Recaps

Takuya launched an unconventional promotional campaign for Mewtwo Strikes Back, first distributing invitations to Pokémon players and then placing mysterious cloning displays around Tokyo. The displays sparked public debate and media attention before a television commercial revealed the campaign was advertising the film, leaving audiences eager to see it.

• Takuya persuaded Toho to let him lead the film promotion by arguing that Mewtwo Strikes Back would extend the Pokémon experience for its players.
• Sega and Toho distributed movie invitations through Pokémon Centers, where staff registered players’ Poké Balls and gave them cards bearing the July 22 release date.
• Mysterious mechanical cocoons appeared at busy Tokyo locations and played a recording about cloning Mewtwo from Mew’s genes.
• Children searched for the cloned Pokémon displays while newspapers and adults debated the campaign’s links to genetic technology and the Human Genome Project.
• A television talk show discussed the displays, and a government official confirmed they were promotional models filed with the authorities.
• A commercial showed Mewtwo awakening and revealed that the cloning displays were promoting Mewtwo Strikes Back, building anticipation for its July 22 release.

Nakayama Takuya reviewed the strong response to Mewtwo Strikes Back’s promotion and Toho’s offer to prioritize future Sega projects. He also assessed Mega Drive’s growing sales and Nintendo’s likely counterattack, leaving Sega focused on strengthening its position before the next round of competition.

• Nakayama Takuya reviewed survey results showing strong interest in Mewtwo Strikes Back after its first two promotional phases.
• Matsuoka of Toho praised Sega’s promotional strategy and asked Toho to be considered first for future projects; Nakayama agreed.
• Nakayama reviewed reports showing strong returns for third-party games ported to the Mega Drive and growing developer confidence in Sega.
• Nakayama saw that Mega Drive sales had passed 2.5 million in Japan, one million in North America, and 400,000 in Europe, nearing four million worldwide.
• Nakayama assessed PC Engine’s slowing growth and Nintendo’s strained third-party relations, and prepared for Nintendo’s coming counterattack.

Sega and Toho used local Pokémon avatar posters and a lottery for 50 never-to-be-reissued Mewtwo Virtual Pets to drive huge demand for Mewtwo Strikes Back. The chapter ended with Tokyo cinemas sold out for the premiere and the following days, leaving many young fans disappointed.

• Sega replaced Pokémon Center posters with walls of local players’ Pokémon avatars, and a boy spotted his Pikachu, Electric Mouse, among them.
• Toho and Sega announced that movie ticket stubs could enter a lottery for one of 50 limited-edition Mewtwo Virtual Pets.
• Fans rushed to buy tickets, while wealthy customers booked entire screenings, intensifying the shortage.
• A Toho Cinemas manager received instructions to add Mewtwo Strikes Back screenings and open presales for prime-time shows over the next three days.
• Cinemas across Tokyo sold out their added screenings, and employees posted notices that tickets for the premiere and following days were gone.

Mewtwo Strikes Back became a box-office sensation on its premiere day, leaving rival studios seeking joint distribution and audiences moved by its questions about bioethics. The next morning, media coverage and public discussion helped turn the film into a widely recommended lesson for families and schools.

• Cinema managers across Japan saw advance tickets sell out, while Shochiku executives called Toho to request joint distribution and Toho's president put them off.
• Audiences left screenings in tears, and parents discussed the film's portrayal of the Human Genome Project and bioethics.
• Parents began taking children to see the film again, and word-of-mouth sent more people into packed cinemas.
• Asahi Shimbun's editor-in-chief ordered the film's premiere to replace a politician's scandal on the front page.
• A television panel debated the film's story and its warning about scientific progress without ethical restraints.
• Schools' parent committees recommended the film, and a mainstream magazine called it an ethics exam for society.

Mewtwo Strikes Back’s success sparked a nationwide petition for bioethics education, prompting the Ministry of Education, Culture, Sports, Science and Technology to promise it would consider the issue. Meanwhile, a lottery for fifty Mewtwo electronic pets fueled a craze that culminated in a thief being caught trying to steal a winner’s prize.

