1
00:00:02,000 --> 00:00:07,000
Downloaded from
YTS.MX

2
00:00:08,000 --> 00:00:13,000
Official YIFY movies site:
YTS.MX

3
00:00:08,138 --> 00:00:10,575
[static crackling]

4
00:00:10,619 --> 00:00:11,750
[bright tone]

5
00:00:11,794 --> 00:00:14,231
[ominous notes]

6
00:00:14,275 --> 00:00:17,234
[dramatic music]

7
00:00:17,278 --> 00:00:21,543
♪

8
00:00:21,586 --> 00:00:24,546
[static crackling]

9
00:00:24,589 --> 00:00:31,335
♪

10
00:00:34,425 --> 00:00:35,992
- So my partner Bill and I

11
00:00:36,036 --> 00:00:37,733
are going to play
ping-pong for you.

12
00:00:38,864 --> 00:00:40,257
Here we go.

13
00:00:40,301 --> 00:00:42,781
The demo represents some
of the recent developments

14
00:00:42,825 --> 00:00:46,829
in the new business of
audience participation in TV.

15
00:00:46,872 --> 00:00:49,527
Watch me take him out
in a minute.

16
00:00:49,571 --> 00:00:50,746
Ah, didn't do it.

17
00:00:52,574 --> 00:00:54,271
Ah, I did it this time.

18
00:00:54,315 --> 00:00:56,099
♪

19
00:00:56,143 --> 00:00:58,145
We would like
to convince you

20
00:00:58,188 --> 00:01:00,103
that there is indeed a market

21
00:01:00,147 --> 00:01:02,671
in which money can be made
in the near future.

22
00:01:02,714 --> 00:01:09,721
♪

23
00:01:11,984 --> 00:01:13,464
- It was like magic.

24
00:01:13,508 --> 00:01:17,120
♪

25
00:01:17,164 --> 00:01:19,862
You could make something
happen on the screen.

26
00:01:19,905 --> 00:01:22,212
♪

27
00:01:22,256 --> 00:01:24,127
You know,
having grown up with all

28
00:01:24,171 --> 00:01:27,304
of this preprogrammed stuff
on the television screen,

29
00:01:27,348 --> 00:01:29,263
you'd never been able
to change that.

30
00:01:29,306 --> 00:01:32,048
- America's most incredible
video game.

31
00:01:32,092 --> 00:01:33,745
- Suddenly,
with this little controller,

32
00:01:33,789 --> 00:01:35,312
you could actually control
something on the screen.

33
00:01:35,356 --> 00:01:36,792
- You control the players

34
00:01:36,835 --> 00:01:38,707
as if you were
coaching your own team.

35
00:01:38,750 --> 00:01:41,623
- It was just unbelievable,
magical.

36
00:01:41,666 --> 00:01:43,973
♪

37
00:01:44,016 --> 00:01:45,757
[blipping]

38
00:01:45,801 --> 00:01:48,151
- There is a new addiction
in America:

39
00:01:48,195 --> 00:01:49,587
Nintendo video games.

40
00:01:49,631 --> 00:01:51,546
- How many of you own
a Nintendo?

41
00:01:51,589 --> 00:01:56,594
♪

42
00:01:56,638 --> 00:01:58,553
- Joining us from
the company's inner sanctum,

43
00:01:58,596 --> 00:02:01,686
Nintendo game master
Howard Phillips.

44
00:02:01,730 --> 00:02:03,732
- This one's got
about 12 times the memory.

45
00:02:03,775 --> 00:02:06,038
The graphics are--
graphics are much better.

46
00:02:06,082 --> 00:02:07,170
Oh.

47
00:02:07,214 --> 00:02:08,171
[bright electronic music]
Got it.

48
00:02:08,215 --> 00:02:09,912
[upbeat music]

49
00:02:09,955 --> 00:02:12,436
- People, animals, wizards,
spells,

50
00:02:12,480 --> 00:02:15,091
you see this spread out
over different worlds.

51
00:02:15,135 --> 00:02:17,920
♪

52
00:02:17,963 --> 00:02:19,661
- Nintendo Gameplay,
David speaking.

53
00:02:19,704 --> 00:02:20,923
How may I help you?

54
00:02:20,966 --> 00:02:22,620
- It's not just stick figures
anymore.

55
00:02:22,664 --> 00:02:24,709
There's much more involved
in playing the game,

56
00:02:24,753 --> 00:02:27,059
a better use of colors,
better use of music.

57
00:02:27,103 --> 00:02:29,888
[blipping]

58
00:02:29,932 --> 00:02:33,414
- He is a computerized Italian
swashbuckling adventurer,

59
00:02:33,457 --> 00:02:35,633
as Mario is clearly
number one.

60
00:02:35,677 --> 00:02:36,765
[applause]

61
00:02:36,808 --> 00:02:38,984
- Not only for this
coming Christmas

62
00:02:39,028 --> 00:02:41,378
but for an entire
new generation.

63
00:02:41,422 --> 00:02:44,207
[video game blipping]
[crowd cheering]

64
00:02:44,251 --> 00:02:47,384
♪

65
00:02:47,428 --> 00:02:50,344
- The "Mario Bros."
game cartridge is so hot,

66
00:02:50,387 --> 00:02:52,737
it is impossible
to find in stores.

67
00:02:52,781 --> 00:02:55,436
- I've done seven stores a day
for three weeks now.

68
00:02:55,479 --> 00:02:56,785
I cannot find it.

69
00:02:56,828 --> 00:02:58,439
- Can you do something?
My kid wants it.

70
00:02:58,482 --> 00:03:00,267
His friend has it,
and they're not friends anymore

71
00:03:00,310 --> 00:03:01,833
'cause he doesn't have it.

72
00:03:01,877 --> 00:03:04,314
- Nintendo's only been around
for three years

73
00:03:04,358 --> 00:03:08,492
but will ring up mind-boggling
sales of $1.7 billion

74
00:03:08,536 --> 00:03:09,624
by Christmas.

75
00:03:09,667 --> 00:03:12,235
[blipping]

76
00:03:12,279 --> 00:03:14,237
- We were
the video game industry.

77
00:03:14,281 --> 00:03:16,021
- We can't underestimate
the value

78
00:03:16,065 --> 00:03:17,893
of 60 million players.

79
00:03:17,936 --> 00:03:19,199
- Tetris!

80
00:03:19,242 --> 00:03:21,113
- Nobody could conceive
of how Nintendo,

81
00:03:21,157 --> 00:03:23,551
with so many great games,

82
00:03:23,594 --> 00:03:25,248
with 95% or more
of the marketplace,

83
00:03:25,292 --> 00:03:26,728
could ever get toppled.

84
00:03:26,771 --> 00:03:28,077
- The last
"Super Mario Bros. 2"

85
00:03:28,120 --> 00:03:29,426
was just sold.

86
00:03:29,470 --> 00:03:32,560
- My eight-year-old
would kill for one.

87
00:03:32,603 --> 00:03:34,388
- [laughs]
- Nintendo!

88
00:03:34,431 --> 00:03:35,824
- Yeah!

89
00:03:35,867 --> 00:03:38,000
[children screaming]

90
00:03:38,043 --> 00:03:39,958
- Nintendo! Nintendo!

91
00:03:40,002 --> 00:03:43,353
- Nintendo!
[all scream]

92
00:03:43,397 --> 00:03:47,618
- Today Nintendo controls
the home video game market.

93
00:03:47,662 --> 00:03:49,446
- Let's play Nintendo!

94
00:03:49,490 --> 00:03:52,449
- Anybody would have found
that to be a Herculean task,

95
00:03:52,493 --> 00:03:55,104
to try and unseat Nintendo.

96
00:03:55,147 --> 00:03:57,149
All the other companies
were always trying,

97
00:03:57,193 --> 00:03:58,412
but, you know,
they had maybe one game

98
00:03:58,455 --> 00:03:59,630
or one thing going on,

99
00:03:59,674 --> 00:04:02,067
whereas Nintendo
just had everything.

100
00:04:02,111 --> 00:04:04,156
We're gonna be here forever.

101
00:04:04,200 --> 00:04:06,681
But then it changed.

102
00:04:06,724 --> 00:04:09,684
♪

103
00:04:09,727 --> 00:04:12,861
[blipping]

104
00:04:12,904 --> 00:04:15,864
[Howard Jones'
"Things Can Only Get Better"]

105
00:04:15,907 --> 00:04:22,914
♪

106
00:04:26,222 --> 00:04:27,963
- ♪ We're not scared
to lose it all ♪

107
00:04:28,006 --> 00:04:30,400
♪ Security thrown
through the wall ♪

108
00:04:30,444 --> 00:04:31,749
♪ Future dreams

109
00:04:31,793 --> 00:04:33,185
- When I first came to America

110
00:04:33,229 --> 00:04:36,014
was with
the Mitsubishi Corporation.

111
00:04:36,058 --> 00:04:38,713
What I really felt here
in the States

112
00:04:38,756 --> 00:04:41,455
was people really have
the opportunity

113
00:04:41,498 --> 00:04:43,500
of making
American dream happen.

114
00:04:43,544 --> 00:04:47,287
That spirit of sort of
entrepreneurship,

115
00:04:47,330 --> 00:04:50,333
I really fell in love
with that.

116
00:04:50,377 --> 00:04:53,118
After working for Mitsubishi
for three years,

117
00:04:53,162 --> 00:04:56,208
Japan headquarters said,
"You must come back,"

118
00:04:56,252 --> 00:04:59,168
but I wanted to stay
in America.

119
00:04:59,211 --> 00:05:05,174
So secretly, I sent my résumé
to an American sort of

120
00:05:05,217 --> 00:05:06,915
recruiting firm,

121
00:05:06,958 --> 00:05:10,527
and I had a call
at the company called Sega.

122
00:05:10,571 --> 00:05:12,007
I had no idea what it was,

123
00:05:12,050 --> 00:05:14,749
but they are looking
for someone

124
00:05:14,792 --> 00:05:18,361
to launch their new video game
business in the States.

125
00:05:18,405 --> 00:05:19,971
[daunting music]

126
00:05:20,015 --> 00:05:22,974
- And so it was,
late in the 20th century,

127
00:05:23,018 --> 00:05:26,674
terminal boredom
swept the countryside.

128
00:05:26,717 --> 00:05:30,068
The maker looked down and was
not pleased by what he saw.

129
00:05:30,112 --> 00:05:31,331
[explosion booms]

130
00:05:31,374 --> 00:05:33,202
And so it was
he brought forth...

131
00:05:33,245 --> 00:05:37,337
[echoing]
Genesis.

132
00:05:37,380 --> 00:05:40,340
[cheerful music]

133
00:05:40,383 --> 00:05:45,954
♪

134
00:05:45,997 --> 00:05:47,782
[car horns honk]
[seal squeaks]

135
00:05:47,825 --> 00:05:50,785
- The moment I started to work
for Sega of America,

136
00:05:50,828 --> 00:05:54,832
I started to commute to Sega
San Francisco headquarter

137
00:05:54,876 --> 00:05:57,400
because my family
actually lived in Texas,

138
00:05:57,444 --> 00:06:01,317
and I stayed always
in Comfort Suites.

139
00:06:02,797 --> 00:06:06,191
This small hotel room
became my home away from home.

140
00:06:06,235 --> 00:06:07,889
♪

141
00:06:07,932 --> 00:06:13,547
I checked in there in,
I think, October of '89,

142
00:06:13,590 --> 00:06:16,724
and by the way, I haven't
checked out ever since.

143
00:06:16,767 --> 00:06:19,248
- 800-521-2--

144
00:06:19,291 --> 00:06:21,337
- I don't think
many people knew.

145
00:06:21,381 --> 00:06:24,166
I mean, I'm still shocked
that he still stays there,

146
00:06:24,209 --> 00:06:28,823
personally, but I lived there
for about a year and a half

147
00:06:28,866 --> 00:06:31,173
when I first started at Sega.

148
00:06:32,479 --> 00:06:34,437
- Hi, welcome to Sega.

149
00:06:34,481 --> 00:06:36,961
- It was hard to build
an organization from scratch

150
00:06:37,005 --> 00:06:41,662
and launch a major video game
system in the United States.

151
00:06:41,705 --> 00:06:43,838
There's so many hurdles
to get into the business

152
00:06:43,881 --> 00:06:46,014
with all the retailers.

153
00:06:46,057 --> 00:06:47,450
You know, they just
won't buy from anybody.

154
00:06:47,494 --> 00:06:49,844
You have to prove yourself.

155
00:06:49,887 --> 00:06:52,629
- The challenges we had
in those days

156
00:06:52,673 --> 00:06:56,024
were the very strong
presence of Nintendo.

157
00:06:56,067 --> 00:06:58,853
- Let's play Nintendo!

158
00:06:59,897 --> 00:07:01,290
-"Nintendo Power" magazine
goes out

159
00:07:01,333 --> 00:07:03,901
bimonthly to players
all around the country.

160
00:07:03,945 --> 00:07:06,208
Right now, it's about
1.7 million.

161
00:07:06,251 --> 00:07:08,123
On a weekly average,

162
00:07:08,166 --> 00:07:10,734
we get about
140,000 phone calls in here.

163
00:07:10,778 --> 00:07:12,257
- The key
is in the hidden town.

164
00:07:12,301 --> 00:07:14,651
You have to cast a spell
at the dead end.

165
00:07:14,695 --> 00:07:16,392
- Ah.

166
00:07:16,436 --> 00:07:17,872
- "Nintendo Power."

167
00:07:17,915 --> 00:07:20,048
- Another Nintendo game!

168
00:07:20,091 --> 00:07:23,268
- And parents are now faced
with portable Nintendo.

169
00:07:23,312 --> 00:07:25,923
all: We are Nintendo.

170
00:07:25,967 --> 00:07:27,447
- Say what you want
about Nintendo,

171
00:07:27,490 --> 00:07:30,406
but they were pretty cocky
about their position

172
00:07:30,450 --> 00:07:34,758
and felt assured that
we wouldn't have much success.

173
00:07:34,802 --> 00:07:38,240
- Nintendo's a very,
very strong company,

174
00:07:38,283 --> 00:07:40,198
and so far, its competition
hasn't been more

175
00:07:40,242 --> 00:07:41,330
than a blip on the screen.

176
00:07:41,373 --> 00:07:43,375
- This is the Sega Genesis.

177
00:07:43,419 --> 00:07:46,117
This is their next-generation
video game machine.

178
00:07:46,161 --> 00:07:50,165
- The first year,
the expectation was to sell

179
00:07:50,208 --> 00:07:53,603
1 million units
of Sega Genesis,

180
00:07:53,647 --> 00:07:56,693
but sales was not that great.

181
00:07:56,737 --> 00:08:00,610
- We were struggling
at the time, no doubt about it.

182
00:08:00,654 --> 00:08:04,484
- The president at that time
held a weekly lineup meeting,

183
00:08:04,527 --> 00:08:08,139
and he always somehow seemed
to forget

184
00:08:08,183 --> 00:08:10,751
about what we discussed
previous week.

185
00:08:10,794 --> 00:08:13,188
So it repeated and repeated
and repeated and so forth.

186
00:08:13,231 --> 00:08:15,756
- [yawns]

187
00:08:15,799 --> 00:08:18,280
[bright tones]

188
00:08:18,323 --> 00:08:21,283
- So we were stuck between
a rock and a hard place.

189
00:08:22,589 --> 00:08:25,548
- We needed someone to turn
the tide around.

190
00:08:25,592 --> 00:08:29,465
So Sega brought in
Tom Kalinske,

191
00:08:29,509 --> 00:08:30,988
the prince of toy business.

192
00:08:31,032 --> 00:08:33,513
♪

193
00:08:33,556 --> 00:08:35,384
[upbeat rock music]

194
00:08:35,427 --> 00:08:38,605
- When I was about
to graduate, I got a job

195
00:08:38,648 --> 00:08:40,476
with J. Walter Thompson
in New York City.

196
00:08:40,520 --> 00:08:42,565
♪

197
00:08:42,609 --> 00:08:43,871
We were given the assignment

198
00:08:43,914 --> 00:08:46,874
to develop
a new children's vitamin,

199
00:08:46,917 --> 00:08:48,919
and we developed
Flintstones Vitamins.

200
00:08:48,963 --> 00:08:51,269
- Yabba-dabba-doo!
Yabba-dabba-doo!

201
00:08:51,313 --> 00:08:52,793
- Oh, great idea, Fred.

202
00:08:52,836 --> 00:08:55,360
- Within six months,
it was the number one vitamin

203
00:08:55,404 --> 00:08:57,101
in the United States.

204
00:08:57,145 --> 00:08:59,103
- Yabba-dabba-doo!

205
00:08:59,147 --> 00:09:00,757
- But shortly thereafter,

206
00:09:00,801 --> 00:09:04,326
the Senate had a subcommittee
on children's advertising.

207
00:09:04,369 --> 00:09:06,546
- Super Sugar Crisp is coated
with super sugar

208
00:09:06,589 --> 00:09:08,373
to make it taste so sweet.

209
00:09:08,417 --> 00:09:10,767
- The feeling at the time
was that

210
00:09:10,811 --> 00:09:12,900
children's sugared cereal
advertising

211
00:09:12,943 --> 00:09:16,556
and somehow children's vitamins
advertising was bad.

