Console Wars

by Blake J. Harris

  After that, the five of them crammed into one taxi and continued on to the restaurant. With top shelf Scotch in their hands, they celebrated life, friendship, and the pleasure of business, which was occasionally interrupted by Scoroposki finding small shards of glass in his hair.

  At some point, even without a very good way to segue into it, Fischbach revealed that they would be publishing games for Sega. Lincoln and Arakawa instinctively looked to each other, and in that moment of hollow silence Fischbach braced for the blowback.

  “Who cares?” Lincoln shrugged. “You guys are alive. That’s all that matters!”

  Arakawa nodded sincerely. “This is much more important.”

  The conversation then resumed with the same joy as before, all five of them partially aware that things would never be the same again. But still they drank, appreciating the incredible here and now.

  “That’s insane!” Kalinske declared, when Fischbach finished the story. “I wonder, do you really think the conversation would have gone differently if not for the incident?”

  “I don’t know,” Fischbach said. “But I like to believe that some awful, awful German cabdriver unknowingly changed the history of videogames forever.”

  “That’s a pretty bold claim,” Kalinske declared.

  “Yes, but have you been paying attention to this game?” Fischbach replied. “Trust me when I say that Mortal Kombat is going to change everything.”

  Kalinske agreed, and if Sega really stood any chance of knocking down Nintendo’s door they needed to license the game. The copious amounts of blood and violence were certainly not ideal, but Kaliske had already made peace with this issue. “I want the exclusive rights to this. What’s it going to take?”

  “Actually,” Fischbach began, “we were thinking about doing this one differently.”

  “Changing it up,” Scoroposki added, but it didn’t alleviate Kalinske’s confusion.

  “We’re going to license the game to both you and Nintendo,” Fischbach explained, “to release on both system the same day. That is, if you still want it.”

  The situation wasn’t quite what he wanted, but as he thought about it more it seemed almost for the best. For years, Sega and Nintendo had been going back and forth, arguing over numbers, technical specifications and sell-in versus sell-through. Finally, though, there would be something to settle the debate once and for all. One game released on both systems at the same time on the same day. Whoever won the battle would not only get bragging rights, but likely also sow up a majority of the market share. Just like the fighters in the Mortal Kombat, one company would be left standing when it was all said and done. “Of course we still want it,” Kalinske said, as the adrenaline rushed through his veins. “May the best man win, right?”

  39.

  AND AWAY WE GO!

  On November 19, 1992, Tom Kalinske addressed Sega of America’s nearly three hundred employees from the loading dock of the company’s distribution warehouse in Hayward, California. There, with an unquenchable grin on his face, Kalinske delivered a passionate speech that Ellen Beth Van Buskirk had prepared for this momentous occasion.

  TOM KALINSKE

  Today we celebrate a tremendous Sega effort!

  The applause cut off Kalinske right away; there was just no way to repress it any longer. Plus, it looked good for the cameras. Although this event had been designed as a thank-you to Sega’s employees, it also cleverly doubled as a PR opportunity to officially kick Sonic 2sday into motion. It was the videogame world’s equivalent of Santa loading his sleigh.

  TOM KALINSKE

  After fourteen months of development, marketing, and operational achievement, we are here to commemorate the first shipment of Sonic The Hedgehog 2.

  This wasn’t just fourteen months of work, but years of effort from hundreds of employees. Some were right here in the crowd, some were across the ocean, and others had planted the seeds once upon a time but were long gone by now. It was the ultimate team effort, and that’s why everyone in attendance was wearing the same thing: a hooded sweatshirt with the words “We did it!” scrolling up the sleeve.

  TOM KALINSKE

  We have all grown to love this feisty little hedgehog . . .

  At the heart of everything was Sonic The Hedgehog, Sega’s little engine that could, did, and was ready to do again. According to a recent national survey, Sonic was now a more recognizable American icon than Mario, MC Hammer, and even Mickey Mouse.

  TOM KALINSKE

  And with this sequel, we can be proud of the team accomplishment, which has produced the very best videogame of all time.