• The Ministry of Education, Culture, Sports, Science and Technology received nationwide petitions urging bioethics to be added to school curricula, and the section chief called an emergency meeting.
• The section chief directed the ministry to announce that it would seriously consider the petition, and its spokesperson repeated that position at a press conference the next day.
• Children queued at cinemas to enter a lottery for fifty limited-edition Mewtwo electronic pets, while wealthy parents bought out screenings in pursuit of the prizes.
• After a Hokkaido girl showed off her winning electronic pet on television, lottery participation surged and scalpers began reselling ticket stubs.
• A young man in Osaka won an electronic pet, then caught a thief who broke into his home to steal it.
• News of the break-in sparked another nationwide debate over marketing limited-edition merchandise.

As the Seoul Olympics drew attention away from other games, Sega and Electronic Arts turned the sporting craze into a marketing opportunity with Olympic-themed releases. Sega New Record’s advertisement revealed how Sega had positioned itself to benefit from the Games while warning competitors away from September promotions.

• Mewtwo Strikes Back ended its run at 8.53 billion yen, claiming the annual box office crown and delaying other games’ releases.
• Sega advised third-party companies to avoid promoting non-sports games during the Olympics, prompting many to delay or reschedule releases.
• A young planner noticed Sega’s scheduled September releases were sports games and suspected the advice gave Sega an advantage.
• Electronic Arts advertised EA Olympics, an officially licensed game covering dozens of sports after sponsoring the Seoul Olympics.
• Sega advertised Sega New Record, a chaotic four-player sports game, and revealed that it had sponsored the Olympic Village with 1,000 Mega Drives and 10,000 game cartridges.
• The young planner told his colleague to record both companies’ commercials so he could report Sega’s strategy to the president.

Sega’s Olympic strategy dominated Japan’s entertainment market and nearly sold one million copies of EA Olympics in North America. After the Olympics ended, Sega completed its purchase of a 3% stake in Sunrise Animation, beginning a strategic move against Bandai.

• A planner advised the president to delay the company’s products during the Olympic sales slump, and the president approved the recommendation.
• Kenta and his father set aside an RPG to play EA Olympics together while the father watched the Olympic broadcasts.
• Waya found his company’s game pushed aside in a shop, while EA Olympics sales in North America approached one million copies.
• Iron Fist sold fewer than five thousand copies in its first week after launching during the Olympics.
• Nakayama Hayao and Masatoshi Ito signed agreements transferring 3% of Sunrise Animation to Sega.
• Nakayama Hayao told Nakayama Takuya and Director Hattori to work together on Sega’s next strategic move against Bandai.

Sega completed and tested its first handheld prototypes, and Takuya presented the second unit to the software team. He asked them to build affordable MSX2 development tools to help third-party studios create games, and Yuji Naka agreed to investigate adapting an old scrolling algorithm.

• Nakamura Ken announced that the handheld chip tests had passed, and Takuya tested the first engineering unit with a Tetris program.
• A week later, Nakamura Ken showed Takuya a smaller, sturdier second prototype and reported that its basic tests were complete.
• Takuya instructed the Hardware Development Department to continue durability and stress testing while allowing staff to take shifts off.
• Takuya asked Yuji Naka and the software team to create development libraries and tools that would let small studios make handheld games using MSX2 computers.
• Takuya explained that low development costs and a large third-party game library would help Sega compete with Nintendo's upcoming handheld.
• Yuji Naka picked up the prototype and offered to adapt the SG-1000's fast-scrolling algorithm for the new platform.

Nakayama Takuya faced Bandai’s concerns over Sega’s interest in Sunrise shares, then began preparations for Pokémon Red/Green as the handheld’s major launch title. He left Development Group Three with plans for a hidden anime-inspired storyline that required players to connect both game versions.

