"Enix's current financial situation is very healthy." Yasuhiro Fukushima stopped twirling his pen and shared his opinion. "The Dragon Quest series has stable sales, and our manga publishing business is highly profitable. We don't need to sell ourselves out for short-term cash flow. I believe independence is Enix's bottom line."
The founder of Enix had rejected Sony's proposal to acquire a stake in the company.
Keiji Honda opened another docunt. "Sega didn't ntion acquiring a stake. What they are offering is a complete developnt ecosystem. This is the technical departnt's evaluation report on Sega's outsourcing list."
He distributed the report to everyone. "After verification, many of the small and dium-sized teams on the list have mastered Jupiter's underlying developnt tools. Sega has even helped them set up common RPG logic modules. If we adopt Sega's plan, our 'core outsourcing' model, which we pride ourselves on, can operate seamlessly on next-generation platforms. Managent costs won't increase, and project risks can still be kept within a controllable range."
Yuji Horii carefully reviewed the technical report.
As a producer, his primary concerns were whether the ga could be built, and whether it would be fun once it was.
"Nintendo's N64 cartridges have too little capacity, and the microcode is too difficult to work with," Horii offered his professional opinion. "If we insist on staying with the Nintendo camp, the developnt cycle for the next generation of Dragon Quest will be dragged out indefinitely. Sega's optical disc format and mature toolchain would allow us to focus our energy on the story and the ga systems. From a developer's perspective, I lean toward Sega."
A brief silence filled the conference room.
The pros and cons of the two proposals were already clear.
Sony wanted control in exchange for money, while Sega provided the technology necessary to survive.
A young executive proposed a bold idea: "Since Sega desperately needs us, and Sony is willing to throw money at us, couldn't we take Sony's offer and use it to negotiate with Sega? We could demand the sa scale of financial support and promotional resources from them, all while refusing to give up any equity."
Playing both sides—a common pressure tactic in business negotiations.
Keiji Honda shook his head without hesitation. "It won't work. Let's be realistic. Sega's Jupiter install base is approaching nine million, giving them absolute dominance in the market. They are already in an unbeatable position. Square accepted investnt from Sega a few years ago, and the terms Sega offered them were just standard royalty reductions and so promotional support. If we get greedy and ask for too much, how will Sega answer to Square? If we disrupt the balance between platform holders, we'll be the ones to suffer in the end."
He looked around the room.
"The fact that Sega provided this list of outsourcing resources is already their biggest concession, especially since they've noted the financial status of so of these teams, which could give us leverage over them. Pushing any further would be greedy."
The eting reached a stalemate.
Leaning towards Sega was the optimal solution in terms of technology and managent, but giving up Sony's vast resources felt like a waste.
Yukinobu Chida hadn't spoken yet.
He kept flipping through Sega's morandum of understanding, his eyes lingering on the terms in the final pages.
"Everyone," Yukinobu Chida said, looking up and tapping his finger on the docunt, "we've fallen into a logical fallacy."
Everyone turned to look at him.
"Did the words 'exclusive' appear anywhere in this Sega mo, from start to finish?" Yukinobu Chida threw out the question.
Keiji Honda paused for a mont, then quickly flipped through the docunt.
No.
Throughout the entire text, Takuya Nakayama emphasized Jupiter's advantages, the integration of outsourcing resources, and favorable royalty rates.
He hadn't demanded in a single clause that Dragon Quest must be released exclusively on Jupiter.
This went against conventional business logic.
When platform holders woo top-tier blockbuster titles, their primary demand is exclusivity, used to strike at their competitors.
"Did Takuya Nakayama miss it?" soone guessed.
"Impossible. An executive of his caliber wouldn't make such a low-level mistake," Yasuhiro Fukushima said, his gaze deep. "He didn't ntion it because he has sufficient confidence. He believes that Jupiter's install base and developnt environnt will keep us here. He's also sending us a signal: Sega's approach to cooperation is open; they don't engage in bullying tactics."
Yuji Horii's eyes lit up.
A developer's train of thought is always the most direct. "If they don't demand exclusivity, then things are simple." Yuji Horii stood up, walked to the whiteboard, and drew a few circles with a marker.
"If exclusivity isn't a requirent, then things beco much simpler."
Yuji Horii stood up, walked over to the whiteboard, picked up a marker, and drew a few circles.
"We'll start by borrowing the outsourced resources and developnt tools provided by Sega to create the next mainline installnt of Dragon Quest on the Jupiter platform." He wrote 'Jupiter' in the first circle. "This not only solves the technical difficulties in the early stages of developnt but also ensures the project launches on a platform with the largest install base, allowing us to recoup costs and turn a profit."
The marker moved to the second circle. "Once the Jupiter version is released and the developnt team has accumulated enough 3D experience and built up our asset library, we'll port the ga to PlayStation." He wrote 'PS' in the second circle. "Doesn't Sony have money and distribution channels? When the ti cos, we can take the finished ga to them to negotiate publishing. We won't have to give up any equity, yet we can still utilize their marketing network. Even if the resources aren't at the level we'd get if they invested in us, having an extra platform for sales ans we never lose."
Finally, the marker drew a third circle. "If Nintendo's N64 install base grows and the developnt environnt improves in the future, we can port an N64 version then." He wrote 'N64' in the circle. "This would also allow us to offer sothing to Nintendo."
The three circles on the whiteboard were connected by a single line.
The atmosphere in the conference room changed. Their thinking had been completely opened up.
"Multi-platform strategy."
Keiji Honda leaned back in his chair, digesting the proposal. "This is indeed a choice that maximizes our interests."
"Multi-platform strategy." Keiji Honda leaned back in his chair, digesting the proposal. "It is indeed a choice that maximizes profit."
"That's exactly what Konami is doing," another executive added, offering evidence. "Since the MD era, President Kazumasa Kozuki has released Konami's top titles on both Nintendo and Sega platforms simultaneously. Sales of individual gas grew exponentially, leading to imnse profits. Neither Sega nor Nintendo could do anything about it. Even now, with Jupiter and PlayStation, Konami continues to do the sa without any negative repercussions. Enix's position in the industry is no less significant than Konami's; we are fully qualified to adopt the sa strategy."
An asset-light structure, multi-platform publishing, refusing capital ties, and leveraging resources from all sides.
This was the survival strategy that best served Enix's interests.
Yasuhiro Fukushima looked at the three circles on the whiteboard and nodded. "Let's proceed with this line of thinking. First, finalize the developnt partnership with Sega for the Jupiter version. Keep in contact with Sony to keep the path for a port open."
Keiji Honda closed the docunt in front of him. "It seems everyone is in favor of this plan. Let's put it to a vote.
Those in favor of adopting the multi-platform strategy and prioritizing the developnt of the Jupiter version, please raise your hand."
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