Tuesday 8 January 1998. ZAGE Tower Japan.
Zaboru had just returned from a business trip to China, where he met with Park Woojin, the CEO of Red Falcon, to finalize discussions on ZAGE's strategic expansion into the Chinese Offices. Without taking much of a break, he rushed straight to the ZAGE Tower headquarters in Japan, heading directly to the executive floor where a series of important internal meetings were scheduled to take place. These meetings were set to cover updates on various internal developments, including the progress of ZAGE's ongoing efforts to build and organize new internal teams, long-term planning for the next fiscal year, and a detailed financial overview of ZEPS 3—ZAGE's flagship console—particularly focusing on its total revenue performance since launch. There was a lot to cover, and Zaboru knew every department had something crucial to report.
Now, in a large conference room on one of the upper floors of ZAGE Tower, Zaboru and the rest of the company's senior leadership were seated and ready. The atmosphere was serious but focused. As everyone settled in, Zaboru stood up and began his opening remarks.
"First of all, sorry for the late meeting. I've had a packed schedule this past week with important matters to handle in both London and Beijing," Zaboru said, his voice calm but firm as he looked around the conference room. "Now, let's get into the updates for everything we planned last year and what we're aiming to complete this year. First on the list is the establishment of the ZAGE Licensing Team, which is now officially up and running. It's currently being led by Shinji Spencer, and I'm glad to say he's here with us today. Spencer-san."
Zaboru smiled and gestured toward one of the seats. A man stood up — half-Japanese, half-European, with neatly styled hair and a calm presence. Shinji bowed respectfully in every direction before sitting back down.
Zaboru continued, "So, how's the Licensing Department coming along, Spencer?"
Shinji nodded, then spoke with steady confidence. "So far, we're doing well, boss. Our team is made up of mostly new hires, but they're incredibly talented and passionate. Yuna-san's team from the ZAGE Subsidiaries Management Department has also been instrumental in helping us get things off the ground. With their support, we've managed to speed up our onboarding and transition process. We expect this month to be our final transition phase, and by February, we should be fully operational — ready to maintain existing licenses and start developing new IP deals."
Zaboru nodded with a pleased expression. "Excellent. Congratulations on the progress. I'm looking forward to seeing what your team can accomplish in the months ahead."
He then shifted focus. "Next, let's talk about the progress of our Korean offices. Of course, I've already heard a bit from Park Woojin, the CEO of our subsidiary Red Falcon, when I met with him in China. But I'd like to hear it directly from your team as well, Yuna-san."
Yuna adjusted her glasses and began to speak clearly, her tone calm and professional. "As you can see, we've already been helping Red Falcon with multiple things, mainly focused on recruitment, onboarding, and setting up administrative infrastructure. So far, everything has been progressing smoothly. We've also been assisting in preparing the legal groundwork, registering necessary operational licenses, and working closely with local contractors to ensure that the office buildout stays on schedule. Based on our current timeline, you can expect the Korean offices to be fully operational by late March or early April, boss."
Zaboru smiled and nodded in approval. "That's consistent with what Park Woojin told me during our meeting in China. It's good to hear the same from your side. Great work as always, Yuna-san."
Yuna responded with a small nod, her expression composed and steady as always, reflecting the same quiet efficiency she was known for within the company.
Zaboru then asked, "One last thing, Dad — is there any update on the upcoming ZAGE team, Nexsus? How is the progress on this arcade-focused team going?"
Zanichi Renkonan, Zaboru's father and the CTO of ZAGE, gave a small nod before responding. "Yes, we've made steady progress, though we're still in the early stages. At the moment, we're actively screening candidates internally from our current teams in both Japan and the U.S. We've asked department heads to nominate any staff who have a strong passion for arcade development or prior experience in that field. The response has been better than expected — quite a number of our developers expressed genuine excitement about shifting to this new team. Many of them grew up playing arcade titles and are eager to bring that fast-paced, high-score-driven experience into the new era."
He paused briefly, then added, "Also, Nanco has been a huge help. Not only have they offered advice on structuring the team, but they're also lending support with external recruitment. We've received portfolios from several veteran arcade developers, some of whom worked on well-known cabinets in the past. It's encouraging. Of course, we're still in the team assembly phase, so while everything is going smoothly, we're estimating that the team can be formally deployed and begin active development by mid-1998, boss."
Zaboru's eyes lit up with excitement. "Oh wow, that's fantastic to hear, Dad. I'm genuinely pleased with the direction this is heading. I can't wait to see what Team Nexsus capable off once they're fully operational. Great work as always."
Zaboru gave his father an appreciative smile just as Shinsuke Yamaguchi, head of ZAGE Marketing, raised his hand to speak. Zaboru gave a nod, signaling him to go ahead. Shinsuke cleared his throat and began speaking.