212
00:09:16,599 --> 00:09:18,340
- They're great!

213
00:09:18,383 --> 00:09:19,863
- And the next thing I know,

214
00:09:19,907 --> 00:09:22,300
Senator Margaret Chase Smith
looks at me and says,

215
00:09:22,344 --> 00:09:23,867
"So, Mr. Kalinske,

216
00:09:23,911 --> 00:09:28,132
you think selling drugs
to children is a good idea?"

217
00:09:28,176 --> 00:09:29,830
And so I read a letter
that a mom had actually

218
00:09:29,873 --> 00:09:32,659
written to me that talked
about how grateful she was

219
00:09:32,702 --> 00:09:35,009
because we're selling a vitamin
that the children

220
00:09:35,052 --> 00:09:36,750
actually want to take,
and I said,

221
00:09:36,793 --> 00:09:38,665
"By the way, I have 5,000
more letters like that.

222
00:09:38,708 --> 00:09:40,841
Would you like me to read
some more of them to you?"

223
00:09:40,884 --> 00:09:43,321
And she said, "No,
Mr. Kalinske, that's enough."

224
00:09:43,365 --> 00:09:45,019
Well, the Mattel guys
were there,

225
00:09:45,062 --> 00:09:47,848
and the next thing I know,
they flew me out,

226
00:09:47,891 --> 00:09:49,589
and I was offered a job.

227
00:09:49,632 --> 00:09:53,114
- You can tell it's Mattel.
It's swell.

228
00:09:53,157 --> 00:09:56,204
- Ruth Handler founded Mattel.

229
00:09:56,247 --> 00:09:57,858
She came into my office,
and she said,

230
00:09:57,901 --> 00:10:00,077
"Tom, the retailers say
it's over for Barbie.

231
00:10:00,121 --> 00:10:01,426
"Forget about Barbie.

232
00:10:01,470 --> 00:10:02,863
"Let's get on
to something else.

233
00:10:02,906 --> 00:10:04,342
What do you think about that?"

234
00:10:04,386 --> 00:10:06,649
And I said, "Ruth,
that's the dumbest thing

235
00:10:06,693 --> 00:10:08,172
"I have ever heard.

236
00:10:08,216 --> 00:10:10,914
Barbie will be around
long after you and I are gone."

237
00:10:10,958 --> 00:10:12,612
And she said,
"That's what I wanted to hear!

238
00:10:12,655 --> 00:10:15,179
You're now in charge
of the Barbie business."

239
00:10:15,223 --> 00:10:16,703
Barbie could be anything

240
00:10:16,746 --> 00:10:18,661
that a little girl
wanted her to be.

241
00:10:18,705 --> 00:10:20,881
- Barbie's taking
her driver's test.

242
00:10:20,924 --> 00:10:22,665
- I love her long hair.

243
00:10:22,709 --> 00:10:24,406
- Is there room in Barbie's
dream pool for me?

244
00:10:24,449 --> 00:10:25,668
- Oh, Daddy.
[laughter]

245
00:10:25,712 --> 00:10:27,888
[exciting music]

246
00:10:27,931 --> 00:10:29,106
- And the business
just took off.

247
00:10:29,150 --> 00:10:31,456
♪

248
00:10:31,500 --> 00:10:32,588
It grew like crazy.

249
00:10:32,632 --> 00:10:34,677
♪

250
00:10:34,721 --> 00:10:39,290
And then we created a series
of different product lines

251
00:10:39,334 --> 00:10:41,423
that would appeal
to young boys.

252
00:10:41,466 --> 00:10:46,123
And out of this research came
this very muscular character.

253
00:10:46,167 --> 00:10:49,431
- [grunts]
- I have the power!

254
00:10:49,474 --> 00:10:51,694
- And it became
a pretty good hit.

255
00:10:51,738 --> 00:10:54,654
♪

256
00:10:54,697 --> 00:10:57,657
So I got promoted to CEO.

257
00:10:57,700 --> 00:11:00,660
[relaxing music]

258
00:11:00,703 --> 00:11:06,448
♪

259
00:11:06,491 --> 00:11:10,670
In 1990, I took a vacation
with Karen and the kids...

260
00:11:10,713 --> 00:11:12,715
♪

261
00:11:12,759 --> 00:11:15,457
And literally kind of
lying on the beach...

262
00:11:15,500 --> 00:11:18,634
[birds squawking]

263
00:11:18,678 --> 00:11:21,811
And all of a sudden,
this guy appears.

264
00:11:21,855 --> 00:11:27,121
It was Hayao Nakayama,
CEO of Sega Japan.

265
00:11:27,164 --> 00:11:28,252
And I said,
"What are you doing here?"

266
00:11:28,296 --> 00:11:29,819
He said,
"I'm looking for you."

267
00:11:29,863 --> 00:11:31,908
He said, "Well, I want you
to come to Japan with me

268
00:11:31,952 --> 00:11:35,520
because we've got
this great 16-bit technology."

269
00:11:35,564 --> 00:11:37,827
- Sega.
- "We want you to run Sega

270
00:11:37,871 --> 00:11:39,611
and take on Nintendo."

271
00:11:39,655 --> 00:11:40,961
And I argued with him.

272
00:11:41,004 --> 00:11:42,527
I didn't really want to go,

273
00:11:42,571 --> 00:11:44,442
but my daughter Ashley said,

274
00:11:44,486 --> 00:11:47,097
"This man came all the way
from Japan to find you.

275
00:11:47,141 --> 00:11:49,099
"You have to go back with him

276
00:11:49,143 --> 00:11:50,622
to see what
he's talking about."

277
00:11:50,666 --> 00:11:52,233
- It's your destiny.

278
00:11:52,276 --> 00:11:54,888
- After a long discussion
with family,

279
00:11:54,931 --> 00:11:56,846
I did go to Japan.

280
00:11:56,890 --> 00:12:00,981
[airplane engine roaring]

281
00:12:01,024 --> 00:12:03,940
[dynamic music]

282
00:12:03,984 --> 00:12:08,162
♪

283
00:12:08,205 --> 00:12:09,772
And I must say,

284
00:12:09,816 --> 00:12:13,863
I was very, very impressed
by what 16-bit technology was

285
00:12:13,907 --> 00:12:17,301
compared to what
I had known as 8-bit Nintendo.

286
00:12:17,345 --> 00:12:18,738
[blipping]

287
00:12:18,781 --> 00:12:21,262
And I thought, "This really is
revolutionary,"

288
00:12:21,305 --> 00:12:24,787
but at the same time, I was
somewhat fearful of Nintendo.

289
00:12:24,831 --> 00:12:26,833
[ominous music]

290
00:12:26,876 --> 00:12:28,443
- The men sitting in this room

291
00:12:28,486 --> 00:12:31,011
control the American
video game industry.

292
00:12:31,054 --> 00:12:34,579
- The NES continues to havea unit sales projection

293
00:12:34,623 --> 00:12:37,757
through Decemberof 2 million units.

294
00:12:37,800 --> 00:12:41,412
- Nintendo was extremely
arrogant as a company.

295
00:12:41,456 --> 00:12:43,937
- To marketing
vice president Peter Main,

296
00:12:43,980 --> 00:12:45,852
selling Nintendo is easy.

297
00:12:45,895 --> 00:12:48,724
- They come, they try,
they like, and they buy,

298
00:12:48,768 --> 00:12:50,770
and it's a fun business.

299
00:12:50,813 --> 00:12:52,075
[blipping]

300
00:12:52,119 --> 00:12:54,991
- Especially fun
if there's no competition.

301
00:12:55,035 --> 00:12:58,603
- Nintendo threatened
the leading software companies

302
00:12:58,647 --> 00:13:01,128
that if they developed
for any other system,

303
00:13:01,171 --> 00:13:05,175
they would not give them
approval of games on the NES.

304
00:13:05,219 --> 00:13:08,135
- They were able to,
one by one,

305
00:13:08,178 --> 00:13:12,487
contact all major retailers
and intimidate them

306
00:13:12,530 --> 00:13:15,577
or induce them not
to handle Tengen product.

307
00:13:16,752 --> 00:13:18,101
- It was like blackmail.

308
00:13:18,145 --> 00:13:19,233
- No, I don't think so.

309
00:13:19,276 --> 00:13:20,930
No. Sorry.

310
00:13:22,410 --> 00:13:26,153
We were adamant
that this was a legal tactic.

311
00:13:26,196 --> 00:13:27,937
- Retailers were the same way.

312
00:13:27,981 --> 00:13:32,072
Retailers were afraid
to carry any other system.

313
00:13:32,115 --> 00:13:33,856
- The retailers didn't like us,
okay?

314
00:13:33,900 --> 00:13:35,510
We were not liked.

315
00:13:35,553 --> 00:13:37,904
I don't think
we were ever liked,

316
00:13:37,947 --> 00:13:39,166
but we were respected.

317
00:13:39,209 --> 00:13:40,602
[gavel banging]

318
00:13:40,645 --> 00:13:42,865
- They were anxious
to sue just about anybody

319
00:13:42,909 --> 00:13:45,433
that got in their way
of doing business.

320
00:13:45,476 --> 00:13:46,651
- Please, just go away.

321
00:13:46,695 --> 00:13:49,306
We established the rule

322
00:13:49,350 --> 00:13:51,874
that Nintendo was not gonna
get pushed around.

323
00:13:51,918 --> 00:13:55,443
- We were extremely on top
of execution,

324
00:13:55,486 --> 00:13:57,575
willing to put resources

325
00:13:57,619 --> 00:13:59,926
where they needed to be
at the right time.

326
00:14:01,710 --> 00:14:04,408
- What Nintendo was doing
was monopolistic

327
00:14:04,452 --> 00:14:05,757
and was wrong.

328
00:14:05,801 --> 00:14:07,977
- Nintendo acts like
a unchained

329
00:14:08,021 --> 00:14:10,458
800-pound gorilla
swinging its way

330
00:14:10,501 --> 00:14:12,155
through America's toy stores.

331
00:14:12,199 --> 00:14:14,244
[dramatic music]

332
00:14:14,288 --> 00:14:16,290
- Save you!
- Help me! Ah!

333
00:14:16,333 --> 00:14:17,900
- Federal and state officials
charge today

334
00:14:17,944 --> 00:14:19,641
that Nintendo threatened
to cut off

335
00:14:19,684 --> 00:14:21,599
supplies of its video games

336
00:14:21,643 --> 00:14:24,907
if retailers charged less
than Nintendo wanted.

337
00:14:24,951 --> 00:14:27,518
- As a law violator,
a lawbreaker,

338
00:14:27,562 --> 00:14:31,000
you did wrong
to your loyal customers.

339
00:14:31,044 --> 00:14:35,526
- Nintendo!
Oh, man!

340
00:14:35,570 --> 00:14:37,572
- Our relationship
with our customers

341
00:14:37,615 --> 00:14:40,270
is our number one priority,
and that's the reason

342
00:14:40,314 --> 00:14:41,402
that we reached this

343
00:14:41,445 --> 00:14:43,491
comprehensive settlement
today.

344
00:14:43,534 --> 00:14:46,102
I think we had
to pay $5 million.

345
00:14:46,146 --> 00:14:50,454
All of the rest of the penalty
was in the form of coupons

346
00:14:50,498 --> 00:14:51,934
that we would give out,

347
00:14:51,978 --> 00:14:55,677
allowing people
to buy more Nintendo games,

348
00:14:55,720 --> 00:14:57,940
which was pretty slick,
if you think about it.

349
00:14:57,984 --> 00:15:00,247
- Do you see that price
coming down in the future?

350
00:15:00,290 --> 00:15:03,293
- I was asked
on the witness stand,

351
00:15:03,337 --> 00:15:04,599
"Do you consider yourself

352
00:15:04,642 --> 00:15:06,993
to be an aggressive
person, Mr. Main?"

353
00:15:07,036 --> 00:15:08,385
I said, "I'm in marketing.

354
00:15:08,429 --> 00:15:09,952
"It's about growing
market share.

355
00:15:09,996 --> 00:15:11,475
"And whatever gets
in your way,

356
00:15:11,519 --> 00:15:13,956
"you try and work around it
or over it or past it.

357
00:15:14,000 --> 00:15:15,566
Is that what you mean?"

358
00:15:15,610 --> 00:15:18,395
He said, "That's what I mean."
I said, "That's what we do."

359
00:15:18,439 --> 00:15:20,832
[tense music]

360
00:15:20,876 --> 00:15:24,314
- I found something
a lot more scary than cocaine.

361
00:15:24,358 --> 00:15:26,229
It's called Nintendo.

362
00:15:26,273 --> 00:15:28,623
[laughter]
[video games blipping]

363
00:15:28,666 --> 00:15:30,581
- Nintendo was so powerful,

364
00:15:30,625 --> 00:15:34,585
they had a 95% share
of the market.

365
00:15:34,629 --> 00:15:36,500
It was a dominant position

366
00:15:36,544 --> 00:15:39,851
not like which I've ever seen
in my business career,

367
00:15:39,895 --> 00:15:43,203
so the idea of taking on
this giant, Nintendo,

368
00:15:43,246 --> 00:15:47,947
that everybody said
is too powerful, too big,

369
00:15:47,990 --> 00:15:51,254
it's an impossible task,
that just appealed to me.

370
00:15:51,298 --> 00:15:53,387
[dramatic music]

371
00:15:53,430 --> 00:15:56,781
I knew that Japanese companies
tended to tightly control

372
00:15:56,825 --> 00:15:58,522
their operations
outside of Japan,

373
00:15:58,566 --> 00:16:02,613
so before I accepted,
I told Nakayama I needed

374
00:16:02,657 --> 00:16:06,878
to do things my way,
the American way.

375
00:16:06,922 --> 00:16:10,578
He told me he agreed with me
and he understood that.

376
00:16:10,621 --> 00:16:15,322
So I decided
to take this role on.

377
00:16:15,365 --> 00:16:17,846
[car horn honking]

378
00:16:17,889 --> 00:16:20,022
Sega of America
was a small building,

379
00:16:20,066 --> 00:16:21,676
and there was no real lobby.

380
00:16:21,719 --> 00:16:25,897
People could wander in and out
very easily, not well lit.

381
00:16:25,941 --> 00:16:27,725
It was so different

382
00:16:27,769 --> 00:16:30,641
than what I was used to
at Mattel.

383
00:16:30,685 --> 00:16:34,210
It was initially a shock
to the system.

384
00:16:34,254 --> 00:16:36,821
- The day Tom, you know,
came to Sega

385
00:16:36,865 --> 00:16:39,259
was a very crucial time.

386
00:16:39,302 --> 00:16:42,914
Tom was someone who can really
grow the company big.

387
00:16:42,958 --> 00:16:45,656
- Shinobu mentioned to me
that Tom was coming,

388
00:16:45,700 --> 00:16:48,181
and I said, "Great," you know.

389
00:16:48,224 --> 00:16:50,052
"It's all uphill from here."

390
00:16:50,096 --> 00:16:54,013
- There were executives
at other companies

391
00:16:54,056 --> 00:16:55,710
that were pretty dismissive

392
00:16:55,753 --> 00:16:58,495
of my coming into
the video game industry

393
00:16:58,539 --> 00:17:00,149
and really having any impact.

394
00:17:00,193 --> 00:17:02,238
They thought I was
just another toy guy.

395
00:17:02,282 --> 00:17:05,111
They thought all I knew how
to do was market Barbie dolls

396
00:17:05,154 --> 00:17:06,721
and Hot Wheels cars.

397
00:17:06,764 --> 00:17:09,724
There were even analogies to,
"Oh, here comes Ken

398
00:17:09,767 --> 00:17:12,292
"to save the Sega--
the video game company,

399
00:17:12,335 --> 00:17:13,902
and, boy,
that's not gonna work."

400
00:17:13,945 --> 00:17:16,078
So personally,
that was at stake for me,

401
00:17:16,122 --> 00:17:20,343
and none of us really knew
if this thing with Sega

402
00:17:20,387 --> 00:17:22,345
was gonna be a success or not.

403
00:17:22,389 --> 00:17:25,740
I didn't even initially move
my family up to San Francisco.

404
00:17:25,783 --> 00:17:27,611
I stayed in a Comfort Inn

405
00:17:27,655 --> 00:17:30,701
very close
to the Sega offices.

406
00:17:30,745 --> 00:17:33,052
It happened to be a place
that Shinobu Toyoda

407
00:17:33,095 --> 00:17:35,010
was also staying at.
- Hi, Tom.

408
00:17:35,054 --> 00:17:37,099
- Tom started staying
at the Comfort Inn,

409
00:17:37,143 --> 00:17:38,622
and then Tom and I decided

410
00:17:38,666 --> 00:17:41,103
that we would, you know, get,
like, a two-bedroom suite

411
00:17:41,147 --> 00:17:42,931
someplace
for about the same price.

412
00:17:42,974 --> 00:17:45,847
- Paul was a great roommate.
We were both baseball fans.

413
00:17:45,890 --> 00:17:47,675
So we'd go back
to the apartment.

