Kobayashi Tetsu's face, while not a household name in Japan, was still widely recognized within the gaming industry.
After all, television appearances weren't for nothing.
As Kobayashi Tetsu and Fujiwara Tokuro entered the Capcom offices, the staff members briefly whispered among themselves.
Isn't that Kobayashi Tetsu? What's he doing here at Capcom?
Could he possibly be here to acquire the company?
Hahaha!!
Of course, no one took this seriously; it was clearly a joke.
Kobayashi Tetsu slowed his pace, his gaze suddenly lingering on the computers being used by the staff.
Fujiwara Tokuro's expression shifted slightly, and he quickly gestured for the staff to cover their screens.
Almost forgot—how could we let Kobayashi Tetsu see what Capcom is developing?!
Kobayashi Tetsu remained indifferent, showing no resentment towards this reaction.
"Relax, I'm not here to spy on Capcom," he assured them.
Fujiwara Tokuro wiped away nonexistent sweat beads and forced a smile. "Of course, I know President Kobayashi isn't that kind of person."
"We're approaching the President's office now. If we're discussing business cooperation, we'll likely need to speak with him directly."
Kobayashi Tetsu stopped and looked at Fujiwara Tokuro.
"Come to think of it, your surname is Fujiwara. Are you perhaps related to the Kazoku nobility?"
Fujiwara Tokuro was taken aback. "It's just a coincidence that my surname is Fujiwara. In Osaka, there are many people with that name."
Kobayashi Tetsu nodded. "Since you're neither the Emperor nor a member of the Kazoku, I don't understand why you're involved in this meeting."
Only then did Fujiwara Tokuro realize what Kobayashi Tetsu was implying, leaving him somewhat speechless.
He hadn't anticipated Kobayashi Tetsu would bring this up!
After dismissing Fujiwara Tokuro, Kobayashi Tetsu entered the office before him alone.
The President of Capcom was Tsujimoto Kenzo, a robust man of forty-five years old. He hailed from Nara, the same prefecture as Akira Furuya.
Tsujimoto Kenzo lacked technical skills, game-making expertise, or even basic industry knowledge. Yet, he possessed a keen commercial acumen.
After the family-owned candy factory went bankrupt, Tsujimoto Kenzo astutely recognized the transformative potential of electronic games. He decisively took out a loan to invest in the gaming industry, founding IRM, the precursor to Capcom. Several years later, he established Capcom as a separate entity.
As a businessman with an industrial background, Tsujimoto Kenzo's approach to business carried the typical characteristics of an industrialist. Consequently, Capcom followed a classic "tech-industry-trade" model: developing technology first, then creating games, and finally engaging in trade to generate profit.
Whether it was Capcom's arcade games or computer games, development always began with creating a game engine, followed by developing the games themselves. For example, to remake the Resident Evil series, Capcom developed the RE Engine specifically for the purpose. They then honed their skills by creating several games using the engine, including the critically mixed Resident Evil 3, which served as a practice run. This led to the critically acclaimed Resident Evil 4 (RE), a perfect remake that received outstanding reviews.
However, Capcom's early size and resources were limited, and the "tech-industry-trade" model proved to be the company's greatest challenge during its early years.
Capcom didn't have the capital to invest heavily in technology, yet the nature of its business model required substantial investment in technological development. As a result, despite its growing reputation, Capcom consistently operated at a loss for many years.
This was also the confidence Kobayashi Tetsu had to directly approach Capcom today.
When the two met, Tsujimoto Kenzo was momentarily taken aback before quickly plastering on a standard business smile.
"President Kobayashi, what an unexpected guest! Please, have a seat!" Tsujimoto Kenzo warmly invited Kobayashi Tetsu to sit down and offered him tea. With a tone that appeared genuinely concerned, he asked, "May I ask what brings you here today, President Kobayashi?"
"Oh, nothing urgent. I just wanted to discuss a potential collaboration with Capcom."
Tsujimoto Kenzo seemed to grasp the idea. "Outsourced manufacturing? Licensed development?"
Kobayashi Tetsu raised a finger. "No, it's about Atlas and Capcom jointly developing an arcade game together."
