As soon as Sato Hideki entered, he walked over to the whiteboard. Seeing that there was still a line of text written on it, he casually wiped it clean.
Kobayashi Tetsu frowned deeply.
Daring to wipe away my words, you are courting death!
Sato Hideki wiped the whiteboard clean and wrote two numbers on it.
16.
"Gentlemen, let's keep this brief. The console that Sega is about to launch will be named 'Mega Drive'! This will be a 16-bit game console capable of achieving arcade-like graphics on a home system! Its performance specifications will be completely identical to current mainstream arcade cabinets!"
"The MD will be compatible with MS cartridges but not SG cartridges. Furthermore, it will support high-capacity CD-ROMs and other external accessories!"
For a brief moment, everyone in the meeting room looked up, staring intently.
If this news were true, there was no doubt it would be a heavy blow!
Because both the FC and MS were currently 8-bit consoles, and a 16-bit console was visibly more powerful than an 8-bit one—more than twice as powerful!
If Sato Hideki said it directly in this setting, then its authenticity could basically be confirmed.
Kobayashi Tetsu knew that the architecture of the MD was indeed very similar to that of arcade machines. For example, Capcom used the Motorola M68K processor paired with a smaller Z80 processor for its CPS1, and the MD adopted this same architecture.
The Z80 was later used as a processor for handheld consoles.
In the original world, the MD took the North American market by storm immediately upon its release, with its market share instantly surpassing Nintendo's.
However, Nintendo had signed agreements with third-party developers during the FC era that forbade them from jumping back and forth between platforms, so early MD games were almost entirely developed in-house by Sega.
But now, the situation was naturally different.
Because the FC had not established an absolute advantage, Nintendo could not force developers to sign exclusivity agreements. Although the MS held a certain leading position in North America, it could not completely suppress the FC, so Sega also could not force developers to sign exclusivity agreements.
Kobayashi Tetsu could tell that Sato Hideki really wanted to announce an exclusive agreement on behalf of Sega, demanding that developers only create games for the MD platform. However, given the current market share, such a statement could not be made.
Therefore, Sato Hideki only gave a slight bow.
"The console has already been developed, and coordination work is underway in various regions, with the goal of stocking it in Japan and North America by the latter half of 1988. This is the MD development kit. We welcome all of you to release your own works on the MD, and Sega will provide the best terms for the first batch of third-party companies."
On the other side, Tanaka Minoru stepped forward and said, "Sega will allow all third-party companies this time to contact manufacturers themselves to produce cartridges, without needing to go through Sega-designated authorization. In addition, royalty fees will be reduced, and the profit-sharing ratio will be further increased—"
He spoke for a long time in one breath. Kobayashi Tetsu made a quick estimate; overall, it was equivalent to a 10% concession based on the MS, and in total, the profit-sharing ratio for third-party developers could reach 12% of sales.
Of course, Atlas is a bit special; their profit-sharing ratio was already quite high to begin with.
Seeing that everyone was still hesitating, Kobayashi Tetsu was the first to stand up.
"Atlas will purchase a batch of development kits to begin developing games for the MD. By the second half of next year, Atlas will present its first game for the MD as our answer."
A set of development kits costs two million yen; even if they were to be shared, purchasing dozens of sets would mean an expenditure of nearly one hundred million yen.
Kobayashi Tetsu spent this money without even blinking.
Even Sega wasn't as certain about the MD's future as he was.
Sato Hideki's expression softened.
It seemed that although Atlas was a bit rebellious, all things considered, they were still on their side!
Nakamura Ryohei of Namco gasped.
His first instinct was that this bastard Atlas was a plant!
Spending one hundred million yen just like that—this was a massive investment into MD development!
However.
A 16-bit console was still worth a try, especially since Nintendo hadn't made any moves yet.
Looking at the 16-bit console market, as long as the quality wasn't too terrible, it would inevitably capture a significant market share!
This was worth a gamble.
They were not as certain as Kobayashi Tetsu, and therefore, did not order development kits immediately.
Nakamura Ryohei pressed further: "How much is the MD planning to be priced at in Japan?"
