Thursday 1 December 1997.
At ZAGE Tower, another important meeting was underway. Zaboru had gathered the team to announce plans for the upcoming year. In addition to launching a new department focused on handling ZAGE's IP licensing and establishing a new development team in Korea, he revealed plans for yet another team. This new team would be smaller in scale but strategically spread across both Japan and the U.S. Even the CEO of ZAGE's subsidiary NANCO, Nando Michio, had joined the meeting. With everyone's attention fixed on him, Zaboru began to speak.
"You might've noticed that I've barely been developing arcade games lately, especially since the release of ZEPS 3," Zaboru said with a calm smile. He paused briefly, then continued, "But that's not entirely true. It's just that, for this year, ZEPS 3 has captured most of ZAGE's focus. Why? Mainly because we're still in the middle of building and refining our new game engine—Unreal Engine Z3. This is the engine we're using to develop all our titles for ZEPS 3, and it's still evolving. That's why we've had to prioritize it, to make sure it becomes a solid and efficient foundation for all future console projects."
Zaboru adjusted the mic and scanned the room, making sure his message landed. "But don't think I've forgotten about arcade games," he added, his voice more animated. "There's still something special about them—the fire, the charm, the energy of a cabinet glowing in a dark game center. I haven't abandoned arcades. In fact, I believe their role is still vital. And that's why today, I'm proposing something new."
Zaboru pointed to the large screen behind him, where a bold headline read: "Establishing a New Team – Dedicated to Arcade Development." A confident grin spread across his face as he continued, "Unlike the Korea team, this new arcade-focused unit won't require extensive onboarding or micromanagement. Why? Because we'll be reallocating experienced talent from within our current development teams. Those who have worked on arcade titles before or shown strong interest in the genre will be handpicked and transferred."
He stepped forward, gesturing with enthusiasm. "And we're not doing this alone. Our long-standing partner, Nanco, is onboard with this vision. Their CEO, Nando Michio-san, will personally oversee this new team as a supervising advisor. If the team ever needs additional resources or technical support from Nanco, Nando will be the one to handle it directly."
Nando nodded with a wide, enthusiastic smile. Clearly, he was just as excited about the initiative as Zaboru. The announcement marked the official creation of ZAGE's own dedicated arcade division—something the company hadn't had before.
Zaboru continued, "This new team will be called the 'Nexsus Team.' It will operate across both our main branches—the Japan-based ZAGE Tower and the U.S.-based ZAGE Campus. Of course, the personnel will differ between locations, and each branch will have its own leadership. However, my vision is for them to operate as one seamless unit. Their mission will be singular and focused: to create outstanding arcade games that push boundaries and revive the spirit of arcades in a new era."
Zaboru grinned and continued, "As you might know, the strongest appeal of arcade games has always been their unique charm and immersive atmosphere. Back in the day, they were also known for their superior graphics, far beyond what home consoles could achieve. But now, most people think arcade visuals are about on par with what we're doing on ZEPS 3. That's what you all think, right?"
He paused, scanning the room, then grinned wider. "Well, that's completely wrong." The room stirred with surprise—brows raised, some murmurs of curiosity breaking the silence.
"Here's the truth," Zaboru said, raising his hand slightly for emphasis. "Arcades still have the potential to go far beyond consoles in terms of graphics. Why? Because arcade machines are tailor-made for specific games. Unlike consoles that have to accommodate a wide range of software, arcade hardware can be fully optimized for a single title. And that gives us the edge."
He clicked the remote, revealing a new slide. "That's why I'm announcing the creation of a new Unreal Engine subsidiary—one specifically dedicated to arcade development. We're calling it UNREAL Engine ARC System Works, or simply ARC System Works."
The room leaned in as Zaboru continued, his tone more serious. "With this engine, we'll take arcade visuals and performance to levels ZEPS 3 can't touch. It's not just about resolution or frame rates—it's about building specialized experiences that feel alive, powerful, and impossible to replicate on home consoles. Yes, this might make older arcade graphics look outdated in comparison, but that's okay. Every generation has its time. And as we move into the future, we need to set new standards."
He took a step back a bit, letting the words settle. "We're not just reviving arcades. We're redefining what they can be."
Zaboru walked into the room with purpose, his expression confident as he addressed the next key point. "I've already laid the groundwork for ARC System Works," he said, his voice steady with conviction. "Not only that, but I've also shared the full plan with our ZAGE USA team—specifically with Team Enigma and Team Tempest—so they're already in the loop."
