Ti entered October 1995.
The autumn breeze in Tokyo swept through the streets, carrying away the lingering warmth of sumr, but it couldn't disperse the bustling crowds in the electronics districts of Akihabara.
The dazzling demo footage from the E3 exhibition, after months of mastering and distribution channel stocking, had gradually turned into physical discs and cartridges sitting on store shelves.
As the end of the year approached, ga companies were releasing new titles more and more frequently, and many of the promises made by companies during the sumr were finally being fulfilled.
Gars faced the toughest test of their wallets, with an endless stream of new releases driving up their spending on gas.
The adoption rate of 32-bit consoles exceeded the expectations of many traditional analysts.
According to data aggregated from major distributors, Sega's Jupiter had cumulatively sold over 5 million units globally.
Sony's PlayStation, despite facing resistance in the North Arican market, had also surpassed 2 million units in July, thanks to its steady performance in its ho market of Japan and the support of its third-party lineup.
In sharp contrast to this was the 16-bit console market.
Throughout the second half of the year, a large number of SFC and MD gas continued to be released, and the sales figures were still passable, but the atmosphere of nationwide frenzy was no more.
The attention of millions, if not tens of millions, of core gars had long since been captivated by the more impactful 3D graphics and CD-quality audio of 32-bit consoles.
When it cos to shifts in market trends, third-party software developers are always the most sensitive.
At this ti, Sega released a ssage through official channels within the gaming industry: throughout December and the New Year holiday, Sega would not release any major first-party blockbusters, effectively ceding the most lucrative comrcial battle period at the end of the year to its third-party partners.
When the news broke, the industry was in an uproar once again, although this was not the first ti Sega had made such an arrangent.
Inside the offices of Sony Computer Entertainnt, several executives sneered at this approach.
In their view, this was nothing more than posturing by Sega to cover up internal issues—either insufficient production capacity for the Jupiter or delays in first-party developnt—while simultaneously trying to win so favor within the third-party camp.
However, those "old foxes" who had been grinding away in the gaming industry for years saw things very differently.
A high-end Japanese restaurant in Minato Ward.
The sliding doors shut out the hustle and bustle of the outside world.
On the tatami mat, three cups of sake were pushed to the center of the table.
Konami President Kazumasa Kozuki picked up his cup and took a sip. Sitting to his left was Capcom President Kenzo Tsujimoto, and to his right was Hudson's Hiroshi Kudo.
These three companies were the most significant third-party powers in the Japanese gaming industry at the ti.
This private gathering today was held without any aides—just the three helmsn facing off and testing one another.
"Have you both seen Sega's press release?" Kudo asked, setting down his cup and getting straight to the point. "That young man, Takuya Nakayama, is getting more and more cunning. Giving up December sounds nice, but in reality, he's just putting us third-party developers on the spot. By offering the slot, if you can't co up with a good enough ga to fill the void, your rating with distributors will drop next year."
Kenzo Tsujimoto crossed his arms and snorted. "Capcom's Street Fighter ZERO is selling well on the Jupiter, but developnt costs aren't low either. The threshold for the 32-bit era is just too high. Sega is forcing us to pick a side. If you take the slot and fail to deliver a hit, you lose leverage with the distributors."
Hudson had been imnsely successful during the 16-bit era, but in the face of the shift to 3D, their transition had not been smooth. Kudo sighed, "
Kudo Hiroshi sighed. Hudson had been imnsely successful in the 16-bit era, but the transition to the 3D wave hadn't gone smoothly. "We've also invested in Jupiter, putting a lot of resources into Space Adventure and Dungeon Explorer.
"It's hard to say how much longer 16-bit consoles will last. Sega leaving December open is indeed an opportunity for us, but it also ans the 'at grinder' war between third-party developers is going to start ahead of schedule."
Kozuki Kazumasa fiddled with his glass, his tone calm: "Do you really believe Sega would just hand over their year-end profits to others?"
Tsujimoto Kenzo looked up at him: "Do you have inside information?"
"I don't need inside information; just do the math," Kozuki replied, analyzing clearly. "Sega saying they aren't releasing any major titles in December doesn't an they won't release anything in November. Don't forget, there's a movie coming out in Hollywood."
Kudo Hiroshi frowned, thinking for a mont: "That all-CGI animated film from Disney and Pixar?"
"Toy Story," Kozuki said, naming the film. "The schedule is set, with the North Arican premiere in late November. Sega secured the ga adaptation rights and handed it over to their North Arican developnt team a long ti ago. Given their experience dealing with Hollywood over the past few years, the ga will definitely be released simultaneously with the movie."
Kenzo Tsujimoto tapped his fingers on the table, looking sowhat skeptical. "How much damage can a ga adapted from an animated movie really do? Most of those previous movie-based gas were just shoddy, re-skinned cash grabs. Gars have already wised up to that."
"Don't underestimate Takuya Nakayama's vision, and certainly don't underestimate Pixar's technology," Kagemasa Kozuki countered. "Sega specifically reserved ti at E3 to showcase this ga. With fully 3D-rendered graphics, combined with the buzz from the movie and Sega's distribution channels in North Arica, this ga, releasing in late November, has the sales montum to carry right through the entire month of December, and even into the New Year holidays."
Hiroshi Kudo understood the implications and gasped. "So, Sega's concession... was actually a trap. They used a long-tail product to occupy the shelf space at the end of the year, then let us third-party developers fight it out among ourselves in December while they sit back and collect the royalties. No matter which third-party wins, Sega is the ultimate victor."
"That's exactly it," Kozuki said, topping up their glasses with wine. "Sega played their hand too cleverly. Takuya Nakayama isn't a man to move without a sure bet. He dared to cede the December slot because the card he holds is big enough—big enough that he doesn't need to crowd into December to compete with us."
"What does Konami plan to do?" Kenzo Tsujimoto asked the core question.
"Avoid it." Kazumasa Kozuki replied decisively, without the slightest hesitation. "For the Jupiter versions of Suikoden and Live! Crazy Big Shooting, I've already had the developnt departnt adjust the disc pressing schedule. Either we release them before mid-November to reap a harvest before Toy Story arrives, or we postpone them directly until after Christmas to avoid the most intense at grinder of a period."
He paused for a mont and added, "Konami needs profits to sustain our upcoming developnt plans; we can't afford to waste resources on a pointless battle for release windows. Head-to-head confrontation is not a wise choice."
Hiroshi Kudo nodded in agreent. Hudson's situation required even more caution than Konami's. "We'll be adjusting our strategy for Panic Bomber as well. It's ant to be a ga targeting the casual market anyway, so there's no need to vie for attention with those 3D blockbusters. Pushing it back to after the New Year holiday and marketing it as a family-friendly ga might yield better results."
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