Chapter Summaries

Nakayama Takuya arranged for Sega Galaxy to support a Gainax agreement and archive the Rurouni Kenshin license while he remained responsible for its international partnerships and creative development. Director Yoshikawa returned from Los Angeles with E3 preparations completed through help from Tom, Howard Lincoln, and Kazuo Hirai.

• Nakayama Takuya explained his China-Japan-South Korea co-production idea for Rurouni Kenshin, and Hattori agreed Sega Galaxy could provide administrative support while Takuya oversaw the project.
• Hattori agreed to have legal review the Gainax agreement and to archive the Rurouni Kenshin license until Takuya secured a Chinese partner.
• Hattori asked about Hideaki Anno's new project, and Nakayama Takuya described it as a novel giant-robot story unlike Gundam.
• Director Yoshikawa returned from Los Angeles and told Nakayama Takuya that the E3 public-services and security arrangements were complete.
• Yoshikawa explained that Tom, Howard Lincoln, and Kazuo Hirai had helped coordinate California government relations and arrange volunteer support with five universities.

Yoshikawa discussed Sega’s expanding public-relations needs with Nakayama Takuya and voiced his support for Takuya becoming president. Takuya asked Yoshikawa to watch for opportunities in Greater China for a planned Rurouni Kenshin film and television project.

• Yoshikawa told Nakayama Takuya that Sega of America needed a dedicated public-relations director to handle government relations and public affairs.
• Yoshikawa praised Takuya’s projects for improving Sega’s reputation with governments and said the Public Relations Department needed deputies to train.
• Yoshikawa revealed that Sega’s old shareholders supported Takuya becoming president, citing his success in overtaking Nintendo and avenging the humiliation of 1982.
• Nakayama Takuya thanked Yoshikawa and asked him to keep an eye on Greater China for a possible China-Japan-Korea film and television project.
• Nakayama Takuya explained that Nobuhiro Watsuki had proposed a live-action adaptation of Rurouni Kenshin, leading them to sign the film and television rights while negotiating the game rights.

Nakayama Takuya finished securing support from Sega’s directors and major shareholders as he prepared for a leadership transition. After returning from Mexico, Hatano formally demanded a board decision on building a third production line at the Tijuana plant to assemble cartridges, reviving a debate over cartridges versus discs.

• Yoshikawa agreed to look for China-side public-relations talent and warned Nakayama Takuya to delegate more of his workload.
• Nakayama Takuya reviewed Yoshikawa’s completed meeting and cooperation documents and concluded his visits to Japan’s directors and major shareholders with their support secured.
• Hatano returned from Mexico and called a special supply-chain meeting to revive the proposal for a third Tijuana production line dedicated to cartridge assembly.
• Sega’s executives remained divided over the proposal because cartridge demand was still substantial, but discs appeared to be the future of console storage.
• Hatano upgraded the proposal into a formal motion and demanded that the board give a clear answer within two weeks.

Nakayama Takuya decided to support Hatano’s proposal for a third cartridge production line in Mexico by securing South American market data. Nakayama Hayao agreed to have the Sales Department request a rapid report from TecToy, leaving Nakayama Takuya to arrange the contact and help Hatano make his case.

• Nakayama Takuya told Nakayama Hayao he believed Hatano’s Mexico production line should be approved because it would lower costs and strengthen Sega’s North American supply chain.
• Nakayama Takuya proposed asking TecToy for a report on cartridge demand across South America to persuade board members who remained unconvinced.
• Nakayama Takuya explained that TecToy already had sales and dealer data that could be assembled into a rough report within three days.
• Nakayama Hayao agreed to arrange the request through the Sales Department and told Nakayama Takuya to give Oguchi TecToy’s contact details.
• Nakayama Takuya said he did not need Hatano to thank him as long as the new line improved cartridge supply in North America.

Hatano presented the case for a cartridge production line at the Tijuana factory, but directors questioned whether cartridges had a long enough future to justify the cost. Nakayama Hayao and Nakayama Takuya answered with evidence of Latin American demand and the continued need for cartridges in handhelds, then proposed moving underused Japanese equipment to Tijuana to reduce investment.