414
00:17:47,718 --> 00:17:50,112
We'd have pizza
and drink beer

415
00:17:50,156 --> 00:17:52,245
and got up early
and went to Sega.

416
00:17:52,288 --> 00:17:53,420
- [belches]

417
00:17:53,463 --> 00:17:54,899
[uplifting music]

418
00:17:54,943 --> 00:17:57,032
I knew Paul Rioux
for a long, long time.

419
00:17:57,076 --> 00:17:58,642
I knew him at Mattel.

420
00:17:58,686 --> 00:18:01,036
So we did discuss
his experience in Vietnam.

421
00:18:01,080 --> 00:18:03,778
- I've had the mustache
since I was,

422
00:18:03,821 --> 00:18:06,607
like--I got out of Vietnam.

423
00:18:06,650 --> 00:18:09,958
That's why I wanted to get out,
so I could grow a mustache.

424
00:18:10,001 --> 00:18:12,047
- I knew he had gone
through battle.

425
00:18:12,091 --> 00:18:13,222
[gunfire]

426
00:18:13,266 --> 00:18:15,746
He'd had explosions occur
near his head,

427
00:18:15,790 --> 00:18:19,402
where he lost part
of the hearing in one ear.

428
00:18:19,446 --> 00:18:23,145
To Paul, being in business
was very similar to combat.

429
00:18:23,189 --> 00:18:25,191
He wanted to crush the enemy.

430
00:18:25,234 --> 00:18:26,366
[descending notes]

431
00:18:26,409 --> 00:18:29,151
- You gotta be
ready to fight...

432
00:18:29,195 --> 00:18:30,500
similar in business.

433
00:18:30,544 --> 00:18:32,981
It's not as life-threatening

434
00:18:33,024 --> 00:18:35,375
in the business world,
but sometimes it may be.

435
00:18:37,420 --> 00:18:40,902
- ♪ She-Ra,
Princess of Power ♪

436
00:18:40,945 --> 00:18:43,296
- I always felt that one
of my strengths

437
00:18:43,339 --> 00:18:45,211
is coming up
with unique strategies

438
00:18:45,254 --> 00:18:47,126
that either make
companies successful

439
00:18:47,169 --> 00:18:49,345
and either work or don't.

440
00:18:49,389 --> 00:18:51,391
And it seemed to me
that Nintendo

441
00:18:51,434 --> 00:18:53,044
was selling games designed

442
00:18:53,088 --> 00:18:55,090
for a very young audience.

443
00:18:55,134 --> 00:18:57,701
So I saw an opportunity
to go after

444
00:18:57,745 --> 00:19:00,095
the teenage
and college audience,

445
00:19:00,139 --> 00:19:03,185
and let's leave Nintendo
with the kids.

446
00:19:03,229 --> 00:19:06,493
[dramatic music]

447
00:19:06,536 --> 00:19:08,538
So I worked with Paul
and Shinobu

448
00:19:08,582 --> 00:19:10,061
on putting together a plan

449
00:19:10,105 --> 00:19:12,890
on how we were gonna
take on Nintendo.

450
00:19:12,934 --> 00:19:19,332
♪

451
00:19:26,556 --> 00:19:30,212
- Tom and I went
to Sega Japan headquarter,

452
00:19:30,256 --> 00:19:33,520
where there is a big room
called Decision Room,

453
00:19:33,563 --> 00:19:36,436
full of executives
and managers...

454
00:19:36,479 --> 00:19:39,743
and Nakayama-san
sitting in the center.

455
00:19:39,787 --> 00:19:42,572
- I'm not one to just go
into a business

456
00:19:42,616 --> 00:19:44,835
where I think
I'm gonna be second place.

457
00:19:45,880 --> 00:19:48,578
I had studied the market
and had a strategy

458
00:19:48,622 --> 00:19:50,972
for what I thought
we needed to do.

459
00:19:51,015 --> 00:19:55,368
First, I wanted to do more
American licenses from TV shows

460
00:19:55,411 --> 00:19:57,326
and movies
in the United States...

461
00:19:57,370 --> 00:19:59,023
- [screams]

462
00:19:59,067 --> 00:20:02,244
- Because Japan didn't
understand those licenses.

463
00:20:02,288 --> 00:20:04,377
- Montana, touchdown!

464
00:20:04,420 --> 00:20:06,117
- And I didn't think
the development

465
00:20:06,161 --> 00:20:08,076
could occur in Japan.

466
00:20:08,119 --> 00:20:11,253
Then I said, "We've gotta
lower the price of Genesis."

467
00:20:11,297 --> 00:20:15,214
- We wanted to make it very
competitive against Nintendo.

468
00:20:15,257 --> 00:20:18,347
- And I wanted us
to take on Mario,

469
00:20:18,391 --> 00:20:21,176
and so I wanted
our best character

470
00:20:21,220 --> 00:20:23,918
to be included
with the hardware.

471
00:20:23,961 --> 00:20:28,139
- Nakayama's face turned
very white, and he said,

472
00:20:28,183 --> 00:20:31,621
"What, crazy?
That's our lifeblood.

473
00:20:31,665 --> 00:20:32,883
Give it free?"

474
00:20:32,927 --> 00:20:35,538
And Tom told Nakayama-san,

475
00:20:35,582 --> 00:20:38,498
"By the way,
in addition to this"...

476
00:20:38,541 --> 00:20:41,762
- I wanted to take Nintendo on
directly in advertising

477
00:20:41,805 --> 00:20:43,894
and make fun of them.

478
00:20:43,938 --> 00:20:46,419
- Of course, there was a fear
that Nintendo may sue us

479
00:20:46,462 --> 00:20:48,595
or somehow try to stop that.

480
00:20:48,638 --> 00:20:51,859
♪

481
00:20:51,902 --> 00:20:55,079
- After my presentation,
they all talked in Japanese.

482
00:20:55,123 --> 00:20:57,647
Shinobu would try to translate
in my ear,

483
00:20:57,691 --> 00:21:00,563
but I could tell this
was not going over well.

484
00:21:00,607 --> 00:21:03,305
And I thought, "Well,
that's the shortest career

485
00:21:03,349 --> 00:21:05,655
anybody ever had
with a company."

486
00:21:05,699 --> 00:21:10,269
- Nakayama-san got so mad,
his face turning very pale.

487
00:21:10,312 --> 00:21:11,748
- Nakayama said,

488
00:21:11,792 --> 00:21:15,491
"Well, nobody agrees with
anything that you've said."

489
00:21:15,535 --> 00:21:19,321
- He literally stood up
from chair and almost,

490
00:21:19,365 --> 00:21:20,627
like, kicking the chair.

491
00:21:20,670 --> 00:21:22,759
I really don't remember
physically did he

492
00:21:22,803 --> 00:21:24,021
kick the chair or not,

493
00:21:24,065 --> 00:21:27,242
but he quickly walked
to the door.

494
00:21:27,286 --> 00:21:29,679
♪

495
00:21:29,723 --> 00:21:31,551
[blipping]

496
00:21:31,594 --> 00:21:33,509
- But he turned at the door,
and he said,

497
00:21:33,553 --> 00:21:36,077
"When I brought you on board,
I said you could make

498
00:21:36,120 --> 00:21:39,036
"the decisions for the company
in the United States,

499
00:21:39,080 --> 00:21:42,779
and therefore go ahead
and do what you just proposed."

500
00:21:42,823 --> 00:21:45,782
[crowd cheering]

501
00:21:45,826 --> 00:21:48,785
[victorious music]

502
00:21:48,829 --> 00:21:51,658
[bells jingling]

503
00:21:51,701 --> 00:21:53,355
- For the third year in a row,

504
00:21:53,399 --> 00:21:55,749
it's on the top
of everyone's Christmas list.

505
00:21:55,792 --> 00:21:57,490
- What do you wantfor Christmas?

506
00:21:57,533 --> 00:21:58,882
- Nintendo.

507
00:21:58,926 --> 00:22:01,015
- There were competitors,

508
00:22:01,058 --> 00:22:04,279
home video game companies
that were in the business,

509
00:22:04,323 --> 00:22:06,107
and certainly one
of the companies was Sega.

510
00:22:07,848 --> 00:22:09,415
One of the things
that we always did

511
00:22:09,458 --> 00:22:12,766
was have our game people
play their games.

512
00:22:12,809 --> 00:22:14,158
[upbeat electronic music]

513
00:22:14,202 --> 00:22:18,337
The feedback was uniformly,
"Great graphics,

514
00:22:18,380 --> 00:22:20,339
but the games are lousy."

515
00:22:20,382 --> 00:22:22,297
♪

516
00:22:22,341 --> 00:22:25,082
As long as we were
hearing that...

517
00:22:25,126 --> 00:22:26,257
we weren't too concerned.

518
00:22:26,301 --> 00:22:29,696
♪

519
00:22:29,739 --> 00:22:31,611
- Welcome to the Fight Palace.

520
00:22:31,654 --> 00:22:35,005
[eerie electronic music]

521
00:22:35,049 --> 00:22:37,660
♪

522
00:22:37,704 --> 00:22:39,270
- The title that was packed

523
00:22:39,314 --> 00:22:41,664
into the Genesis
was "Altered Beast."

524
00:22:41,708 --> 00:22:43,057
- [roars]

525
00:22:43,100 --> 00:22:45,451
- Not a particularly good game
in my opinion,

526
00:22:45,494 --> 00:22:48,105
but it also sounded
like devil worship

527
00:22:48,149 --> 00:22:49,585
for half of the United States,

528
00:22:49,629 --> 00:22:51,544
where that would be
just unacceptable.

529
00:22:51,587 --> 00:22:54,329
And we needed something
to compete with Mario.

530
00:22:54,373 --> 00:22:55,896
[dynamic music]

531
00:22:55,939 --> 00:22:59,639
- So there was company-wide
efforts to come up

532
00:22:59,682 --> 00:23:01,075
with something new.

533
00:23:01,118 --> 00:23:04,208
Yuji Naka,
our genius programmer,

534
00:23:04,252 --> 00:23:08,561
came up with algorithm
to move object very fast,

535
00:23:08,604 --> 00:23:12,086
and he needed a character
to move fast.

536
00:23:12,129 --> 00:23:13,435
- [speaking Japanese]

537
00:23:13,479 --> 00:23:16,482
- So he asked
the art designer,

538
00:23:16,525 --> 00:23:18,484
Naoto Ohshima, to come up

539
00:23:18,527 --> 00:23:20,268
with some sort of characters.

540
00:23:20,311 --> 00:23:23,314
- [speaking Japanese]

541
00:23:27,318 --> 00:23:28,755
- It was Al Nilsen,

542
00:23:28,798 --> 00:23:30,321
our director of marketing,

543
00:23:30,365 --> 00:23:32,454
who had to pick
the characters.

544
00:23:32,498 --> 00:23:33,716
- First game I have here

545
00:23:33,760 --> 00:23:35,109
is "Michael Jackson's
Moonwalker,"

546
00:23:35,152 --> 00:23:37,894
which was actually designed
by Michael himself.

547
00:23:39,156 --> 00:23:42,203
- Al was one of the very
first employees hired

548
00:23:42,246 --> 00:23:44,466
to launch Sega Genesis.

549
00:23:44,510 --> 00:23:49,340
He was the game guru,
marketer, PR, everything.

550
00:23:49,384 --> 00:23:53,780
- Al's the best gamer
I've ever seen.

551
00:23:53,823 --> 00:23:55,825
- He was like a big kid

552
00:23:55,869 --> 00:23:58,437
who played video games
all the time.

553
00:23:58,480 --> 00:24:00,090
- Shinobu came into my office

554
00:24:00,134 --> 00:24:02,397
and explained
about this contest

555
00:24:02,441 --> 00:24:06,314
that Sega Japan had had
to develop our Mario.

556
00:24:06,357 --> 00:24:09,448
He says,
"Nakayama has chosen you.

557
00:24:09,491 --> 00:24:11,580
"They're happy
with two finalists,

558
00:24:11,624 --> 00:24:13,147
and they want you to choose."

559
00:24:13,190 --> 00:24:16,150
The first one was Eggs.

560
00:24:16,193 --> 00:24:17,804
♪

561
00:24:17,847 --> 00:24:19,501
"Okay, let's see
what the other one is."

562
00:24:19,545 --> 00:24:21,198
♪

563
00:24:21,242 --> 00:24:23,287
"A hedgehog?

564
00:24:23,331 --> 00:24:26,203
What in the world
is a hedgehog?"

565
00:24:26,247 --> 00:24:28,597
And there was this rock band.

566
00:24:28,641 --> 00:24:31,513
- He also had a girlfriend
named Madonna,

567
00:24:31,557 --> 00:24:34,211
who was very voluptuous.
[wolf whistle]

568
00:24:34,255 --> 00:24:38,955
- So I've got Eggs
and a hedgehog...

569
00:24:38,999 --> 00:24:41,784
so I chose Sonic the Hedgehog.

570
00:24:43,046 --> 00:24:45,745
I said, "You gotta
get rid of the rock band,

571
00:24:45,788 --> 00:24:47,616
and you gotta
get rid of Madonna."

572
00:24:47,660 --> 00:24:49,009
- We said, of course,
"No, no, no.

573
00:24:49,052 --> 00:24:50,663
we can't use
the name Madonna for this."

574
00:24:50,706 --> 00:24:52,491
- But there were
some other tweaks

575
00:24:52,534 --> 00:24:53,622
to the way he looked...

576
00:24:53,666 --> 00:24:55,537
♪

577
00:24:55,581 --> 00:24:58,279
Just to go
and round off his edges.

578
00:24:58,322 --> 00:25:00,194
- The folks in Japan
didn't like that

579
00:25:00,237 --> 00:25:01,848
because it was their creation

580
00:25:01,891 --> 00:25:05,373
and didn't want
anyone to touch.

581
00:25:05,416 --> 00:25:06,896
- It went all the way up

582
00:25:06,940 --> 00:25:09,725
inside of the Japan culture
to Nakayama,

583
00:25:09,769 --> 00:25:12,641
and he eventually said, "No,
do what the U.S. wants done."

584
00:25:12,685 --> 00:25:15,035
[dramatic music]

585
00:25:15,078 --> 00:25:17,211
- Six months later,
I'm at Sega Japan.

586
00:25:17,254 --> 00:25:20,649
We walk over to a screen,
and here's this guy Sonic.

587
00:25:20,693 --> 00:25:21,998
[captivating music]

588
00:25:22,042 --> 00:25:24,653
Never seen a video game
move that fast...

589
00:25:24,697 --> 00:25:27,482
and look at these
vibrant colors.

590
00:25:27,526 --> 00:25:30,398
After my visit, I went back,
and I said,

591
00:25:30,441 --> 00:25:33,357
"Sega Japan created something
that we can go

592
00:25:33,401 --> 00:25:35,229
"and put up against Mario.

593
00:25:35,272 --> 00:25:39,102
This can be
our number one game."

594
00:25:39,146 --> 00:25:45,369
♪

595
00:25:45,413 --> 00:25:48,764
[blipping]

596
00:25:48,808 --> 00:25:50,897
- "It's gonna be
the best game Sega ever did."

597
00:25:50,940 --> 00:25:53,203
Coming from Al, that was,
like, you know,

598
00:25:53,247 --> 00:25:55,075
"Hey, we got a runner."

599
00:25:55,118 --> 00:25:56,250
[blipping]

600
00:25:56,293 --> 00:25:58,992
- That changed the mood
and tide,

601
00:25:59,035 --> 00:26:02,386
so to speak,
of the company immediately.

602
00:26:02,430 --> 00:26:04,693
And the rest is history,

603
00:26:04,737 --> 00:26:08,436
and, uh...yeah.

604
00:26:08,479 --> 00:26:10,394
[applause]

605
00:26:10,438 --> 00:26:12,788
- Let's play Nintendo!

606
00:26:12,832 --> 00:26:15,835
[cheers and applause]

607
00:26:17,184 --> 00:26:19,229
- It is the video game craze,

608
00:26:19,273 --> 00:26:22,058
the Nintendo craze,
but this year, Nintendo

609
00:26:22,102 --> 00:26:25,105
may be up against
some serious competition.

610
00:26:25,148 --> 00:26:27,760
- You get better graphics,
more levels of play,

611
00:26:27,803 --> 00:26:31,590
better animation on the screen,
longer games,

612
00:26:31,633 --> 00:26:33,113
just more fun to play.

613
00:26:33,156 --> 00:26:35,550
- Nintendo, however,
does not plan

614
00:26:35,594 --> 00:26:37,421
to relinquish any ground.

615
00:26:37,465 --> 00:26:40,642
- Introducing the next
generation from Nintendo.

616
00:26:40,686 --> 00:26:44,124
- Almost as soon as the NES was
launched in the United States,

617
00:26:44,167 --> 00:26:46,822
Nintendo was working
on the Super NES.

618
00:26:46,866 --> 00:26:48,911
- What do you do
after you've made a fortune

619
00:26:48,955 --> 00:26:50,521
selling American kids
on a product

620
00:26:50,565 --> 00:26:52,306
that drives
their parents crazy?

621
00:26:52,349 --> 00:26:54,351
You declare it obsolete,
of course, and introduce

622
00:26:54,395 --> 00:26:56,049
a new and improved version
next month.

