Mid-September, Redwood City, California.
The autumn sun was warm and gentle. In a building just a few blocks from Sega of America's headquarters, a newly installed plaque hung by the entrance.
It bore an utterly unremarkable name: San Mateo Software Games, abbreviated as SMSG.
There was no ribbon-cutting ceremony. No champagne. Not even a single reporter.
And yet, if any Silicon Valley journalist could have slipped inside and snapped a photograph of what was happening here, he would have gladly traded his entire fortune for it.
There weren't many people present, but every person seated around the conference table was a heavyweight capable of making Wall Street tremble.
The founder of EA, the recently departed Trip Hawkins, stood in front of a whiteboard, visibly excited, like a preacher on the verge of ushering in a new era.
His audience lineup was nothing short of extravagant.
Kenji Aso, Vice President of Matsushita Electric Industrial Co., sat bolt upright, naked ambition gleaming in his eyes.
Frank Fiorina, Vice President of AT&T, tapped his fingers lightly on the tabletop, clearly weighing the risks and rewards.
Jeff Bewkes, CEO of Time Warner, exchanged a look with Sidney Sheinberg, President of Universal Studios. Their concern lay squarely with content and distribution channels.
And in the corner, Lee Jae-yong, the only son of Samsung Group Chairman Lee Kun-hee, observed everything in silence, like a keen-eyed hunter.
Every single name at the table was enough to send shockwaves through Wall Street.
These were titans from home appliances, semiconductors, telecommunications, media, and film.
And today, they had gathered for one shared goal—
Games.
Or rather, money.
All of them had been drawn in by the insane profits the gaming industry had generated over the past two years.
They had watched Sega ride the MD and Game Pocket to global dominance, printing money as if from an industrial press.
They had also watched Nintendo, even while being suppressed and beaten back step by step, continue to rake in astronomical licensing fees year after year by relying on the massive installed base of the FC.
This land flowing with milk and honey—who wouldn't want a bite?
"Gentlemen, welcome to the future," Trip Hawkins spread his arms wide, his voice charged with infectious energy. "We've all seen how Sega and Nintendo make their money. They sell consoles using the razor-and-blades model, then strangle every software developer with exorbitant licensing fees! Thirty percent of a game's profits go straight to the platform holder. The arrogance—the greed—is staggering!"
His tone shifted as he pointed to a single word written boldly on the whiteboard:
Standard.
"Why has the PC industry flourished the way it has? Because of the open IBM PC standard! So why can't we build a standard of our own in the gaming world? A standard that belongs to all of us!"
He took a deep breath and unveiled his grand vision.
"I call this standard the 3DO System. It doesn't belong to any single company—it's an open architecture. Everyone here—Matsushita, Samsung—you can all manufacture consoles that comply with this standard. SMSG will handle only the system design and architecture, and for every console produced, we'll charge a negligible licensing fee. As for games—our royalty will be just three dollars per copy."
Three dollars.
The moment the number left his mouth, a ripple of murmurs spread through the room.
Kenji Aso's eyes lit up instantly.
He knew all too well that Nintendo and Sega routinely took twenty to thirty percent. Compared to that, three dollars was practically free.
"Mr. Hawkins," Aso leaned forward eagerly, "are you saying that Matsushita could manufacture our own '3DO' console, under our own brand?"
"Absolutely!" Hawkins snapped his fingers. "Not just Matsushita—Samsung too! Any capable hardware manufacturer is welcome! We won't be slaves working for Nintendo or Sega anymore. We'll be the ones establishing the new order!"
He gestured toward the other executives.
"And Time Warner, Universal—your films and music can all be played on the 3DO! AT&T, your technology will unlock limitless potential for our network features! This won't be just a game console—it will be a home interactive entertainment center!"
The vision was intoxicating.
To become the "IBM" of the gaming world—to control the industry standard. That prospect alone was enough to make even these battle-hardened giants' hearts race.
"Interesting," Lee Jae-yong finally spoke, his English carrying a faint but noticeable accent, his words precise. "Mr. Hawkins, your idea is bold. But how do you ensure there will be enough games to support this platform? Players buy games—not boxes of hardware."
"An excellent question!" Hawkins nodded approvingly. "That's exactly why I left EA! I have more than enough friends in this industry—friends who are sick to death of Nintendo's tyrannical terms. Even Sega, with its relatively looser policies, still takes a painful cut. Give developers a fairer, more open platform, and they'll flood in like a tidal wave!"
He paused, then added calmly, as if to reassure them.
"And besides, our 3DO system won't be limited to games alone. It can carry far more forms of entertainment. The potential market is vastly larger than gaming by itself."
Then he smiled and delivered the final piece.
"More importantly—we have two geniuses."
He turned and introduced the two engineers standing behind him, both looking slightly reserved.
"Dave Needle, designer of the Commodore Amiga 1000. And R.J. Mical, one of the creators of Atari's Lynx handheld. With them on board, our hardware will be world-class."
The room was fully ignited.
"On behalf of Matsushita, I'll be the first to join," Kenji Aso stood up and declared without hesitation.
He had eyed the console market for far too long. Nintendo and Sega were making fortunes right under his nose, and it had been eating at him for years.
Not to mention watching his rival Sony profit handsomely just by collaborating with Sega on a music-oriented peripheral—pushing optical media formats and funneling traffic to its own record labels. He had been unable to sit still any longer.
"Samsung is advancing aggressively in the electronics industry," Lee Jae-yong said with a polite smile. "We're naturally very interested."
"Content won't be an issue on our end," the representatives from Time Warner and Universal chimed in one after another.
A banquet to divide up the future quietly began inside this modest office.
A terrifying alliance—formed by North American software prodigies, Japanese consumer electronics giants, Korean semiconductor upstarts, and American media behemoths—took shape without a sound.
They talked and laughed, raising their glasses in celebration, already imagining the day Nintendo and Sega would tremble beneath their feet.
Please Support me by becoming my patreon member and get 30+ chapters.
[email protected]/Ajal69
change @ with a
Thank You to Those who joined my