  For months, Sega of America had been guarding this new game as if it were enriched uranium, which in terms of the war with Nintendo was exactly what it was. Development was kept strictly under wraps, minus the four screenshots each month that Nilsen would select to share with the public.

  TOM KALINSKE

  Let me share with you what the national news media are saying about our blue spiked friend.

  But that Hollywood-esque supersecret teaser mentality changed on October 8, with the beginning of Sega’s Sonic 2 Store Tour. Since then, 345 retail locations (and three air force bases) in sixteen markets gave customers an exclusive opportunity to play the game.

  TOM KALINSKE

  “To watch Sonic kick into overdrive, or be hurled through a pneumatic tube at what seems like the speed of sound, is really amazing.” —Associated Press

  “What’s faster than a speeding bullet, stronger than a locomotive and able to leap tall buildings with a single bound? Well, him too, but we’re talking about Sonic The Hedgehog.” —GamePro

  “Not enough adjectives describe this game. . . . Faster, bigger, wilder and even more fun. Welcome back Sonic! Missed ya!” —Richmond Times-Dispatch

  “Sonic 2 is, without a doubt, going to be one of the greatest action carts for Genesis.” —Electronic Gaming Monthly

  During the Sonic 2 Store Tour, 27,386 people played the game, 54 percent of them kids, 36 percent teens, and 8 percent adults. An additional 24,027 people stopped by to ask questions and watch others play. At the stores, three of the most frequent comments were “The new game is awesome,” “I want this for Christmas,” and “Sega is better than Nintendo.”

  TOM KALINSKE

  Sonic has captured the hearts and minds of gamers and fans everywhere. I thank all of you for believing in Sonic and giving him better than the best you had to offer!

  Once again, Kalinske was happy to be cut off by an explosion of applause. Normally, when giving speeches, it was his job to inspire the crowd, but today that dynamic felt reversed. And the best part was Sega’s success, and that which would follow, was about more than just Sonic. As Peter Main had pointed out years earlier, the name of the game was the game, and Sega was not only making great ones, but games that other companies wouldn’t have dared to make—and they were becoming bestsellers. There was no better example than Ecco the Dolphin, which had been greenlit at an Italian restaurant years earlier and now was roping in a female audience of gamers.

  TOM KALINSKE

  Each of you are responsible for making Sonic 2 the biggest selling videogame cartridge of all time. We are going to sell 2 million games here in the U.S. and another 2.5 million worldwide. In fact, we have already presold 20 percent of that volume—a phenomenon never seen before in the industry.

  This second sentence was staggering, but it was the first that truly told the story. Without every single one of Sega’s employees acting in exactly the way that they had, Sega’s grand experiment would not be where it was today. Every little action mattered; every big idea had to be made real by the entire team.

  TOM KALINSKE

  What makes this cart even more special is that Sonic 2 sales will contribute more than $500,000 toward the Sega Charitable Youth Education and Health Foundation. I’m real proud of that achievement too.

  And somewhere out there so was Anique, whose unique smile was no doubt lighting up the he
avens.

  TOM KALINSKE

  I now want to recognize a few of the key people who went to the proverbial Mobius and back to create Sonic 2. Please raise your hands as I call out your name.

  Sega’s success was such an A-to-Z team effort that it felt almost cruel to single out only a handful of individuals, but it would have been crueler not to shine a momentary spotlight on those whose every action personified the Next Level.

  TOM KALINSKE

  Shinobu Toyoda.

  To the man with legs long enough to straddle Japan and the United States.

  TOM KALINSKE

  Yuji Naka

  Masaharu Yoshii

  Yasushi Yamaguchi

  Yutaka Sugano

  All the STI artists and programmers

  To those who dared to dream up this game.

  TOM KALINSKE

  Al Nilsen

  Bob Harris

  France Tantiado

  Ellen Beth Van Buskirk

  To those who made this more than just a game.

  TOM KALINSKE

  Richard Burns

  Len Ciciretto and the sales group

  To those who went door-to-door, selling Sega’s revolution.