623
00:26:56,092 --> 00:26:59,661
- Nintendo wants a generation
of video freaks

624
00:26:59,705 --> 00:27:01,968
to forsake the gear
they've already spent

625
00:27:02,011 --> 00:27:03,839
several hundred dollars on

626
00:27:03,883 --> 00:27:06,494
for this, Super Nintendo.

627
00:27:06,537 --> 00:27:09,323
[dramatic music]

628
00:27:09,366 --> 00:27:11,499
- So we arranged
with Sega Japan

629
00:27:11,542 --> 00:27:14,894
to go and pick up
one of the new systems for us.

630
00:27:14,937 --> 00:27:16,896
And we all got together
in Tom's office,

631
00:27:16,939 --> 00:27:18,724
took it out of the box,

632
00:27:18,767 --> 00:27:21,727
hooked it up to the TV,
hit the on switch,

633
00:27:21,770 --> 00:27:24,468
and we were ready to see
what they had in store for us.

634
00:27:24,512 --> 00:27:25,687
[blipping]

635
00:27:25,731 --> 00:27:27,950
- We had a Mario launch game.

636
00:27:29,169 --> 00:27:33,216
I knew instantly
we had a winner.

637
00:27:33,260 --> 00:27:35,566
That game was that good.

638
00:27:35,610 --> 00:27:37,830
- "Are you sure?"

639
00:27:37,873 --> 00:27:41,616
This didn't look like 16-bit.

640
00:27:41,660 --> 00:27:44,619
It kind of looked 12-bit,
if I want to coin a phrase.

641
00:27:44,663 --> 00:27:47,274
♪

642
00:27:47,317 --> 00:27:50,712
It just wasn't taking it
to the next level.

643
00:27:50,756 --> 00:27:54,237
I was like,
"Yeah, we're okay.

644
00:27:54,281 --> 00:27:57,284
"We've got this guy named
Sonic in our back pocket.

645
00:27:57,327 --> 00:28:00,591
This could go and be
very, very interesting."

646
00:28:00,635 --> 00:28:04,117
So I came up with an idea.

647
00:28:04,160 --> 00:28:06,162
- ♪ Ah, push it

648
00:28:06,206 --> 00:28:09,513
♪

649
00:28:09,557 --> 00:28:13,039
- Ask not what machines
can do for you.

650
00:28:13,082 --> 00:28:16,216
Ask what you can do
for machines.

651
00:28:16,259 --> 00:28:21,308
♪

652
00:28:21,351 --> 00:28:25,051
- The Consumer Electronics Show
is a twice-a-year extravaganza.

653
00:28:25,094 --> 00:28:29,969
More than 140,000 products
are now on display.

654
00:28:30,012 --> 00:28:32,058
Hundreds of companies
are taking part,

655
00:28:32,101 --> 00:28:34,669
and more than a third of
the industry's annual business

656
00:28:34,713 --> 00:28:36,192
is done right there.

657
00:28:36,236 --> 00:28:37,759
- But this time,
it's for the ducks.

658
00:28:37,803 --> 00:28:39,456
- Wait.
- Uh-oh.

659
00:28:40,544 --> 00:28:42,459
- Whenever you're at war,

660
00:28:42,503 --> 00:28:44,418
you always hit the guy
in the mouth

661
00:28:44,461 --> 00:28:45,767
as hard as you can.

662
00:28:45,811 --> 00:28:47,464
If you can't hit him hard,

663
00:28:47,508 --> 00:28:49,379
you might as well
not even fight.

664
00:28:49,423 --> 00:28:51,991
That's the attitude
in real war,

665
00:28:52,034 --> 00:28:53,775
and it's the attitude
in business.

666
00:28:53,819 --> 00:28:55,734
You've gotta be prepared
to take on

667
00:28:55,777 --> 00:28:57,561
the competition and win.

668
00:28:57,605 --> 00:28:59,650
♪

669
00:28:59,694 --> 00:29:02,828
- ♪ Ow, dig it

670
00:29:02,871 --> 00:29:04,264
- Do you think
the technology exists

671
00:29:04,307 --> 00:29:06,309
that these'll shrink even more?

672
00:29:06,353 --> 00:29:08,137
- I don't know how much
smaller they can get.

673
00:29:08,181 --> 00:29:09,399
You know what the problem
with them getting smaller

674
00:29:09,443 --> 00:29:11,097
is holding them steady,

675
00:29:11,140 --> 00:29:13,099
because if it's lightweight,
it tends to move.

676
00:29:13,142 --> 00:29:14,317
♪

677
00:29:14,361 --> 00:29:15,492
- ♪ Salt-N-Pepa,
Salt-N-Pepa ♪

678
00:29:15,536 --> 00:29:16,972
- Nintendo had some new games

679
00:29:17,016 --> 00:29:18,669
and accessories on display

680
00:29:18,713 --> 00:29:21,063
inside the enormous
Nintendo pavilion.

681
00:29:21,107 --> 00:29:22,499
[women scream]

682
00:29:22,543 --> 00:29:24,414
Nintendo now has
the lion's share

683
00:29:24,458 --> 00:29:26,808
of the $5 billion
video game market.

684
00:29:26,852 --> 00:29:29,506
Sega of America
will offer two new games,

685
00:29:29,550 --> 00:29:31,682
one featuring a hedgehog.

686
00:29:31,726 --> 00:29:34,816
- Normally before a big launch
of a--of a major title,

687
00:29:34,860 --> 00:29:37,819
you would start getting
early press.

688
00:29:37,863 --> 00:29:39,038
We didn't do any of that.

689
00:29:39,081 --> 00:29:41,823
We waited until
the very, very last minute

690
00:29:41,867 --> 00:29:43,825
to surprise Nintendo.

691
00:29:43,869 --> 00:29:45,696
- ♪ Show the guys
that we know ♪

692
00:29:45,740 --> 00:29:47,481
- Ta-da.
[laughs]

693
00:29:47,524 --> 00:29:48,961
- ♪ I don't know
what I'm doing ♪

694
00:29:49,004 --> 00:29:51,702
- I can't believe it.
Mario, jeez.

695
00:29:51,746 --> 00:29:54,531
- I'm a nice guy, and I felt
that the nicest thing

696
00:29:54,575 --> 00:29:56,751
that I could go
and do for Nintendo

697
00:29:56,795 --> 00:30:01,582
was to introduce Super NES
to America for them.

698
00:30:01,625 --> 00:30:03,932
I see this reporter.

699
00:30:03,976 --> 00:30:05,847
His opening words were,

700
00:30:05,891 --> 00:30:09,677
"Super Nintendo
has 32,768 colors.

701
00:30:09,720 --> 00:30:11,200
"You only have 512.

702
00:30:11,244 --> 00:30:12,941
What are you gonna do
about it?"

703
00:30:12,985 --> 00:30:16,031
We walk over to where we had
the two monitors stacked

704
00:30:16,075 --> 00:30:17,598
one on top of each other,

705
00:30:17,641 --> 00:30:20,731
and I said to him,
"Which one has more colors?"

706
00:30:20,775 --> 00:30:22,255
- ♪ Push it

707
00:30:22,298 --> 00:30:24,866
♪ Push, push, push,
push it, push it ♪

708
00:30:24,910 --> 00:30:26,346
♪ Push it

709
00:30:26,389 --> 00:30:29,653
- He just turned around
and walked out of the booth.

710
00:30:29,697 --> 00:30:31,873
- ♪ Push it, push it,
push it ♪

711
00:30:31,917 --> 00:30:33,788
♪ Push it, push it, push it

712
00:30:33,832 --> 00:30:35,224
- And it's like, "Hmm.

713
00:30:35,268 --> 00:30:36,878
"What can we do with this?

714
00:30:36,922 --> 00:30:39,533
"Let's do what we did at CES

715
00:30:39,576 --> 00:30:43,885
but this time a mall tour
going around the country."

716
00:30:43,929 --> 00:30:44,886
[children shouting]

717
00:30:44,930 --> 00:30:46,366
- Here's the challenge.

718
00:30:46,409 --> 00:30:49,978
Super Nintendo, brand-new
competitor of ours, 16 bits.

719
00:30:50,022 --> 00:30:51,110
We challenge them.

720
00:30:51,153 --> 00:30:52,720
We think
we're better than them,

721
00:30:52,763 --> 00:30:55,375
but it's up to you to decide.

722
00:30:55,418 --> 00:30:57,116
[upbeat music]

723
00:30:57,159 --> 00:30:59,858
- Our small initial team
was very good,

724
00:30:59,901 --> 00:31:02,338
but it was clear to me
we needed help.

725
00:31:02,382 --> 00:31:03,949
- The American marketplace

726
00:31:03,992 --> 00:31:07,169
is a very vibrant marketplace
for the video game industry.

727
00:31:07,213 --> 00:31:09,128
- We were one of the first
video game companies

728
00:31:09,171 --> 00:31:11,434
to have senior women
in the management ranks.

729
00:31:11,478 --> 00:31:13,436
And Ellen Beth Van Buskirk

730
00:31:13,480 --> 00:31:15,917
was a very special find
for us.

731
00:31:15,961 --> 00:31:18,224
- You have the 8-bit segments.

732
00:31:18,267 --> 00:31:21,923
I spent my entire summer
going from mall to mall

733
00:31:21,967 --> 00:31:26,101
to mall to mall to introduce
Sonic the Hedgehog.

734
00:31:26,145 --> 00:31:28,277
And on occasion,

735
00:31:28,321 --> 00:31:33,195
I would don the Sonic
the Hedgehog character uniform.

736
00:31:33,239 --> 00:31:35,241
You could project
that the little kids

737
00:31:35,284 --> 00:31:37,112
were gonna pet me.

738
00:31:37,156 --> 00:31:38,374
They were gonna
wanna be hugged.

739
00:31:38,418 --> 00:31:41,943
"Oh, Sonic,"
kisses and hugs and sweetness.

740
00:31:41,987 --> 00:31:47,035
But the teenage boys responded
to me quite differently.

741
00:31:47,079 --> 00:31:51,474
They kind of wanted to do
high-fiving, fist pumping,

742
00:31:51,518 --> 00:31:53,520
and I kind of got pushed around
a little bit.

743
00:31:53,563 --> 00:31:56,088
- I think Genesis is gonna win
all the way.

744
00:31:56,131 --> 00:31:58,307
- They wanted
something different.

745
00:31:58,351 --> 00:32:00,005
They wanted attitude.

746
00:32:00,048 --> 00:32:03,530
They wanted sass.
They didn't want hugs.

747
00:32:03,573 --> 00:32:06,707
- For Christmas, I'm gonna
ask my mom for a Sega Genesis

748
00:32:06,750 --> 00:32:09,928
because it's way better
than Nintendo.

749
00:32:09,971 --> 00:32:12,887
- Mario was
a very slow-moving,

750
00:32:12,931 --> 00:32:15,020
left-to-right scroll game,

751
00:32:15,063 --> 00:32:17,196
and Sonic was hip
and fast and cool.

752
00:32:17,239 --> 00:32:18,371
- Sega Genesis is way better

753
00:32:18,414 --> 00:32:20,460
because Nintendo
is kind of slow.

754
00:32:20,503 --> 00:32:22,941
- When Sonic
was first released,

755
00:32:22,984 --> 00:32:24,943
everybody kind of scratched
their head and said,

756
00:32:24,986 --> 00:32:26,683
"A hedge-what?"

757
00:32:26,727 --> 00:32:30,035
- You know, was it impressive
that he could roll really fast?

758
00:32:30,078 --> 00:32:32,080
I don't know.
You know, for me,

759
00:32:32,124 --> 00:32:33,255
I didn't probably have

760
00:32:33,299 --> 00:32:34,996
the reaction time
to deal with it.

761
00:32:35,040 --> 00:32:36,998
- But for a lot of people,
they found it really fun

762
00:32:37,042 --> 00:32:40,306
and liked the fast action,
using that pachinko mechanic

763
00:32:40,349 --> 00:32:41,872
of lots of
"ba-ding-a-ding-a-ding,"

764
00:32:41,916 --> 00:32:43,874
very fun to kind of get
that going and keep it going.

765
00:32:43,918 --> 00:32:45,876
And Sonic is a character.

766
00:32:45,920 --> 00:32:48,488
He had that little bit
of edgy kind of wiseness

767
00:32:48,531 --> 00:32:51,534
that Mario--you know, Mario--
"hoo-hoo"--never had.

768
00:32:51,578 --> 00:32:54,146
- It wasn't empirical science
when you say,

769
00:32:54,189 --> 00:32:56,148
"Which one
do you like better?"

770
00:32:56,191 --> 00:32:58,367
Doot, doot, doot,
doot, doot, doot.

771
00:32:58,411 --> 00:33:00,413
[imitates whoosh]

772
00:33:00,456 --> 00:33:02,981
- In speed of action,
we looked better;

773
00:33:03,024 --> 00:33:04,460
graphics, we looked better.

774
00:33:04,504 --> 00:33:05,896
[blipping]

775
00:33:05,940 --> 00:33:08,377
They had never experienced
anything like it.

776
00:33:08,421 --> 00:33:10,727
- I don't think
Sonic the Hedgehog

777
00:33:10,771 --> 00:33:13,295
was a masterpiece or something,

778
00:33:13,339 --> 00:33:15,602
but it gave them
additional momentum.

779
00:33:17,343 --> 00:33:18,953
- By then, I knew
we had a winner,

780
00:33:18,997 --> 00:33:20,389
but we needed to find a way

781
00:33:20,433 --> 00:33:22,391
to get in
the major retailers.

782
00:33:22,435 --> 00:33:24,611
- ♪ Wal-Mart's one of those

783
00:33:24,654 --> 00:33:28,919
- Wal-Mart wouldn't agree
to carry Sega products.

784
00:33:28,963 --> 00:33:31,096
- The only thing...
- Hotter than Nintendo games...

785
00:33:31,139 --> 00:33:32,662
- Is Wal-Mart's price.

786
00:33:32,706 --> 00:33:35,056
- Wal-Mart was making a lot
of money from Nintendo,

787
00:33:35,100 --> 00:33:39,713
and they did not need
any unknown second supplier.

788
00:33:39,756 --> 00:33:42,672
- And Wal-Mart just refused
because of this pressure

789
00:33:42,716 --> 00:33:44,022
that Nintendo put on them.

790
00:33:45,327 --> 00:33:49,766
- We were fanatics
about retail space, okay?

791
00:33:49,810 --> 00:33:51,594
[funky music]

792
00:33:51,638 --> 00:33:53,379
That became a thing
we leveraged.

793
00:33:53,422 --> 00:33:55,859
"Hey, you're really doing well
with the product, Mr. Retailer,

794
00:33:55,903 --> 00:33:59,472
"but guess how much better
you could be if you had 20,

795
00:33:59,515 --> 00:34:02,736
30, 40 feet
of Nintendo product."

796
00:34:02,779 --> 00:34:05,086
- And "Super Mario World"is included.

797
00:34:05,130 --> 00:34:07,393
- Okay, okay,
we'll get it for him.

798
00:34:09,134 --> 00:34:13,225
- So we developed a strategy
on how to change this.

799
00:34:13,268 --> 00:34:14,748
[blipping]

800
00:34:14,791 --> 00:34:19,057
- I came up with an idea
of opening a Sega Game Store

801
00:34:19,100 --> 00:34:23,104
right in front of Wal-Mart
headquarter in Arkansas.

802
00:34:23,148 --> 00:34:26,020
- We rented a store
in a shopping mall

803
00:34:26,064 --> 00:34:29,328
literally as close
to Wal-Mart headquarters

804
00:34:29,371 --> 00:34:31,243
in Bentonville
as you could get,

805
00:34:31,286 --> 00:34:35,377
and we put as many
TVs and Sega Genesis

806
00:34:35,421 --> 00:34:38,119
in there as we could
and a big sign out front

807
00:34:38,163 --> 00:34:41,296
that said,
"Come play Sega Genesis."

808
00:34:41,340 --> 00:34:42,993
- Free of charge.

809
00:34:43,037 --> 00:34:45,909
- We had lines of teenagers
out the door.

810
00:34:45,953 --> 00:34:49,522
- The store became very popular
for Wal-Mart employees.

811
00:34:50,784 --> 00:34:53,134
- We bought every billboard
leading in and out

812
00:34:53,178 --> 00:34:55,658
of Bentonville
with Sega advertising.

813
00:34:55,702 --> 00:34:58,139
We bought
the football cushions

814
00:34:58,183 --> 00:35:01,447
at the University of Arkansas
football stadium.

815
00:35:01,490 --> 00:35:03,840
♪

816
00:35:03,884 --> 00:35:07,888
After a while, a senior VP
of Wal-Mart called me up,

817
00:35:07,931 --> 00:35:10,369
and he said, "Tom, stop it.

818
00:35:10,412 --> 00:35:14,286
We'll give you a four-foot
section in Wal-Mart stores."

819
00:35:14,329 --> 00:35:17,506
Because Wal-Mart
is such a powerful retailer,

820
00:35:17,550 --> 00:35:20,248
all the other retailers
gave us more space

821
00:35:20,292 --> 00:35:23,164
and were less afraid
of Nintendo punishment.

