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Chapter 14 - Chapter 14: Planning (Part 1)

He straightened his back, the relaxed and easygoing demeanor he had shown in front of his family quietly fading, replaced by a sharp tranquility, his eyes bright, like a focused lens.

"Father, Brother Kazuya," he began, his voice clear and steady, echoing in the quiet study. "The multi-platform development and release of tetris can indeed bring us considerable short-term profits, and to a certain extent, it can improve Sega's image in the eyes of players, especially outside the arcade sector. But this, as you said, only solves an 'urgent need,' or rather, buys us some time and ammunition."

"To truly change the tide of battle and turn the situation around, we need a more long-term and aggressive combination of moves."

Hayao said nothing, only watched him with his deep, ancient-well-like eyes, his fingers unconsciously tapping lightly on the armrest, signaling him to continue.

Kazuya also showed a focused expression.

"I believe Sega needs to work on five aspects simultaneously."

Takuya held up one finger.

"First, technological upgrade and iteration."

"We must immediately and secretly launch the research and development project for the next generation, which is the 16-bit home console."

"There is only one goal: to fully surpass Nintendo's FC in core performance, forming an overwhelming technological generation gap advantage."

"When our 16-bit console is released, the FC should look like an antique from the previous era."

This suggestion made Kazuya's eyebrows involuntarily twitch. A 16-bit console? Even if he wasn't in the gaming industry, he knew that this investment would be no small sum.

Takuya held up a second finger.

"Second, software reserves."

"In conjunction with the 16-bit console's development, we must immediately begin vigorously developing arcade games that are compatible with the new generation 16-bit board."

"These games must first earn us profits in the arcade market, and more importantly, they will become the 'ammunition depot' for our future 16-bit console."

"When the console is released, we can quickly port these mature arcade masterpieces, forming a powerful launch game lineup, avoiding the dilemma of software scarcity after the new console hits the market."

He paused, then held up a third finger.

"Third, cash is king."

"Developing a 16-bit console, conducting market promotion, and supporting software development all require enormous funds."

"Therefore, the company's existing business lines, especially the highly profitable arcade sales department, and our collaborative ventures with CSK and other companies, must maintain stable operations and even expand further, not limited to the gaming industry. Sega itself has strong software and hardware development capabilities; simply making games is not enough."

"We must ensure the company has sufficient cash flow and capital reserves; this is the fundamental guarantee for us to win this tough battle."

Hayao's fingertips tapped lightly on the sofa armrest, not quickly, indicating that he was listening and thinking seriously.

Takuya held up a fourth finger, his tone becoming sharper.

"Fourth, external interference."

"We cannot let Nintendo expand comfortably, especially in the North America market where they are determined to succeed."

"We must use every possible means—marketing, public relations battles, channel competition, and even some 'outside the rules' methods—to delay, interfere with, or even disrupt Nintendo NES's promotion plan in North America."

"The goal is to consume their resources and energy, damage their market reputation, and buy time and space for our 16-bit console. We must ensure that when our new console lands in North America, that market will not be a monolithic entity."

These words carried undisguised aggression, making the air in the study seem to thicken a few points. Kazuya looked at his younger brother with more worry than surprise.

Takuya held up the last finger, his gaze burning.

"Fifth, alienation and division."

"Although Nintendo is strong, it is not without weaknesses. Their policies towards third-party developers are notoriously harsh: high royalties, strict content review, and cartridge production controlled by them, shifting almost all of the console manufacturer's risks onto third parties. They cannot be without resentment."

"These can all become breakthroughs for us to exploit."

"We need to proactively approach third-party developers who are dissatisfied with Nintendo or who have potential but are suppressed, trying to win over key forces among them, or at least shake the foundation of their cooperation with Nintendo."

"We need to find ways to dismantle the FC's powerful software ecosystem, weakening their core advantage through a process of ebb and flow."

With the five strategic points elucidated, the study fell into a long silence.

Takuya's plan was bold, aggressive, interconnected, and full of risks, yet it also outlined a thorny path that could lead to victory.

Kazuya looked at his younger brother, filled with shock. He had never imagined that Takuya, who usually seemed a bit flighty, could conceive such a grand and aggressive business strategy. This had already gone beyond the scope of mere game development, rising to the level of overall company strategy.

Hayao's gaze was as deep as the sea. He leaned back in his chair, his fingers stopped tapping, and his sharp eyes repeatedly scrutinized Takuya, as if he were re-evaluating his youngest son.

Technological leaps, software reserves, financial guarantees, external interference, internal division... None of these five aspects would be easy to achieve, and combined, they would be a huge test of Sega's existing resources, execution, and decisiveness.

After a long while, Hayao slowly spoke, his voice low and powerful.

"16-bit console... interfering with North America... provoking third parties..."

He repeated several key points word for word, as if weighing their significance.

"These moves of yours sound interconnected, but each step will consume considerable resources, and some tasks will severely test Sega's unity."

He did not directly express approval or disapproval, but his tone lacked the previous skepticism and gained an unprecedented solemnity and thoughtfulness.

He paused for a moment, seemingly weighing something, then suddenly asked,

"You just said, interfering with the North America market... how exactly do you plan to do that?"

His question was very specific, no longer a general assessment, but a genuine discussion of feasibility.

Takuya did not answer immediately, only met his father's scrutinizing gaze, his eyes calm and confident.

Hayao looked at him for a long time, then slowly stood up, walked to the window, and with his back to his two sons, gazed out at the deep night.

"Forget it, this strategy... needs to be considered in the long term. You don't need to get involved in the board's affairs right now. I'll talk to David about the North America matter."

His voice came through the night, carrying a hint of imperceptible weariness, yet also containing a certain determination.

"However, the direction you mentioned... might be correct."

"Some things, whether we do them or not, we will have to face sooner or later."

He did not give a clear answer, neither agreeing nor disagreeing.

But these words subtly revealed his reflection on Sega's current conservative strategy and his serious consideration of Takuya's bold vision.

The atmosphere in the study quietly changed in the silence.

"So, what are your plans specifically?" Hayao Nakayama asked, looking up.

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