Chapter Summaries

Ted Turner capitalized on the success of Millionaire, while Nakayama Takuya persuaded Ajia-do and NHK to adapt Nintama Rantaro for American audiences. Cartoon Network agreed to license the series under a ratings-based deal, leaving its overseas launch set to test whether content could attract viewers without toy sponsorships.

• John answered a Millionaire question incorrectly, and the surge of viewer interest led Ted Turner to raise the next GG slot auction's starting price and seek a contestant audiences would enjoy watching fail.
• Tsutomu Shibayama and an NHK representative worried that Nintama Rantaro's Japanese humor and lack of transforming heroes would not appeal overseas, but Nakayama Takuya argued that its ninja setting and school-life comedy could connect with American children.
• Nakayama proposed changing culturally specific backgrounds and jokes for the American version, and the NHK representative agreed the adjustments would fit the budget.
• Cartoon Network vice president Betty initially rejected the series because it had little merchandising potential, but Nakayama argued that its broad appeal and long run could provide steady programming and reduce reliance on toy companies.
• A week later, Cartoon Network and NHK signed a tiered licensing agreement that raised the copyright fee as ratings improved.

Nakayama Takuya’s success selling programs overseas boosted TV Tokyo’s prospects and brought him praise from his father-in-law, Nakagawa Jun. Their conversation about Japan’s looming construction downturn led Takuya to pitch a renovation show that could connect unemployed craftsmen with families living in aging homes.

• NHK renewed Nintama Rantaro as a long-term project after its steady performance in the United States.
• At dinner, Nakagawa Jun told Nakayama Takuya that broadcasters from the United Kingdom, Australia, and Hong Kong wanted to buy Who Wants to Be a Millionaire.
• Nakagawa Jun said TV Tokyo planned to seek seasonal deals or revenue shares rather than accept another one-time buyout.
• Nakagawa Jun worried that construction workers would lose jobs when government-funded rural projects ended.
• Nakayama Takuya proposed a program in which a leading architect would renovate old homes on limited budgets.

Nakayama Takuya pitched Nakagawa Jun a human-centered home-renovation variety show called Super Home Makeover King, explaining how it could comfort viewers while benefiting TV Tokyo, residents, sponsors, and the government. Nakagawa Jun embraced the concept and asked Takuya to continue developing it.

• Nakayama Takuya described filming struggling families as their dilapidated homes were transformed by master craftsmen, and Nakagawa Jun recognized the show's potential.
• Nakayama Takuya proposed the name Super Home Makeover King and called the designers who renovated the homes “master craftsmen,” impressing Nakagawa Jun.
• Nakayama Takuya explained that residents would cover renovation costs while TV Tokyo could attract sponsors such as TOTO, Panasonic, and YKK.
• Nakayama Takuya proposed collaborating with government agencies by featuring renovation lessons about local timber, insulation, and energy-efficient housing subsidies.
• Nakayama Takuya insisted that the families' real hardships and emotional reactions had to remain the show's focus so that sponsorships and policy information would not feel forced.

Nakayama Takuya helped Nakagawa Jun plan a renovation program and learned that Universal Pictures had approved the Fast & Furious project. Silicon Valley Online then launched ICQ Game Hall, where users could create rooms and play Hearts as a flashy VIP spectator joined Johnny’s game.

• Nakayama Takuya proposed mixing major renovation projects with inexpensive, practical makeovers, and Nakagawa Jun approved moving the program toward research and production planning.
• Universal Pictures approved the Fast & Furious project after Nakayama Takuya presented the promotional value of the arcade game, and Bernard began negotiating contracts with Universal.
• Silicon Valley Online released ICQ 1.0 Game Hall to millions of American users on August 29, 1994.
• Johnny installed Game Hall, created a Hearts room, and invited his old college group through a link.
• Jennifer-L joined Johnny’s game, then VIP member Michael K. entered as a spectator and criticized Johnny’s play.

