Two days after Takuya Nakayama finished consulting for the arcade departnt, Sunrise ca knocking.
The call ca directly from President Itō, his tone carrying an unmistakable hint of anxiety.
The chilling wind of the stock market crash had finally blown from the financial markets into the ani industry.
The next day, when Takuya arrived at the Sunrise headquarters, the managent team was already seated formally in the conference room, waiting for him, the Sega representative.
The head of the Marketing Departnt cleared his throat and handed out a stack of reports. The sound of paper friction was exceptionally clear in the quiet conference room.
"Everyone, please look, this is the data for the past month—"
The numbers on the report were shocking.
"Everyone, the situation is not optimistic."
The Marketing Departnt head spoke in a dry voice, pointing to the report.
"Since the stock market crash the week before last, on January 12th, the sales of traditional toys from Bandai have dropped off a cliff!"
"Our corresponding GG (Goods/Gundam) placent revenue share has, therefore, shrunk significantly."
"What's worse," he took a deep breath and said with difficulty, "multiple partners have already sent notices, citing tight cash flow, requesting a delay in paying licensing fees."
"This is not just a revenue decline problem; we—are at risk of facing widespread bad debt at any mont!"
Silence fell over the conference room.
A finance executive, pale-faced, couldn't help but suggest, "Should we—should we strengthen the comrcial tie-in with rchandise in subsequent ani works? Directly 'promote products' within the animation!"
"Nonsense!"
Before he finished speaking, an angry voice rang out.
The executive in charge of communicating with the production team slamd his hand on the table, his eyes instinctively wary towards Director Yoshiyuki Tomino, who was sitting in the corner.
"Are you trying to ruin the Sunrise brand?! Excessive interference with creation will only cause resentnt among the creative team and result in garbage that even fans will abandon! At that point, never mind selling toys, we won't even keep the ratings!"
"But what else can we do? Should we just watch the company collapse?!"
"You—"
Seeing the internal dispute about to erupt, President Itō rubbed his forehead in frustration and intervened.
"Alright, settle down."
"The quality of our works is not the problem; the ratings are the best proof. The issue is caused by the external environnt, not the creative team. We must not put the cart before the horse and dump all the pressure onto the creative team."
The President's words cald everyone down, but this was followed by a deeper sense of powerlessness.
The President's words were reasonable, but the problem remained.
How to improve revenue? How to stabilize cash flow? How to reduce bad debt risk?
The discussion endlessly looped back to standard, ineffective asures, such as urging Bandai to adjust its GG strategy or strengthening risk assessnt for partners. These could not solve the current dilemma.
The conference room fell into a stifling silence once more.
Just then, President Itō turned his gaze to Takuya Nakayama, who had been silent since he entered.
"Nakayama-san, you are a director of Sunrise and a representative of Sega. What is your view?"
All eyes imdiately focused on him.
Takuya felt the scrutiny, knowing he couldn't avoid it. He cleared his throat and leaned slightly forward.
"Everyone, have you heard of the 'Lipstick Effect'?"
"The Lipstick Effect?" soone asked, confused. "Nakayama-san, we make ani, we don't sell costics."
A light chuckle broke the air, slightly easing the heavy atmosphere.
"Leonard Lauder, the eldest son of Estée Lauder founder Esti Lauder, analyzed consur data during the Great Depression in the 1930s and found that despite the overall economic downturn, lipstick sales significantly rose. He believed that under economic pressure, consurs turn to low-priced goods that provide psychological comfort, as a substitute for expensive purchases."
He picked up the report, pointing to the data.
"Ani, toys, and gas are all goods that provide spiritual comfort and emotional added value. The current consumption decline is partly because people haven't recovered from the stock market crash, and partly because our products haven't precisely t their needs."
"The report says Bandai's traditional toys are sluggish. But I ask, what about Gundam models? Did the sales of assembly models drop as sharply?"
The Marketing Departnt head was montarily stunned. He flipped through the data at the back and shook his head: "No, Gundam model sales are stable. It's just... the single purchase amount per custor has decreased."
"That's it!" Takuya clapped his hand. "Bandai's toys without stories, of course, aren't selling now."