822
00:35:23,208 --> 00:35:25,035
[upbeat music]

823
00:35:25,079 --> 00:35:27,560
That changed the business
dramatically.

824
00:35:27,603 --> 00:35:34,175
♪

825
00:35:34,219 --> 00:35:36,917
- As the company started
to grow very fast,

826
00:35:36,960 --> 00:35:39,659
we brought in people
from much bigger company

827
00:35:39,702 --> 00:35:43,141
because we are aiming to be
a bigger company.

828
00:35:43,184 --> 00:35:45,099
[exciting music]

829
00:35:45,143 --> 00:35:47,406
- Sega was such
a distant player.

830
00:35:47,449 --> 00:35:48,885
It wasn't like
they were second.

831
00:35:48,929 --> 00:35:51,453
It was like they were 14th.
They were that far down.

832
00:35:51,497 --> 00:35:55,196
Nintendo was so dominant.
- "Nintendo Power."

833
00:35:55,240 --> 00:35:58,112
- So I got a call from Tom,
from Tom Kalinske.

834
00:35:58,156 --> 00:36:00,984
He needed some help
doing marketing,

835
00:36:01,028 --> 00:36:02,682
and he asked if I would do it.

836
00:36:02,725 --> 00:36:04,074
- Mario!

837
00:36:04,118 --> 00:36:06,686
- It was not dissimilar
to what I did at Reebok,

838
00:36:06,729 --> 00:36:09,341
which was trying to unseat
a category leader.

839
00:36:09,384 --> 00:36:11,865
- No-no-nobody.

840
00:36:11,908 --> 00:36:13,388
- Part of the reason
of going to Reebok

841
00:36:13,432 --> 00:36:15,825
was the challenge
of slaying the beast of Nike.

842
00:36:15,869 --> 00:36:17,044
- Impossible.

843
00:36:17,087 --> 00:36:18,045
- And we came up
with this idea

844
00:36:18,088 --> 00:36:19,481
called the Reebok Pump.

845
00:36:20,787 --> 00:36:22,310
It was totally
a marketing gimmick.

846
00:36:22,354 --> 00:36:24,312
It made your foot a lot hotter.

847
00:36:24,356 --> 00:36:26,575
It didn't really give you
any more support.

848
00:36:26,619 --> 00:36:28,751
♪

849
00:36:28,795 --> 00:36:31,232
But at the end of the day,
it was one of those things

850
00:36:31,276 --> 00:36:33,669
that just caught
the consumer psyche.

851
00:36:33,713 --> 00:36:35,541
♪

852
00:36:35,584 --> 00:36:37,456
- Steve Race, the first thing
we heard about

853
00:36:37,499 --> 00:36:41,155
is his wild
TV commercial at Reebok.

854
00:36:41,199 --> 00:36:42,939
- One guy is wearing Nikes.

855
00:36:42,983 --> 00:36:45,681
The other guy
is wearing Reebok.

856
00:36:45,725 --> 00:36:47,944
They both jump off
this bridge.

857
00:36:47,988 --> 00:36:50,599
[dynamic music]

858
00:36:50,643 --> 00:36:53,036
♪

859
00:36:53,080 --> 00:36:54,821
Commercial ran once.

860
00:36:56,518 --> 00:36:59,608
- Steve Race was a terrorist
for A-type personalities.

861
00:36:59,652 --> 00:37:02,350
If he was a college course,
he'd be Trouble and Difficulty.

862
00:37:02,394 --> 00:37:04,222
♪

863
00:37:04,265 --> 00:37:06,485
- I remember Steve
and I playing tennis.

864
00:37:06,528 --> 00:37:08,878
He had a mean serve.

865
00:37:08,922 --> 00:37:11,446
I think he was aiming
for my head most of the time.

866
00:37:11,490 --> 00:37:13,274
- Sega had a bad reputation.

867
00:37:13,318 --> 00:37:15,798
♪

868
00:37:15,842 --> 00:37:17,757
[telephone rings]

869
00:37:17,800 --> 00:37:20,063
I just didn't wanna be
the puppet that would be pulled

870
00:37:20,107 --> 00:37:22,979
by a puppet master
7,000 miles away.

871
00:37:24,329 --> 00:37:26,244
I didn't know
who the puppet master was.

872
00:37:26,287 --> 00:37:28,594
Obviously, it turned out
to be Nakayama-san.

873
00:37:28,637 --> 00:37:31,074
[ominous music]

874
00:37:31,118 --> 00:37:33,381
Nakayama was the head of SOJ,

875
00:37:33,425 --> 00:37:35,383
and he really was
the patriarch

876
00:37:35,427 --> 00:37:37,167
and the prime mover
in all of Sega.

877
00:37:37,211 --> 00:37:39,779
Nothing went out without
Nakayama's approval

878
00:37:39,822 --> 00:37:41,259
and endorsement.

879
00:37:41,302 --> 00:37:45,915
- Nakayama-san was very
difficult for many people.

880
00:37:45,959 --> 00:37:49,310
If you do not deliver,
he was brutal.

881
00:37:49,354 --> 00:37:52,444
- We'd all be on alert
that he was coming in,

882
00:37:52,487 --> 00:37:53,880
and there was this presence,

883
00:37:53,923 --> 00:37:56,361
almost of evil,
that came into the office.

884
00:37:56,404 --> 00:37:58,711
- He had very long hair

885
00:37:58,754 --> 00:38:01,017
that he kind of wound
around the top of his head.

886
00:38:02,367 --> 00:38:03,933
- We had all these ways
that we thought

887
00:38:03,977 --> 00:38:06,153
Nakayama might meet
his demise,

888
00:38:06,196 --> 00:38:09,330
and one of those was that
his hair would get caught

889
00:38:09,374 --> 00:38:10,984
in the rotor blades
of a helicopter

890
00:38:11,027 --> 00:38:14,074
and pull him around
in a very Gatsby-esque death.

891
00:38:14,117 --> 00:38:15,336
- [grunts]

892
00:38:15,380 --> 00:38:16,729
[yelling]

893
00:38:16,772 --> 00:38:20,123
- To me, Hayao Nakayama
was a cartoon character,

894
00:38:20,167 --> 00:38:22,517
and I loved talking about him.

895
00:38:22,561 --> 00:38:23,605
I mean, we all did, you know?

896
00:38:23,649 --> 00:38:25,172
He had weird hair,

897
00:38:25,215 --> 00:38:26,652
he had a weird sensibility,

898
00:38:26,695 --> 00:38:28,349
and he carried
a very big stick.

899
00:38:28,393 --> 00:38:30,351
[upbeat music]

900
00:38:30,395 --> 00:38:35,313
The Japanese-U.S. relationship
is kind of confusing.

901
00:38:35,356 --> 00:38:39,186
It really kind of starts
with an American serviceman,

902
00:38:39,229 --> 00:38:43,190
David Rosen,
in Japan during the war

903
00:38:43,233 --> 00:38:44,626
and then coming home
and saying,

904
00:38:44,670 --> 00:38:46,106
"Hey, there's
an opportunity me

905
00:38:46,149 --> 00:38:50,719
to sell arcade games
from Japan into the U.S."

906
00:38:51,764 --> 00:38:55,550
We called each other
SOJ and SOA,

907
00:38:55,594 --> 00:38:58,858
Sega of Japan
and Sega of America.

908
00:38:58,901 --> 00:39:02,731
♪

909
00:39:02,775 --> 00:39:05,517
- I don't think
anyone in Japan thought

910
00:39:05,560 --> 00:39:08,911
taking Nintendo on directly
was a good idea,

911
00:39:08,955 --> 00:39:12,001
but it was something
I felt we needed to do.

912
00:39:12,045 --> 00:39:14,961
[upbeat rock music]

913
00:39:15,004 --> 00:39:16,832
♪

914
00:39:16,876 --> 00:39:17,877
- [screams]

915
00:39:17,920 --> 00:39:19,008
- [screams]

916
00:39:19,052 --> 00:39:20,575
- People hate advertising
in general.

917
00:39:20,619 --> 00:39:24,318
You know, if I go to a party
and I say I'm a filmmaker,

918
00:39:24,362 --> 00:39:25,624
they go,
"Oh, what films did you make?"

919
00:39:25,667 --> 00:39:27,277
And they think of,
like, really good films.

920
00:39:27,321 --> 00:39:29,062
And you say,
"Oh, I'm an author,"

921
00:39:29,105 --> 00:39:30,716
they think of a good book
that they've read lately.

922
00:39:30,759 --> 00:39:32,239
And if you say
you're in advertising,

923
00:39:32,282 --> 00:39:34,807
they think of the shittiest ad
they've seen in months.

924
00:39:34,850 --> 00:39:36,678
- Oh, yeah!
- Snap into a Slim Jim!

925
00:39:36,722 --> 00:39:38,201
- Sizzler.

926
00:39:38,245 --> 00:39:41,640
- We had four agencies
pitching to us, big names,

927
00:39:41,683 --> 00:39:44,773
and Goodby was a small group.

928
00:39:44,817 --> 00:39:46,906
Jeff was the lead.

929
00:39:46,949 --> 00:39:49,517
- We, at the time, had just had

930
00:39:49,561 --> 00:39:51,214
one of our
original partners leave,

931
00:39:51,258 --> 00:39:54,130
and Rich and I were left here
and were kind of like,

932
00:39:54,174 --> 00:39:55,262
"We gotta win this, you know?"

933
00:39:55,305 --> 00:39:56,437
Good morning.

934
00:39:56,481 --> 00:39:57,786
Thanks for having us here.

935
00:39:57,830 --> 00:39:59,658
The pitch to Sega
was probably one

936
00:39:59,701 --> 00:40:01,921
of the most elaborate pitches
we've ever done.

937
00:40:01,964 --> 00:40:05,490
We had every person
in the company become an expert

938
00:40:05,533 --> 00:40:07,927
in every game
you could play on the Genesis.

939
00:40:07,970 --> 00:40:09,319
So everybody came out

940
00:40:09,363 --> 00:40:11,365
with these beautiful
athletic jackets,

941
00:40:11,409 --> 00:40:13,019
and we put a sound system
in there

942
00:40:13,062 --> 00:40:15,413
that we rented
from the Grateful Dead.

943
00:40:15,456 --> 00:40:17,066
We definitely went overboard.

944
00:40:17,110 --> 00:40:18,720
Eh, lighten up.

945
00:40:18,764 --> 00:40:20,069
The agencies
we were up against

946
00:40:20,113 --> 00:40:21,462
were really the best agencies
in the country,

947
00:40:21,506 --> 00:40:23,377
and I really thought
they'd think of something

948
00:40:23,421 --> 00:40:24,596
to beat us with.

949
00:40:24,639 --> 00:40:26,119
- This work is the best work

950
00:40:26,162 --> 00:40:28,426
we have ever done
as a company.

951
00:40:28,469 --> 00:40:31,254
I can't wait to produce it.
So I hope you like it.

952
00:40:31,298 --> 00:40:34,127
- This is your brain.

953
00:40:34,170 --> 00:40:37,260
This is your brain
on Nintendo.

954
00:40:37,304 --> 00:40:39,088
And this is your brain
on Sega.

955
00:40:39,132 --> 00:40:41,395
[heavy rock music]

956
00:40:41,439 --> 00:40:45,007
[singer screaming]

957
00:40:45,051 --> 00:40:46,922
- Whoo!
- Ooh!

958
00:40:46,966 --> 00:40:48,750
- What a ride.

959
00:40:48,794 --> 00:40:52,362
[light applause]
- And it worked.

960
00:40:52,406 --> 00:40:54,321
- They overwhelmed us
with their pitch.

961
00:40:54,364 --> 00:40:56,149
- We did
the first commercials,

962
00:40:56,192 --> 00:40:58,368
and one of them was about
this guy who started off

963
00:40:58,412 --> 00:41:00,283
in a very straight
kind of outfit...

964
00:41:00,327 --> 00:41:03,722
- And then transformed
into a really cool guy...

965
00:41:03,765 --> 00:41:06,333
- Welcome to the next level!

966
00:41:06,376 --> 00:41:08,509
- Playing Sega Genesis.

967
00:41:08,553 --> 00:41:10,990
[angelic music]

968
00:41:11,033 --> 00:41:13,035
- Welcome to the next level.

969
00:41:13,079 --> 00:41:14,602
- I thought
"Welcome to the next level"

970
00:41:14,646 --> 00:41:16,778
was a great line
because it rewarded you

971
00:41:16,822 --> 00:41:18,214
for playing the thing well.

972
00:41:18,258 --> 00:41:20,042
It promised that
there was depth to the games.

973
00:41:20,086 --> 00:41:22,001
You got better
and could get up higher.

974
00:41:22,044 --> 00:41:23,350
- On the Sega Genesis.

975
00:41:23,393 --> 00:41:25,961
- It was also saying
to the competition

976
00:41:26,005 --> 00:41:27,702
that "you're not
the next level.

977
00:41:27,746 --> 00:41:29,138
You're behind."

978
00:41:29,182 --> 00:41:31,140
I thought that was
absolutely brilliant.

979
00:41:31,184 --> 00:41:32,533
[soft music]

980
00:41:32,577 --> 00:41:33,969
- But I don't think
it would have worked

981
00:41:34,013 --> 00:41:35,623
without the Sega Scream.

982
00:41:35,667 --> 00:41:38,800
The Sega Scream was what really
drove the thing in the end.

983
00:41:38,844 --> 00:41:40,062
[rock music]

984
00:41:40,106 --> 00:41:41,368
- [screams]
Sega!

985
00:41:41,411 --> 00:41:42,456
- There was something
about the way

986
00:41:42,500 --> 00:41:43,675
the guy did it...
- Sega!

987
00:41:43,718 --> 00:41:45,024
- That was just really funny.

988
00:41:45,067 --> 00:41:47,200
- Sega!
- It was slightly Japanese.

989
00:41:47,243 --> 00:41:48,375
- Sega!
- Just absolutely--

990
00:41:48,418 --> 00:41:49,550
you couldn't get it
out of your head.

991
00:41:49,594 --> 00:41:51,944
- Sega! Sega! Sega!
Sega! Sega!

992
00:41:51,987 --> 00:41:53,815
- Sega!
- Sega! Sega!

993
00:41:53,859 --> 00:41:55,600
[captivating music]

994
00:41:55,643 --> 00:41:57,993
- I would go pick up
my daughters at school,

995
00:41:58,037 --> 00:42:00,213
and when they saw me,
they'd say, "Sega!"

996
00:42:00,256 --> 00:42:01,562
- Sega!
- Sega!

997
00:42:01,606 --> 00:42:03,825
- Sega!
- We kind of owned

998
00:42:03,869 --> 00:42:06,524
something that Nintendo
didn't have.

999
00:42:06,567 --> 00:42:08,177
They were kind of scrubbed
and clean

1000
00:42:08,221 --> 00:42:10,223
and Disney-ish and so on,

1001
00:42:10,266 --> 00:42:14,619
and we wanted it to be kind of
uncool to be a Nintendo kid.

1002
00:42:14,662 --> 00:42:16,882
That was
our explicit intention.

1003
00:42:16,925 --> 00:42:18,187
- Sega!
Sega!

1004
00:42:18,231 --> 00:42:20,407
- The advertising was
extremely competitive.

1005
00:42:20,450 --> 00:42:24,367
I mean, we made a lot of fun
of Nintendo.

1006
00:42:24,411 --> 00:42:25,804
- Look, a cat massager.
[cat meows]

1007
00:42:25,847 --> 00:42:27,196
Spread cheese snacks.

1008
00:42:27,240 --> 00:42:28,807
Use them to tenderize meat.

1009
00:42:28,850 --> 00:42:30,852
- Team Sega represented
the antiestablishment team.

1010
00:42:30,896 --> 00:42:34,769
Nintendo was the Soviet Union,
and Sega were the guys

1011
00:42:34,813 --> 00:42:36,902
that were throwing
Molotov cocktails.

1012
00:42:36,945 --> 00:42:38,468
- Hey!
[cat meows]

1013
00:42:38,512 --> 00:42:40,253
You still don't have
a Sega CD?

1014
00:42:40,296 --> 00:42:41,907
- Huh?
- What are you waiting for,

1015
00:42:41,950 --> 00:42:44,344
Nintendo to make one?
Show him.

1016
00:42:44,387 --> 00:42:46,868
- Whoa!

1017
00:42:46,912 --> 00:42:49,567
- Whoa, color.

1018
00:42:49,610 --> 00:42:51,264
- And you just try not
to respond

1019
00:42:51,307 --> 00:42:53,179
to those kinds of things.
- Sega!

1020
00:42:53,222 --> 00:42:54,484
- Treat them as though
they're--you know,

1021
00:42:54,528 --> 00:42:55,790
they're doing that
because they're desperate.

1022
00:42:55,834 --> 00:42:57,139
We kicked off each launch

1023
00:42:57,183 --> 00:42:58,619
with a three-pronged attack,
including...

1024
00:42:58,663 --> 00:43:00,447
I joined in March of 1992.

1025
00:43:00,490 --> 00:43:01,927
"Nintendo Power" coverage,
and online...