To be precise, Atlas would provide the management, while Capcom would contribute the manpower to create the game.
Tsujimoto Kenzo's eyelid twitched as he quickly assessed Kobayashi Tetsu's proposal.
Capcom wasn't some virtuous maiden or moral gentleman. If the funding was in place, outsourced development wasn't out of the question.
However, Tsujimoto Kenzo's concern wasn't about the development itself, but rather what lay hidden behind such a proposal.
HAL had vanished after outsourcing their project, never to be heard from again!
After a moment of contemplation, Tsujimoto Kenzo finally spoke: "I would be deeply honored to have this opportunity. However, we still need to discuss the specific terms of collaboration. It would be best if Capcom led the project, with Atlas refraining from overstepping in development matters. Providing funding would be the greatest support Atlas could offer. Beyond that—"
Kobayashi Tetsu suddenly cut him off.
"Mr. Tsujimoto, I think your demands are a bit excessive. No, let me correct myself—they're very excessive. Remember, Atlas is the one commissioning Capcom, not the other way around. All development must proceed under Atlas's supervision. Atlas can contribute funds without sending personnel, but no part of the development process can escape our oversight."
Tsujimoto Kenzo's lips twitched, but he ultimately shook his head.
"If that's the case, it seems we won't be able to reach an agreement. What a pity."
Kobayashi Tetsu agreed.
Indeed, what a pity.
He bowed slightly in farewell, then stood up and left the office without another word.
This surprised Tsujimoto Kenzo. Based on Kobayashi Tetsu's reputation, he had expected the president to throw a fit in the office, not accept the rejection so easily.
"Still, I have my own troubles. Capcom's secret weapon mustn't fall into outsiders' hands. Even I'm tempted, but Capcom's interests come first."
Tsujimoto Kenzo shook his head subtly.
Fortunately, President Kobayashi Tetsu was nothing like his TV persona; he seemed quite approachable!
Kobayashi Tetsu strode out of his office, relaxed and at ease. His gaze swept across Capcom's office, taking in the Capcom employees.
"These are all my employees, aren't they? Why are they working for Capcom? Tsujimoto Kenzo, hand them over!"
A businessman like Tsujimoto Kenzo would never refuse what seemed like a straightforward development commission. Even though both sides wanted to maintain control, Tsujimoto Kenzo wouldn't mind stepping back.
But now, he was determined to hold his ground for one simple reason:
Capcom was developing hardware.
Yes, as a typical tech-oriented trading company, Capcom developed arcade games by first creating the corresponding motherboards! At this point, Capcom was desperately short on funds yet extremely wary, like a mouse on a knife's edge, ready to scream at the slightest disturbance.
Since late 1985, Capcom had invested heavily in developing its own motherboard, named CPS1.
Console games require development kits, and arcade games need corresponding motherboards. Many companies simply purchased Sega's motherboards for development, which meant paying Sega additional licensing fees and sales royalties.
Therefore, ambitious developers chose to create their own motherboards to gradually break free from Sega's influence.
One such motherboard was the CPS1, developed by Capcom.
Later, numerous games including The King of Dragons, Warriors of Fate, Final Fight, and Street Fighter II were all born on this platform.
Capcom's motherboard was distinguished by its precise collision detection and smooth animation. Though not particularly strong in graphics, it was perfectly suited for developing action-oriented arcade games. It also seamlessly integrated with the later arcade cabinets featuring eight-way joysticks and six buttons.
These cabinets were developed by Capcom themselves. Prior to their introduction, arcade cabinets typically featured four-way joysticks and only two buttons.
When President Kobayashi Tetsu proposed taking control of the project, Capcom naturally refused. This would have forced them to reveal their under-development CPS1, their trump card for the future.
Capcom had invested over 1.1 billion yen in the project, nearly crippling their cash flow. They had to borrow heavily from Osaka Bank; without the easy credit of Japan's Bubble Era, they wouldn't have been able to secure such a massive loan.
Kobayashi Tetsu knew Capcom was desperate for money, which is why he confidently walked away.
He wasn't in a hurry—Capcom was the one in a hurry!
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