"But Gundam models are different. To fans, they aren't just toys; they are their faith. They just have less money in their pockets, but their passion hasn't diminished."
"So, my first suggestion is to propose to Bandai to shift the business focus towards low-priced toys with IP, such as developing more small-sized, low-priced candy toys (Shokugan) or capsule toys (Gashapon)."
"As for cash flow," Takuya changed the subject, "why not re-license those old ani in the Sunrise library to video rental stores? Not just dostically, but overseas too. There's no need for re-dubbing; just add local language subtitles. The cost is negligible; once sold, it's almost pure profit."
"Regarding costs, we can consider expanding the scale of ani outsourcing to Mainland China. But not just simple outsourcing. We should integrate the outsourcing ecosystem there, optimize interdiate steps, and compress ti costs. Of course, this demands higher standards for our contract design and quality control."
So people in the conference room had already started scribbling furiously in their notebooks.
Takuya took a sip of water and put forward his final suggestion.
"Finally, regarding projects. I know the Gundam series is Sunrise's pillar and requires huge investnt. But during a period of financial strain, should we moderately reduce or adjust the production frequency of such high-investnt projects? We could allow more ti between major projects and instead develop so original, dium-to-low-cost works?"
"Although the returns may not match major projects, this would not only alleviate cash flow pressure but also prevent the audience's perception of Sunrise from solidifying as 'a company that only makes toy comrcial ani,' reducing resistance from ani viewers and broadening our repertoire. Naturally, this requires precise financial planning and careful regulation by the finance departnt and the board."
The executives who had been arguing earlier now looked at Takuya with deep admiration.
A series of strategic moves, well-reasoned and hitting all the critical points.
Revenue generation, cost reduction, risk avoidance, and brand image—all aspects were considered, and clear, feasible solutions were provided.
"Clap, clap, clap."
President Itō led the applause, which grew from sparse to fervent, instantly echoing through the conference room.
"Nakayama-san, I'm impressed! You've truly opened the eyes of us old-tirs!" President Itō stood up and bowed slightly to Takuya, his attitude sincere.
"You flatter , President. I was just offering so outside perspective."
Takuya responded humbly, his expression calm, as if his ga-changing speech was just a casual remark.
"No, this is not just an outside perspective; these are words of gold!" President Itō waved his hand and looked around. "Everyone, the directions proposed by Consultant Nakayama are highly actionable. Video tape licensing, optimizing the outsourcing chain, adjusting project investnt—after the eting, all departnts must imdiately present specific assessnt proposals!"
"Yes!" everyone responded in unison. Their morale was noticeably different.
After the eting, people left one after another. Many nodded to Takuya as they passed, their eyes full of respect and gratitude.
"Nakayama-san, if you're not in a rush, would you like to have so tea in my office?" President Itō extended an invitation.
"Of course, it would be my honor."
In the President's office, the secretary quietly withdrew after serving two steaming cups of Sencha tea.
President Itō picked up his cup but didn't drink. He just stared at the rising steam for a mont, then sighed heavily: "To be honest, Nakayama-kun, if you hadn't been here today, I'm afraid our eting would have ended with nothing but sighs."
"You are too kind. Sunrise has such a strong foundation, with a creative core like Director Tomino and a national IP like Gundam. Temporary difficulties will soon pass."
"Hehe, I hope so." President Itō set down the cup, a hint of weariness in his expression. "All your suggestions are excellent, but—whether it's integrating the outsourcing industry or developing new low-cost projects, they all require money."
"In the current climate, the banks are keeping their wallets tight. If it weren't for Sunrise's stable ani ratings lately, the banks might already be hounding us for debt repaynt."
He looked at Takuya, his eyes containing a hint of inquiry.
Takuya knew the main topic had arrived.
He didn't beat around the bush, leaning slightly forward and looking directly into the President's eyes, his tone flat but carrying undeniable weight.
"President Itō, I am here today both as a representative of Sega and on my own behalf. Sega has always regarded Sunrise as its most important strategic partner, and we are very happy to see our partner develop better."
He paused, giving President Itō ti to process.
"Therefore, if there are financial issues, whether Sunrise needs capital for turnover or investnt, or if you personally have any needs, Sega can help. We are not a bank; we are an ally."