1026
00:43:01,970 --> 00:43:03,842
When I first arrived,
there was still sort of a--

1027
00:43:03,885 --> 00:43:06,322
I wouldn't say a dismissive
attitude but a feeling that,

1028
00:43:06,366 --> 00:43:09,499
"You know what?
This is really not serious."

1029
00:43:09,543 --> 00:43:10,892
That quickly changed.

1030
00:43:10,936 --> 00:43:13,112
- The Sega Genesis
has blast processing.

1031
00:43:13,155 --> 00:43:14,635
Super Nintendo doesn't.

1032
00:43:14,679 --> 00:43:16,376
[curious music]

1033
00:43:16,419 --> 00:43:18,030
So what's blast processing do?

1034
00:43:18,073 --> 00:43:20,467
- This "blast processing"
thing,

1035
00:43:20,510 --> 00:43:23,165
it was a total fabrication
of advertising people.

1036
00:43:23,209 --> 00:43:25,603
- I like the one when they said
the blast processing.

1037
00:43:25,646 --> 00:43:28,083
- Kids would come into
focus groups, and they'd go,

1038
00:43:28,127 --> 00:43:30,172
"Yeah, I know that Nintendo
has 16-bit,

1039
00:43:30,216 --> 00:43:33,219
but Sega has blast processing."
It was crazy.

1040
00:43:33,262 --> 00:43:35,525
- And what if you don't
have blast processing?

1041
00:43:35,569 --> 00:43:38,224
- And they have a little truck
for Nintendo.

1042
00:43:38,267 --> 00:43:40,487
- I would have loved to have
seen the faces

1043
00:43:40,530 --> 00:43:42,532
of the Nintendo people
when that thing ran.

1044
00:43:42,576 --> 00:43:44,012
I would just love it.

1045
00:43:44,056 --> 00:43:45,666
- "Blast processing,"

1046
00:43:45,710 --> 00:43:47,973
as though it was
technology-related,

1047
00:43:48,016 --> 00:43:50,366
was kind of vaporware,
but it was catchy,

1048
00:43:50,410 --> 00:43:51,846
and it worked.

1049
00:43:53,152 --> 00:43:55,633
- Their advertising
was very effective.

1050
00:43:55,676 --> 00:43:59,941
It tended to make it uncool
to play Nintendo.

1051
00:43:59,985 --> 00:44:01,203
- Which is fine, really,

1052
00:44:01,247 --> 00:44:04,163
if you don't mind
being sucked dry.

1053
00:44:04,206 --> 00:44:05,468
[mosquito squeaks]

1054
00:44:05,512 --> 00:44:07,427
- You gotta give them credit.
- Sega!

1055
00:44:07,470 --> 00:44:09,647
- I think Kalinske
did a great job.

1056
00:44:09,690 --> 00:44:11,344
- Sega!
- Sega!

1057
00:44:11,387 --> 00:44:13,476
- What Sega has been doingto make these ads,

1058
00:44:13,520 --> 00:44:14,956
they should just keep ondoing more of it

1059
00:44:15,000 --> 00:44:16,654
because these ads are great.

1060
00:44:16,697 --> 00:44:18,177
- All the kids thought
it was cool.

1061
00:44:18,220 --> 00:44:19,787
- Sega has the coolest ads,
the best games.

1062
00:44:19,831 --> 00:44:22,007
- And as a result,
the company was cool.

1063
00:44:22,050 --> 00:44:25,401
- Nintendo's like,
"Where have they been?"

1064
00:44:25,445 --> 00:44:27,360
- You saw it on TV shows.

1065
00:44:27,403 --> 00:44:30,798
People were picking up
the popularity of Sega.

1066
00:44:30,842 --> 00:44:32,974
- I'm going to Todd's.He has Genesis.

1067
00:44:33,018 --> 00:44:36,325
- She doesn't even have Sega.She's such a troglodyte.

1068
00:44:36,369 --> 00:44:39,198
- Hell hath no fury
like a woman scorned for Sega.

1069
00:44:39,241 --> 00:44:41,069
- I mean, we were becoming

1070
00:44:41,113 --> 00:44:43,506
as popular or more popular
than Nintendo.

1071
00:44:43,550 --> 00:44:44,899
[air whistles]

1072
00:44:44,943 --> 00:44:47,249
- To Sega,
we say congratulations

1073
00:44:47,293 --> 00:44:49,817
for bringing us
the 16-bit Game of the Year,

1074
00:44:49,861 --> 00:44:51,993
Sonic the Hedgehog.

1075
00:44:52,037 --> 00:44:56,955
- I got a call the other day
that an 18-year-old was saying

1076
00:44:56,998 --> 00:44:59,479
that Sonic the Hedgehog
made him forget about girls.

1077
00:44:59,522 --> 00:45:03,265
So I consider that
a great achievement.

1078
00:45:03,309 --> 00:45:05,528
[techno music]

1079
00:45:05,572 --> 00:45:08,009
- When the very first
Sonic game came

1080
00:45:08,053 --> 00:45:11,230
to be released
and became very successful,

1081
00:45:11,273 --> 00:45:14,712
obviously, we wanted
to create a sequel.

1082
00:45:14,755 --> 00:45:17,627
- And part and parcel
with making that successful

1083
00:45:17,671 --> 00:45:19,194
was, "How are we gonna
launch it?

1084
00:45:19,238 --> 00:45:21,631
How are we going
to support it?"

1085
00:45:21,675 --> 00:45:24,069
- We started looking at
what else we could go and do.

1086
00:45:24,112 --> 00:45:26,636
- "Ha! Let's do something
like the movies.

1087
00:45:26,680 --> 00:45:29,422
Let's do a world
distribution date."

1088
00:45:29,465 --> 00:45:32,120
- We were going to make
the game available

1089
00:45:32,164 --> 00:45:35,123
at every retail outlet
on the same day.

1090
00:45:35,167 --> 00:45:38,344
I know this sounds silly today,
but it was hard to do.

1091
00:45:38,387 --> 00:45:40,738
♪

1092
00:45:40,781 --> 00:45:44,132
- "We'll do it on a Tuesday...

1093
00:45:44,176 --> 00:45:45,917
Sonic Two-sday."

1094
00:45:45,960 --> 00:45:47,396
[cameras shutters snapping]

1095
00:45:47,440 --> 00:45:50,965
- Last Christmas, the world
felt its first Sonic boom

1096
00:45:51,009 --> 00:45:52,880
when "Sonic the Hedgehog 1"

1097
00:45:52,924 --> 00:45:57,145
became the most popular
video game of 1991.

1098
00:45:57,189 --> 00:45:59,408
[bluesy rock music]

1099
00:45:59,452 --> 00:46:00,888
- Writing for Tom
was always great.

1100
00:46:00,932 --> 00:46:02,324
I don't know what it was.

1101
00:46:02,368 --> 00:46:04,805
He has a natural sense
about what it will take

1102
00:46:04,849 --> 00:46:06,111
to draw in the audience.

1103
00:46:06,154 --> 00:46:09,767
He's charismatic,
and he knows it and uses it.

1104
00:46:09,810 --> 00:46:12,160
I'll say he uses it for good
rather than for evil.

1105
00:46:12,204 --> 00:46:15,642
- We believe "Sonic 2" will be
America's hottest video game

1106
00:46:15,685 --> 00:46:17,165
this Christmas, and...

1107
00:46:17,209 --> 00:46:20,603
both: We project to sell
more than 2 million copies...

1108
00:46:20,647 --> 00:46:23,955
- In the United States
between now and Christmas.

1109
00:46:23,998 --> 00:46:26,566
- We have Tom speaking,
and then I have Joey Lawrence

1110
00:46:26,609 --> 00:46:28,786
running out
from behind the curtain.

1111
00:46:28,829 --> 00:46:31,832
[crowd cheering]
[cameras shutters snapping]

1112
00:46:31,876 --> 00:46:34,879
You know, we could never afford
the big Hollywood names.

1113
00:46:34,922 --> 00:46:37,272
- Dustin Diamond,
come on up here.

1114
00:46:37,316 --> 00:46:39,013
[crowd cheering]

1115
00:46:39,057 --> 00:46:41,102
- But we could afford
teen idols.

1116
00:46:41,146 --> 00:46:43,061
- And if you thought
the first one was good,

1117
00:46:43,104 --> 00:46:44,366
wait till you see
the second one.

1118
00:46:44,410 --> 00:46:46,629
- You know,
"Sonic 2" is great.

1119
00:46:46,673 --> 00:46:49,154
It's better than the first one.
You have great graphics.

1120
00:46:49,197 --> 00:46:51,504
Sonic has a new friend
called Tails,

1121
00:46:51,547 --> 00:46:53,114
a fox, two tails, cool.

1122
00:46:53,158 --> 00:46:55,421
[cameras shutters snapping]

1123
00:46:55,464 --> 00:46:56,857
[blipping]

1124
00:46:56,901 --> 00:47:01,253
- Sonic Two-sday was so big.

1125
00:47:01,296 --> 00:47:04,038
It was a bodacious idea.

1126
00:47:04,082 --> 00:47:05,300
- Oh, it's great,
and it's great

1127
00:47:05,344 --> 00:47:06,649
because it's two-player,
you know?

1128
00:47:06,693 --> 00:47:09,174
So you get to play
with more than just yourself.

1129
00:47:09,217 --> 00:47:10,523
[video game blipping]

1130
00:47:10,566 --> 00:47:12,003
- But she's--but this is
the exact same board,

1131
00:47:12,046 --> 00:47:13,526
and we're playing here
together,

1132
00:47:13,569 --> 00:47:14,832
but she's in a different part
of the board than I am.

1133
00:47:14,875 --> 00:47:17,399
So it's something never seen
before, really.

1134
00:47:17,443 --> 00:47:18,966
It's great.

1135
00:47:19,010 --> 00:47:20,707
- We launched in Japan,

1136
00:47:20,750 --> 00:47:23,101
Australia, Europe,
all over the world.

1137
00:47:23,144 --> 00:47:24,754
- [speaking French]

1138
00:47:24,798 --> 00:47:26,234
"Sonic 2" is super.

1139
00:47:26,278 --> 00:47:27,670
- Pretty good.
- It's brilliant.

1140
00:47:27,714 --> 00:47:30,282
- Never, ever been done
before.

1141
00:47:30,325 --> 00:47:31,805
- It's comparable
to the launch

1142
00:47:31,849 --> 00:47:33,894
of Madonna's "Sex" book,
you know, Sonic Two-sday.

1143
00:47:33,938 --> 00:47:35,765
- I'm right below you.

1144
00:47:35,809 --> 00:47:37,985
[whistles, applause]

1145
00:47:38,029 --> 00:47:39,552
- It was an amazing hit.

1146
00:47:39,595 --> 00:47:41,162
- Sega!

1147
00:47:41,206 --> 00:47:42,990
[high-pitched squeal]
[car horns honking]

1148
00:47:43,034 --> 00:47:44,252
[coins clinking]

1149
00:47:44,296 --> 00:47:47,603
[frantic music]

1150
00:47:47,647 --> 00:47:48,735
- Oh!

1151
00:47:48,778 --> 00:47:50,606
- When Genesis succeeded
so much

1152
00:47:50,650 --> 00:47:52,695
here in America, in Japan,

1153
00:47:52,739 --> 00:47:54,784
it did not
necessarily do great.

1154
00:47:54,828 --> 00:47:57,091
So that way,
I think Sega of America

1155
00:47:57,135 --> 00:48:00,703
became the valuable core
of entire Sega business.

1156
00:48:00,747 --> 00:48:03,097
[upbeat rock music]

1157
00:48:03,141 --> 00:48:05,970
- Sega was able to make a dent
in the U.S.,

1158
00:48:06,013 --> 00:48:08,189
and it kept us on our toes

1159
00:48:08,233 --> 00:48:09,930
because we were
in a real battle.

1160
00:48:09,974 --> 00:48:11,627
♪

1161
00:48:11,671 --> 00:48:14,761
- As we grew,
as we added more people,

1162
00:48:14,804 --> 00:48:17,111
Nintendo was in our target.

1163
00:48:18,504 --> 00:48:21,159
It became a kind of
"Spy vs. Spy."

1164
00:48:21,202 --> 00:48:24,814
Whatever Nintendo would do,
we would try to do better.

1165
00:48:24,858 --> 00:48:26,904
- With the Sega Menacer
in my hands,

1166
00:48:26,947 --> 00:48:28,949
I'm not afraid of enemy tanks.

1167
00:48:28,993 --> 00:48:30,385
- Sega!

1168
00:48:30,429 --> 00:48:31,952
[ceremonious music]

1169
00:48:31,996 --> 00:48:35,390
- At one point, I was told
there was a dartboard

1170
00:48:35,434 --> 00:48:38,654
in Nintendo's office
with my face on it.

1171
00:48:38,698 --> 00:48:40,743
- When we went
to analyst meetings,

1172
00:48:40,787 --> 00:48:43,659
it would be Tom Kalinske
and Peter Main.

1173
00:48:43,703 --> 00:48:45,923
- Well, Peter and I
didn't get along very well.

1174
00:48:47,011 --> 00:48:49,839
- A lot of yelling and
screaming at various events.

1175
00:48:49,883 --> 00:48:52,146
- I remember getting up
to speak

1176
00:48:52,190 --> 00:48:53,582
at one of those meetings,
when I said,

1177
00:48:53,626 --> 00:48:54,932
"Boy, following Peter Main

1178
00:48:54,975 --> 00:48:57,282
is like following
Dr. Kevorkian."

1179
00:48:57,325 --> 00:49:00,894
- It erupted into
a bit of an interesting

1180
00:49:00,938 --> 00:49:02,896
after-three-glasses-of-wine
conversation

1181
00:49:02,940 --> 00:49:04,898
that carried on
down Fifth Avenue

1182
00:49:04,942 --> 00:49:07,118
in a raging snowstorm.

1183
00:49:07,161 --> 00:49:11,513
Thank goodness third-party
intervention happened.

1184
00:49:11,557 --> 00:49:14,516
[dramatic music]

1185
00:49:14,560 --> 00:49:20,087
♪

1186
00:49:20,131 --> 00:49:24,657
- As '93 started,
there was a big game coming...

1187
00:49:24,700 --> 00:49:28,226
and it's gonna be available
not just for Super NES

1188
00:49:28,269 --> 00:49:30,402
but also for Sega Genesis.

1189
00:49:30,445 --> 00:49:32,534
♪

1190
00:49:32,578 --> 00:49:34,580
- Mortal Kombat!

1191
00:49:34,623 --> 00:49:36,582
[crowd shouting]

1192
00:49:36,625 --> 00:49:38,888
- Mortal Kombat!

1193
00:49:38,932 --> 00:49:41,282
- "Mortal Kombat"
was a huge coup for us.

1194
00:49:41,326 --> 00:49:45,069
For once, we get a big title.

1195
00:49:45,112 --> 00:49:47,680
- Ahh!

1196
00:49:47,723 --> 00:49:50,813
- We had "Mortal Kombat"
in its original version

1197
00:49:50,857 --> 00:49:53,381
with all the possibility
for gore and, you know,

1198
00:49:53,425 --> 00:49:55,601
chopping people's heads off
and stabbing them

1199
00:49:55,644 --> 00:49:57,211
and what have you.

1200
00:49:57,255 --> 00:50:00,127
- There has been so much
violence swallowed into my soul

1201
00:50:00,171 --> 00:50:02,129
over the years;
nothing was new.

1202
00:50:02,173 --> 00:50:05,306
I mean, consider Roadrunner.

1203
00:50:05,350 --> 00:50:06,742
[tense music]

1204
00:50:06,786 --> 00:50:10,964
- "Mortal Kombat" went
into a graphic violence area

1205
00:50:11,008 --> 00:50:14,881
that Nintendo hadn't allowed
on their consoles.

1206
00:50:14,924 --> 00:50:17,840
- We had long discussions
about whether

1207
00:50:17,884 --> 00:50:20,017
we should allow the blood.

1208
00:50:20,060 --> 00:50:21,975
[Scorpion moaning]

1209
00:50:22,019 --> 00:50:24,543
I ultimately decided
that we would not.

1210
00:50:24,586 --> 00:50:26,458
- Fight!

1211
00:50:26,501 --> 00:50:29,243
- The Nintendo version
showed green gore.

1212
00:50:29,287 --> 00:50:30,636
[Sub-Zero grunting]

1213
00:50:30,679 --> 00:50:32,594
Well, what human being
has green gore in them?

1214
00:50:32,638 --> 00:50:34,901
- I was expecting
we might actually get

1215
00:50:34,944 --> 00:50:36,946
some positive feedback
from parents that say,

1216
00:50:36,990 --> 00:50:37,947
you know, "Bless you.

1217
00:50:37,991 --> 00:50:39,427
"You kept the violence

1218
00:50:39,471 --> 00:50:40,602
out of this game."

1219
00:50:40,646 --> 00:50:41,864
And on the contrary,

1220
00:50:41,908 --> 00:50:44,084
I got lots of letters
from parents

1221
00:50:44,128 --> 00:50:47,087
criticizing Nintendo
for censoring the game,

1222
00:50:47,131 --> 00:50:49,698
and we got our clocks cleaned.

1223
00:50:49,742 --> 00:50:51,787
- [grunts]
- Ahh!

1224
00:50:51,831 --> 00:50:55,269
- Tom wins!
- We outsold them five to one.