  TOM KALINSKE

  Glen Weisman

  Laila Atassi

  Joe Walkington

  Roger Rambeau

  Sandy Tallerico and the warehouse bunch

  To those who turned operations into an art form.

  TOM KALINSKE

  Steve Apour, Ben Szymkowiak, and our valiant testers

  To those producers, developers, and testers who could see the world in pixels.

  TOM KALINSKE

  Thank you again for your vision and hard work!

  Amongst the raucous applause and the humble bows, there was one name notably missing from the list: Madeline Schroeder. In July, the mother of Sonic had left Sega, along with Jude Lange, to start their own software developer, Crystal Dynamics. This unexpected move signified an irreversible maturation for Sega, which had now earned enough clout to be viewed as a launching pad for bold career moves. This changing of the guard signaled that the company would likely experience an exit of many of those who had made Sega special, and an influx of new employees hoping to make a dent.

  TOM KALINSKE

  Speaking of hard work, we have a little more left to do before Sonic makes his way to the thirteen thousand retailer doors nationwide.

  It had been two years since Kalinske took over, and in that time so much had changed. The Genesis was now in over thirteen thousand stores (up from four thousand), the Sega of America team now had nearly three hundred employees (up from fifty), and in 1992 the company’s sales quadrupled to over $500 million.

  TOM KALINSKE

  We now need to ship all this great product. And we need to ship it to arrive all on November 24, Sonic 2sday, to each and every retailer.

  There were two major events scheduled for Sonic 2sday. One would be held at Toys “R” Us in New York City’s Herald Square, and the other would be at the store’s location in Burbank, California. Teen celebrities had been confirmed for both events.

  TOM KALINSKE

  We’re calling it the “Great Sonic Airlift,” and we’ve enlisted the support of Emery worldwide to undertake this epic task. Now, I’d like to ask Mr. James Schutzenhoffer, the vice president of Emery’s West Coast operations, and Mr. Al Nilsen, Sega’s group marketing director, the man who created and directed the awesome marketing campaign behind Sonic 2’s launch, to join me up here to get out the first shipment of Sonic The Hedgehog 2 cartridges.

  Schutzenhoffer, blushing from the attention, stumbled over to Kalinske, follow by Nilsen, who needed a second to accept that this surreal-feeling moment was actually very real.

  TOM KALINSKE

  Yes, Sonic . . . you and Tails can join too.

  As Sonic and Tails danced up to the loading dock, Kalinske held up a sealed copy of Sonic The Hedgehog 2. It was amazing, he thought, that Sonic had been around for less than two years but already felt as real as Mickey Mouse. Tails, of course, wasn’t at that level yet, but he was on his way. And so would the next character, and the character after that, as long as Sega kept their eyes on the prize. It was even more amazing that his son, Brandon, would grow up in a world where Sonic would be as timeless as any other two-dimensional character. Even after Kalinske one day left this world, Sonic would be there, in some strange way, to watch over his children. No matter what else he did in life, there would always be Barbie and Sonic. But since Tom had no further influence over Barbie, it was all up to Sonic now.

  TOM KALINSKE

  This box commemorates the beginning of the Great Sonic Airlift. Congratulations, Sonic, and congratulations, Sega!

  Photographs were taken, T-shirts were given out, and congratulatory hugs took place left and right. It was a wonderful occasion that would be remembered as even more golden when, just one week later, the American home console market would be split evenly between Sega and Nintendo.

  PART FOUR

  CIVIL WAR

  40.

  HOW THE GRINCH STOLE

  CHRISTMAS

  What the heck was wrong with Sega of Japan?

  Seriously, what was it about those guys? Was it that they compulsively marched to the beat of their own drum? Or, like a petulant child, did they just like banging on drums and then smiling at the cacophony? There was something going on there, something ominously bizarre, but Tom Kalinske couldn’t put his finger on it, and right now he didn’t have the time to sleuth around and solve the mystery. It was November 24, 1992, Sonic 2sday had finally arrived, and like Santa Claus on Christmas, he needed to stay jolly in order to bring good around the world. And there was no better place to spread this message of joy than from the place that most resembled Santa’s workshop south of the North Pole: the mammoth Toys “R” Us in the heart of New York City’s bustling Herald Square.