• Hatano presented Tijuana's operating data and argued that a local cartridge line would address North American supply-chain costs.
• Yamamoto and another director questioned whether cartridge demand would last long enough to justify building the line.
• Nakayama Hayao distributed TecToy's report showing strong unmet demand for Sega products in Spanish-speaking South American markets and explained how Tijuana could supply the region.
• Nakayama Takuya argued that handhelds would continue using cartridges for years because optical drives were impractical and flash memory remained too expensive.
• Terauchi explained that Japanese cartridge assembly lines were underused, and Nakayama Takuya proposed dismantling their equipment and shipping it to Tijuana.

The board approved relocating an old production line to Tijuana to supply cartridge markets across North and South America. Hatano recognized Nakayama Takuya’s role in preparing the proposal’s supporting evidence, expressed support for his becoming president, and was asked about operational difficulties in Mexico.

• The directors approved the Tijuana third line, assigning Hatano to oversee it and Terauchi to coordinate the domestic line’s relocation.
• Hatano visited Nakayama Takuya and deduced that he had arranged the South America report to support the cartridge proposal.
• Hatano noted that TecToy’s data revealed a substantial Spanish-language market and suggested extending sales to Spain through Mexican localization.
• Hatano told Nakayama Takuya he supported his taking over as president, praising his approach of expanding the business before dividing its gains.
• Nakayama Takuya thanked Hatano for his trust and asked whether Mexico’s operations faced any difficulties.

Nakayama Takuya promised Hatano support for the challenges facing Sega’s Mexico factory, and Hatano agreed to take charge of its third production line. Sega’s exhibition materials passed final review and were sent to Los Angeles, before Nakayama Takuya returned home to his family.

• Hatano described Mexico’s unreliable power, labor turnover, union disputes, and security problems to Nakayama Takuya.
• Nakayama Takuya offered to find local consultants and help Hatano formally report the factory’s expenses for handling local affairs.
• Hatano accepted responsibility for the Tijuana factory’s third line and took the South America report to study Spanish-language markets.
• Hisao Oguchi and the Planning Department reviewed and corrected the seven trailers, and the final materials passed without cuts before being sent to Los Angeles on May 25.
• On May 31, Nakayama Takuya returned to Nakayama Hayao’s residence, greeted Kazuki, and joined Eri and the family for dinner.

At dinner, Nakayama Miyuki and Nakayama Hayao urged Nakayama Takuya to balance work with family as he prepared to leave for E3 in Los Angeles. On June 1, Takuya handled urgent Sega business and departed from Narita Airport with the exhibition team.

• Miyuki questioned Takuya about another business trip while Eri was pregnant, and Hayao told him to delegate more work to his staff.
• Kazuki offered Takuya a piece of tonkatsu for the plane, and Eri defended Takuya by describing how much time and care he gave his family.
• Hayao told Takuya to return as soon as E3 ended and to leave matters that did not require his presence to Oguchi and the others.
• Takuya played with Kazuki and Hayao after dinner, while Miyuki kept Eri seated instead of helping clear the table.
• On June 1, Takuya signed urgent approval forms at Sega Headquarters, confirmed Los Angeles arrangements with Hisao Oguchi, and left for Narita Airport with Sega's exhibition team.

Nakayama Takuya arrived in Los Angeles ahead of the first E3 and checked on Sega’s preparations with Hisao Oguchi. As setup began at the convention center, exhibitors’ trucks crowded the entrance, and the event was about to come alive.

• Nakayama Takuya called Eri before boarding his flight to Los Angeles.
• After arriving, Nakayama Takuya met Hisao Oguchi at IDSA’s temporary office and confirmed that Sega’s materials and booth preparations were on schedule.
• Hisao Oguchi reported that Sony and Nintendo had sent staff early, Atari’s equipment was expected soon, and 3DO had not replied to IDSA’s inquiry.
• Nakayama Takuya passed Nintendo’s engineers in the office corridor as exhibitors prepared for the convention-center setup.
• On June 5, Sega, Nintendo, Sony, Atari, and other exhibitors’ trucks gathered outside the Los Angeles Convention Center as the side door opened.

Nakayama Takuya inspected E3 booth construction across the venue as Sega’s setup progressed smoothly while Nintendo, 3DO, and Sony prepared their own displays. After Sega completed its booth, IDSA sent the press conference schedule, placing Sega at 3:15 p.m.; Nakayama Takuya judged the timing favorable for the company’s extensive game announcements.