1225
00:50:55,313 --> 00:50:58,490
[The Chemical Brothers'
"Block Rockin' Beats"]

1226
00:50:58,533 --> 00:50:59,491
- Sega!
- Sega!

1227
00:50:59,534 --> 00:51:00,970
- Sega!
- Sega!

1228
00:51:01,014 --> 00:51:02,320
- Sega!
- Sega, Sega, Sega!

1229
00:51:02,363 --> 00:51:05,105
- All right, a Sega Genesis!

1230
00:51:05,149 --> 00:51:07,107
- Sega!
- It's a Sega!

1231
00:51:07,151 --> 00:51:08,152
- Sega!

1232
00:51:08,195 --> 00:51:12,025
- Whoa!
- [laughing excitedly]

1233
00:51:12,069 --> 00:51:13,287
- No way!

1234
00:51:13,331 --> 00:51:16,203
♪

1235
00:51:16,247 --> 00:51:18,727
- ♪ Back with another one
of those block-rockin' beats ♪

1236
00:51:18,771 --> 00:51:21,774
♪

1237
00:51:21,817 --> 00:51:24,081
- I mean,
we dethroned Nintendo.

1238
00:51:24,124 --> 00:51:25,212
- Fight!

1239
00:51:25,256 --> 00:51:27,606
- "Mortal Kombat"
on Sega Genesis

1240
00:51:27,649 --> 00:51:29,912
is the best video game ever.

1241
00:51:29,956 --> 00:51:31,523
- Urkel wins!

1242
00:51:31,566 --> 00:51:33,829
- I think "Donkey Kong"
is the best game ever.

1243
00:51:33,873 --> 00:51:35,309
- "Donkey Kong" sucks.

1244
00:51:35,353 --> 00:51:36,702
- You know something?
You suck.

1245
00:51:36,745 --> 00:51:38,921
♪

1246
00:51:38,965 --> 00:51:41,968
[man screams]

1247
00:51:42,011 --> 00:51:44,536
- The most complimentary thing
I can say about Nintendo

1248
00:51:44,579 --> 00:51:49,410
was the fact that they...
reinvented video games.

1249
00:51:49,454 --> 00:51:50,933
- Thank you, Peter.

1250
00:51:50,977 --> 00:51:55,068
- They had to create,
out of nothing, an industry.

1251
00:51:55,112 --> 00:51:58,158
They not only did that;
they did it well.

1252
00:51:58,202 --> 00:52:01,161
[serene music]

1253
00:52:01,205 --> 00:52:07,385
♪

1254
00:52:07,428 --> 00:52:10,649
- Good afternoon. Nintendo.
Nintendo. please hold.

1255
00:52:10,692 --> 00:52:12,955
Thank you. May I help you?

1256
00:52:12,999 --> 00:52:16,568
- My path to Nintendo
was not so purposeful.

1257
00:52:16,611 --> 00:52:19,701
It was just kind of pure luck.

1258
00:52:19,745 --> 00:52:22,791
I was at a time in my life
where I was really searching

1259
00:52:22,835 --> 00:52:27,013
for something great
and fun to work on,

1260
00:52:27,056 --> 00:52:29,407
and it was a place
that was meant--meant for me.

1261
00:52:32,497 --> 00:52:34,281
- You always had
to spell Nintendo

1262
00:52:34,325 --> 00:52:37,066
back in the early '80s.
Nin-ten-do.

1263
00:52:37,110 --> 00:52:38,416
- I would get on airplanes,

1264
00:52:38,459 --> 00:52:39,765
and you'd start talking
to somebody,

1265
00:52:39,808 --> 00:52:41,158
and you'd give them
a business card,

1266
00:52:41,201 --> 00:52:43,116
and they'd say,
"What's a Nine-tendo?"

1267
00:52:43,160 --> 00:52:45,074
- People, when I told them
I was working for Nintendo,

1268
00:52:45,118 --> 00:52:46,641
they said, "Huh?

1269
00:52:46,685 --> 00:52:49,296
What a--you know, what is that?
Is that a dry laundry?"

1270
00:52:50,167 --> 00:52:52,212
- For most
of its 99-year history,

1271
00:52:52,256 --> 00:52:55,084
Nintendo made board games
and playing cards,

1272
00:52:55,128 --> 00:52:58,436
traditional products
for a traditional way of life.

1273
00:52:58,479 --> 00:53:01,265
- Nintendo
was some obscure company

1274
00:53:01,308 --> 00:53:03,832
that just had
these random helicopter games

1275
00:53:03,876 --> 00:53:07,967
and another kind of wannabe
shooter game,

1276
00:53:08,010 --> 00:53:11,884
so it was really nothing
from an arcade game standpoint.

1277
00:53:11,927 --> 00:53:16,105
But then Mr. Miyamoto
came along.

1278
00:53:16,149 --> 00:53:20,327
- Mr. Miyamoto was the original
developer of Donkey Kong

1279
00:53:20,371 --> 00:53:21,937
and the creator of Mario

1280
00:53:21,981 --> 00:53:25,463
as the character chasing him
up the construction site.

1281
00:53:25,506 --> 00:53:28,640
- Whereas I was just
a guy at Nintendo,

1282
00:53:28,683 --> 00:53:32,426
Miyamoto is the guy,
the master,

1283
00:53:32,470 --> 00:53:36,691
and would go on to design some
of the best games at Nintendo.

1284
00:53:38,737 --> 00:53:41,522
When "Donkey Kong" first
came in, it was really cool

1285
00:53:41,566 --> 00:53:43,132
because you had
this little guy

1286
00:53:43,176 --> 00:53:44,395
who you could push up
on the thing,

1287
00:53:44,438 --> 00:53:46,179
and he'd climb up ladders.

1288
00:53:46,223 --> 00:53:47,833
You'd go up
and, doink, make a mistake.

1289
00:53:47,876 --> 00:53:49,182
One of the barrels
would get you.

1290
00:53:49,226 --> 00:53:50,705
You'd say, "Oops.
I can do better,"

1291
00:53:50,749 --> 00:53:52,620
and then you'd immediately
start playing again.

1292
00:53:52,664 --> 00:53:54,970
I mean, just, like,
it was unbelievable.

1293
00:53:55,014 --> 00:53:57,234
- We sold
over $100 million worth

1294
00:53:57,277 --> 00:53:59,366
of "Donkey Kong"
coin-operated video games

1295
00:53:59,410 --> 00:54:01,150
in less than one year,

1296
00:54:01,194 --> 00:54:03,675
and this is a company
that had 30 employees.

1297
00:54:03,718 --> 00:54:04,893
- Nintendo of America.

1298
00:54:04,937 --> 00:54:06,243
- We'd get shipments
from Japan,

1299
00:54:06,286 --> 00:54:08,288
and I wouldn't know
what they were.

1300
00:54:08,332 --> 00:54:10,377
Then one of the days,
I open the box,

1301
00:54:10,421 --> 00:54:14,251
and there was
this little thing in it.

1302
00:54:14,294 --> 00:54:17,645
- [speaking Japanese]

1303
00:54:17,689 --> 00:54:19,952
- I thought, "This is cool.
This is great.

1304
00:54:19,995 --> 00:54:21,736
"Let's, like,
give it to everybody.

1305
00:54:21,780 --> 00:54:23,695
Let's bring it over, sell it."

1306
00:54:24,217 --> 00:54:27,264
Well, Mr. Arakawa said, "Hmm,
we need to think about this."

1307
00:54:28,482 --> 00:54:30,832
This thing was really risky,
and it could fail.

1308
00:54:32,356 --> 00:54:34,358
So I started to get exposed
to the fact that there was

1309
00:54:34,401 --> 00:54:38,362
this thing called the debacle
of the Atari 2600

1310
00:54:38,405 --> 00:54:41,452
and that there was this thing
called the "E.T." cartridge.

1311
00:54:41,495 --> 00:54:45,456
- "E.T." video game?
Wow.

1312
00:54:45,499 --> 00:54:48,850
[rock music]

1313
00:54:48,894 --> 00:54:51,810
- The game was so bad,
so unplayable,

1314
00:54:51,853 --> 00:54:54,247
millions of copies
went unsold.

1315
00:54:54,291 --> 00:54:57,337
- It is a legendary landfill,
a tomb

1316
00:54:57,381 --> 00:55:00,079
where an entire industry
was buried.

1317
00:55:00,122 --> 00:55:03,169
Thousands of copies
of one of the epic flops

1318
00:55:03,212 --> 00:55:04,736
in video gaming history

1319
00:55:04,779 --> 00:55:08,653
laid to rest in a New Mexico
city's garbage dump.

1320
00:55:08,696 --> 00:55:11,525
♪

1321
00:55:11,569 --> 00:55:14,180
- The video game industry
is now becoming

1322
00:55:14,223 --> 00:55:16,356
very much like Hula-Hoops:
there still may be

1323
00:55:16,400 --> 00:55:18,271
a lot of people
fooling around with them,

1324
00:55:18,315 --> 00:55:20,012
but profits are getting
to be quite negligible.

1325
00:55:20,055 --> 00:55:21,840
- Video game cartridges
as Atari.

1326
00:55:21,883 --> 00:55:23,668
- Given the collapse of Atari,

1327
00:55:23,711 --> 00:55:25,365
the idea
of actually introducing

1328
00:55:25,409 --> 00:55:27,019
a home video game system

1329
00:55:27,062 --> 00:55:29,326
in the United States
was very risky.

1330
00:55:29,369 --> 00:55:33,373
- I was, "the original
salesperson" at Nintendo.

1331
00:55:33,417 --> 00:55:34,766
I had family members say,

1332
00:55:34,809 --> 00:55:36,507
"You're out of your mind.
You have kids.

1333
00:55:36,550 --> 00:55:38,073
"How are you gonna
support your family

1334
00:55:38,117 --> 00:55:40,293
when this thing dies
in six months?"

1335
00:55:40,337 --> 00:55:43,252
As far as appetite
for video games,

1336
00:55:43,296 --> 00:55:44,428
there was none.

1337
00:55:44,471 --> 00:55:47,213
- Video games:
play them for fun,

1338
00:55:47,256 --> 00:55:49,868
but invest in them
at your own risk.

1339
00:55:49,911 --> 00:55:51,652
- But we still had
really great games,

1340
00:55:51,696 --> 00:55:53,785
and that's when
Mr. Arakawa said,

1341
00:55:53,828 --> 00:55:55,264
"We should do this."

1342
00:55:55,308 --> 00:55:56,614
- We ultimately
made the decision

1343
00:55:56,657 --> 00:55:58,877
to introduce the NES
to New York,

1344
00:55:58,920 --> 00:56:01,749
the epicenter
of the toy industry.

1345
00:56:01,793 --> 00:56:03,708
[crowd cheering]

1346
00:56:03,751 --> 00:56:05,449
- Our pitch was very simple.

1347
00:56:05,492 --> 00:56:07,668
- You're playing with power!

1348
00:56:07,712 --> 00:56:09,540
- This is not
just a video game.

1349
00:56:09,583 --> 00:56:11,455
It's an entertainment system.

1350
00:56:11,498 --> 00:56:13,979
- It didn't make you think
about your Atari.

1351
00:56:14,022 --> 00:56:16,373
- Will your family be
the first to witness

1352
00:56:16,416 --> 00:56:20,464
the birth of the incredible
Nintendo Entertainment System,

1353
00:56:20,507 --> 00:56:23,423
the first to play with R.O.B,
the extraordinary video robot?

1354
00:56:23,467 --> 00:56:25,730
- Parents could say,
"Oh, it's got this light gun,

1355
00:56:25,773 --> 00:56:27,732
which is totally new.
Look, it's magical."

1356
00:56:28,689 --> 00:56:31,431
- We sent a number
of Nintendo employees

1357
00:56:31,475 --> 00:56:33,085
to Hackensack, New Jersey,

1358
00:56:33,128 --> 00:56:36,958
where we had this warehouse
that was infested with rats.

1359
00:56:37,002 --> 00:56:39,004
- I couldn't go to the bathroom
in the warehouse

1360
00:56:39,047 --> 00:56:42,181
because it was that not-nice.

1361
00:56:42,224 --> 00:56:44,705
There was a huge hurricane
that year,

1362
00:56:44,749 --> 00:56:47,273
and the warehouse flooded,
and some barrels

1363
00:56:47,316 --> 00:56:49,493
start floating around
the parking lot,

1364
00:56:49,536 --> 00:56:53,192
and they have, like,
toxic waste symbols on them.

1365
00:56:53,235 --> 00:56:55,368
- For the three months,
we did nothing

1366
00:56:55,412 --> 00:56:57,849
but get up in the morning
and give demos to kids

1367
00:56:57,892 --> 00:57:00,895
and let kids play while
we talked to their parents.

1368
00:57:00,939 --> 00:57:02,593
- Parents were saying,
you know,

1369
00:57:02,636 --> 00:57:04,116
"What is this Nintendo thing?"

1370
00:57:04,159 --> 00:57:06,684
- People would show up
with cameras and microphones

1371
00:57:06,727 --> 00:57:08,250
and notepads and say...

1372
00:57:08,294 --> 00:57:09,730
- "What are you,
on drugs or something?

1373
00:57:09,774 --> 00:57:10,992
"Are you guys crazy?

1374
00:57:11,036 --> 00:57:12,472
No one wants to look
at a video game now."

1375
00:57:12,516 --> 00:57:14,735
- I remember
this woman walked up to me

1376
00:57:14,779 --> 00:57:16,302
and said, you know,
"What is this?"

1377
00:57:16,345 --> 00:57:17,564
and I said,
"Oh, it's Nintendo,"

1378
00:57:17,608 --> 00:57:20,437
and she said, "Nintendo?"
and I said, "Yeah,"

1379
00:57:20,480 --> 00:57:23,135
and she goes,
"I hope you fail."

1380
00:57:23,178 --> 00:57:25,093
- We left that research session

1381
00:57:25,137 --> 00:57:29,271
feeling a little unsure
of ourselves.

1382
00:57:29,315 --> 00:57:32,666
- We had to go out and get rid
of the doubt on so many levels.

1383
00:57:34,189 --> 00:57:35,495
We're at war, guys.

1384
00:57:35,539 --> 00:57:37,584
We gotta make believers
out of the world

1385
00:57:37,628 --> 00:57:38,890
that this is for real,

1386
00:57:38,933 --> 00:57:41,196
this can happen,
this can grow.

1387
00:57:41,240 --> 00:57:44,112
- The word Nintendo means,
"Work hard,

1388
00:57:44,156 --> 00:57:45,897
and the fates
will smile on you."

1389
00:57:45,940 --> 00:57:48,639
I like that idea
that if we all just put forth

1390
00:57:48,682 --> 00:57:51,555
our best efforts,
then we'd be successful.

1391
00:57:51,598 --> 00:57:53,731
- The buyer of video games
at Toys "R" Us

1392
00:57:53,774 --> 00:57:57,517
was the ultimate skeptic,
and his name was Hal.

1393
00:57:57,561 --> 00:57:59,214
When I came in
with a video game, he said,

1394
00:57:59,258 --> 00:58:01,434
"Forget it.
I don't want you to call me.

1395
00:58:01,478 --> 00:58:03,088
"I don't want you
to contact me.

1396
00:58:03,131 --> 00:58:07,658
If I see it starting to sell,
you'll hear from me."

1397
00:58:07,701 --> 00:58:10,791
- The day before the NES
was supposed to launch,

1398
00:58:10,835 --> 00:58:13,098
commercials were on air.

1399
00:58:13,141 --> 00:58:16,493
We all went to the warehouse
and opened champagne

1400
00:58:16,536 --> 00:58:20,235
and literally loaded the truck
to take it to FAO Schwarz.

1401
00:58:22,890 --> 00:58:25,937
We went, and we stood outside
the window of FAO Schwarz

1402
00:58:25,980 --> 00:58:29,201
and watched someone
make the first purchase.

1403
00:58:31,072 --> 00:58:34,685
The person bought,
like, every game.

1404
00:58:34,728 --> 00:58:36,295
- All of a sudden,
the phone rings.

1405
00:58:36,338 --> 00:58:38,036
"Hey, how come
you didn't call me?"

1406
00:58:38,079 --> 00:58:40,255
I said, "Well, Hal, you didn't
think it was gonna sell,

1407
00:58:40,299 --> 00:58:41,605
and I didn't want
to bother you."

1408
00:58:41,648 --> 00:58:44,042
"The thing's blowing out
the stores.

1409
00:58:44,085 --> 00:58:45,652
"Get up here now.
Today's Saturday,

1410
00:58:45,696 --> 00:58:47,698
and I'm ready
to backup order immediately."

1411
00:58:47,741 --> 00:58:50,309
- It may be the most addictive
toy in history.

1412
00:58:50,352 --> 00:58:52,311
- The product started
selling like hotcakes.

1413
00:58:52,354 --> 00:58:53,660
- This is as big or bigger

1414
00:58:53,704 --> 00:58:56,881
than anything
the toy industry has ever seen.

1415
00:58:56,924 --> 00:58:58,709
- "We're excited
about the possibilities

1416
00:58:58,752 --> 00:59:02,060
for this new thing called
Nintendo, whatever that is."