  Sega had taken over the back corner of Toys “R” Us to host what looked and felt like a political rally for Sonic The Hedgehog. Sonic himself was there to greet incoming fans, friends, and journalists, as was his huggable new sidekick Tails, on hand to complement but never overshadow the hedgehog. Both characters patrolled the perimeter of this rally, ushering guests toward a small stage where MTV’s Adam Curry emceed the event. Standing behind a podium with a Hollywood-worthy poster for Sonic 2, and in front of a thirty-foot “2 Fast! 2 Cool! 2 Day!” banner, Curry revved up the crowd for this groundbreaking occasion. After building up momentum for Generation X’s first unofficial holiday, he welcomed Sega’s nonhedgehog man of the hour. “And now to tell you more about all the exciting details is Sega of America’s president and CEO, Tom Kalinske!”

  As Kalinske walked onto the stage, the applause finally drove out of his mind any further musings about Sega of Japan. “Thanks, Adam,” Kalinske said, taking his place. “This is a very exciting day for all of us at Sega. Today we celebrate the official launch of Sonic The Hedgehog 2.”

  Shinobu Toyoda tried to pay attention to Tom’s every word, but he was too overcome with pride. So when his boss said, “In the last three years the videogame business has grown by 60 percent to become a $4-billion-a-year industry,” what Toyoda heard was, We did it! And when his boss said, “The reasons for this growth are largely due to Sega developing new technologies and games that make playing more exciting and more fun” what Toyoda heard was, Can you believe that we did it?

  A little over one year ago, Yuji Naka had quit working for Sega, but Toyoda had found a way to keep Sonic’s creator happy, and that created a feeling of pride that he did not think would ever fully go away. To the outside world, convincing Naka that Sega of America was completely different from Sega of Japan may have appeared like nothing more than linguistic camouflage, but it really was much more than that. For many years, SOA was treated like little more than SOJ’s errand boy. Although this dynamic may have spewed some unnecessary condescension, it wasn’t all that far from the truth. SO
J created the concepts, the characters, and the games, and all SOA had to do was market and sell them. Okay, maybe marketing and selling to the 250 million people in the United States was not such a small thing, but it was more of a task than a tactical decision. This balance of power began to shift, however, when Tom Kalinske took over. It wasn’t solely because of Sega of America’s new CEO, although Nakayama’s trust in his prestige went a long way; it also had to do with a confluence of people, plans, and pop culture. But most important, what Kalinske and his team did actually worked, and it worked in a way that it didn’t in Japan.

  Those at Sega of Japan watching this play out were likely quick to call their American counterparts “power-hungry.” Although that may have been true to some extent, as humans tend not to prefer subservience, a better term to describe those at Sega of America would be “success-hungry.” Tom Kalinske did not take pride in lording it over SOJ’s executives, nor did Al Nilsen earn his self-esteem by telling Japan’s marketing team what they were doing wrong. In fact, both quite literally went the extra mile to avoid those things; Kalinske traveled to Japan every month or two (unlike his predecessor, who only once went) and Nilsen often traveled with him, as well as constantly faxing over extensive marketing strategies (a kindness that was rarely, if ever, reciprocated).

  Although one could identify a small spectrum of possible motives for their behavior (kindness, respect, or just covering their asses), what made both men, as well as the rest of their SOA colleagues, always go that extra mile with SOJ was their hunger for success. In 1990 they had had a taste, in 1991 they started a food fight, and by November 1992 they were addicted. What had once seemed like a long shot was now actually working, and that only made them want to work harder because they couldn’t bear the thought of losing this feeling. That’s why Sega of America had fought so hard over seemingly petty details regarding Sonic (1990), that’s why they had been so meticulous in their attacks on the Super Nintendo (1991), and that’s why they had started developing their own games in the United States (1992). SOA was SOJ’s errand boy no more, and that’s why Shinobu Toyoda had been able to persuade Yuji Naka to come to San Francisco and work with Mark Cerny and his team at the Sega Technical Institute.