He paced slowly in front of the screen, pausing to let the information sink in. "This superior arcade initiative won't just be about keeping the spirit of arcades alive. It's going to teach us how to master next-gen graphical output. Why does that matter? Because we'll need it. The future is coming fast—and so is ZEPS 4. While it might seem far off today, the reality is that we'll be developing for it before we know it."
Zaboru's tone grew more passionate. "By using the ARC System Works engine as a testbed, we can push our rendering capabilities beyond anything we've done before. It's more than just making arcade games—it's about experimenting, innovating, and refining the visual fidelity and performance benchmarks that will shape ZAGE's next generation of consoles."
He paused again, nodding slightly. "Think of this engine as both a weapon and a training ground—setting the example for what we aim to achieve. And yes, it will absolutely be the foundation we use when the time comes to fully realize ZEPS 4."
Zaboru chuckled to himself, already envisioning what was to come. His plan wasn't just to revive arcade games—it was to elevate them to the level of the 128-bit era, the golden age of the PS2 in his previous life. He wanted arcade machines to match, and even surpass, the visual fidelity and technical polish once thought only possible on home consoles. To achieve that, he pushed his teams to break past limitations and think in terms of long-term innovation.
This effort wasn't just about the present. By striving to reach that PS2-level quality—or even exceed it—they were training themselves for what was coming next. The lessons they learned in shading, animation, particle effects, and optimization would all feed directly into their development pipeline for future ZAGE projects. Not to mention, the ARC System Works Engine was designed not just as a tool for arcade greatness, but as a bridge to ZAGE's future. It would serve as the technical foundation, the blueprint, and the proving ground for what would eventually become ZEPS 4.
"But aside from graphics, arcade games are strong in one crucial area—and what is that? It's their uniqueness," Zaboru said, his tone shifting into one of pride. "Think about it. Our most successful arcade titles right now are Guitar Hero, Dance Dance Revolution 2, House of the Dead, OutRun, and of course, our range of fighting games. These games thrive not because of pure visuals, but because of the distinct, irreplaceable experiences they offer."
He walked slowly across the stage. "Fighting games, for example, are why most people walk into arcades in the first place. The competition, the thrill, the one-on-one intensity—it hooks them. But it's also exhausting. Players tend to move on after a few rounds. That's where games like Guitar Hero, DDR, and House of the Dead step in. These are games that demand special hardware—custom guitar controllers, interactive dance floors, light guns, even motion seats in some cases. They can't be easily replicated on PC or console without sacrificing the experience."
Zaboru paused, then smiled. "And that's the power of arcades. It's not just about what you play, but how you play. The physical interaction, the sensory immersion—it's an experience you can't download or emulate with a regular controller."
He then pointed to a new visual on the screen. "That's why my next step, alongside creating high-spec arcade games, is to develop a broader portfolio of unique, hardware-integrated arcade experiences. We're going to build machines that do more than display visuals—we're going to design gameplay that feels alive, physical, and impossible to replicate at home. My plan is to invest in more diverse arcade formats, across music, rhythm, rail shooters, cockpit simulators—you name it. We're going to flood the market with experiences only arcades can provide."
As murmurs of excitement rippled through the room, Zaboru's vision was clear: the future of arcade wasn't just survival—it was reinvention through uniqueness.
Zaboru smiled as the room buzzed with excitement. The meeting carried on with lively discussion and energized ideas, stretching well into the afternoon. Eventually, the gathering concluded, and Zaboru made his way back to his office, satisfied with how the day had unfolded.
Not long after settling in, he was visited by Nando Michio, who entered the room practically beaming with enthusiasm. His energy was unmistakable—he was thrilled. As a lifelong arcade enthusiast, this moment had clearly struck a deep chord with him.
"Thanks for that, Boss. Thanks for not letting arcades die," Nando said warmly as he casually dropped into a seat across from Zaboru. His grin was wide, almost boyish.
Zaboru chuckled and waved it off. "Don't worry about it, Nando-san," he replied, smiling. The two shared a few relaxed moments, chatting about arcade memories and the future of the medium. It was a moment of camaraderie, one rooted in shared vision and nostalgia.
After some time, Nando stood, bowed lightly, and excused himself. As the door closed behind him, Zaboru leaned back in his chair, thoughtful. 'I've got arcades on the path forward. Now it's time to shift gears… handhelds,' he thought.
His eyes drifted to a notepad on his desk, and he scribbled a quick reminder: visit Miyagi Batteries. Ryo and his team were already developing a new battery prototype, one that was insanely crucial for ZAGE's next handheld system. Zaboru nodded to himself. That visit will be tomorrow.
To be continue
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