Tokyo, top floor of the Sega Headquarters Building.
Beyond the expansive floor-to-ceiling windows, autumn sunlight bathed the streets below.
Takuya Nakayama sat behind his desk, flipping through a copy of that day's Nikkei.
On the bottom right of the front page, occupying a quarter of the layout, was a bold, black headline: [ Sharp Unveils Next-Gen LCD Technology: HR-TFT SuperMobile LCD ].
A knock sounded at the office door.
Hideki Sato pushed it open and stepped inside.
He carried a silver, anti-static briefcase.
Takuya Nakayama tossed the newspaper onto the desk. "The press release from Sharp just went out, and you've already got the goods?"
Sato placed the briefcase on the coffee table and flicked open the metal latches.
Click. Click. The lid sprang open.
Inside, several independently packaged LCD panels were neatly arranged.
"The final production batch, air-freighted from Sharp's Kameyama Plant this morning," Hideki Sato said, picking up one of the panels and removing it from its anti-static bag. "The specs match the ones announced in the newspapers perfectly. Power consumption is one-seventh that of traditional transmissive displays, thickness is reduced to one-third, and weight is cut in half."
Takuya Nakayama walked over and took the panel from him.
It felt incredibly light. The edge-cutting was far more refined than on the previous engineering samples.
"Did they fix the light leakage issue at the edges that cropped up in the last batch under high humidity?" Takuya asked, turning the panel over to inspect the ribbon cable interface on the back.
"Completely resolved," Sato replied with absolute confidence. "Sharp overhauled the packaging process for the backlight module. This production batch has higher color accuracy and a wider viewing angle. We ran a three-hour stress test in Sharp's lab—no dead pixels, no ghosting."
Takuya placed the panel back in the case. "Koguchi is pressing us. Get all ten of these installed in the Development Kits today."
"Understood." Sato closed the briefcase and turned to leave.
3:00 PM, Hardware Development Lab.
The exhaust fan hummed steadily.
Screwdrivers and soldering irons lay scattered across the workbench.
Oguchi Hisao stood by, notebook in hand, his gaze fixed on the engineers as they dismantled the Development Kits.
The black engineering plastic casings were pried open.
The old sample screens were removed and replaced with the newly delivered HR-TFT Panels.
Ribbon cables were re-seated, the casings snapped shut, and screws were tightened.
Hideki Sato pressed the power button.
The screen flickered to life.
The blue Sega logo appeared in the center of the display.
The background was perfectly clean, without a hint of noise.
Oguchi Hisao leaned in for a closer look.
"The color saturation is at least one level higher," Oguchi said, turning to Sato. "The previous screen made my eyes ache after a while. This one is much more comfortable."
"That's the advantage of reflective LCDs," Sato replied, picking up a light meter from the table. "In natural light, this screen performs far better than backlit displays. Players won't have to worry about visibility when playing outdoors."
Oguchi crossed a line through his notebook. "Ten units. Send them downstairs immediately after the swap."
"We'll have it sorted out soon," Hideki Sato said, directing the engineers to keep working.
Back in the office, Takuya Nakayama held a few pages of a freshly printed press release. Tadashi Takezaki, the Public Relations Department head, stood before the desk, hands clasped, waiting for instructions.
"Takezaki, this draft is too blunt," Takuya Nakayama said, picking up a red pen from the desk and drawing a thick line through the first paragraph. "Delete the sentence: 'The hardware for the next-generation handheld is now finalized.'"
Takezaki froze, confused. "Managing Director, Sato's team already installed the final HR-TFT screen, didn't they? The hardware is finalized."
Takuya Nakayama tossed the red pen onto the desk with a sharp clack.
"You can't show all your cards at once in a promotional campaign," he said, pointing to the press release. "If you tell the media the hardware is finalized now, the players' expectations will skyrocket instantly. They'll spend every day badgering us about the release date. The resulting lull will drain all their enthusiasm."
Takezaki finally understood.
"Change it to: 'The development of the new handheld hardware has entered its final stage and is nearing completion.'" Takuya Nakayama leaned back in his chair. "We need to give the public the impression that we're still continuously polishing and striving for perfection. Leave some suspense, let those hardware enthusiasts guess our final specifications."
Tadashi Takezaki immediately jotted this down in his notebook.
"Also, add a section about the software development tools," Takuya Nakayama added. "Clearly tell the media that the new generation of development kits, led by Yuji Naka, is already in place and has begun distribution to all major core development teams. Make sure to mention that the adaptation work for third-party manufacturers is also progressing smoothly."
"Understood," Tadashi Takezaki nodded. "Emphasize the software ecosystem to dispel players' concerns about the number of launch titles."
