December 7 1995 Monday
At ZAGE USA headquarters, Zaboru held a meeting accompanied by his father, Zanichi Renkonan, who also served as the CTO of ZAGE Japan. Together, they were meeting with ZAGE USA's senior executives to explore the possibilities of launching ZAGE online stores and expanding into digital products.
"Alright, everyone, I'd like to hear your thoughts on something. As we all know, technology is advancing rapidly, and we need to keep pace with those changes. So here's my idea: a fully integrated delivery system directly from ZAGE's websites. This would allow customers to purchase our products online, and we would have dedicated delivery teams to ensure their orders are shipped—no matter where they live. Of course, they'd need to pay a delivery fee."
Gabe Newell nodded thoughtfully. "I see, kind of like those bookstores that have evolved into something much bigger—like Amazon."
Zaboru nodded and replied, "Yes, exactly like Amazon—but instead of books, we'll offer our own products."
John Gregory, ZAGE's Head of Marketing, chimed in, "Well, does that mean we need a distribution network capable of reaching customers worldwide? Boss, is our current distribution system even prepared for global shipping? If I'm not mistaken, ZAGE currently has five official distribution partners: Sora Distribution for Japan, Emerald Wings for the USA, Flocks for Europe, and Red Falcon covering China and Korea. There's also Nanco, which focuses on delivering to these four distributors specifically for arcade-related products."
He paused, then continued, "To make this website shopping idea successful, all of these distributors under ZAGE need to be unified into a single, cohesive system. That would significantly strengthen our logistics and ensure we're ready for the kind of reach this platform demands."
Zanichi nodded and said, "I agree with Mr. Gregory. We absolutely need one large, unified distribution channel if we want to officially launch online shop services similar to what Amazon is doing."
Meanwhile, Gaben chimed in, "Honestly, it's not just about that. We need an entirely new system. After a customer places an order, we need to validate the payment. Once the payment is confirmed, the item must be delivered promptly to the destination address. After delivery, we should also confirm receipt on the system. That's the ideal or 'happy path'—but there are plenty of ways things can go wrong. For instance, if a payment fails and the refund doesn't return to the customer's bank account on time due to processing delays, that could create major frustration. Or if a buyer inputs an incorrect address, the package might get lost or returned. That's why we'll need a dedicated team to handle these types of errors and exceptions."
Zaboru paused in thought and nodded. He was already aware of these issues, but he had chosen not to mention them earlier, preferring instead to give his team the opportunity to share their insights. He was pleasantly surprised by the depth and clarity of their vision, and it reinforced his confidence in their capabilities.
"I see. I understood what each of you said, and I fully agree with your insights. This initiative has strong potential and might very well become one of ZAGE's primary projects after our planned expansion in early 1997. In the meantime, I will personally take the time to explore the various system requirements and logistics involved. We'll reconvene to discuss this in more detail in the near future once I've had a chance to assess the systems and gather more input."
Other participants nod and then Zaboru ask again.
"So, Gaben, I heard you had an idea you wanted to share. What exactly do you propose?" Gaben nodded and replied, "Well, boss, back when I was working at Microsoft, I always believed that software could be sold entirely online—if the internet were fast enough. But back then, my idea was rejected. So now I'd like to ask—do you think digital products will be successful in the future?" Zaboru grinned, clearly amused and intrigued.
"Hehehe, that's what I thought too, Gaben. Like you, I believe that digital products have a promising future. However, to truly make them work, they require proper management and planning. We can't just jump in without a clear structure in place. That said, I'm open to these kinds of projects, and I agree with you—this initiative could very well become one of ZAGE's key ventures in the years to come."
Gaben grinned, but then Zanichi interjected with a thoughtful expression. "I understand the charm of digital products, but how exactly would a consumer use them? Would we provide a digital key to customers who purchase our games? And what if those keys get pirated, just like what happened with Microsoft?"
Gaben looked over at Zanichi and let out a sigh, nodding slightly. That was precisely the concern he had been contemplating as well.
Zaboru smiled and said, "It's actually quite simple. Think of it like a forum system where each user has a unique account. First, players will need to create an account. Then, they can add a payment method to their profile. Once that's set up, they can browse our digital game catalog then they can make a purchase. After we validate their purchase, we will grant that account a license to access and play the game.
However, to make this system work smoothly, we must also consider the practical challenges. For example, what if a user is on a standard internet connection and wants to purchase a large game like our version of Diablo, which is over 500 MB in size? That user could end up waiting an entire day—or even two—just to complete the download.
To address that, we need to implement a seamless download system. This means users can pause or resume their downloads anytime, anywhere. If their connection is interrupted while downloading a large file, they won't have to start over. They can simply pick up where they left off. That kind of reliability and convenience will be essential for user satisfaction."
The other participants' eyes widened in surprise. "That's a really great idea," one of them exclaimed. Gaben followed up, nodding enthusiastically. "I see—it really is a brilliant concept. Players being able to purchase multiple games from us using a single account? That's honestly a game-changer, boss. I never thought of it that way. And that seamless download system you described is also very interesting. We definitely need to explore that feature further—it could make a big difference in the user experience."
Zaboru nodded and said, "Of course, this won't eliminate piracy entirely—but from what I understand, the best way to fight piracy is to create genuinely good products and earn the appreciation of players. If someone can't afford to buy the real copy and chooses to pirate instead, but ends up loving the product, there's a good chance they'll buy it later on because they value our work. That's why, rather than relying heavily on restrictive protections, we should focus on maintaining a modest level of security while significantly improving the quality of our offerings. That's what will ultimately reduce piracy in the long run."
Zanichi frowned and said, "Isn't that a little bit naive, boss?" Gaben and others gave a slight nod in agreement.
Zaboru chuckled, drawing from his own experience. He knew that no game was truly immune to piracy. No matter how hard a company tried to implement anti-piracy measures, they often backfired. In the end, hackers would always find a way to crack the system and distribute pirated versions. Worse still, these anti-piracy systems frequently led to reduced game performance, frustrating legitimate users instead of deterring pirates.
Meanwhile, a good game with a simple anti-piracy system—if it's truly enjoyable—might still be pirated at first. However, if players genuinely love it, there's a strong chance they'll end up purchasing the full version later to support the developers and own it legally.
Zaboru then began to explain, "Here's the thing—unlike Microsoft's products, which are primarily geared toward professional work and productivity, ZAGE's products—especially our video games—are more like works of art. They're deeply personal, emotional experiences. And because of that, if a player truly connects with one of our games, there's a high chance they'll decide to purchase it later on, even if they initially pirated it. People don't just support us for functionality—they support us because our games resonate with them, stir emotion, and create lasting memories. That's a completely different dynamic. Mark my words—this very principle will play out in the future. You'll see players who pirated our titles at first, but eventually come back to buy them because they genuinely value our creative work or other companies that heavily invest in anti-piracy measures until in the end it's cracked too ."
The other participants still looked skeptical. Some exchanged glances and furrowed brows. But despite their reservations, they eventually nodded in agreement—because deep down, they trusted Zaboru's vision and believed in the passion behind his words. They believed in ZAGE's unique approach to the gaming world.
After a while the meetings continue and then it's done .
To be continue
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