Chapter Summaries

Chrono Trigger’s perfect score and strong sales proved Sega’s expensive Collector’s Edition strategy could succeed, while Nakayama Takuya framed the Sega-CD’s costs as an investment in future technology and development experience. He hinted that two major Sega-CD games would arrive next year, leaving Tom Kalinske eager to learn the second title.

• Sakaguchi Hironobu received a report showing Chrono Trigger had sold 203,451 copies in two weeks, including 128,802 Collector’s Editions, and celebrated with Nakayama Takuya.
• Executives at Namco and Capcom worried that Chrono Trigger’s perfect score and Sega’s planned releases could overshadow their games, while Shigeru Miyamoto’s forced rest left a gap in the market.
• Tom Kalinske told Nakayama Takuya that North American players praised Chrono Trigger, but worried the Sega-CD remained far from recovering its hardware development costs.
• Nakayama Takuya explained that Sega viewed the Sega-CD’s costs as tuition for CD-ROM technology and large-scale game development.
• Nakayama Takuya teased Tom Kalinske with two major Sega-CD games planned for next year, revealing only that Mark Cerny’s Jurassic Park was one of them.

Sega and Square announced a Chrono Trigger wristwatch, a Mega Drive release, and a symphony concert, thrilling fans and leaving many ordinary players eager to spend while they waited. After hearing that shoppers were crowding around Sega’s shelves without finding a suitable purchase, Nakayama Takuya decided to revive the 1990 New Year Thanksgiving Festival plan.

• Sega announced a Casio Chrono Trigger wristwatch, a Mega Drive version due in summer 1993, and a Square game-music concert featuring Nobuo Uematsu and Yasunori Mitsuda.
• Fans celebrated the announcements, with collector’s-edition owners especially excited by the watch and concert.
• Sakaguchi Hironobu called Nakayama Takuya to discuss the players’ reaction and the marketing potential of the watch.
• Distributors reported that eager shoppers crowded around Sega’s shelves but left without finding a way to spend their money on Chrono Trigger.
• Nakayama Takuya asked his assistant to find the plan for the 1990 New Year Thanksgiving Festival.

Nakayama Takuya launched Sega’s New Year Grand Thank-You Festival with third-party publishers, prompting Nintendo to announce a rival discount campaign. The chapter ended as Nintendo’s executives received the first week’s sales report, with its results still unknown.

• Nakayama Takuya invited third-party publishers to join Sega’s New Year Grand Thank-You Festival, framing it as a response to players’ support for Chrono Trigger.
• Namco, Konami, Taito, and Irem quickly contacted Sega to participate in the promotion.
• Yamauchi Hiroshi’s executives debated whether Nintendo could imitate Sega’s campaign, but worried about the Super Famicom’s small game library.
• Yamauchi Hiroshi ordered Nintendo to launch its own New Year Appreciation Campaign and match Sega’s share of participating games’ discount costs.
• A department head handed Yamauchi Hiroshi the first week’s sales report, and the conference room fell silent.

Nintendo’s discount campaign matched Sega’s and helped draw new players into Japan’s booming game market, while Nakayama Takuya saw the rivalry as a way to cultivate future customers. The campaign ended with third-party publishers and retailers profiting, and struggling software companies began considering game development.

• Yamauchi Hiroshi reviewed Nintendo’s promotion results and attributed their success to the downturn, lower prices, and an influx of newcomers.
• Young shoppers in Akihabara shifted their budgets to buy discounted games from both Nintendo and Sega.
• Nakayama Takuya told Sega executives that Nintendo was helping expand the market and cultivate customers for future games.
• The month-long promotion cleared old inventory, boosted new game sales, and brought record revenue to retailers and third-party publishers.
• After seeing the game market thrive while software clients cut spending, a company president called a meeting to explore developing games for the Mega Drive.

Casio’s limited-edition Chrono Trigger watches sold out across Japan on release day, surprising Casio and intensifying interest in the game. Nakayama Takuya refused to authorize a reissue, expecting players’ regret to boost attention for future Sega merchandise and the Mega Drive version.

• On December 24, buyers rushed Casio stores and purchased all fifty watches allocated to the Ginza flagship store within ten minutes.
• Casio stores in major cities sold out, and the Shibuya Store posted a sold-out notice as disappointed customers searched for remaining stock.
• Casio’s marketing director asked Sega for another production run, but Sega refused and reaffirmed its no-reissue policy for limited-edition products.
• Players who missed out complained in the community, while the frenzy made other players more willing to wait for the Mega Drive cartridge version.
• Department Chief Tanaka told Nakayama Takuya that the watches had sold out and Casio wanted a second wave, but Nakayama ordered him to refuse and said players’ regret would strengthen future sales.