• Mitsui Chuta asked Takuya about rumors that Sega wanted to acquire Sunrise shares, and Takuya said Sega sought more direct cooperation with its partner.
• Takuya and Mitsui ended dinner on cordial terms, though Takuya sensed their clash was only beginning.
• The next day, Takuya told Development Group Three to pause Mega Drive’s Totoro and begin work on Pokémon Red/Green for the handheld.
• Takuya instructed the team to include collection, trading, battling, a large world, and distinct content for the two versions.
• Takuya proposed a hidden storyline that would unlock when players connected both versions and followed the anime’s plot, letting them play as Ash Ketchum with Pikachu as their starter.

Takuya visited Yu Suzuki after hearing his team was struggling with Taiko no Tatsujin’s sound and storage limitations. He proposed pursuing a CD-ROM license with Sony and seeking government support for tracks blending traditional and modern music.

• Team Lead Shimizu told Takuya that Art of Fighting had received an enthusiastic arcade response and players were asking about the next Sega Esports Tournament.
• Takuya learned Yu Suzuki’s team was stuck and found Suzuki in the lounge, worried that arcade hardware could not reproduce traditional instruments well and lacked storage for high-quality songs.
• Takuya reminded Suzuki about his plan to develop an external CD-ROM drive for the Mega Drive and urged him and Director Yoshikawa to negotiate a perpetual CD-ROM technology license with Sony.
• Suzuki realized CD-ROMs could provide better audio and more storage for Taiko no Tatsujin, while Takuya suggested using the arcade version to pave the way for the Mega Drive.
• Takuya advised Suzuki to make tracks combining traditional and modern music and ask the Agency for Cultural Affairs and Ministry of Foreign Affairs for promotional support through Director Yoshikawa’s contacts.

After the handheld development tools passed acceptance testing, Takuya assigned teams to prepare a varied launch lineup for the new handheld. He also planned to send development kits to affiliated third-party developers, leaving the first wave of games underway.

• The handheld development tools passed their final tests, and Takuya gave the programmers three days of paid leave.
• Takuya assigned Tetris as a bundled game and Pokémon Red/Green as the handheld’s flagship RPG, with Team Three responsible for development.
• Takuya tasked Team Eight with making The Second Super Robot Wars after they finished testing Shining Force: Legacy of the Gods.
• Takuya assigned the original Sega New Record team to port the game for the handheld.
• Takuya asked arcade department leaders to select two popular games each and submit porting assessments and preliminary plans within a week.
• Takuya announced that he would send development kits to affiliated third-party developers and adjourned the meeting.

Nakayama Takuya left Sega’s Mega Drive year-end release schedule almost entirely open to give third-party partners room to launch games. Square and Bandai seized the opportunity, with Final Fantasy II set for late December and Dragon Ball: Goku's Great Adventure planned for mid-December.

• Nakayama Takuya ordered Sega to announce a year-end schedule featuring only Shining Force: Legacy of the Gods and invited partners to submit projects for launch coordination.
• Miyamoto Masashi showed Sakaguchi Hironobu Sega’s schedule, and they decided to report Final Fantasy II and release it in late December.
• Sakaguchi Hironobu said Final Fantasy II’s assets were integrated and that two more weeks of testing would prepare it for manufacturing.
• Bandai President Yamashina watched a demonstration of Dragon Ball: Goku's Great Adventure and praised the game’s progress.
• After receiving Sega’s schedule, Yamashina set Dragon Ball: Goku's Great Adventure for mid-December and ordered the publicity department to use every resource.

Ken Kutaragi failed to persuade Nintendo’s engineers to adopt Sony’s CD-ROM technology or reveal Super Famicom specifications, while Uemura and Takeda remained wary of Sony. Back at Sony, Norio Ohga urged Kutaragi to exploit discontent within Nintendo, leaving him eager to seek an internal ally.

• Ken Kutaragi pressed Masayuki Uemura and Genyo Takeda to support a CD-ROM expansion, but they said Nintendo’s president had not decided and asked for more time.
• After Kutaragi left, Uemura and Takeda discussed Sony engineers probing beyond audio work and agreed to keep watch while prioritizing Super Famicom development.
• Ken Kutaragi reported to Norio Ohga that Nintendo had revealed no useful hardware details, despite Sony’s engineers trying to coax information from its staff.
• Norio Ohga argued that Nintendo’s caution showed it still needed Sony and suggested exploiting resentment within the company, particularly among overlooked figures in its First Development Department.
• Ken Kutaragi accepted Ohga’s advice and left determined to find people inside Nintendo who felt wronged.