• Nakayama Takuya confirmed Sega’s materials and surveyed construction, while Hisao Oguchi checked the booth against its design.
• Nakayama Takuya observed construction problems at Nintendo and 3DO and saw Sony’s booth taking shape.
• On June 8, Nakayama Takuya inspected the nearly finished booths and saw that Sega’s display was complete and signed off.
• Hisao Oguchi showed Nakayama Takuya IDSA’s final press conference schedule, which placed Sega at 3:15 p.m. after Nintendo, Sony, and Atari.
• Nakayama Takuya said the late slot could work in Sega’s favor if earlier announcements raised the audience’s excitement.

On June 9, 1995, the first E3 opened in Los Angeles, drawing game-industry and mainstream media to its media days. As reporters gathered for the manufacturers’ press conferences, the main stage filled before the opening announcements began.

• The IDSA opened E3 at the Los Angeles Convention Center, with the first two days reserved for media and industry guests and June 11 open to the public.
• Media from leading game magazines, technology publications, newspapers, and Japanese outlets entered the South Hall.
• Reporters passed Sony, Nintendo, Sega, Atari, and 3DO’s booths and headed for the Central Plaza Exhibition Hall to catch the press conferences.
• By 8:55, the Central Plaza seats were full, with photographers aimed at the dark main stage.

Shigeru Miyamoto addressed the E3 audience, describing Nintendo’s games as toys built around intuitive discovery, responsive controls, and distinctive experiences. He urged developers not to chase trends, leaving the audience with his advice on what makes games enjoyable.

• Nakayama Takuya watched from the exhibitors' seats as an IDSA staff member opened E3 and introduced Shigeru Miyamoto.
• Shigeru Miyamoto greeted the audience, joked about discarding his prepared speech, and remarked that the exhibition belonged to games alone.
• Shigeru Miyamoto explained that Nintendo made toys and used Super Mario Bros.' left-to-right movement as an example of design that followed players' instincts.
• Shigeru Miyamoto warned that impressive graphics could not make up for delayed controls and stressed the importance of immediate response.
• Shigeru Miyamoto said games should offer worthwhile discoveries and urged developers to express their own ideas instead of imitating trends.

Shigeru Miyamoto opened E3’s first media day with a speech about making games that brought players joy, then Konami presented six upcoming titles. Konami’s brief showcase ended after footage of its games, including Tokimeki Memorial: Forever With You, Castlevania: Dracula X, and Suikoden.

• Shigeru Miyamoto told the audience that games could change over time, but giving players joy would remain their purpose, then bowed as the audience applauded.
• The host announced that E3’s first media day had begun, and Konami’s press conference started at 9:15 with Hashimoto Kazuhisa introducing six titles.
• Hashimoto Kazuhisa presented gameplay from J.League Live: Winning Eleven, while reporters compared it with Sega’s Pro Soccer World.
• Igarashi Koji showcased Tokimeki Memorial: Forever With You, highlighting its three platforms and more than twenty thousand recorded voice lines, then showed Castlevania: Dracula X.
• Murayama Yoshitaka presented Suikoden, announcing its 108 recruitable characters, before Konami briefly showed Summon Night and Live Crazy Shooting and ended the press conference.

Electronic Arts presented four games at E3, highlighting Need for Speed and NBA Live 96 while signaling support for Jupiter alongside other platforms. Shigeru Miyamoto then introduced two Game Boy games, leaving Nintendo’s presentation still underway.

• Nakayama Takuya noticed that Kozuki Kagemasa was absent as EA took the stage after Konami.
• EA showcased Need for Speed, announcing releases for 3DO followed by PlayStation, Jupiter, and PC.
• EA presented its PC games Beasts and Bumpkins and Iron-Blooded Crusader, then drew a strong response with NBA Live 96.
• Shigeru Miyamoto introduced Mario's Picross for Game Boy and demonstrated a puzzle stage.
• Shigeru Miyamoto presented Super Donkey Kong GB, whose pre-rendered graphics remained recognizable on the handheld screen.

Nintendo presented several new Super Famicom and Game Boy games, then Namco showcased titles including PlayStation-bound arcade hits and a range of other games. Namco’s presentation ended with a brief concept trailer for Soulcalibur.

• Shigeru Miyamoto presented Super Mario World 2: Yoshi's Island, Super Donkey Kong 2, and Super Nintendo Wars at Nintendo’s conference.
• Nintendo’s press conference ended, and reporters discussed Konami’s multi-platform releases and Namco’s close relationship with Sony.
• Kanno Hideki presented Tekken and said its PlayStation port would closely match the System 11 arcade version.
• Kanno showed Ace Combat and Ridge Racer: Revolution, highlighting their PlayStation visuals and effects.
• Kanno presented Tales of Phantasia’s free-moving battle system and ended with a short Soulcalibur concept trailer.