ICQ Game Hall’s paid virtual items turned its online traffic into a major source of profit, prompting Goldman Sachs to raise its valuation and investors to urge a delayed IPO. Nakayama Takuya reviewed the two-week report and saw that cosmetic items were outselling Game Gear revenue.

• Johnny tried to kick Michael from a card game after Michael taunted him and flirted with Jennifer, but VIP anti-kick privileges blocked him, so Johnny bought a membership outfit.
• Players across America spent money on virtual clothing, badges, and taunt stickers, driving Silicon Valley Online’s value-added service revenue sharply upward.
• Frank Marshall showed Tom Kalinske a report revealing that one week of virtual-item sales had exceeded Webdir’s Game Gear revenue for the previous month.
• A Goldman Sachs partner said ICQ Game Hall’s stronger ARPU could raise its IPO offering price by 30% and suggested delaying the listing, but Frank chose to keep the original schedule on Nakayama Takuya’s instructions.
• Nakayama Takuya read the two-week operations report and saw that the $4.99 Godfather suit and a money-scattering victory effect led the virtual-item sales rankings.

Nakayama Takuya guided Silicon Valley Online’s monetization strategy and warned Frank that its success depended on keeping paying users satisfied. When Frank’s intelligence report revealed Netscape’s new browser and encryption efforts, Takuya told him to watch the company closely.

• Frank told Nakayama Takuya that Silicon Valley Online’s card-and-board-game lobby was earning heavily from virtual goods.
• Nakayama Takuya advised Frank to prioritize paying VIP users’ feedback and create a dedicated customer service team for high spenders.
• Nakayama Takuya asked Frank to review potential competitors, and Frank reported that some teams were building browser-based communities despite security risks.
• Frank told Nakayama Takuya that Netscape had released a beta browser called Mosaic Netscape 0.9 and was promoting its encryption protocol.
• Nakayama Takuya identified Netscape’s SSL 2.0 work as significant and told Frank to monitor the company closely.

Nakayama Takuya discussed SSL security and Netscape with Frank, rejecting an acquisition because operating-system makers could undermine browser companies by bundling their own browsers. He explained that ICQ was protected by its social network, while Nebdir’s low user migration costs left it vulnerable to being displaced.

• Frank reported that Silicon Valley Online’s security experts found serious vulnerabilities in SSL 2.0, and Nakayama Takuya proposed working with Netscape to develop a safer version.
• Frank suggested investing in or acquiring Netscape, but Nakayama Takuya approved only a financial investment and warned that browsers faced competition from operating-system makers.
• Nakayama Takuya explained that Microsoft or Apple could bundle a free browser into their operating systems, making it difficult for Netscape to compete.
• Frank worried that Microsoft could similarly challenge ICQ, then realized users’ friend networks would make them reluctant to switch services.
• Nakayama Takuya contrasted ICQ’s social network and BBS communities with Nebdir, whose low migration costs made it vulnerable to traffic being redirected by browsers or desktop shortcuts.

Nakayama Takuya told Frank to turn Webdir into a content-rich portal that could keep users returning, then ordered Sega to give The Story of Thor: Heir of the Light a blockbuster-level marketing budget despite the Mega Drive nearing retirement. He left Hisao Oguchi charged with treating the old console and its developers with respect as Sega shifted its focus to Jupiter.

• Frank agreed to negotiate with Netscape and other browser makers to place Webdir prominently, then began planning a portal with news, email, forums, and other content.
• Nakayama Takuya saw users celebrating Silicon Valley Online’s rumored billion-dollar IPO valuation and closed the browser to keep the market frenzy from disrupting Sega headquarters.
• Nakayama Takuya asked Hisao Oguchi about Mega Drive releases, and Oguchi reported strong sales for Shining Force II: Ancient Seal and a late-September release plan for The Story of Thor: Heir of the Light.
• Oguchi said Heir of the Light had received only sixty percent of its standard marketing budget because resources were being reserved for Jupiter’s launch titles.
• Nakayama Takuya ordered the marketing budget restored and raised to the level of an S-tier blockbuster, explaining that Sega had to honor the Mega Drive and the developers still working on it.

