Everyone knew that this hastily launched promotion was a decision made in a fit of rage by the president, slamming his hand on the table.
If it failed, it would be self-inflicted humiliation, and no one present would escape unscathed.
Yamauchi Hiroshi silently took the report, his sharp eyes scanning the pages.
To everyone's surprise, the numbers were surprisingly good.
Though they hadn't completely suppressed Sega's market-dominating surge, they had successfully rekindled interest in the Super Famicom shelves.
The previously scarce third-party games, spurred by the massive discounts, had seen their sales artificially boosted.
"It seems people still want a bargain," Yamauchi Hiroshi said, his voice betraying neither joy nor anger as he tossed the report back onto the table.
The department head quickly bowed. "Yes! Perhaps our discounts were deep enough, combined with the Super Famicom's brand power—"
"Enough," Yamauchi Hiroshi interrupted. "The reason is simple: the economy is in a slump, and people's pockets are empty."
He glanced around the room and continued coldly, "Those who used to have money to burn and play around are now stuck at home. What else to do but play games? It's the cheapest way to pass the time. A flood of new players who never used to game are rushing in, and they don't care about factions or exclusives. They'll just buy whatever's cheapest and give it a try."
The executives in the meeting room exchanged uneasy glances, their emotions a tangled mess.
The president's words were harsh, but they hit the mark.
Deep down, they didn't want to admit it, but the success of this promotion was indeed due to the downturn in the economy and the expansion of the market. They could even say... it was thanks to Sega starting this price war.
It felt like watching your rival set up a banquet, then reluctantly setting up your own table only to find so many guests that both tables overflowed.
They had won, but not completely.
In Akihabara's electronics shops, it had become a wild festival for fans of both companies.
"The plan's changed! Major development!" The same little ringleader from before held up a crumpled, scribbled note, his face contorted in disbelief. "Nintendo's gone crazy! The Legend of Zelda is actually on sale!"
His buddies immediately swarmed around him, craning their necks for a look.
"What? But we won't have enough money now!"
"Idiot! This is a good problem to have!" The ringleader smacked the back of his friend's head. "We need to redistribute the budget! Kenta, put your Street Fighter on hold—let's pool our money and snag Zelda first! Ryosuke, hold off on those puzzle games. We'll use the saved money to see what bargains Namco has!"
The group of half-grown kids instantly erupted into heated debate, while behind them, the shelves emptied at a startling pace—both Sega's blue cartridges and Nintendo's gray ones.
The store managers grinned from ear to ear, frantically directing staff to restock as they chanted, "Fight! Fight harder! The fiercer the battle, the better!"
Sega Headquarters, Takuya Nakayama's office.
"Managing Director, Nintendo's promotion... it's having about the same effect as ours," the department manager from Marketing said, handing over the report with a conflicted expression. "Our momentum is being diluted."
The assistant chimed in, his voice tinged with resentment. "That old fox Yamauchi Hiroshi knows how to snatch a free ride. We worked so hard to build this stage, and he just waltzed in to put on a competing show."
Takuya Nakayama flipped through the report, a smile spreading across his face.
He set down the document and looked at the two men. "Do you think this is a zero-sum game?"
They froze, startled.
"No, it's not." Nakayama stood up and walked to the window. "Look at Japan right now. The economy is in a downturn, and everyone's clutching their wallets, afraid to spend. What do our games mean to them?"
He didn't wait for an answer, continuing without pause. "They mean getting the longest-lasting joy for the least amount of money.
This is a market exploding with growth. The number of new players is far greater than we ever imagined."
He turned around, looking at the two men who had just had an epiphany, and smiled. "What Yamauchi Hiroshi is doing now isn't stealing our customers; he's helping us educate the market. He's using the Nintendo brand and cold, hard cash to tell those hesitant newcomers—
Games aren't expensive. They're tons of fun. Hurry and buy one!
"Every yen he spends is injecting vitality into the entire game market. Once this wave of new players tastes the sweetness of discounted games and develops the habit of buying them, what do you think they'll choose when our Chrono Trigger Mega Drive version hits the shelves next summer?"
The assistant's eyes lit up. "They'll choose the best!"
"Exactly." Takuya Nakayama sat back down, tapping his finger lightly on the desk. "Yamauchi Hiroshi is using his money to screen and cultivate our future core users. We should be thanking him."
He picked up another document on the desk, detailing plans for Sega CD releases the following year.
"Let him fight. With the global game market booming and numerous secondary markets still untapped, one or two commercial battles won't defeat Nintendo." A smirk played on Takuya Nakayama's lips. "We just need to focus on our own business and keep our eyes on the long term."
"After all, the real show is only just beginning."
During this nearly month-long promotional campaign, the entire Japanese gaming industry was immersed in a near-hysterical fervor.
This war, ignited by Sega and forced upon Nintendo, ultimately left third-party developers as the biggest winners.
Not only did they clear out most of their two-year inventory, but sales of newly released games also steadily increased, driven by bundled sales and a surge in foot traffic.
The cash registers at retail stores became the brightest spot of red in this bleak winter.
Each day, store managers, after taking stock and seeing those astonishing numbers, couldn't help but bow in the direction of Sega and Nintendo Headquarters in gratitude.
This feverish excitement quickly spread throughout the entire business world.
While the finance sections of newspapers were still dominated by reports of manufacturing companies announcing layoffs and banks facing bad debt crises, the entertainment and technology sections splashed across their front pages with the largest headlines, describing the booming game market—Against All Odds: The Miracle of Growth! Video Games Become the Warmest Fireplace in the Economic Winter!
For an hour, countless eyes were drawn to this juicy morsel dripping with potential profit.
In some software companies struggling through the economic downturn, a despairing atmosphere permeated the offices.
Presidents watched the numbers in their company accounts dwindle daily, their hair nearly turning white with worry.
"President," a young programmer mustered the courage to place a newspaper article about game industry growth on the conference table. "Shouldn't we... try making games?"
"Games? We're a business management software company!"
"But... our clients are cutting their budgets, while people are lining up to buy games. Our programming foundation is solid. If we made a simple puzzle or shooting game, we... we might be able to survive, right?"
The conference room fell into a deathly silence.
After several minutes, the president picked up the newspaper, carefully read the article, then glanced at his company's dire financial reports.
He slammed the newspaper onto the table.
"Summon everyone from the development department! Meeting! Let's figure out what it takes to develop games for the Mega Drive!"
One decision could mean the life or death of a company.
And this scene was quietly unfolding in many corners of Japan.
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