Nakayama Takuya realized that Sega’s release of Mortal Kombat could trigger a major political backlash because its graphic finishing moves were being sold without age ratings. He warned Tom Kalinske that a Senate hearing could threaten Sega and the video game industry.

• Nakayama Takuya reviewed Night Trap and recognized that the notorious game could draw the attention of American moral guardians.
• Nakayama Takuya checked Sega North America’s records and discovered Mortal Kombat had already been released and was selling well.
• Nakayama Takuya saw that Sega’s review department had approved Mortal Kombat without noting its graphic finishing moves.
• Nakayama Takuya called Tom Kalinske and warned him that children could buy Mortal Kombat, provoking a senator and a public backlash.

Takuya and Tom organized an industry-led game rating board to head off government regulation after concerns about Mortal Kombat and Night Trap. When Tom warned that Atari was preparing the Jaguar console, Takuya dismissed it as no threat because Atari’s management would ruin it.

• Takuya warned Tom that Sega’s games could be branded harmful and urged him to organize an independent game rating board with American companies taking the public lead.
• Takuya told Tom to include Night Trap among the first rated games, give it an adults-only label if needed, and reassure its developer about future FMV work.
• Three days later, Tom reported that game companies had quickly supported the rating board and that Atari was preparing its Jaguar console.
• Tom asked whether Sega should change its hardware research schedule, but Takuya dismissed Atari’s prospects and blamed its management for its failures.

Nakayama Takuya recruited Mark Cerny from the Jurassic Park project to help design Sega Headquarters’ next-generation console. After arriving in Japan, Mark saw Yu Suzuki’s Model 2 prototype and immediately began sketching ideas for its architecture.

• Nakayama Takuya asked Tom Kalinske about Mark Cerny’s work on Jurassic Park, and Tom said Mark had solved the hardest animation problems.
• Nakayama Takuya explained the next-generation console plan to Mark, including MIPS, custom SGI hardware, and mixed 2D and 3D rendering.
• Mark Cerny accepted the assignment and arranged to hand over his Jurassic Park work before traveling to Japan.
• Mark Cerny arrived at Sega Headquarters and saw the Model 2 prototype on the lab bench.
• Yu Suzuki showed Mark how sprites reduced the computing cost of dynamic effects, and Mark began drawing an architecture diagram.

Nakayama Takuya rejected a digital controller prototype and ordered an analog stick with precise linear input for future 3D games. Yu Suzuki challenged him to come up with a game that made the costly device essential, leaving Takuya facing the demand with Mark Cerny and Yuji Naka watching.

• Department Head Nakamura presented Takuya with a controller prototype whose sticks used microswitches.
• Takuya disassembled the controller and told Nakamura to replace the digital sticks with dual-axis potentiometers that supported analog input.
• Nakamura reported that SGI had accepted the customization requirements but needed the CPU instruction set plan finalized soon.
• Mark Cerny and Yu Suzuki examined the R3000 prototype, discussing geometry acceleration, the Model 2 test program, and possible memory bandwidth limits.
• Yu Suzuki argued that Virtua Fighter 2 did not need an analog stick and demanded that Takuya devise a game that depended on one.
• Mark Cerny joined Yu Suzuki in asking Takuya what game idea would make the analog stick shine.

Takuya considered how to give the new console’s analog stick a launch game that made its precise, variable movement essential. He rejected several concepts and concluded that Virtual On’s fast, reflex-driven gameplay would not suit analog controls.

• Takuya agreed to give Yu Suzuki and Yuji Naka a challenging game proposal that showcased the analog stick.
• Takuya considered Tomb Raider and Metal Gear 2 but set them aside because they were home-console games, while the near-term platform was the Model 2 arcade board.
• Takuya rejected racing as a proposal because Yu Suzuki’s team could develop it, and dismissed air combat because of technical limits and motion sickness risks.
• Takuya wrote down Virtual On (Cyber Troopers) as a possible dual-stick game, then reconsidered its instant, all-or-nothing control needs.
• Takuya concluded that analog sticks’ gradual movement and softer return to center could make quick evasions unreliable in Virtual On.

Nakayama Takuya chose a Gundam mech-combat game to showcase the Model 2 board and analog stick, hoping to impress Bandai. He then met Hiroi Ouji, who reported that the Sakura Wars anime and stage play were progressing on schedule.