He emphasized the word "ally."
President Itō's pupils suddenly constricted when he heard the word "ally."
His knuckles, gripping the teacup, turned white from the force. He didn't seem to notice the hot tea gently sloshing.
Having navigated the business world for decades, how could he not recognize the trendous significance behind those two words!
What Sega wanted was not a simple financial support package.
They wanted all of Sunrise!
This was no longer a hint, but an almost explicit declaration.
President Itō's throat moved. Takuya's calm yet determined eyes, and his passionate speech in the conference room, overlapped in his mind.
He suddenly realized that from the mont Takuya stepped into the conference room, he and the entire Sunrise board had fallen into a carefully woven net.
First, using thunderous asures to win everyone over, and then, in a private eting, revealing his true intentions.
One step followed another, leaving no room for breath.
And the current condition of Sunrise was visibly deteriorating. Even the practical advice Takuya had given at the eting wouldn't bring imdiate cash to Sunrise.
After a long ti, President Itō let out a deep, long exhale, as if releasing all the struggle and exhaustion in his heart.
He slowly put down the teacup. His normally upright posture seed to collapse slightly at this mont.
He smiled bitterly, looking at Takuya with an incredibly complex expression—appreciation, reluctance, struggle, but mostly the relief of knowing it was too late to turn back.
"Nakayama-san—Sega has won."
"No, President Itō."
A slight curve lifted the corner of Takuya's mouth. He leaned back into the sofa, resuming his composed manner.
"It is 'we' who will win, together."
"President Itō, you know my style, don't you?"
"Am I the type of person who is aggressive towards an ally? Sega simply favors Sunrise's developnt and production capability. We hope Sunrise can break free from Bandai's unpredictable interference, develop stably, and earn more money together in the future. We will not seek full control, and you will remain the President of Sunrise."
President Itō was stunned upon hearing this. Then, he seed to rekindle the sa entrepreneurial passion he had when he first left Mushi Productions.
He extended his right hand, shaking Takuya's hand firmly.
"Then, Nakayama-san, please continue to guide us in the future." He shook Takuya's hand vigorously.
"President Itō, I look forward to your guidance as well." Takuya also gently tightened his grip.
The next day, when Takuya entered his office, his assistant was respectfully waiting at the door and handed him a new docunt.
"Executive Director Nakayama, this is the financial status assessnt report you requested for the major ga manufacturers during this stock market crash."
Takuya took the docunt and casually opened the report, his eyes falling precisely on the familiar na.
The report showed that Bandai's situation was even worse than Sunrise's; the risk of cash flow breakdown was even higher.
The assistant whispered a reminder: "Boss, Bandai has recently been expressing an interest in seeking cooperation with us through various channels..."
"Ignore them."
Takuya's tone was as indifferent as if he were discussing an irrelevant ant.
He lightly tapped his finger on the na "Bandai," a hint of coldness flashing in his eyes.
He had once extended the olive branch of the "snap-fit assembly" technology—a sche capable of changing the entire model toy market—to them under the na of Sega.
And the result?
The condescending managent at Bandai accepted the huge favor but didn't even give a formal thank you. They even tried to use it as leverage to make demands of Sega in subsequent collaborations.
Now they want to seek help?
Too late.
"Remind our people to politely decline any contact from Bandai," Takuya commanded calmly. "Let them struggle in the mud for a little while longer. When they truly understand what 'respect' ans, we can discuss future 'cooperation'."
"Understood!" The assistant's heart tightened, imdiately comprehending his boss's aning.
Takuya shifted his gaze from Bandai's na and continued to scan downwards.
Hudson... PC-Engine sales plumted. The honeymoon phase with NEC was ending, and there were signs of imminent collapse.
Namco, Taito, Konami—these nas that once ruled the roost were now trembling in the cold wind of the stock market crash, their stock prices plumting.
Many gas, both arcade and ho console, that were already old and outdated in 1990, were being abandoned by players. Sales and coin-in volu were consistently low.
Takuya's finger lightly traced over several nas, his eyes deep, like a shark that has slled blood, sizing up its next al.
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