The PC Engine CD-ROM kit disappointed players with weak visuals, input delay, and intrusive loading, prompting Ken Kutaragi and Yu Suzuki to assess its flaws. Takuya ordered Sega to work with Sony on faster disc reading and to improve its own CD-ROM kit with dedicated graphics and sound hardware.

• Players in Akihabara tried Noriko Ogawa NO-RI-KO and Street Fighter on the PC Engine CD-ROM kit, then complained about limited gameplay, poor visuals, input delay, and disc-loading noise.
• Negative feedback reached Hudson and NEC, while Ken Kutaragi concluded that future consoles needed tightly integrated first-party software and hardware.
• Yu Suzuki rejected the Street Fighter port's lag and loading interruptions, and his department reported CD-ROM's slow seek speed as a technical bottleneck.
• Takuya instructed his assistant to approach Sony about a high-speed disc-reading mechanism and to have Suzuki test Toshiba's 1M DRAM to reduce loading delays.
• Takuya ordered Suzuki to revisit the cartridge coprocessor and add dedicated graphics and sound hardware to Sega's CD-ROM plans, while rejecting music-CD playback as costly and irrelevant to players.

Konami president Kozuki Kagemasa and Sega executive Nakayama Takuya reviewed the Christmas and New Year sales, which showed third-party games driving strong Mega Drive software sales. Nakayama saw the results as proof of the platform’s growing appeal and prepared to continue Sega’s campaign against Nintendo.

• Kozuki Kagemasa reviewed Konami’s successful holiday sales and the market reports from the three major platforms.
• Kozuki noticed the Mega Drive’s high software sales per console despite its smaller install base, while the PC Engine continued to lag.
• Kozuki recognized that Nakayama Takuya had cleared Sega’s release schedule so third parties could draw attention to the Mega Drive, and he understood Konami’s success had served Sega’s strategy.
• Nakayama received reports showing strong Mega Drive sales for games including Dragon Ball, Final Fantasy II, and Castlevania III: Dracula’s Curse.
• Nakayama noted that Mega Drive players bought more software on average than users of rival platforms and regarded the platform’s first year as a success.
• Nakayama resolved to continue Sega’s commercial campaign against Nintendo in the coming year.

After Yu Ren's death triggered nationwide self-restraint, arcade business collapsed, and Nakayama Takuya redirected Sega's resources toward its handheld project. With the handheld and launch games nearing completion, he prepared to reveal its name as the potential April 21 release of Nintendo's Game Boy approached.

• Sega's assistant and arcade division chief reported that arcade traffic had fallen by more than ninety percent, while home game sales showed no noticeable rise.
• Nakayama Takuya ordered Sega to devote all company resources to handheld development, arguing that self-restraint concealed its preparations from competitors.
• Shimizu's Pokémon team tested communication links, the Super Robot Wars team polished its game, and the porting team selected Golden Axe, Alien Storm, Space Harrier, and After Burner.
• Nakayama Takuya heard that Nintendo had made no new Famicom announcements as Sega continued development in secret.
• By mid-March, The Second Super Robot Wars and the four arcade ports were ready for production, while Pokémon Red/Green entered final testing and handheld mass production progressed.
• Nakayama Takuya summoned Sega's directors and development heads to a meeting to give the handheld a name.

Nakayama Takuya presented Sega’s handheld lineup and communication features to skeptical directors, then secured approval for a two-million-unit initial production run. The company unanimously named the handheld Game Pocket.

• Nakayama Takuya demonstrated Golden Axe and Space Harrier running on the handheld, easing the directors’ concerns about its game lineup.
• Nakayama Takuya and Team Leader Shimizu demonstrated Pokémon trading, showing Kadabra evolve into Alakazam after being transferred between machines.
• Nakayama Takuya argued that a two-million-unit launch would let Sega establish a new market before Nintendo responded, and most directors voted in favor.
• Nakayama Hayao invited suggestions for the handheld’s name, and Nakayama Takuya proposed Game Pocket.
• The directors unanimously approved the name Game Pocket.