"Exactly. The Game Pocket has been on the market for several years now, and players are long since tired of it. We need to tell them that Sega's new machine not only has powerful hardware but also a continuous reserve of games." Takuya Nakayama tapped the desk. "Send this draft to Famitsu and Dengeki Oh. Let them run it as an exclusive scoop."
Tadashi Takezaki turned and left the office.
Tokyo, Chiyoda Ward, Famitsu Editorial Department.
The fax machine emitted a harsh, rhythmic beeping as it spat out page after page of documents bearing the Sega logo.
Matsui, the Deputy Editor-in-Chief, hurried over and tore the pages from the machine. After a quick glance at the headline, his expression shifted dramatically.
"Editor-in-Chief Hamamura! An urgent dispatch from Sega!" Matsui strode toward Hirokazu Hamamura's desk, fax in hand.
Hamamura set down his coffee cup and took the papers.
Across the office, several editors who had been furiously typing stopped their keyboards, turning to watch the scene unfold.
"Sega's next-generation handheld is nearing completion, and the underlying development tools are fully operational—" Hamamura read the headline aloud, his brow furrowed.
"This is completely unexpected," Matsui said, pulling up a chair. "The industry has been buzzing with rumors about Sega working on a new handheld, but we never imagined they were this far along."
Hamamura pored over the press release.
"This isn't a bluff," he said, pointing to a specific paragraph. "The release explicitly mentions Yuji Naka. He's Sega's technical core. The fact that development tools have already been distributed means Sega is playing for keeps this time."
"Editor-in-Chief, the headline for next week's issue is set to be the new Final Fantasy from Square," Matsui reminded him.
Hirokazu Hamamura waved his hand decisively.
"Move the Square story back a page. The headline is now Sega's new handheld." Hamamura stood up. "Get on the phone with Sega's PR department immediately. Try to get some concept art or silhouettes of the new console. Even if we don't get any images, we're making this press release a double-page spread!"
Matsui sprang to his feet to make the call.
Hamamura stared at the fax in his hand.
Sega had timed this leak perfectly.
The year-end sales war was approaching, and every major manufacturer was preparing their big moves. By announcing their new console was "nearing completion," Sega had skillfully ridden the wave of Sharp's new screen announcement, successfully stealing the entire industry's spotlight.
Two days later, in Akihabara.
The early morning streets were already bustling with pedestrians. A large video game retail store had just opened for business.
The manager placed a stack of the latest Famitsu magazines, still smelling of fresh ink, on the most prominent display shelf at the storefront.
On the cover, several bold red characters screamed for attention: Sega's Next-Gen Handheld Enters Final Stages of Development!
A group of high school students in uniform, backpacks slung over their shoulders, passed by the store. They were instantly drawn to the headline.
"Hey, look! Sega's releasing a new handheld!" a boy with glasses shouted, pointing at the magazine.
His two friends crowded around and grabbed a copy, flipping it open.
"No way! It's been ages since the Game Pocket. Sega's finally making another handheld?"
"The magazine says the development kits have already been sent to the studios."
"Awesome! I'm sick to death of that monochrome screen on the Game Pocket."
"I wonder what the launch titles will be. A new Phantasy Star would be incredible!"
The young men stood before the shelf, their voices animated in a loud discussion.
Kyoto, Nintendo Headquarters.
The atmosphere in the conference room was suffocating.
At the head of the long oval table sat Yamauchi Hiroshi.
He gripped a freshly delivered copy of Famitsu. The bold red text on the cover—Sega's Next-Gen Handheld Development Enters Final Stage—seemed to strike a nerve for everyone in the room.
Yamauchi's fingers loosened, and the magazine dropped onto the table with a dull thud.
The three men seated below him—Masayuki Uemura, Shigeru Miyamoto, and Gunpei Yokoi—remained silent, none daring to speak first.
For years, Sega's Game Pocket had been tearing through the handheld market, keeping Nintendo's Game Boy firmly in its shadow.
This had kept the sales of many great Game Boy titles from ever reaching their full potential. Over time, a massive backlog of unsold cartridges had accumulated, becoming a significant financial burden on Nintendo's books.
Nintendo had been planning for a long time to fight back.
They had set their sights on Sharp's color LCD screens, preparing to give the Game Boy a complete overhaul and launch the Game Boy Color.
The plan was simple: use the color screen as a selling point, maintain backward compatibility with all black-and-white GB games, and seize the opportunity to clear out all that old inventory.
This would allow them to quickly recover the development costs of the upgrade, generate a massive influx of cash, and free up warehouse space. It would also bring many game developers back into Nintendo's fold, setting the stage for a spectacular comeback.
But Sega, of all times, had just leaked news of a new handheld.
