for February 13 to drain Sega’s momentum and players’ money.
• Dragon Quest III’s release sparked long queues, school skipping, and crimes against people waiting to buy the game, prompting the media to call the crisis the “Dragon Quest Commotion.”
• Nakayama Hayao directed Sega to express concern for affected young people and attack Nintendo’s handling of the release through a public-relations campaign.
• Shukan Bunshun reported that Fujitaya had forced retailers to buy unpopular games in bundles to obtain DQ3 stock, while Nintendo’s reputation and stock price suffered.
• Yamauchi Haku ordered Shigeru Miyamoto to apologize publicly, and Miyamoto agreed despite having had no part in planning the disputed strategy.

Nakayama Takuya launched the Mega Drive with a Pokémon-themed Akihabara spectacle that drew huge crowds and quickly sold out limited-edition bundles. Nintendo’s Super Mario Bros. 3 also sold explosively, leaving Nakayama Hayao and Takuya aware that the rivalry with Nintendo had only begun.

• Before launch, Nakayama Takuya checked Akihabara’s displays, staffing, and security arrangements, while Shigeru Miyamoto’s televised bow reminded him of Nintendo’s looming competition.
• On February 13, crowds poured through Akihabara and were drawn toward a two-kilometer corridor of giant Pokémon inflatables, overshadowing the nearby Super Mario Bros. 3 displays.
• At Shinobazu Pond Open-Air Plaza, Pokémon-themed performances and packed demo and sales areas turned the launch into a lively carnival.
• Less than an hour after launch, Akihabara stores had sold out their first batch of Pikachu bundles, and the plaza had sold more than 1,000 limited-edition bundles and 3,000 Mega Drive consoles in total.
• A marketing report revealed that Super Mario Bros. 3 was also selling rapidly nationwide, and Nakayama Hayao warned Takuya that the real battle with Yamauchi Hiroshi had only just begun.
• Nakayama Takuya agreed and resolved to use Pokémon’s remaining surprises and Nintendo’s weaknesses in the next stage of the contest.

At Sega’s Tokyo launch event, Takuya used exclusive Mew prizes to fuel a huge crowd and sell out the Mega Drive and its games. He persuaded Nakayama Hayao and the executives not to restock at the venue, hoping the sellout would become headline news and drive buyers into Akihabara for the next day’s sales.

• The host announced that more than eleven thousand people had arrived by 11 o’clock, then awarded five Mew electronic pets in a raffle.
• A winner sold his Mew to a maid for five million yen, and the limited prizes intensified demand for the later raffles.
• As the packed plaza’s crowds blocked access to sales areas, Takuya and the executives added remote raffle registration so attendees could leave while remaining eligible to win.
• Before 2:30 p.m., the supervisor reported that all thirty thousand Mega Drives and one hundred thousand game cartridges had sold out.
• Takuya stopped the sales director from bringing in more stock, arguing that the sellout would generate publicity and send eager customers to Akihabara.
• Nakayama Hayao applauded Takuya’s strategy, and the executives left to handle follow-up arrangements.

Takuya celebrated Pokémon Adventure’s strong launch sales, then used the weak Tokyo debut of Super Mario Bros. 3 to plan a publicity campaign. He left Sega’s team ready to promote the apparent victory before Nintendo’s sales could catch up.

• Sega’s sales supervisor announced that first-day sales exceeded 100,000 units, with Pokémon Adventure selling over 100,000 copies.
• Takuya directed the marketing team to fill Akihabara with Pokémon inflatables and give couples linked Nidoran♂ and Nidoran♀ plush toys as a Valentine’s Day gift.
• The team learned that Super Mario Bros. 3 had sold 78,566 copies in Tokyo on its first day.
• Takuya explained that Dragon Quest III and Valentine’s Day had kept many of Nintendo’s core Tokyo players at home.
• Takuya urged the team to publicize Pokémon Adventure’s apparent lead before Mario sales caught up.

Takuya and Nakayama Hayao celebrated the Mega Drive’s overwhelming first-week sales in Japan and overseas, while Nintendo struggled to respond to Sega’s publicity victory. With the launch target achieved, Takuya turned his attention to dealing with Konami next week.

