Osaka, Capcom Headquarters.
Tsujimoto Kenzo was deeply troubled.
Capcom was out of money again.
In truth, Capcom's revenue wasn't particularly low. Although their games weren't exceptionally groundbreaking, they consistently brought in income every month.
The problem lay in the absence of two key titles from the original timeline: 1942 and Makaimura FC. Without these hits, Capcom's financial situation had deteriorated drastically.
To make matters worse, development on their arcade platform, the CPS1—a notorious money pit—continued unabated. Every moment it remained in production further worsened Capcom's financial state.
In his office, Tsujimoto Kenzo finished reviewing the month's financial report. He set down the file folder and pinched the bridge of his nose, his worry palpable.
We're broke! he thought ruefully. If I'd known this would happen, I should have accepted Atlas's collaboration offer. At least that would have brought in some cash.
I don't know how much longer it'll take to develop the main platform. If we pull out now, all our efforts will be wasted. But if we keep going, we'll be in the red this month!
Capcom's reserves were dwindling. Research and development were simply too expensive.
Tsujimoto Kenzo quickly estimated the accounts, already forming a rough idea in his mind.
Cutting employee wages was out of the question. Japanese companies had strict regulations regarding such matters, and if they needed someone to leave, they would resort to more indirect methods—what he called "cold violence."
If they couldn't collect the overdue payments, there was only one way forward:
Borrowing!
Capcom, due to its high cash flow, had secured numerous loans from Osaka Bank. Some had already been repaid, while others were still being paid off.
Now, Tsujimoto Kenzo planned to renew the loan to secure the urgently needed funds.
He didn't know how much longer it would take to develop the CPS1, but since they had already come this far, pulling out now would be too late.
They had to persevere! Otherwise, all the money invested would be wasted. With such a massive sunk cost—already eight hundred million yen—he had no choice but to push forward to the bitter end.
Tsujimoto Kenzo took a deep breath to steady his nerves.
Borrowing always made him feel ashamed, especially as someone from an industrial background, who instinctively resisted the idea of debt.
"Hello? It's Tsujimoto Kenzo here—"
On the other end of the line was the familiar voice of the bank manager.
"Ah, it's you, Tsujimoto. What's up?"
"Nothing much. I was just thinking we should grab a meal together since I've been a bit bored lately."
On the other end of the line, a silence fell that made Tsujimoto Kenzo's heart skip a beat.
After a moment, the bank manager sighed. "Tsujimoto, I'm afraid I can't join you for a meal right now. The bank has new regulations, and I can't afford to break the rules."
Tsujimoto Kenzo's fingers tightened around the phone, nearly crushing it.
He understood the unspoken meaning behind those words.
In other words, I won't be approving your loan.
"I see. That's a shame. Let's try to have a meal together another time, if possible."
After hanging up, Tsujimoto Kenzo leaned forward, his hands bracing against the desk, and let out a long sigh.
To be fair, Capcom was indeed drowning in debt. While their current cash reserves could still cover repayments and prevent bankruptcy, maintaining development on the CPS1 platform was becoming increasingly difficult.
"We should have made a decision earlier," he thought bitterly. "At least chosen between the MS and FC! If we had just one more game, one more stream of revenue, I wouldn't be humbling myself to beg for loans!"
A wave of profound regret surged from the depths of his heart, overwhelming him.
The intense rivalry between Sega and Nintendo had left Capcom hesitant to commit to either platform.
Two years prior, a blogger known as Ten Cents had forced Nintendo to revise its third-party developer agreements by exposing their restrictive nature, making cross-platform development possible. However, Tsujimoto Kenzo, concerned about profitability, had decided to wait until the competition between the two platforms had a clear winner before choosing a side.
Namco had taken a similar approach, but its larger scale and its thriving arcade business, with Namco's arcade division currently second only to Sega's in Japan, allowed it to weather the storm. Thanks to Iron Plate Formation, Namco had once dominated the global arcade market, accounting for over 57% of all arcade game shipments.
Unfortunately, Capcom lacked such resilience.
"Money... Money! It's all about money! I need money!" Tsujimoto Kenzo clenched his fingers tightly.
Just then, the phone rang, and his eyes lit up as he hurried to answer.
Could it be the bank? Have they approved the loan?
But unexpectedly, the voice on the other end belonged to that young man.
"President Kobayashi?"
Tsujimoto Kenzo was taken aback.
Kobayashi Tetsu's voice sounded casual and unconcerned.
"Mr. Tsujimoto, have you given our previous collaboration proposal careful consideration? I still believe Capcom is the more suitable partner. Capcom would provide the equipment and manpower, while Atlas would contribute the funding and producers, staking our company's reputation on this venture. It's an excellent opportunity."
Tsujimoto Kenzo's lips twitched, nearly giving in to the temptation to accept.
After all, Atlas had the money!
But Tsujimoto Kenzo shook his head firmly.
"My apologies, but Capcom isn't interested in collaborating at the moment. We look forward to working with Atlas in the future, but now is not the time."
"Is that so? What a pity," Kobayashi Tetsu said. "But when I call again, the terms won't be the same. Mr. Tsujimoto, please give it some more thought."
Tsujimoto Kenzo was about to hang up when a sudden realization struck him. "President Kobayashi," he blurted out, "did you handle the matter with the bank?"
To his surprise, Kobayashi Tetsu sounded genuinely bewildered. "What bank? Mr. Tsujimoto, do you really think a Tokyo-based company like Atlas could influence decisions made in Osaka?"
Tsujimoto Kenzo paused, realizing the claim sounded exaggerated.
Atlas is based in Tokyo. How could they possibly influence banking decisions in Osaka?
He didn't believe Kobayashi Tetsu's tone; it sounded like an act.
But Tsujimoto Kenzo also realized that asking such a question at this point was overly dismissive.
Atlas has no connections in Osaka. How could they possibly influence decisions here?
Tsujimoto Kenzo, who had been ready to reject the proposal, finally softened slightly.
"I'll consider this matter," he said.
Only then did he hang up the phone.
Tsujimoto Kenzo felt increasingly weary. He pressed his clasped fists against his forehead.
"One year? No, six months. Given Capcom's current revenue levels, if we can just hold on for six more months, once the base platform is completed, Capcom can start developing games and generate cash flow! But if CPS1 isn't finished within six months... we'll truly be forced to sell everything we have!"
Tsujimoto Kenzo didn't want Capcom to reach that point.
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