• Nakayama Takuya crossed out Virtual On as unsuitable for the current analog-stick project and settled on Mobile Suit GUNDAM: Battle Operation.
• Nakayama Takuya named the new game folder and drafted its setting and gameplay framework, intending the project to demonstrate Sega’s technical strength to Yamashina Makoto and Bandai.
• Nakayama Takuya visited Hiroi Ouji to review Sakura Wars’ development progress.
• Hiroi Ouji said Madhouse had mobilized its staff and outsourced some work, but the anime production remained on schedule.
• Hiroi Ouji explained that Sega and Sunrise had blacklisted an unreliable Art of Fighting subcontractor, making other studios cautious about delivering poor work.

Nakayama Takuya and Hiroi Ouji reviewed the Sakura Wars anime, voice cast, stage play, and merchandise plans as preparations advanced. Takuya set the anime for TV Tokyo’s April prime-time season and planned to coordinate the game’s release with its climax, while Bandai developed model designs and Madhouse prepared the first episodes.

• Hiroi Ouji praised Chisa Yokoyama’s performance as Sakura Shinguji and reported that she alone had signed a letter of intent for the stage play.
• Takuya told Hiroi to develop the stage play gradually, using Yokoyama as its first lead and waiting for the game and anime to attract other actors.
• Takuya scheduled the anime for TV Tokyo’s April prime-time slot and planned to release the game after the anime’s climax.
• Takuya showed Hiroi Bandai’s model design plans for the Light Warrior mecha, Flying Whale Maru, and Thunderclap, and specified that the mecha cockpit should fit a character figure.
• Hiroi said Madhouse would finish cuts of the first two episodes early the next month and invited Takuya to review them.

Takuya and Tom established the ESRB framework and prepared Sega’s public response to criticism over violent games. Meanwhile, Sony won the right to use the PlayStation trademark, but Nintendo used a new agreement to demand control over Sony’s console design and compatibility.

• Tom told Takuya that game manufacturers had approved an ESRB rating system with five categories, while major retailers would require rating labels on games.
• Takuya planned to present Sega as accepting oversight by prominently rating Night Trap and Mortal Kombat and offering to buy back Mortal Kombat copies sold to minors.
• Sony won the PlayStation trademark case in court, but Nintendo’s legal team showed little concern over the result.
• Three days later, Minoru Arakawa presented Sony with an agreement requiring its PlayStation console to retain an SFC cartridge slot and support Nintendo games.

Minoru Arakawa secured Nintendo’s terms in its agreement with Sony, leaving Sony with the PlayStation name but little control over cartridges, software, or profits. At Sony headquarters, Norio Ohga and Ken Kutaragi rejected the compromised system and decided to separate the PlayStation brand from Nintendo and redesign the console around 32-bit CD-ROM hardware.

• Minoru Arakawa and Howard Lincoln made Sony accept Nintendo’s control of SFC cartridge royalties, publishing profits, and game approvals.
• Minoru Arakawa told Yamauchi Hiroshi that Sony had signed and that Nintendo would control the cartridges, while Yamauchi warned him not to underestimate Sony’s resentment.
• Norio Ohga ordered the prototype removed, and Ken Kutaragi explained that Nintendo’s cartridge slot left Sony dependent on Nintendo.
• A Sony legal executive argued that Nintendo’s trademark covered “Play Station” but not the joined-up name “PlayStation,” and Norio Ohga approved the change.
• Ken Kutaragi proposed removing the Super Famicom cartridge slot and upgrading the console to 32-bit CD-ROM hardware.

Sony executives refined the PlayStation’s direction, agreeing to remove the cartridge slot, support CD playback, and study 3D graphics while prioritizing strong 2D visuals. Ken Kutaragi proposed potential hardware partners, and the discussion stopped as the executives asked about SNK.

• Norio Ohga renamed the project PlayStation, ordered a budget review, and declared it a new console rather than an upgraded Super Famicom.
• Ken Kutaragi recommended supporting 3D while prioritizing fine 2D graphics, cutscenes, and high-fidelity sound on CD-ROM.
• Ryoji Chubachi proposed adding CD playback, and Norio Ohga approved it as a selling point for the whole family.
• Nobuyuki Idei urged Sony to find an experienced hardware partner, and Ken Kutaragi listed Konami, Capcom, SNK, and Namco as candidates.
• Ken Kutaragi rejected Konami as a hardware partner, and Ryoji Chubachi asked about SNK's Neo Geo hardware.