Sato Hideki clapped his hands: "You've hit the nail on the head. The Japanese price for the MD will be 21,000 yen."
The group looked at each other, sighing in relief.
21,000 yen. Although this figure was slightly higher than the currently released MS and FC, 16-bit and 8-bit machines were in different categories.
Nakamura Ryohei finally made up his mind: "Namco will also purchase a batch of kits."
The other company representatives were silent for a moment, but then one by one they stated their intentions.
Except for Atlas, which bought the most, the other companies were only testing the waters with a batch, purchasing ten kits; some companies with less financial strength even only purchased five.
Kobayashi Tetsu stood up.
"If there's nothing else, I'll be leaving first. It seems to me that you gentlemen are going to miss the boat on the 16-bit era."
Nakamura Ryohei felt a toothache again, and particularly wanted to punch Kobayashi Tetsu.
Sato Hideki hurriedly called out.
"Wait! Sega has one more thing to announce."
He signaled with his eyes, and Kobayashi Kentaro stepped forward.
On the whiteboard, Kobayashi Kentaro roughly drew a diagram.
"Sega will be launching a handheld console in the near future!"
Kobayashi Tetsu instantly stood at attention.
The Atlas lad, stood at attention.
After the meeting ended, Kobayashi Tetsu intercepted Kobayashi Kentaro immediately.
"Dad, are you really making a handheld console?"
"That's right!" Kobayashi Kentaro said emphatically: "Market analysis shows that Nintendo's Game & Watch occupies a significant share of the market, and this market has potential. Furthermore, with the economic upturn, people are leaning towards wanting portable gaming consoles. Current development is progressing smoothly, and we plan to cram an MD into...
"...inside the handheld console—"
Kobayashi Tetsu quickly raised his hand to stop him.
Isn't that just Sega's Game Gear!
This handheld console actually had decent performance and good visual effects, but it had one fatal flaw.
It was power-hungry.
Insanely power-hungry!
The GG's body was thick and heavy, its portability was abysmal, and its battery life was the absolute worst—it was basically like an electric scooter that hadn't had its battery changed in five years and had been left sitting out through an entire winter; it would run out of juice after just a couple of steps outside.
Most importantly.
The GG's design was ugly as hell!
What kind of decent person would carry this kind of handheld out in public? It wasn't cool at all!
Kobayashi Tetsu didn't know how to warn him about this point, so after pondering for a moment, he expressed it tactfully: "For a handheld, performance actually isn't the most important thing. If you want high performance and color graphics, then the battery life will definitely have to suffer. But I carry a handheld to have something to do during long trips. I don't care if the graphics are good or not; I only care if the battery life is long, if it's lightweight, and if the design is cool enough. At the very least, when I take it out, I want to look like a digital trendsetter, not some hopeless nerd!"
In this regard, the PSP's design really was good-looking.
The NDS is not bad either, and Kobayashi Tetsu quite likes it.
It's just that it feels like holding a makeup compact when holding the NDS.
Kobayashi Kentaro rubbed Kobayashi Tetsu's shoulder and said, "Tetsu, actually you don't need to pull out a handheld console to attract girls."
Kobayashi Tetsu was instantly exasperated: "I'm serious! I don't care if you guys cram the MD into a handheld; anyway, if you really do that, Atlas will never develop any games for a Sega handheld."
Kobayashi Kentaro's expression instantly turned serious.
"So you think that a handheld should lean towards features like a stylish appearance, portability, and battery life."
Kobayashi Tetsu nodded.
"I will discuss these matters in the internal meeting," Kobayashi Kentaro said, rubbing his brow.
This is the only downside to a large company: many things cannot be decided by one person alone because no one can take responsibility for anything, so it must be discussed by many people.
Kobayashi Tetsu understood this reasoning, so he didn't pursue the matter further, just gave a slight bow, and left.
The Sega handheld was released in 1990. Although this time it might be a little earlier, the probability is that it will still be after Nintendo's GB. Therefore, for the time being, there is no need for Kobayashi Tetsu to worry.
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