Yamauchi Hiroshi lifted the hot tea from the table and blew on the floating leaves.
"Take a look. Sega has just held a knife to our throats."
Gunpei Yokoi picked up the magazine, scanned its contents quickly, and frowned deeply.
"Takuya Nakayama is moving too fast. We've only just finalized the screen supplier for the GBC, and they've already distributed the development kits." Gunpei Yokoi pushed the magazine toward Masayuki Uemura, who was sitting beside him. "If Sega launches a next-generation handheld right now, our GBC will be at a severe disadvantage."
Masayuki Uemura took the magazine, his eyes fixed on the lines of text.
"This is a generational hardware gap," Uemura said, pointing to a passage in the press release. "The GBC is just a color upgrade of the GB; its core performance hasn't made a qualitative leap. Sega is releasing a truly next-generation machine this time. Its display and performance will undoubtedly surpass the GBC. If we go head-to-head, why would players choose us?"
Shigeru Miyamoto, sitting nearby, rubbed his hands together and leaned forward slightly.
"Performance has never been the sole deciding factor," Miyamoto said, his tone steady. "The GBC's strength lies in its massive game library. As long as it offers perfect backward compatibility, combined with a few heavyweight color-exclusive titles, players will buy in. No matter how powerful Sega's new machine is, how many games will it have at launch? Without an installed base, third-party manufacturers won't be able to commit to their side easily."
Gunpei Yokoi shook his head, his fingers tapping the tabletop.
"Miyamoto, don't forget how the GamePocket pushed us to this point. Sega's cash flow is terrifying right now. They have the resources to buy exclusivity. If they widen the gap in screen quality, the GBC's 'color' gimmick will become a joke. And besides, how do you know Sega's new handheld won't be backward compatible with GamePocket games?"
Silence fell over the conference room once more.
Yamauchi Hiroshi set down his teacup, the porcelain clinking sharply.
"The GBC project will proceed," Yamauchi declared, his tone leaving no room for debate. "We must clear out the inventory of those old games; that's our bottom line. The question is, how do we avoid Sega's sharp edge—or better yet, how do we break it?"
Masayuki Uemura stared at the magazine article, his eyes darting between the dates.
He suddenly looked up.
"President, the timing of this article is too convenient."
Yamauchi Hiroshi turned to him.
"Sharp just announced their latest HR-TFT reflective LCD technology in the Nikkei," Uemura said, flipping open a newspaper beside him. "And immediately after, Sega announced in Famitsu that their new handheld hardware is nearly finalized. There isn't even a day's difference between the two."
Gunpei Yokoi leaned in to examine the newspaper.
"Are you suggesting—"
"It's highly likely Sega used this new Sharp screen," Masayuki Uemura reasoned. "Reflective LCD, low power consumption, high color saturation. It's a perfect fit for a handheld console. If Sega has indeed adopted this screen, it explains how they could announce their hardware was finalized so quickly."
Shigeru Miyamoto frowned.
"Sharp is our supplier for the GBC's screen as well. If Sega has snatched the production capacity—"
"That would be the most critical blow," Uemura added, folding the newspaper. "Sharp's new production line has limited capacity. Sega has a mountain of cash—they might have signed an exclusivity agreement with Sharp or bought up the first batch of production. If so, our GBC will be left without screens."
Yamauchi Hiroshi tapped his finger heavily on the table twice.
"Any leaks from Sharp?"
"None so far. Sharp is keeping a tight lid on things," Uemura replied. "But Sega has moved so fast that they might have contacted Sharp's lab before the screen was even fully finalized. If they've been in touch, they'll have left a trail."
Yamauchi Hiroshi rose and walked to the window, gazing out at the streets of Kyoto.
"Investigate."
His voice was steady, his back to the others.
"Uemura, you will go to Sharp Headquarters in person. Use your contacts. Do whatever it takes to uncover Sega's plans. I want to know exactly how many screens they've ordered, their size, and their resolution. I need the most precise data."
Masayuki Uemura stood up immediately.
"Understood. I'll arrange my travel right away."
"And you, Yokoi," Yamauchi turned around. "Cut the GBC's hardware costs by another ten percent. If Sega wants to compete on specs, we'll compete on price. Drive the cost down to a figure they absolutely cannot match."
Gunpei Yokoi nodded in agreement.
"Miyamoto," Yamauchi looked at Shigeru Miyamoto. "Your task is the most critical. I want the GBC's launch lineup to be absolutely dominant. Bring out your best, most ambitious projects. Sega thinks they can turn the tables with a new machine. I'm going to show them who truly rules the handheld market."
Shigeru Miyamoto pushed up his glasses, meeting Yamauchi's gaze.
"Leave it to me."
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