At the E3 press conference, Namco showed a strong PlayStation lineup while leaving room to maneuver, and Capcom presented games across arcade, older consoles, PlayStation, and Jupiter. Yoshiki Okamoto then unveiled an unsettling first-person horror sequence, leaving the audience unsure what they were watching.

• Kanno Hideki ended Namco's presentation without calling its games exclusive, and Nakayama Takuya noticed Namco had left itself options despite favoring Sony.
• Journalists discussed Sony's support for Namco and the rivalry that made Sega a less natural partner for Namco's home-console games.
• Yoshiki Okamoto presented Street Fighter Alpha for arcades, PlayStation, and Jupiter, followed by a rapid showcase of Capcom's arcade and home-console games.
• Reporters noted that Capcom's lineup spanned multiple platforms but had shown no 3D games, and Yoshiki Okamoto remained onstage to present more.
• Yoshiki Okamoto showed a first-person walk through a decaying corridor that ended with a crouching figure chewing on something.

Capcom’s BIOHAZARD trailer shocked the E3 audience, and Sony began its presentation with Arc the Lad before revealing a high-speed futuristic racing game. The chapter ended as the craft raced along a glowing track, with the game still unidentified.

• Yoshiki Okamoto unveiled BIOHAZARD, a dialogue-free survival horror trailer that drew a stunned silence and then loud applause.
• Yoshiki Okamoto announced BIOHAZARD for PlayStation and Jupiter, with its release date still unannounced.
• Tecmo presented Tecmo Super Bowl III, and Intelligent Systems presented Panel de Pon.
• Ken Kutaragi opened Sony’s presentation, and Arc the Lad gameplay showcased a collaboration between Sony and Square.
• Sony’s next game showed a wheel-less craft racing at high speed along a glowing futuristic track.

Sony ended its E3 presentation with two PlayStation games, using WipEout’s speed and visuals to showcase the hardware. During the lunch break, reporters debated the morning’s strongest presentations as the afternoon sessions approached.

• Ken Kutaragi showed WipEout, whose high-speed racing and missile attack drew loud applause from the press.
• Ken Kutaragi said the games were Sony’s gift to E3 and left after a presentation featuring only two titles.
• Reporters and industry attendees discussed how Sony relied on technical showcases and third-party games to support the PlayStation.
• IDSA began the lunch break, and reporters gathered at food counters to compare the morning’s presentations.
• Reporters praised Namco’s PlayStation games and Capcom’s Resident Evil, then debated Nintendo’s older hardware and distinctive art style.

Sega and Sony assessed the media response to their morning presentations as reporters returned to the exhibition hall for the afternoon showcases. Atari presented the Jaguar CD to a muted reaction, and Enix began showing its Super Famicom games before an orchestral prelude introduced its main event.

• Hisao Oguchi told Nakayama Takuya that reporters were asking about Sega’s afternoon presentation and MGS2 demo area, while Nakayama noted Sony’s strong showing and Namco’s close ties to Sony.
• Ken Kutaragi learned that WipEout and Namco’s Tekken were drawing the most attention and concluded Sony had established its technological image before Sega’s presentation.
• Atari presented the Jaguar CD and demonstrated several games, but reporters responded with indifference and questioned the Jaguar’s future.
• Enix presented Mystic Ark and Terranigma, then began its main event with an orchestral prelude.

Enix and Hudson presented their upcoming games at E3, drawing mixed reactions from Japanese and American reporters. Hudson ended its presentation with three modest-looking Jupiter games, leaving their quality to be judged by hands-on play.

• Enix showed Dragon Quest VI on Super Famicom, impressing Japanese reporters with its graphics while American reporters noted the series' weak popularity in North America.
• Reporters criticized Enix for sticking to Nintendo's Super Famicom as Square pursued Sony and newer platforms.
• Hudson presented Bomberman Blocks across four platforms, followed by Far East of Eden: True Legend on Neo Geo and several familiar Adventure Island games.
• Hudson showed Super Momotaro Electric Railway 3 for GamePocket and Game Boy, but the Japanese-themed board game drew little interest from American reporters.
• Nakayama Takuya watched as Hudson's trailer introduced Space Adventure, Maze Explorer, and Thunder Overlord for Jupiter, which reporters considered modest trial projects.