Before KS1

Ken Kaizawa has been a programmer at KiShin for a considerable time. Currently, he is among the programmers selected to work on a computer program for video game development. This project, named 'Unreal Engine,' was initiated by Shinro Suzuki.

The focus of the project is on developing video games for the upcoming 32-bit console with a 64-bit data bus, or potentially for a true 64-bit console in the future. Presently, KiShin has successfully completed the 32-bit video game console with a 64-bit data bus, known as the KiShin-Play Station 1 or KS1.

Due to KiShin's branding being less prominent and established compared to other renowned Japanese brands like Toyota, Tora, Suzuki, or Mitsubishi outside the video game sector, the company had to associate the brand name KiShin with their new video game console.

While Tora and Suzuki may face challenges from KiShin in the video games sector, they still command greater global brand presence and prestige.

Despite their struggles in the video games sector, Tora holds a significant 25% stake, and Suzuki maintains a 28% share in the video game industry, leaving KiShin with the remaining 47%. While this percentage might seem modest, Suzuki's 28% translates to nearly 70 million, considering an estimated 250 million casual video game players worldwide.

KiShin dominates the video game industry, with approximately 10% of players exclusively engaging in KES and the remaining 37% in SKES video games. This is particularly evident in countries like Japan, the USA, and some European nations. However, the dynamics shift in countries where Tora or Suzuki products are preferred due to competitive pricing, coupled with the strong brand presence these companies had even before entering the video game industry.

Therefore, the higher-ups at KiShin decided to enhance the brand presence, suggesting to Shinro Suzuki, who initially wanted to name the new video game console "Play Station," to go with "KiShin-Play Station."

Especially with the KS1, it might not be immediately recognized in other stores or malls as a KiShin product due to its new design.

As Ken Kaizawa entered the workspace, he found a wide and tidy area with ample space. A table near the transparent glass of the building offered a view showcasing the city's charm.

This serves as the workspace for those involved in the Unreal Engine Project. After KiShin transformed the main company into KiShin Rules and relocated the headquarters to Minato Ward in Tokyo, the building they now occupy is more grand and exquisite compared to the one in Toshima Ward.

Ken Kaizawa approached his workmate, who was sipping coffee at the wide round table. Greeting him, Ken said, "Good morning, Kaido-kun."

Muta Kaido nodded in response and replied, "You too, Kaizawa-kun."

Sitting beside him, Ken glanced at the paper Muta was engrossed in. "You're always so invested in the development of this Unreal Engine program," he remarked, observing the page filled with research on the program.

"Of course," Muta Kaido affirmed, nodding. "This is such a fascinating program we are developing."

Ken chuckled and added, "The concept and idea came from Shinro Suzuki himself, after all."

Muta Kaido nodded and replied, "You bet." He paused before adding, "I am putting in the effort because we're not the sole developers of this program. I've heard that even Americans in Silicon Valley are working on it, so we can't afford to slack and lose to foreigners."

Ken Kaizawa nodded, observing his colleagues entering the workspace, immediately diving into work after grabbing coffee from the machine.

Even though the Americans in Silicon Valley were also working for KiShin, as a programmer based in Japan, there was a sense of competition to see who could make the most significant contribution to the program.

Especially considering that KiShin plans to increase the salary of programmers who make significant contributions to the program's features and functions.

While KiShin doesn't operate like a black company enforcing overwork, some programmers at KiShin put in extra effort in developing and contributing to the program. This is not only because it interests them, but there's also a salary raise in doing so. It creates a win-win situation for them.

Ken Kaizawa and Muta Kaido discussed for quite a while before heading to their desks with Apple computers to start programming.

KiShin had already completed programming the desired game engine for use with the 32-bit or KS1 alone. The Unreal Engine represented a continuation of this game engine's development.

Ken Kaizawa observed that the progress of the Unreal Engine was significant, but it proved to be a demanding program even for the latest computers in 1994.

While he admired Shinro Suzuki's innovative thinking and out-of-this-world ideas, Ken Kaizawa found it perplexing that the soon-to-be-released KS1 would only support CD-ROM instead of a video game cartridge.

As Ken Kaizawa is aware, the majority of CD-ROM patents are owned by Suzuki, with a minority belonging to Philips. This concern troubles other executives and employees who are aware of the impending release of KS1.

KiShin lacks significant influence in CD-ROM technologies, given that many patents in this domain are owned by Suzuki, a competitor in the video game industry.

"I hope everything goes well," Ken Kaizawa thought. He doesn't want KiShin to face an unfavorable situation, especially since it's the only company he has worked for that provides a more relaxed and fair workplace, unlike other Japanese corporations that violate employee rights through excessive overtime.

However, what he and others didn't know was that KiShin also owned a few CD-ROM technology patents that hadn't yet been patented by either Suzuki or Philips.

Shin had already broached the topic of CD-ROM cross-licensing patents with his father, Chairman Shiro Suzuki, during Shinichi's birthday. Initially expecting a business discussion, Shiro was taken aback to find that his son was proposing a cross-license agreement for CD-ROM patents with Suzuki.

Shiro Suzuki wasn't overly surprised to learn that KiShin possessed a few patents related to CD-ROM technologies, given that Suzuki held the majority of such patents. Along with the higher-ups in the Suzuki Group, he had heard of KiShin's ownership of CD-ROM technology patents.

Initially uncertain about KiShin's plans, the Suzuki Group speculated that it might be related to a video game console. Now, with Shin initiating a discussion about cross-licensing CD-ROM patents, Shiro felt more confident that KiShin must have already developed something significant.

In a cross-license agreement, KiShin and Suzuki could utilize each other's patents under mutually agreed terms. Shiro recognized the value of KiShin's CD-ROM technology patents, even if they were just a few patents compared to Suzuki's extensive portfolio.

However, Shiro alone wouldn't be the sole decision-maker. He brought up the proposal for a CD-ROM cross-license between KiShin and Suzuki to the board of directors.