Nakayama Takuya prepared Sega’s Jupiter press conference as a futuristic show of force aimed at Sony, while recalling how he had transformed the console’s plain gray prototype into a striking matte-black design. The improved V2 prototype impressed the Hardware Department, and Ken Kutaragi was set to watch the launch from the front row.

• Nakayama Takuya approved a new promotion plan for Heir of Light to support Sega’s veterans and strengthen the company’s name.
• Nakayama Takuya reviewed Hisao Oguchi’s plans for Jupiter’s press conference at the Imperial Hotel and insisted the event emphasize the future and Mega Drive’s history.
• Hisao Oguchi confirmed that Ken Kutaragi had been invited and given a seat in the center of the front row.
• Nakayama Takuya recalled rejecting Sato Hideki’s gray prototype and directing him to use a matte-black finish with a blue-lit acrylic panel and illuminated Sega Logo.
• Sato Hideki delivered the improved V2 prototype a week later, and its glowing blue Logo left the Hardware Department silent.

At Sega’s press conference, Nakayama Takuya showcased Jupiter’s polished design and unveiled Sega’s sales figures, putting Sony’s Ken Kutaragi under pressure. Nakayama began presenting the business case behind Sega’s hardware, leaving the audience waiting to see the industry’s financial foundation.

• Nakayama Takuya admired Jupiter’s smooth acrylic panel and considered its lighting and design an advantage in the coming competition.
• Reporters and industry leaders gathered at Tokyo’s Imperial Hotel for Sega’s press conference, where Ken Kutaragi sat under intense scrutiny.
• Tsujimoto Kenzo and Kozuki Kagemasa questioned Ken Kutaragi about Sony’s preparations and development kits, and Ken Kutaragi promoted Sony’s terms to software makers.
• Nakayama Takuya opened the conference by announcing that Mega Drive sales had exceeded fifty million and GamePocket sales had reached sixty-five million.
• Nakayama Takuya argued that hardware sales alone did not explain the industry’s strength and prepared to reveal its financial cornerstone.

Nakayama Takuya celebrated Sega’s past success before unveiling Jupiter, the company’s next-generation console, and revealing its hardware specifications. The presentation left developers and Ken Kutaragi stunned by Jupiter’s design, performance, and Sony-supplied CD-ROM drive.

• Nakayama Takuya showed Sega’s software sales and thanked partners for helping expand games into pop culture.
• Nakayama Takuya unveiled the Jupiter console and explained its name as Sega’s fifth home-console step.
• Nakayama Takuya revealed Jupiter’s custom R3000S CPU, prompting Ken Kutaragi to recognize it as the architecture Sony had pursued for PlayStation.
• Nakayama Takuya claimed Jupiter could produce 320,000 textured and lit polygons per second, startling the audience.
• Nakayama Takuya announced that Jupiter used CD-ROM and thanked Sony for supplying its stable 2x drive.

Nakayama Takuya presented Jupiter’s hardware and its arcade-ready features, then unveiled its launch games as Ken Kutaragi worried that Sony’s financial troubles would leave the PlayStation short of funds. The press conference ended this excerpt with Nakayama demonstrating Jupiter versions of Virtua Fighter 2, Fast & Furious, and Gundam Battle Operation.

• Nakayama Takuya touted Jupiter’s compatibility with Sega’s Model 2 arcade board and its development tools as proof that the future had arrived.
• Ken Kutaragi judged Jupiter’s design and specifications while worrying that Sony’s Columbia Pictures losses could lead to budget cuts for the PlayStation.
• Tsujimoto Kenzo teased Ken Kutaragi about Sega’s future, but Kutaragi refused to take the bait.
• Nakayama Takuya introduced Jupiter’s launch lineup and showed Virtua Fighter 2 running on real hardware without downgrades or loading screens.
• Nakayama Takuya demonstrated Fast & Furious and Gundam Battle Operation, explaining that Jupiter’s bundled twin-stick controller supported Gundam’s controls.