Sega launched a nationwide advertising campaign for its colorful Game Pocket handheld, prompting alarm at Nintendo headquarters. Yamauchi Haku ordered Game Boy production and promotion to continue unchanged as Nintendo prepared to challenge Sega head-on.

• Sega branded, assembled, and secretly shipped Game Pockets to warehouses across Japan and North America.
• Sega blanketed Japan with colorful advertisements and a television commercial presenting Game Pocket as part of everyday life.
• Nintendo executives argued over Sega’s surprise campaign, while Yokoi Gunpei maintained that Game Boy’s finalized design and production gave it an advantage.
• Shigeru Miyamoto warned that Sega was selling a lifestyle and binding that impression to its handheld, not merely promoting its games or performance.
• Yamauchi Haku ordered Game Boy production to continue around the clock and instructed Nintendo’s public relations and marketing teams to counter Sega’s campaign.

As the handheld release date approached, Sega overwhelmed Nintendo with aggressive advertising and revealed Game Pocket features that exploited weaknesses in the Game Boy’s design. The chapter ended with Yokoi Gunpei watching Sega’s built-in-light advertisement and realizing that Nintendo’s stock of more than 300,000 Game Boys could not be changed in time.

• Nintendo matched Sega’s posters and television ads, while Sega countered by presenting Game Pocket as a fashion item and bundling Tetris ahead of its April 8 release.
• Nintendo promoted Super Mario Land, Tennis, and Mahjong to build interest in the Game Boy, but Sega followed with daily ads for its launch games.
• Sega’s Pokémon ad showed an electronic pet connecting to Game Pocket and transferring a matching Pokémon, shocking Shigeru Miyamoto and Nintendo’s staff.
• On April 7, Sega aired a Game Pocket ad showing a boy using its built-in screen light to keep playing Pokémon during a power outage.
• Yokoi Gunpei watched the advertisement repeatedly and realized Sega had used the same light solution he had abandoned, adding only a switch that Nintendo could not incorporate into its stocked Game Boys.

GAME POCKET's April 8 release drew huge crowds as players discovered hidden routes and linked attacks in The Second Super Robot Wars, while Pokémon Red/Green let players transfer their electronic pets into the game. The chapter ended with children eager to earn Gym Badges so they could command their newly transferred Pokémon.

• Crowds packed Akihabara stores to buy GAME POCKETs, including limited editions of The Second Super Robot Wars and Pokémon Red/Green.
• A middle school student discovered that avoiding Dragon God Maru's ultimate attack unlocked the hidden Dragon-Tiger Flash linked finisher later in the game.
• A high school student revealed that keeping Kayra alive and having Hathaway endure three turns of dialogue with Quess unlocked Char's hidden route and Alpha Azieru.
• Players spread word of hidden routes, dream units, and special attacks, renewing the mecha fans' search for secrets.
• A little fatty transferred his electronic-pet Snorlax into Pokémon Red/Green and found it asleep in his in-game home.
• Children learned they needed enough Gym Badges to command their transferred Pokémon, and the little fatty grew determined to earn them.

A hidden Pokémon storyline and Famitsu’s revised praise fueled Game Pocket demand, pushing Sega’s sales far beyond expectations. With Nintendo’s GAMEBOY launching the next day, Sega’s executives celebrated their lead while wondering how Nintendo would respond.

• A high schooler showed the little fatty and his friends how to unlock a Pikachu companion and a hidden story featuring Eevee, Team Rocket, and armored Mewtwo.
• Players spread the alternate-version secret, and Famitsu apologized for its initial score by raising Pokémon’s rating to 37.
• Children, dedicated players, and casual gamers drove Game Pocket and Pokémon sales, with first-week console sales exceeding 400,000 units in Japan and approaching that figure in North America.
• A week later, Sega executives learned that GAMEPOCKET sales had surpassed 1.5 million units and game cartridge sales had exceeded 3 million copies.
• Nakayama Hideō asked about Nintendo’s response, and Masao Suzuki reported that Nintendo had only reaffirmed GAMEBOY’s scheduled launch the next day.

