Monday 5 November 1995.
Zaboru was now inside the Philips offices in Japan, sitting down for a eting with Jan Timr, the CEO of Philips. With a polite smile, he asked, "So Jan, how's the progress on the DVD player going? I heard that last month Philips was negotiating to bring several box office movies to DVD. Is that true?"
Jan grinned and nodded. "We are, Zaboru. And let tell you—it's going smoothly. Many movie producers are excited to partner with us because they're genuinely interested in bringing their films to a single-disc format. The convenience and potential of the DVD format have caught their attention in a big way.
Right now, we've already secured distribution rights for several high-profile movies, including so recent box office hits. These will be available as soon as our DVD players launch. The promotional campaign is already underway—we've released the first wave of advertisents to the public, and the initial feedback has been overwhelmingly positive.
Studios love the cost-effectiveness, the collectors are thrilled about bonus content potential, and even retailers are asking when they can start stocking the players. We're seeing early montum across the board."
Zaboru smiled and nodded. "Well, I'm glad to hear it went smoothly, Jan."
Jan Timr nodded in agreent. "It's mostly because we made it clear that this project is a collaboration with ZAGE. That connection has really generated a lot of positive buzz with the public."
Zaboru then asked, "So how much are you going to sell it for? Did you follow my recomnded price?"
Jan sighed and shook his head. "Unfortunately, no, Zaboru. After negotiation in our end While it's true that the cost of producing these DVD players is only around $150 USD, we believe we need to price it at least at $600. This is a completely new kind of technology—a ga-changing innovation that allows people to watch full-length movies at ho, in high quality, from a single disc. That's sothing CDs simply can't offer."
He continued, his tone more analytical. "We're not just selling hardware—we're offering a lifestyle shift, a whole new way for consurs to experience entertainnt. That kind of leap carries a premium. Plus, early adopters tend to expect higher price tags and are usually willing to pay for the novelty and exclusivity of cutting-edge products. We also have to factor in marketing, distribution, and recouping our R&D investnt."
Jan leaned back, thoughtful. "I understand your concerns about affordability, but at this stage, we believe the perceived value will outweigh the price tag. And judging by early interest from studios and tech enthusiasts, we're confident that people will still want to buy this—even at $600."
Jan then grinned. "And with that idea of yours—'DVD art'—it's definitely going to capture a lot of interest. People are drawn to innovation, and the blend of technology with artistic presentation is a brilliant move. That kind of appeal doesn't co cheap, and I truly believe we need to market it as a premium product. Don't you agree, Zaboru? This isn't just about hardware anymore—it's about creating a whole experience around it."
Zaboru sighed and shrugged. ZAGE was only receiving 15% of the revenue from DVD player sales, which made sense—Zaboru had rely contributed the initial ideas and the design concept, while Philips had handled 100% of the developnt, production, and logistics. From the beginning, Zaboru had no intention of profiting significantly from the DVD players themselves. What truly mattered to him was ensuring the DVD technology reached completion and market maturity—because once it did, he could incorporate it into his next-generation ga consoles. That had always been his long-term vision: to pioneer dia formats that would enhance the gaming experience, so ga developers can create gas with bigger sizes.
As for the price, Zaboru had tried to warn Philips not to set it too high, cautioning that in the future there was a real possibility consurs would beco reluctant to buy it due to the steep cost
Obviously, Zaboru had no intention of telling Jan Timr that his next-generation consoles would also function as DVD players. That detail was a key part of his strategy, and he wasn't about to reveal it prematurely. He planned to sell his console at a significantly lower price point—nowhere near the $600 mark—making it more appealing to a broader audience while quietly integrating DVD technology into the gaming space. After all, if soone can play DVD movies on a $300–$350 ga console, why would they spend $600 on a standalone DVD player? That pricing gap could easily sway consurs. This might strain his relationship with Philips, but Zaboru didn't care—he had already given them fair warning. If they chose to ignore his advice, the consequences were theirs to face. As the launch of ZEPS 3 approached, Zaboru planned to issue one more warning. But if they still refused to listen, so be it. He was fully prepared to move forward on his own terms.
Zaboru then said to Jan, "Well, I've already given you my advice, Jan. The rest is up to you. I truly hope the DVD player sells really well."
Jan nodded and replied, "We've decided to na it the PZ-DVD Player. 'PZ' stands for Philips and ZAGE."
Zaboru smiled and nodded in approval. "Quite a cool na, hahaha. So, it's set to release on Friday, November 10th, right?"
Jan nodded again. "Yeah, it will." And so their etings are concluded
anwhile, at the Sonaya offices, Hikaru Kurata frowned as he watched Philips' latest advertisent. The ad showcased the PZ-DVD Player, introducing the new DVD technology capable of storing significantly more data than a standard CD. It also emphasized the collaboration between Philips and ZAGE, and pushed the ssage that with a DVD player, you could watch an entire movie on a single disc—unlike CDs, which often required multiple discs due to limited storage capacity. Hikaru Kurata frowned again, his expression darkening with concern.
"So, this is the project Philips and ZAGE are working on together," Hikaru Kurata muttered, clearly annoyed. Sonaya and Philips had once collaborated closely to develop the CD format, but over ti, Sonaya had gradually distanced itself, leaving Philips to continue the CD project alone. And while Philips had so expertise, it was Sonaya that truly mastered CD technology—so much so that Sonaya's advancents in the field were far ahead of anything Philips had developed.
"Well, let's see where this leads. Can they really make CDs obsolete? We'll see..." he added with a tense edge in his voice.
Determined not to be left behind, Hikaru Kurata decided to closely monitor the situation. If the opportunity arose, he intended to create a similar product—drawing "inspiration" from DVD technology—and develop Sonaya's own version of both the DVD and a compatible DVD player using their proprietary technology.
anwhile, Zanki Zagashira was at the Toshiba offices, preparing to unveil his latest CD player—a device he claid would revolutionize the entire CD player market. Unbeknownst to him, however, Philips and ZAGE were already deep into developing and publishing the next evolution of optical dia: the DVD player.
To be continue
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