• The sales director announced that Pokémon Land sold 102,000 copies in Tokyo on Valentine’s Day, while Super Mario Bros. 3 sold 68,300, and the Pikachu bundles sold out.
• Takuya ordered the public-relations team to release the sales figures, and newspapers and television reported Sega’s victory over Nintendo.
• At Nintendo headquarters, Yamauchi and the directors were unable to explain away Mario’s weaker sales without drawing attention to Dragon Quest III.
• The sales director announced that Mega Drive sales in Japan had passed 500,000 units and cartridge sales had passed one million.
• Nakayama Hayao received overseas figures of 83,000 units in Europe and 254,000 in North America, bringing global first-week sales close to 900,000.
• Takuya thanked Nakayama Hayao and said he would need his help with Konami the following week.

Nakayama Hayao used the Mega Drive’s sales and Sega’s offers to court Konami, while Takuya pitched Koei on porting its strategy games to the console. Konami weighed Sega’s proposal, and the Erikawas left interested but undecided after receiving a Mega Drive and a copy of The First Super Robot Wars.

• Nakayama Hayao showed Kozuki Kagemasa Sega’s sales report and apologized for hiring Hideo Kojima, then renewed Sega’s offer to Konami.
• Kozuki Kagemasa asked what support Sega would provide for a Mega Drive-exclusive Contra, and Nakayama Hayao offered marketing funds, North American promotion, and limited-edition console deals.
• Takuya showed Yoichi Erikawa and Keiko Erikawa the sales report and argued that the Mega Drive could run Koei’s Nobunaga's Ambition and Romance of the Three Kingdoms with fewer compromises than the Famicom.
• Takuya offered Koei technical support, help with cartridge costs, guaranteed production capacity, and access to special-chip solutions for its games.
• The Erikawas said they would study Sega’s proposal, and Takuya left them a Mega Drive and a copy of The First Super Robot Wars to try.

EA agreed to develop games for Sega’s Genesis after David Rosen offered favorable terms and prominent Olympic marketing. At Bandai, executives weighed the Mega Drive’s opportunities against their limited development experience, and Yamashina Makoto decided to meet Nakayama Takuya about cooperation and a special console.

• David Rosen offered Trip Hawkins favorable royalties, flexible cartridge production, and top marketing support for EA games on Genesis.
• Trip Hawkins accepted Sega’s offer and agreed to cooperate on an EA Olympic game.
• Bandai executives debated whether the company could afford to develop for Mega Drive and discussed the profits and technical support Sega had offered.
• Chuta Mitsunami argued that Bandai’s anime and tokusatsu properties could complement Sega’s development technology.
• Yamashina Makoto instructed Mitsui Chuta to arrange a meeting with Nakayama Takuya and ask about Bandai joining Sega’s limited-edition console.

Takuya celebrated Sega's growing developer support as NCS, Konami, and EA committed to making Mega Drive games. He met with Bandai's executives, where Yamashina expressed interest in joining Sega's partner network despite Bandai's limited development capabilities.

• Development Team One announced that NCS and its Masaya studio had agreed to develop for the Mega Drive.
• The sales manager announced that Konami would make Contra its first Mega Drive game, and EA agreed to develop an Olympic sports title.
• Bandai's Mitsui called Takuya and invited him to meet President Yamashina the next day.
• Takuya arrived at Bandai Headquarters and told Yamashina and the other executives about Sega's new partners.
• Yamashina said Bandai wanted to join Sega's partner network but admitted that the company relied more on its intellectual properties than on its development ability.

Nakayama Takuya pitched Bandai on adapting Sega's games and developing a Gundam strategy RPG, and Yamashina Makoto agreed to make Gundam the first project. The chapter ended with Takuya outlining the game's core features and Bandai entrusting its game development to Sega.

• Takuya proposed porting Super Robot Grand Assembly to the MD and using Sega's existing game framework to help Bandai develop a new game based on its own IP.
• Takuya demonstrated The First Super Robot Wars to Bandai's executives, who were impressed by its robot battles and agreed to consider his proposal.
• During a recess, Bandai's executives debated Gundam versus Dragon Ball and chose Gundam as the first project.
• After Bandai's executives signed nondisclosure agreements, Takuya outlined a Gundam game focused on battlefield storytelling, mobile suit collection and development, and player customization.
• Yamashina Makoto told Takuya that Bandai was entrusting its games to him.

Nakayama Takuya reviewed Sega’s third-party recruitment results, finding small and midsize developers receptive while larger companies hesitated. He then examined a feasible handheld-console design and prepared to propose the project to the board.

