"Namco has always wanted to develop its own ho console. They tried back in the PC-E era, but were constrained by funding and the state of semiconductor technology, and never managed to make it happen. Without a voice in hardware developnt, Namco will forever be at the rcy of others—especially that old man in Kyoto."
Hearing "that old man in Kyoto," Masaya Nakamura's expression darkened.
During the Famicom era, Namco had been one of the earliest six licensed developers. Later, however, they were ruthlessly suppressed by Yamauchi Hiroshi, who limited the number of cartridges they could publish. Nakamura had been nursing this grudge for nearly a decade.
"How do you propose we collaborate?" Nakamura asked.
Ken Kutaragi stood up, walked to the whiteboard, and began drawing diagrams with a marker.
"We need to establish a common architecture. Sony will develop a ho console based on this architecture, while Namco will develop a new arcade motherboard. This way, gas developed for the arcade motherboard can be ported to Sony's ho console more easily and smoothly, significantly reducing the cost, risk, and ensuring the quality of the ports."
Kutaragi drew a circle and drew arrows pointing in two directions.
"Think about it, President Nakamura. You develop a ga, earn coins in the arcades, then with minimal modifications, seamlessly port it to the PlayStation and sell it to ho users. One R&D investnt, double the revenue.
Moreover, Sony will shoulder the majority of the hardware developnt costs. All you need to contribute is your expertise and manpower."
Masaya Nakamura stared at the rough sketches on the whiteboard, his fingers gently tapping the table.
This was Namco's current pain point.
Arcade boards were becoming increasingly expensive, and the developnt risks were growing.
If soone could share the hardware costs and open up the ho console market—
"It sounds appealing," Masaya Nakamura said, but he didn't commit imdiately. "However, we need to assess the technical feasibility."
"Of course. I'm confident that the Namco team that developed the System 21 board will recognize the value in this proposal."
Masaya Nakamura set down the paper, his gaze sharpening. "That does pique my interest."
Nobuyuki Idei added the finishing touch: "Furthermore, Sony has pledged that Namco will receive the most favorable royalty terms on the PlayStation platform. We're not Nintendo, imposing unfair clauses. We want the platform to thrive, so we're willing to let you keep the lion's share of the profits."
Those words completely shattered Masaya Nakamura's defenses.
The enemy of my enemy is my friend.
The chance to stick it to Nintendo and make money at the sa ti? Why wouldn't he take it?
"Sony has the money, Namco has the technology." Nakamura stood up and walked to the window, gazing at Tokyo Tower in the distance. "Since you're not afraid of losing money, what reason do I have to refuse? But—"
He turned around, his gaze sharp and intense. "I want to see real results. Presentations alone won't cut it. Next month, bring detailed technical plans. I want my team to assess them personally."
"No problem," Ken Kutaragi replied with a confident grin.
Nobuyuki Idei secretly breathed a sigh of relief.
With Namco on board, negotiating with other third-party vendors would be much smoother.
Two weeks passed quickly.
What Kutaragi brought wasn't just so blueprints; he brought the full weight of Sony's decades of semiconductor expertise.
Namco's engineers initially approached the plans with skepticism, wondering what a bunch of electronics guys knew about ga console architecture. But as they delved deeper, cold sweat replaced their doubts, and they ended up completely awed.
This architecture was simply too far ahead of its ti.
If cost were no object, this machine's 3D processing power could blow current arcade systems out of the water.
Of course, many directions and details still needed refinent, but given Sony's deep technical reserves, these were no longer insurmountable technical challenges. What they lacked was experience.
This was precisely the value Namco brought to the table.
In the top-floor conference room of the Iron Plate Formation Building, the atmosphere was far more harmonious than it had been two weeks prior.
Masaya Nakamura glanced at the final draft of the agreent in his hands, his finger lingering for a long mont on the line that read "30% royalty discount."
This wasn't just about money; it was about prestige—the special privilege Sony was granting Namco.
After ten years of subservience to Nintendo, Namco was finally being treated as a distinguished guest by Sony.
Moreover, this partnership would enhance the appeal of the arcade platform to third-party developers.
"Developing a next-generation arcade platform based on PlayStation architecture—we've internally dubbed it System 11," Ken Kutaragi said, pointing to the relevant clause, his voice brimming with pride. "With this, gas developed for arcades by Namco can be seamlessly ported to ho consoles without any translation barriers or loss of visual quality."
Masaya Nakamura closed the file, picked up his fountain pen, and pressed the tip firmly onto the paper.
"Deal."
As Oga Norio and Masaya Nakamura shook hands, an alliance based on Sony's new console was officially ford.
With the business concluded, Oga Norio didn't rush to leave. He picked up his teacup and casually ntioned, "President Nakamura, now that the hardware architecture is settled, I have a small request."
"Please go ahead, President Oga."
"About DDR." Oga Norio leaned forward slightly. "The first-generation machine was developed by Sega, as we needed to leverage their distribution channels and hardware expertise at the ti. But now that we're going it alone and have the more powerful System 11 motherboard, I'd like to entrust the developnt of the second-generation DDR to Namco."
Masaya Nakamura was sowhat surprised.
DDR was now a cash cow.
While the gaming industry might see it as just a dance machine, on the balance sheets, it was practically a money-printing machine.
"The first-generation Sega hardware was already outdated, with its lighting and low-resolution screens ill-suited for promoting Sony Music's high-quality recordings," Oga Norio said, shaking his head with disdain. "We needed more dazzling lights, smoother motion detection, and 3D backgrounds that only System 11 could deliver."
Nobuyuki Idei chid in, "This isn't just a ga project. President Nakamura might not know this, but within Sony, this is our trump card against the conservative board mbers."
Sony was a massive corporation, and the elderly directors on the board had long been skeptical about entering the gaming industry, finding every excuse to block Sony's entry into the electronic ga market.
Even Akio Morita, the chairman who was no longer actively involved in managent, though supportive, couldn't withstand the relentless onslaught from the opposition during financial report etings.
That's when the Video Ga Division would slam the DDR revenue reports onto the table.
The impressive profit margins, combined with the hefty music licensing fees paid annually to Sony Music, served as a resounding slap in the face, leaving the opponents speechless.
Combining cutting-edge technology with cold, hard cash—this was the safeguard that allowed Sony's gaming faction to invest so heavily in the new console project.
"You're entrusting such a crucial project to us?" Masaya Nakamura narrowed his eyes.
"Because we believe in Namco's technical expertise and ga developnt heritage," Oga Norio replied with a shrewd businessman's smile. "Moreover, only if Namco perfects the arcade version can our future PlayStation version of DDR truly go viral, wouldn't you agree?"
It was an offer they couldn't refuse.
Taking on this project would not only earn Namco a developnt fee, but also a share of arcade sales revenue.
More importantly, this was Sony's pledge of trust: "We're entrusting even our most profitable IP to you. Now it's ti to show us what you're made of!"
Masaya Nakamura burst into laughter. "President Oga, it seems we're not just allies, but grasshoppers on the sa boat. Namco accepts this project."
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