Sony chose Namco as its preferred partner for developing a universal arcade board compatible with the PlayStation, while Sega learned that Nintendo had pushed the SFC-CD project to the bottom of its priorities. The chapter left Nakayama Takuya suspecting that Sony’s silence concealed a major response.

• Ken Kutaragi argued that Namco was Sony’s best prospective partner because of its 3D expertise and its history with Nintendo, and Norio Ohga approved negotiations.
• Ken Kutaragi proposed that Sony and Namco jointly develop an arcade board that could run Namco games and support low-cost PlayStation ports.
• Nakayama Takuya told Yu Suzuki that Nintendo would delay the SFC-CD to protect its cartridge profits.
• Department Head Tanaka reported that Nintendo had deprioritized the SFC-CD, citing the slow read speeds of optical discs.
• Nakayama Takuya warned that Sony’s quiet response to Nintendo’s move was more dangerous than an open protest.

Sega’s leaders discussed how the ESRB’s public response to Nintendo’s absence could pressure Nintendo to maintain its family-friendly image. Meanwhile, Sony executives visited Namco to seek its support for an independent console, but Nakamura Masaya questioned whether Sony could succeed without games.

• Tanaka read a briefing about the ESRB press conference, where its spokesman praised Nintendo’s commitment to family-friendly games despite its absence from the founding member list.
• Nakayama Takuya explained that praising Nintendo as a moral benchmark could invite public scrutiny if its games later included violent or suggestive content.
• Nobuyuki Idei and Ken Kutaragi arrived at Namco headquarters to discuss the future with Nakamura Masaya.
• Kutaragi told Nakamura that Sony planned to make an independent console after Nintendo had betrayed them.
• Nakamura doubted that Sony could succeed with hardware alone, and Idei replied that Sony and Namco needed each other.

Ken Kutaragi and Nobuyuki Idei secured Namco’s partnership with Sony by proposing a shared architecture for Sony’s PlayStation and Namco’s next-generation arcade board. Sony then entrusted Namco with the second-generation DDR, deepening the alliance and linking the companies’ fortunes.

• Ken Kutaragi proposed that Sony build a home console and Namco develop an arcade board using the same architecture, while Sony covered most hardware research costs.
• Nakamura Masaya agreed to have Namco’s engineers evaluate Sony’s technical proposal after Sony promised favorable royalties.
• Sony’s proposal convinced Namco’s engineers, and Nakamura signed an agreement granting Namco a 30% royalty discount and setting the arcade board’s codename as System 11.
• Norio Ohga asked Namco to develop the second-generation DDR, and Nakamura accepted the project.

Mark Cerny completed the Model 2 CPU instruction set plan and helped make the prototype run code, while Nakayama Takuya shifted Sega into preparing for its next generation of arcade machines and consoles. He suspended most unapproved MD and Model 1 projects but approved several titles that could support Sega’s transition.

• Mark Cerny finalized the CPU instruction set plan, and Nakayama Takuya sent it to SGI for development.
• Mark’s firmware enabled the Model 2 prototype to run code, prompting the team to develop tools and optimize the board.
• Nakayama Takuya ordered Sega to prepare for the next generation, suspending unapproved MD and Model 1 proposals while allowing premium System 32 projects to continue.
• Nakayama Takuya approved the Super Robot Wars team’s MD game featuring Mobile Fighter G units and called for exaggerated battle animations.
• Nakayama Takuya kept the Shinobi project on System 32 as a future console demonstration and allowed the nearly completed Kirby game to continue on MD.
• Nakayama Takuya let the King of Fighters team continue on System 32 and told them to improve the balance without adding infinites.

Nakayama Takuya redirected Sega’s development teams toward preparing launch titles for the next-generation console. Rieko Kodama presented a Phantasy Star III proposal that used advanced 2D techniques and selective 3D effects, and Takuya approved its direction.

• The Sonic team told Nakayama Takuya that Sonic 2 had only just begun after Yuji Naka and Hirokazu Yasuhara were reassigned.
• Nakayama Takuya asked the Sonic team to plan a next-generation launch title combining 3D backgrounds, classic 2D gameplay, and changing camera angles.
• Nakayama Takuya paused remaining projects as teams completed their current work and began receiving development proposals over the following two weeks.
• Rieko Kodama presented her Phantasy Star III proposal, featuring pseudo-3D environments, translucent effects, voiced cutscenes, and a traditional turn-based battle system.
• Nakayama Takuya praised and approved Rieko Kodama’s plan to use the new hardware’s 2D strengths while avoiding the risks of full 3D.