• Nakayama Takuya learned that Sega’s favorable terms had attracted small and midsize PC game developers, and that Falcom had signed a letter of intent to bring Ys and Dragon Slayer to the Mega Drive.
• Nakayama Takuya heard that Capcom remained noncommittal and that Namco was still weighing its options, then urged his staff to be patient as Sega built its game lineup.
• Nakayama Takuya visited the Hardware Development Department, where Department Head Nakamura showed him a working front-lit LCD demonstration and a preliminary handheld-console research report.
• Department Head Nakamura explained that the proposed handheld’s main challenge was designing a low-power, highly integrated chip compatible with the Z80 instruction set.
• Nakayama Takuya praised the report and asked Department Head Nakamura to join him the next day to present the handheld-console project to the board.

Sega approved Nakayama Takuya’s handheld console proposal as Konami and Bandai joined the Mega Drive camp, prompting a bitter dispute at Nintendo and Yamauchi Haku to order development of a 16-bit home console. Meanwhile, Pokémon Adventure—Pokémon Land drew in families and female players with its cooperative puzzles, and its young players uncovered a hidden door deep inside the park.

• Sega’s board unanimously approved Nakayama Takuya’s handheld console proposal, and Masao Suzuki showed him Nintendo’s latest response.
• Nakayama Takuya learned that Konami and Bandai had joined Sega’s Mega Drive camp and that Nintendo had banned their games from its platforms.
• Nintendo’s directors argued over whether to ease terms for third-party developers, but Yamauchi Haku ordered Uemura-kun and Takeda-kun to schedule development of a 16-bit home console.
• Families and female players embraced Pokémon Adventure—Pokémon Land, using Pokémon abilities to solve puzzles and clear stages.
• After defeating the park’s huge mechanical Pokémon, young players discovered a hidden door opening deep inside the park.

Players defeated Giovanni in Pokémon Land and unlocked a glimpse of the armored Mewtwo, which revealed the upcoming film Mewtwo Strikes Back and drove a surge of interest in the game and movie. Sega’s promotional strategy drew free media coverage and interest from Toho, while Nakayama Takuya awaited the film’s release.

• Players struggled through Giovanni’s challenging boss battle before finally defeating his Kingler and finding a teaser for Mewtwo Strikes Back in the empty final room.
• The game’s hidden teaser sparked widespread speculation about the armored Pokémon and caused a second surge in game cartridge sales.
• GALLOP aired the film’s official trailer, showing Mewtwo’s creation in a laboratory and its destructive power.
• The trailer became a major topic among Japanese schoolchildren, boosting anticipation for the film.
• Masao Suzuki told Nakayama Takuya that TV stations were seeking to cover the phenomenon and Toho wanted distribution rights.
• Nakayama Takuya approved the promotional strategy and said he looked forward to seeing how the theatrical film performed.

Nintendo’s executives saw Sega’s Pokémon Land surge past Super Mario Bros. 3 after a linked movie-trailer promotion, then learned Sega was releasing two more games to target distinct audiences. Yamauchi Hiroshi was left facing a coordinated campaign that threatened Nintendo’s all-ages strategy.

• Nintendo’s sales staff told Yamauchi Hiroshi that Super Mario Bros. 3 was gaining momentum and might overtake Pokémon Land.
• A young employee brought in data showing Pokémon Land’s sales had surged after its post-game Mewtwo Strikes Back trailer and linked television promotion.
• The sales supervisor explained that the trailer campaign had drawn new buyers and prompted widespread media coverage.
• Yamauchi Hiroshi berated Nintendo’s marketing and sales teams after seeing Pokémon Land’s curve catch Mario’s.
• The sales supervisor announced that Sega planned to release The First Super Robot Wars and Joy Island Adventure within the week.
• Nintendo’s staff recognized that Sega’s new releases targeted different player groups and supported its effort to make the Mega Drive a fixture in homes.

Kenji and Tatsuya discovered that The First Super Robot Wars let players alter pivotal events from the original anime stories. After uncovering several hidden routes, they shared their findings with a gaming magazine editor, who prepared to spread the news.

• Kenji and Tatsuya bought The First Super Robot Wars and began playing it together.
• At Operation Odessa, Tatsuya persuaded Kenji to protect Lieutenant Matilda’s transport plane, and they saved it from being destroyed.
• Matilda’s survival allowed Captain Woody to live and unlocked the RX-78-3 Gundam for Amuro.
• At the Battle of A Baoa Qu, Kenji and Tatsuya saved Lalah, unlocking her as a character and enabling Amuro’s Perfect Gundam and Char’s Perfect Zeong.
• Tatsuya told a gaming magazine editor about the hidden routes, and the editor confirmed them and conceived the headline “The True Way to Play SRW! We Can Change History!”