Nakayama Takuya presented a lineup of Jupiter games that showcased Sega’s arcade-to-console features and first-party strength, leaving Ken Kutaragi and rival companies worried about the competition. The conference ended with distributors and developers reassessing their plans as the pressure to match Sega’s games mounted.

• Nakayama Takuya demonstrated Jupiter’s arcade memory-card compatibility, then showed Sonic 3D, Phantasy Star III, Paper Pokémon Adventure, and Demon Samurai.
• The audience applauded Demon Samurai, and Nakayama Takuya promised that some games would launch with Jupiter while the rest would arrive within four months.
• Ken Kutaragi concluded that Sega’s broad, proven game lineup gave Sony a major disadvantage, while Nakamura Masaya considered pushing Namco’s Tekken team to work overtime.
• Nakamura Masaya and Kozuki Kagemasa saw Sega’s games as threats to Tekken and Castlevania, while Tsujimoto Kenzo remained prepared for Capcom to support the console if sales justified it.
• Sakaguchi Hironobu watched the demonstrations with excitement.

At the Jupiter press conference, Nakayama Takuya announced the console’s 39,800-yen price, stunning Sony’s Ken Kutaragi and revealing that Sega could afford the price without taking a loss. Nakayama began to address the release date but paused before revealing it.

• Sakaguchi Hironobu was inspired by Phantasy Star III’s cinematic storytelling, while Shigeru Miyamoto was struck by the paper-thin Pikachu’s clever visual style.
• Nakayama Takuya revealed Jupiter’s 39,800-yen price, prompting uproar among the press and attendees.
• Ken Kutaragi realized Sega had matched Sony’s planned PlayStation price and worried that Jupiter’s hardware costs made the move financially reckless.
• Tsujimoto Kenzo asked whether Sega planned to sell Jupiter at a loss, and Nakayama’s confidence signaled that Sega could withstand the pricing strategy.
• Nakayama explained that Sega’s supply chain and cheaper production kept Jupiter from losing money at 39,800 yen, unlike Sony’s likely position.
• Nakayama began to announce Jupiter’s release date, then raised a finger to his lips before giving it.

After Sega’s Nakayama Takuya ended his press conference without revealing the Jupiter’s release date, Sony executives debated matching its 39,800-yen price despite the expected losses. Norio Ohga approved the price cut, reasoning that Sega’s use of CD-ROMs would also generate royalties for Sony.

• Nakayama Takuya left the stage without answering reporters’ questions or announcing the Jupiter’s release date.
• Ken Kutaragi, Nobuyuki Idei, and Ryoji Chubachi debated the losses Sony would face if it priced the PlayStation at 39,800 yen.
• Norio Ohga argued that Sony had to build the PlayStation’s installed base and could not abandon the project after its large development costs.
• Norio Ohga pointed out that Sega’s Jupiter would pay Sony royalties for its CD-ROM technology and help popularize the format.
• Norio Ohga set the PlayStation’s price at 39,800 yen, and Ken Kutaragi agreed to press ahead.

Sony’s leaders negotiated concessions to protect the PlayStation project from opposition within the company. They agreed to justify it with a DVD strategy and budget cuts, then sent Ken Kutaragi to defend the plan at the senior management meeting.

• Nobuyuki Idei warned that the board would reject a loss-making PlayStation plan, and Ryoji Chubachi argued that abandoning it would waste the investment already spent.
• Ken Kutaragi offered to support the Sony-Philips MMCD format and promote DVD-ROM as the storage medium for Sony’s next-generation console.
• Ken Kutaragi canceled royalty discounts for most developers, proposed delayed tiered rebates, and recommended freezing non-core hiring and spending until PlayStation passed its life-or-death line.
• Norio Ohga accepted the concessions but told Ken Kutaragi to explain Sega Jupiter at the next Tuesday senior management meeting.
• Ken Kutaragi agreed to attend and said he would use the 39,800 price to demand that Sony back PlayStation or disband the project team.