Game Boy’s weak launch lineup and declining sales contrasted with Game Pocket’s rapid global success. Sega pressed its advantage by sending development tools to Japanese game companies, which began forming Game Pocket projects.

• Game Boy’s launch drew modest lines, and players soon complained that Super Mario Land’s twelve stages were too brief despite its polished gameplay.
• Game Boy sales growth weakened as Tennis and Mahjong failed to match Game Pocket’s lineup, and Compile released Joy Island Party for Game Pocket.
• Game Boy’s first-week sales stayed below 200,000 units, then fell below 100,000 in the second week, while its lack of a backlit screen drew less attention as players lost interest.
• Masao Suzuki reported that Game Pocket had sold over 2.2 million units worldwide, including strong sales in Japan and North America.
• Nakayama Hayao ordered Sega to press its advantage, and Sega sent development documents to major Japanese game companies, prompting them to form Game Pocket development teams.

Ken Kutaragi exploited resentment among former Game Boy developers to obtain details about the Super Famicom, while Yamauchi Haku ordered Nintendo to monitor Sony without ending their partnership. After reviewing Game Pocket’s sales, Nakayama Takuya sought Miyazaki Hayao’s feedback on his Totoro game draft and left determined to rebuild it around a child’s natural feelings.

• Ken Kutaragi befriended former Game Boy developers and obtained a napkin listing Super Famicom hardware specifications.
• Genyo Takeda warned Yamauchi Haku that Sony was probing the system’s deepest secrets, and Yamauchi ordered him to keep Sony away from the core while retaining its support.
• Nakayama Takuya approved the Game Pocket’s planned follow-up and promotion after its sales report showed it ahead of the Game Boy.
• Miyazaki Hayao criticized Takuya’s Totoro game draft for making a child’s kindness transactional and steering exploration with contrived quests.
• Takuya accepted Miyazaki’s guidance and wrote that he would remove quests and rewards, leaving encounters and feelings.

Golden Sun: The Broken Seal launched at a controversial price, but players and Famitsu soon praised its innovations and music, driving a sales surge. With the game becoming a hit, Nakayama Takuya set Rieko Kodama’s team to work on the sequel and sent Yuji Naka to help the arcade division.

• Sega launched Golden Sun: The Broken Seal for 9,600 yen, and its first shipment sold more slowly than expected.
• Players who completed the game praised its music, Psynergy puzzles, and Djinn system while buying its OST tapes.
• Famitsu awarded Golden Sun a score of 37 and Platinum Hall of Fame status, prompting demand to surge.
• Sega projected first-week sales above two hundred thousand copies and ordered factories to produce cartridges at full capacity.
• Nakayama Takuya told Rieko Kodama to begin developing the sequel after the team’s vacation and asked Yuji Naka to assist the arcade division.

Yuji Naka joined the team developing a high-speed platform game, while Nakayama Takuya persuaded Tom Kalinske to lead Sega of North America with broad autonomy. Nakayama Hayao agreed to back Takuya’s plan and discarded Michael Katz’s résumé.

• Yu Suzuki brought Yuji Naka to Naoto Oshima, Hirokazu Yasuhara, and Masato Nakamura, whose high-speed platform game had stalled over programming challenges.
• Yuji Naka studied the game’s design and agreed to take on the project.
• Tom Kalinske presented his plans for differentiating Sega from Nintendo, expanding sports games, and building an independent North American IP operation.
• Takuya agreed with Kalinske’s direction and proposed giving the North American branch autonomy to hire, develop games, and acquire IP.
• After Kalinske left, Takuya argued against appointing Michael Katz and explained that Kalinske needed trust and authority to succeed.
• Nakayama Hayao agreed to Takuya’s strategy, promised to win board approval, and shredded Michael Katz’s résumé.