I also took the opportunity to inquire about that Triad," Tanaka said, closing his notebook. His expression turned peculiar. "The Triad boss in that area is called Nine-Tattooed Dragon. He's a strange one, apparently quite... traditional."
"Traditional?"
"Yeah. He doesn't touch powder, force women into prostitution, or engage in human trafficking. He makes a living collecting protection fees and managing the territory. Because of his strict rules, he's much poorer than other Triad bosses and lives frugally. This latest incident was probably those underlings of his, tired of the meager profits, acting on their own without his knowledge."
Takuya's originally cold expression softened slightly at these words.
In that cesspool, anyone who could maintain such old-fashioned principles was either a fool or someone with genuine integrity.
And people with integrity were usually open to negotiation.
"If he's a man of principle, this should be easy to handle." Takuya stood up and walked to the map on his desk, his gaze settling on a spot on the Kowloon Peninsula. "When the lawyer goes over, maintain a firm stance but avoid dead ends. Diplomacy first, force second."
"What do you mean—?"
"Tell the Nine-Tattooed Dragon that Sega isn't short on money, but we are short on explanations." Takuya turned, a sly smile playing on his lips. "If he can handle this mess cleanly—deal with those traitors according to family law, compensate for the lost funds, and make it look good—we might consider giving him a legitimate business to run."
Tanaka struggled to keep up. "Business? We're going to do business with a Triad?"
"Why not?" Takuya shrugged. "We need someone to oversee our warehouses and logistics in that area. Rather than entrust it to strangers, why not find a local powerbroker? Since he's short on cash but follows the rules, we'll give him a chance to make money without having to slit throats. It's a win-win."
Using a legitimate security or transportation contract to secure unwavering loyalty from a local powerbroker was a deal that made perfect sense.
Tanaka stared at the young Managing Director before him, inwardly marveling at his shrewdness.
Just moments ago, he was strategizing how to pressure the British, and now he was scheming to co-opt a local gang boss.
This seamless manipulation of power—this ability to turn on a dime—was hardly what one would expect from a tech expert. It made him seem more seasoned than the seasoned veterans themselves.
"Another brilliant idea?" Tanaka leaned over to ask, noticing Takuya staring intently at the massive red area on the map.
Having worked for this young master for so long, he was all too familiar with that look. Every time Takuya wore that thoughtful expression, Sega's financial reports would invariably look exceptionally good the next quarter.
Takuya tore his gaze away, his fingers unconsciously tapping a rhythm on the desk. "Nothing earth-shattering. Just a quiet move, a strategic setup for the future."
"A setup?" Tanaka perked up at the word.
The last time Takuya mentioned "a setup" was when he targeted the Eastern European market.
The Berlin Wall had just fallen, leaving Eastern Europe in utter chaos. All other companies were avoiding the region like the plague, but Takuya, against all advice, shipped over all the unsold 8-bit Master Systems from Japan and the United States.
And the result?
Those Eastern European players actually treasured these relics, which had failed in their competition against Nintendo's Famicom.
Not only did this clear out the inventory that had been giving the logistics department a headache, but it also established Sega's brand in Eastern Europe.
Later, when Ubisoft took over distribution of the Mega Drive in that region, its sales skyrocketed, largely benefiting from this "scrap-picking" strategy.
Recalling this, Tanaka cautiously asked, "Are you planning to replicate the Eastern Europe model? Sell our surplus production lines or stock to the Chinese mainland?"
Before he could finish, he frowned and corrected himself, "No, Managing Director, the situation in China is fundamentally different from Eastern Europe. In Eastern Europe, they lacked the technology to produce their own systems, so they had to buy ours. But in China—their reverse-engineering capabilities are terrifying. I heard about a place called Little Tyrant that completely dissected the Nintendo Famicom and sells clones for just a few thousand yen. If we shipped our systems there, I'm afraid pirated versions would flood the streets before we could even establish a legitimate market."
Tanaka's concerns were well-founded.
In the eyes of Japanese businessmen of that era, China was a black hole for intellectual property. Any electronic device sent there would be swiftly disassembled and replicated without a trace.
"Strong reverse-engineering capabilities indicate high market demand," Takuya said, pulling a pen from his holder and circling an area on the map. "Moreover, Tanaka, you're focusing on the counterfeits instead of the underlying issue."
"The underlying issue?"
"Back then, Eastern Europe was poor, but their information landscape was connected to Western Europe. Kids there could watch MTV and Hollywood movies on TV—they knew what 'cool' and 'trendy' meant. All we had to do was send over the hardware, and they'd naturally buy in." Takuya tapped the tip of his pen on the center of the circle he'd drawn. "But China is different. Their media environment is relatively closed. Most kids there have no idea what Sega is, let alone who Mario or Sonic are."
Takuya paused, smiling at Tanaka's puzzled expression. "Over there, simply selling hardware won't work. Even if we manage to get Mega Drives over there without them being counterfeited, parents will see it as 'plaything addiction'—electronic heroin. We're facing not just the snipers of the bootleggers, but the entire social mindset of the country. Besides, the Mega Drive is still considered a luxury in China, too expensive for most working-class families."
"Then... how do we set up this move?" Tanaka scratched his head, bewildered. "Isn't this a dead end?"
Takuya picked up his coffee cup but didn't drink immediately. Instead, he gazed through the rising steam at the vast continent on the map.
"Rather than block, we should divert. Since the Nine-Tattooed Dragon has channels to smuggle goods, let's give him a business deal."
Takuya set down his cup, his fingers tapping a rhythmic pattern on the table. "Let's change our approach. We can supply him with some of our Mega Drives, GAMEPOCKETS, and games, selling them to him as 'defective' at our Hong Kong factory prices. He can then smuggle them into mainland China through his channels."
Tanaka froze mid-sentence, his pen hovering in mid-air. "Managing Director, isn't this... encouraging smuggling? What if we get caught?"
"Who said we're smuggling? We'll just say it's defective stock lost due to poor management." Takuya leaned forward, lowering his voice, his tone carrying a shrewd merchant's cunning. "Besides, giving him just the hardware won't be enough. We need to guide the Nine-Tattooed Dragon to contact those underground electronics factories in Shenzhen or Dongguan."
"We'll secretly support them, promoting piracy."
Tanaka choked on his water, nearly spitting it out. His eyes widened as he stared at his boss, doubting his own ears. "Support... piracy? But we're Sega!"
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