Famitsu editor-in-chief Hirokazu Hamamura made Sega’s Jupiter the cover story, declaring that the next-generation console war had begun. The press and Japanese media celebrated Jupiter as a technological and national-industrial breakthrough, while Nakayama Takuya knew its low price depended on production moved overseas.

• Hirokazu Hamamura ordered Famitsu to put Jupiter and its 39,800-yen price on the cover, moving the original headline stories to page three.
• Sasaki explained that Jupiter’s hardware could bring Model 2 arcade graphics home, while developers valued its accessible tools and Sega’s announced games drew attention.
• Hirokazu Hamamura speculated that Nakayama Takuya was waiting to time Jupiter’s release against Sony and wrote, “The Next-Generation War Has Arrived!” on the cover sketch.
• Newspapers and NHK presented Jupiter as a major technological achievement and a potential engine for Japan’s economy.
• Nakayama Takuya told Sato Hideki that the media had missed the real reason for Jupiter’s 39,800-yen price: production had moved overseas.

Nakayama Takuya kept Jupiter’s release date secret while Sega prepared to challenge Sony with a low-priced North American launch. He ordered Tom Kalinske to get the Tijuana factory ready to produce Jupiter at a target price of 299 dollars.

• Nakayama Takuya told Sato Hideki to wait a month before announcing Jupiter’s release date so Sony would remain uncertain.
• Japanese students worried about affording Jupiter and its games, and the unannounced release date prompted players to save money.
• American players inundated Sega North America with questions about Jupiter’s price and release date, and Tom Kalinske relayed their excitement to Nakayama Takuya.
• Nakayama Takuya asked Kalinske about the Tijuana assembly lines and explained that assembling imported components in Mexico could help avoid tariffs on complete consoles.
• Nakayama Takuya told Kalinske to achieve a 299-dollar price for Jupiter in the United States.

Nakayama Takuya set Sega’s Jupiter stockpiling and launch secrecy plans while examining discrepancies in the company’s supply chain. He sent Hisao Oguchi to China to pressure factories to meet shipment targets without launching a broad purge.

• Nakayama Takuya ordered Kalinske to stockpile Jupiter consoles and keep North America’s launch date secret until Japan announced it.
• Nakayama Takuya noticed excess component orders and delayed VRAM shipments in Sega’s supply reports and asked Hisao Oguchi to inspect them.
• Hisao Oguchi identified suspicious losses and customs delays, and Nakayama Takuya suspected components and factory capacity were being diverted to unofficial products.
• Nakayama Takuya told Hisao Oguchi to visit China, focus on shipment volumes, and report management gaps to Directors Terauchi and Hatano.
• Nakayama Takuya warned that Nine-Tattoo Dragon’s contacts could investigate private container swaps if official shipments were delayed further.

Hisao Oguchi prepared to travel to China to investigate supply-chain irregularities, while Nakayama Takuya told him to treat Mercury Electronic Technology as a separate matter. The chapter traced Mercury’s origins in the struggling Yanshan Software team and how Takuya helped it develop a Mega Drive-based learning machine.

• Hisao Oguchi asked whether he should investigate Mercury Electronic Technology, and Nakayama Takuya told him to visit politely but not include it in the supply-chain investigation.
• Hisao Oguchi arranged to hand off his duties and request security personnel before traveling to China.
• Nakayama Takuya recalled finding the impoverished Yanshan Software team, whose modified Famicom games were quickly undercut by cheap knockoffs.
• Takuya redirected Yanshan toward Sega’s Mega Drive and Game Pocket, where its technical expertise and Nine-Tattoo Dragon’s sales network gave it an advantage.
• Founder Fu Zan proposed combining a Mega Drive with a keyboard and improving its speech output, and Takuya helped launch Mercury Electronic Technology to develop the learning machine.
• Sega’s hardware team approved Yamaha YMZ284B chips for Mercury’s English-learning machine.