The feverish excitement surrounding the Sega Esports Tournament would eventually subside, like ripples on a pond eventually calming after a stone is thrown in.
The gaming industry returned to its usual calm.
For most game companies, life went on as usual.
The 16-bit console war had entered its second half. Nintendo and Sega were both meticulously cultivating their vast installed bases, reaping the rewards of the latter stages of the cycle.
As for the PC Engine, the joint venture between NEC and Hudson, its presence had all but vanished.
Third-party developers, being shrewd businesspeople, could clearly see who was winning and who was losing. Naturally, they poured all their precious development resources into the Mega Drive and Super Famicom, the two surefire winners.
In Takuya Nakayama's office, his assistant was reporting the latest sales figures.
"Managing Director, here's the report for the last quarter. The Mega Drive's global sales continue to grow steadily. Third-party software shipments have set a new record, and the number of new titles for the PC Engine platform is now less than a tenth of ours."
The assistant's face radiated pride. Indeed, Sega had every right to be proud of its achievements.
"Right, understood," Takuya Nakayama nodded, dismissing the assistant to attend to his other duties.
The sound of footsteps faded outside the door, leaving the office silent once more.
Leaning back in his chair, Takuya absentmindedly tapped his fingers against the beautifully presented report.
Stable global sales growth for the Mega Drive, record-breaking shipments of third-party software—each number was like a medal proclaiming Sega's glorious victory in the 16-bit console war.
Any other executive would likely be popping champagne to celebrate.
But Takuya's thoughts had already drifted beyond the report.
He knew better than anyone that the Mega Drive could still sell, and sell well.
The console's lifecycle was far from over. With its massive installed base and mature third-party ecosystem, it would remain a cash cow for Sega for the next two to three years—a golden goose laying golden eggs.
This was the confidence that allowed him to withstand internal pressure and delay the development of the next-generation console.
Why rush?
The directors were happily counting their money, and the company's coffers were overflowing with cash. No one was pressing the Managing Director to innovate or introduce new products.
Let Nintendo fret. The Super Famicom had been outshone by the Mega Drive for so long; it was time to finally unleash its money-making potential.
What he needed was the right moment.
The moment when 3D technology costs dropped to a manageable level.
As a time traveler, Takuya Nakayama's mind held a complete history of the console wars.
He vividly remembered how, in another timeline, major manufacturers—including Sega—had been torn between 2D and 3D, or had been bled dry by exorbitant hardware costs and immature development environments.
Matsushita's 3D0, with its powerful performance and forward-thinking concept, had ultimately failed by pricing itself out of the market at a staggering $700 per unit.
Even the Sega he had personally built had made fatal mistakes in that timeline.
In a rush to keep up with technology, the Saturn had been hastily launched with a complex architecture and notoriously difficult development environment, leaving countless third-party developers frustrated and ultimately benefiting competitors.
He would not let history repeat itself.
He picked up the internal phone and pressed a few speed dial keys.
"Suzuki-kun, drop what you're doing and come to the hardware development conference room."
"Naka-kun, I know you're busy, but this is more urgent. See you in the hardware department conference room."
"Department Manager Nakamura, gather your team. Let's have a quick meeting. I'm on my way."
Three concise phone calls.
Takuya Nakayama hung up, picked up the beautifully presented sales report, and casually tossed it into a drawer.
The past glory was enough to look at once.
What he wanted was the future.
In the Hardware Development Department's conference room, the atmosphere was subtly tense.
The four people present represented the core brains of Sega's gaming empire.
One was Yu Suzuki, the game master who was pushing the boundaries of 3D gaming with VR Racing, a man so obsessed with technology he bordered on madness.
Another was Yuji Naka, the genius programmer who had propelled the Mega Drive to divine status with the Sonic series, now often serving as Sega's internal "technical firefighter."
The third was Department Manager Nakamura, who held the lifeblood of all Sega hardware in his hands—a pragmatic and meticulous leader.
Finally, there was Takuya Nakayama himself, the one who had summoned them all.
Yu Suzuki seemed impatient. He had just gained some inspiration on a technical issue when a phone call dragged him away.
To him, time was more precious than gold.
Yuji Naka, on the other hand, remained calm, quietly observing the Managing Director.
He knew Takuya Nakayama never acted without purpose. Such a grand gathering meant there must be important news to announce.
Department Manager Nakamura was the most anxious. His department was responsible for the "foundations," and the Managing Director had personally come to the meeting. Could there be a problem with the Mega Drive's hardware production?
"Everyone," Takuya Nakayama broke the silence, his gaze sweeping over the three men. "I called you all here for one reason only."
He paused, then enunciated each word deliberately: "To initiate planning for our next-generation console."
As soon as he spoke, the air in the conference room seemed to freeze for a moment.
Yu Suzuki's impatience vanished instantly, his eyes blazing with fervor.
Department Manager Nakamura let out a long sigh of relief. It wasn't bad news after all. But his heart immediately tensed again. A new console? This was a monumental project.
Yuji Naka wore an "I knew it" expression.
"Managing Director, are we finally starting?" Yu Suzuki's voice trembled slightly. He had been waiting for this day for so long.
"We're not waiting anymore," Takuya Nakayama said with a smile. "The Super Famicom has caught up, and we still have a slight technological edge. Let them enjoy their two years of profit."
The lighthearted remark eased the tense atmosphere considerably.
"Today, let's not discuss budgets or timelines. Let's just set a direction first." Takuya Nakayama raised a finger. "The primary question is: What kind of console do we want to develop?"
Instead of presenting his fully-formed plan, he looked around at the group.
"Before we delve into 3D performance, I want to establish one thing." Nakayama's gaze settled on Yuji Naka and Department Manager Nakamura. "Our new console must have top-tier 2D processing capabilities that match the performance of current mainstream televisions."
"2D?" Yu Suzuki frowned, the words practically slipping out. "Managing Director, are we still talking about 2D? The future belongs to 3D!"
"Suzuki-kun, don't be hasty." Nakayama waved his hand, urging him to calm down. "Tell me, how many third-party developers out there can handle 3D development as casually as your team does?"
Yu Suzuki opened his mouth but couldn't answer.
Indeed, there were none. Yu Suzuki's team's achievements were built on Sega's relentless investment of resources and top-tier talent, a luxury not available to most developers.
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