"Boss, it seems our ZAGE brand is becoming a major attraction in Japan again — and this year has been absolutely wild," Shinsuke began with clear excitement in his voice. "There's been a huge surge of interest, especially from international tourists. We're seeing people from all over — the U.S., Europe, even Southeast Asia — coming to Japan just to buy our merchandise. Some retail stores in Akihabara and Osaka are reporting record numbers, especially for collectibles and limited edition bundles."
He paused, then added, "What's even more surprising is that I've recently been contacted by several major airline companies. They're interested in collaborating with us. They want to use our characters — like Pokémon, Mario, even Robo-Cop — as visual mascots for their planes, either painted on the fuselage or featured heavily in their in-flight entertainment and branding. Their belief is that showcasing these characters will help them attract more tourists, especially families and younger passengers."
Shinsuke grinned, clearly enjoying the attention their brand was receiving. "I also ran this by Spencer since this will eventually fall under his department's responsibility. He's already taking notes on what kind of licensing process we'd need to implement for such large-scale commercial deals."
Shinji scratched the back of his head modestly, a bit embarrassed by the mention, especially since he had once been Shinsuke's subordinate — the very person who had recommended him directly to Zaboru for his current leadership role.
Zaboru looked genuinely surprised. "Whoa, that's some interesting news. I wouldn't mind if they used our characters as mascots for their airlines — it sounds fun, honestly — but they'll need to pay us properly for licensing rights. For that, please coordinate with Sayuri-san, Shinsuke-san, since she's head of ZAGE Finance."
Shinsuke grinned and replied cheekily, "Don't worry, boss, we can just discuss it at home."
He gave a playful wink to Sayuri, who rolled her eyes in response. Despite being his wife, she always expected professionalism at work — though moments like this never failed to amuse her just a little.
Zaboru chuckled and said, "Anyway, Sayuri-san, could you give us an estimate of how many ZEPS 3 consoles we've sold, along with the total number of games since its release on April 15, 1997?
Sayuri nodded and began, "Well, the estimated total sales of ZEPS 3 are actually quite staggering, boss. As of now, we've sold around 15 million units worldwide."
Zaboru's eyes widened in shock — he clearly hadn't expected that level of success. "Fifteen million already? That's unbelievable," he muttered.
Sayuri smiled and continued, "Yes, and what's even more interesting is that a significant portion of these units aren't just being bought by gamers. Movie enthusiasts are also purchasing the ZEPS 3 in large numbers. Thanks to its built-in DVD functionality, it's become a very attractive home entertainment device. When compared to other DVD players on the market — especially models from Philips — the ZEPS 3 is not only more affordable, but also more reliable and user-friendly. That crossover appeal really boosted sales during the holiday season."
She tapped her tablet to pull up a graph. "We've optimized production over the past few months, and as a result, we're now earning an average profit of 3,000 yen per unit. That puts us at roughly 45 billion yen in profit from console sales alone — not counting accessories or bundled units."
Zaboru beamed with pride. The entire room erupted into applause, impressed by the numbers and the scale of ZAGE's commercial reach.
"But the major chunk of revenue actually comes from game sales," Sayuri continued. "From the launch of ZEPS 3 in April up until the end of December, we've released a total of 36 titles. It's worth noting that each title performed quite differently depending on the genre, audience, and whether it was part of a bundle or a standalone release. Some games performed exceptionally well due to popular franchises, while others benefited from promotions or regional marketing pushes."
She flipped to another page in her report. "While exact numbers vary, we can work with a rough average. Let's say each game sold around 2.5 million units. That brings us to roughly 90 million DVDs sold in total." She paused for effect, then continued, "Now, on each DVD we make about 4,000 yen in profit. That's largely because the production cost of DVDs is much lower than that of cartridges, especially with the volume we're manufacturing at. So when you do the math, that puts us at approximately 360 billion yen in total revenue from ZEPS 3 game sales alone."
She looked around the room, letting the weight of the figure sink in. The energy shifted slightly as the team began to fully grasp the scale of ZAGE's success — not just in hardware, but in the ongoing, sustainable revenue from its growing game library.
Zaboru's eyes widened in disbelief. "That much?" he said, almost under his breath.
Sayuri nodded confidently. "Yes, Boss. Our games are in incredibly high demand. People trust our brand. They know our games are polished, fun, and well-supported — so they're willing to spend. In fact, we're seeing strong attachment rates, with many customers buying more than three titles per console."
She grinned. "Besides, your whole 'I'm Your Nightmare Come to Life' stunt really showcased the ZEPS 3's capabilities. It became a huge talking point, especially after you clapped back at Sonaya. They'd been mocking us nonstop ever since their Game Station 32-bit console dropped."
Zaboru chuckled. "Well, I'm glad to hear that."
The meetings continued with a detailed financial report, wrapping up after a long but productive session. Once everything concluded, Zaboru returned to the 52nd floor of ZAGE Tower. There, waiting for him, were his wife Ayumi and their young son, Zenshin. Ayumi looked like she had something on her mind, and as Zaboru stepped into the room, he could tell from her expression that she wanted to talk about something important.
To be continue
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