1417
00:59:02,103 --> 00:59:09,110
♪

1418
00:59:12,810 --> 00:59:14,594
- When Nintendo
entered the game,

1419
00:59:14,638 --> 00:59:17,684
the video game market
was a losing proposition.

1420
00:59:17,728 --> 00:59:19,686
Nintendo says
it brought it back

1421
00:59:19,730 --> 00:59:22,689
with better-quality games
and graphics.

1422
00:59:22,733 --> 00:59:25,387
♪

1423
00:59:25,431 --> 00:59:27,868
- We decided if we could make
a video game system

1424
00:59:27,912 --> 00:59:30,958
with quality games
that we would be successful.

1425
00:59:31,002 --> 00:59:32,307
We took that gamble,

1426
00:59:32,351 --> 00:59:34,614
and now I think
it's appropriate for us

1427
00:59:34,658 --> 00:59:36,660
to reap the rewards
of that gamble.

1428
00:59:36,703 --> 00:59:38,575
That is capitalism.

1429
00:59:38,618 --> 00:59:40,577
♪

1430
00:59:40,620 --> 00:59:44,276
- If the NES had not been
successfully launched

1431
00:59:44,319 --> 00:59:46,539
in New York,
I think it's fair to say

1432
00:59:46,583 --> 00:59:49,498
there would not have been
a home video game business.

1433
00:59:49,542 --> 00:59:51,283
♪

1434
00:59:51,326 --> 00:59:54,634
- Suddenly, who knew what game
was gonna come out?

1435
00:59:54,678 --> 00:59:56,375
♪

1436
00:59:56,418 --> 00:59:58,420
Instead of Christmas happening
once a year, it's like,

1437
00:59:58,464 --> 01:00:00,988
suddenly Christmas happened
just all year long.

1438
01:00:01,032 --> 01:00:03,077
- What the hell are you?

1439
01:00:03,121 --> 01:00:04,426
♪

1440
01:00:04,470 --> 01:00:06,080
- What are you?
- I'm Batman.

1441
01:00:06,124 --> 01:00:07,821
♪

1442
01:00:07,865 --> 01:00:09,257
- I'm from the future.

1443
01:00:09,301 --> 01:00:11,651
♪

1444
01:00:11,695 --> 01:00:13,653
- Whoa!

1445
01:00:13,697 --> 01:00:15,307
all: Cowabunga!

1446
01:00:15,350 --> 01:00:21,139
♪

1447
01:00:21,182 --> 01:00:22,923
- You know,
I remember at the time

1448
01:00:22,967 --> 01:00:26,274
seeing Sega at every trade show
and seeing the Sega people,

1449
01:00:26,318 --> 01:00:30,670
and they were trying so hard
to be successful,

1450
01:00:30,714 --> 01:00:33,542
but Nintendo was the only game
in town

1451
01:00:33,586 --> 01:00:36,154
until Tom came along.

1452
01:00:36,197 --> 01:00:39,157
[dramatic music]

1453
01:00:39,200 --> 01:00:40,680
♪

1454
01:00:40,724 --> 01:00:42,900
- When Tom Kalinske
joined Sega,

1455
01:00:42,943 --> 01:00:44,205
we knew his background.

1456
01:00:44,249 --> 01:00:46,686
We knew he was
a very fine marketer.

1457
01:00:46,730 --> 01:00:49,471
He was a worthy competitor.

1458
01:00:49,515 --> 01:00:51,996
- When Tom showed up,
it was a little bit

1459
01:00:52,039 --> 01:00:55,695
of a message to Nintendo
that the game was changing.

1460
01:00:55,739 --> 01:00:58,480
- Tom Kalinske's
a very smart marketing guy

1461
01:00:58,524 --> 01:01:00,004
feeding the retailer,

1462
01:01:00,047 --> 01:01:02,833
"Yeah, tell me more,
tell me more, tell me more."

1463
01:01:02,876 --> 01:01:04,617
- I always thought
of Tom Kalinske as, like,

1464
01:01:04,661 --> 01:01:06,053
the character
in "The Music Man,"

1465
01:01:06,097 --> 01:01:07,446
come into town,

1466
01:01:07,489 --> 01:01:09,317
drum up a lot of sales,
get them all excited,

1467
01:01:09,361 --> 01:01:11,537
and when you look
kind of behind the scenes,

1468
01:01:11,580 --> 01:01:13,931
there wasn't quite as much
there as you would expect.

1469
01:01:15,672 --> 01:01:18,370
- Sega was kind of
chipping away at our business,

1470
01:01:18,413 --> 01:01:21,895
and in particular, they were
going after the harder edge

1471
01:01:21,939 --> 01:01:23,592
that Nintendo wouldn't do.

1472
01:01:23,636 --> 01:01:26,204
- Something down there
sucked their brains out!

1473
01:01:26,247 --> 01:01:28,728
- But we weren't going to chase
the other guys.

1474
01:01:28,772 --> 01:01:31,296
That was never a part
of Nintendo's strategy,

1475
01:01:31,339 --> 01:01:32,732
to follow the other guys

1476
01:01:32,776 --> 01:01:34,255
or try and do
what they were doing.

1477
01:01:34,299 --> 01:01:36,736
Instead it was to do what we do
but just do it better.

1478
01:01:38,259 --> 01:01:40,218
- I have to admit,
I was not always in favor

1479
01:01:40,261 --> 01:01:41,219
of that strategy.

1480
01:01:41,262 --> 01:01:45,005
[thunder booming]

1481
01:01:45,049 --> 01:01:48,226
Having been at Nintendo
for a while, I was young,

1482
01:01:48,269 --> 01:01:50,402
and I still believed
that a lot of my thoughts

1483
01:01:50,445 --> 01:01:51,795
were the right way to go,

1484
01:01:51,838 --> 01:01:55,102
and they weren't taken,
and maybe, you know,

1485
01:01:55,146 --> 01:01:57,757
burned some bridges
along the way.

1486
01:01:57,801 --> 01:01:59,498
- All of a sudden, Bill

1487
01:01:59,541 --> 01:02:02,719
started smoking cigarettes
and driving sports cars.

1488
01:02:02,762 --> 01:02:05,199
You know, he'd just kind of,
like, turned to the dark side.

1489
01:02:06,635 --> 01:02:11,292
Once Bill got out of Nintendo,
he was--he was Bad Bill.

1490
01:02:11,336 --> 01:02:13,512
[moody music]

1491
01:02:13,555 --> 01:02:15,557
- The Sega Genesis was doing
extremely well,

1492
01:02:15,601 --> 01:02:18,735
and so it made sense
for me to switch teams.

1493
01:02:20,258 --> 01:02:21,650
- When he left,

1494
01:02:21,694 --> 01:02:23,261
I think Nintendo
felt a sense of--of betrayal.

1495
01:02:25,306 --> 01:02:28,745
- He went to work for Tom,
and hey, that's life.

1496
01:02:28,788 --> 01:02:30,529
♪

1497
01:02:30,572 --> 01:02:32,139
- It was easy for me,
but I think it was difficult

1498
01:02:32,183 --> 01:02:34,663
for the Sega people
to accept me.

1499
01:02:34,707 --> 01:02:37,188
- We were giving him
a hard time about that,

1500
01:02:37,231 --> 01:02:39,146
perhaps
he wasn't true-blue Sega,

1501
01:02:39,190 --> 01:02:41,105
and he says, "You know
what I think of Nintendo?"

1502
01:02:41,148 --> 01:02:43,150
and he pointed
toward Seattle,

1503
01:02:43,194 --> 01:02:44,673
dropped his pants,

1504
01:02:44,717 --> 01:02:46,588
and mooned Nintendo.

1505
01:02:48,155 --> 01:02:51,419
- Tom always said
that it's easy to be

1506
01:02:51,463 --> 01:02:55,293
a number two company
challenged to be number one.

1507
01:02:55,336 --> 01:02:57,991
Once we become
the number one company,

1508
01:02:58,035 --> 01:03:00,211
that is the real challenge
starts.

1509
01:03:00,254 --> 01:03:03,388
- Video games have become
a $4 billion-a-year business.

1510
01:03:03,431 --> 01:03:05,607
There is a growing concern
on Capitol Hill

1511
01:03:05,651 --> 01:03:08,523
that parents who buy
some of those games

1512
01:03:08,567 --> 01:03:11,048
may not realize just how much
violence they're getting.

1513
01:03:11,091 --> 01:03:12,745
- Games so violent, bloody,

1514
01:03:12,789 --> 01:03:15,617
and gruesome that parents
and politicians have had it.

1515
01:03:15,661 --> 01:03:18,359
- Violent, sexual games
available to youngsters.

1516
01:03:18,403 --> 01:03:20,448
- The best thing about games
is violence,

1517
01:03:20,492 --> 01:03:22,450
realistic things like blood.

1518
01:03:22,494 --> 01:03:24,235
- He scores--oh!
- You know what, Mike?

1519
01:03:24,278 --> 01:03:26,019
You can make their heads
bleed on this game.

1520
01:03:26,063 --> 01:03:28,152
- Make somebody's head bleed.
- There it is, Mikey.

1521
01:03:28,195 --> 01:03:30,067
Check it out.
His head's bleeding.

1522
01:03:30,110 --> 01:03:32,460
- These are not harmless toys.

1523
01:03:32,504 --> 01:03:35,986
They can indeed cause
great emotional

1524
01:03:36,029 --> 01:03:38,379
and other damage to a child.

1525
01:03:39,380 --> 01:03:41,339
- They're just out
for making money,

1526
01:03:41,382 --> 01:03:43,732
and they're not worrying
about the kids' well-being.

1527
01:03:43,776 --> 01:03:46,170
- Along with that huge success
came the criticism.

1528
01:03:46,213 --> 01:03:48,650
I did not expect the U.S.
Congress to get involved.

1529
01:03:49,738 --> 01:03:52,306
[gavel banging]

1530
01:03:52,350 --> 01:03:54,265
- Like the Grinch
who stole Christmas,

1531
01:03:54,308 --> 01:03:56,963
these violent video games
threaten to rob

1532
01:03:57,007 --> 01:04:01,707
this particular holiday season
of a spirit of goodwill.

1533
01:04:01,750 --> 01:04:06,625
These games teach a child
to enjoy inflicting torture.

1534
01:04:06,668 --> 01:04:09,106
- They were threatening
the industry

1535
01:04:09,149 --> 01:04:12,457
with severe censorship,
so there was a lot at stake.

1536
01:04:12,500 --> 01:04:14,024
- It was largely political.

1537
01:04:14,067 --> 01:04:15,547
"We're gonna restrict
your children

1538
01:04:15,590 --> 01:04:17,854
"from being exposed
to these violent video games,

1539
01:04:17,897 --> 01:04:20,378
and we're going to make
the world safe for democracy."

1540
01:04:20,421 --> 01:04:22,162
It was total nonsense,
total bullshit.

1541
01:04:22,206 --> 01:04:23,816
It's business and politics

1542
01:04:23,860 --> 01:04:25,209
meeting in
the worst way possible.

1543
01:04:25,252 --> 01:04:27,515
- What you're about to see
are scenes

1544
01:04:27,559 --> 01:04:30,344
from the most violent
new video games,

1545
01:04:30,388 --> 01:04:31,824
"Mortal Kombat."

1546
01:04:31,868 --> 01:04:35,697
Blood splatters
from the contestants' heads,

1547
01:04:35,741 --> 01:04:38,439
and a player wins
the so-called death sequence

1548
01:04:38,483 --> 01:04:40,485
pulling off the head
of the opponent

1549
01:04:40,528 --> 01:04:42,748
with spinal cord attached.

1550
01:04:42,791 --> 01:04:45,316
I find this segment
deeply offensive

1551
01:04:45,359 --> 01:04:49,450
and believe that it simply
should be taken off the market.

1552
01:04:49,494 --> 01:04:52,453
Let me now call to the table
Howard Lincoln,

1553
01:04:52,497 --> 01:04:54,499
senior vice president
of Nintendo,

1554
01:04:54,542 --> 01:04:57,850
and Bill White, senior
vice president of Sega.

1555
01:04:57,894 --> 01:04:59,504
- I'd never been in Congress
before.

1556
01:04:59,547 --> 01:05:01,375
Of course, it's always
a little bit intimidating

1557
01:05:01,419 --> 01:05:04,465
when the senators
sit ten feet above you

1558
01:05:04,509 --> 01:05:07,642
and you're down on a little
table in front of them.

1559
01:05:07,686 --> 01:05:09,601
- We debated a lot
about who should go,

1560
01:05:09,644 --> 01:05:13,300
and we decided that Bill White
was absolutely perfect.

1561
01:05:13,344 --> 01:05:17,783
Instead of having the senators
address me and address Howard,

1562
01:05:17,826 --> 01:05:20,612
have them address Howard
and another guy

1563
01:05:20,655 --> 01:05:22,005
who used to work for Nintendo.

1564
01:05:23,049 --> 01:05:24,703
- We knew that it also
would irritate

1565
01:05:24,746 --> 01:05:26,705
the hell out of Howard.

1566
01:05:26,748 --> 01:05:28,185
- To meet our game guidelines,

1567
01:05:28,228 --> 01:05:30,622
we have removed the blood
and death sequences

1568
01:05:30,665 --> 01:05:32,667
present in "Mortal Kombat."

1569
01:05:32,711 --> 01:05:35,670
We did this knowing
that we would lose money

1570
01:05:35,714 --> 01:05:40,545
by sanitizing "Mortal Kombat,"
but sanitize it we did.

1571
01:05:40,588 --> 01:05:42,982
- Howard Lincoln
was pontificating about

1572
01:05:43,026 --> 01:05:46,203
how Nintendo never would do
anything as horrible

1573
01:05:46,246 --> 01:05:49,467
as what Sega had done
with "Mortal Kombat."

1574
01:05:49,510 --> 01:05:51,860
All of a sudden, Bill White
whips out this gun

1575
01:05:51,904 --> 01:05:55,038
that they used
in a hunting game.

1576
01:05:55,081 --> 01:05:57,649
- Senator, I may also point out
that Nintendo produces

1577
01:05:57,692 --> 01:06:02,219
product
for a rapid-fire machine gun.

1578
01:06:02,262 --> 01:06:06,832
- This is a thing that--
it's called the Super Scope.

1579
01:06:06,875 --> 01:06:10,401
I think that this game
is a target sh--this device

1580
01:06:10,444 --> 01:06:12,446
is for target shooting
and whatnot.

1581
01:06:12,490 --> 01:06:14,796
- To me, that looks like a--
looks like a weapon.

1582
01:06:14,840 --> 01:06:17,364
It looks like an assault weapon
of some kind.

1583
01:06:17,408 --> 01:06:20,193
- I was starting to get a
little bit agitated with Bill.

1584
01:06:20,237 --> 01:06:22,717
He had worked for us,
and he knew what was going on,

1585
01:06:22,761 --> 01:06:26,983
so I felt it was necessary
to make our position

1586
01:06:27,026 --> 01:06:29,768
very clear, which I did.

1587
01:06:29,811 --> 01:06:32,640
And it seemed to go over
quite well.

1588
01:06:32,684 --> 01:06:36,557
I can't sit here
and allow you to be told

1589
01:06:36,601 --> 01:06:38,907
that somehow
the video game business

1590
01:06:38,951 --> 01:06:43,521
has been transformed today
from children to adults.

1591
01:06:43,564 --> 01:06:45,914
Small children bought this
at Toys "R" Us,

1592
01:06:45,958 --> 01:06:47,960
and he knows that
as well as I do.

1593
01:06:48,004 --> 01:06:50,528
We've got to get
further into this.

1594
01:06:50,571 --> 01:06:53,444
- Well, thank you.
Thanks for your forthrightness.

1595
01:06:53,487 --> 01:06:55,794
Thanks for assuming
responsibility.

1596
01:06:55,837 --> 01:06:57,839
I appreciate--I believe you've
shown some leadership here.

1597
01:06:57,883 --> 01:07:00,886
You've been a damn sight better
than the competition.

1598
01:07:02,018 --> 01:07:04,716
- People were worried about
video games being like drugs,

1599
01:07:04,759 --> 01:07:06,718
we were forcing them
on kids.

1600
01:07:06,761 --> 01:07:08,633
They would become
addicted to them.

1601
01:07:08,676 --> 01:07:10,374
They would ignore
their studies.

1602
01:07:10,417 --> 01:07:13,072
And that turned out to be true.

1603
01:07:13,116 --> 01:07:14,856
No, it didn't.
It wasn't true.

1604
01:07:14,900 --> 01:07:16,771
It was the opposite, actually.

1605
01:07:16,815 --> 01:07:19,948
I think that the kids that
became video game aficionados

1606
01:07:19,992 --> 01:07:22,560
in many ways
had better imaginations

1607
01:07:22,603 --> 01:07:25,606
and a better time
with the world in some ways.

1608
01:07:27,391 --> 01:07:29,001
- After the Senate hearings,

1609
01:07:29,045 --> 01:07:32,744
Kalinske came out
with some comment.

1610
01:07:32,787 --> 01:07:35,181
- What I had said
was that Nintendo

1611
01:07:35,225 --> 01:07:36,791
started these hearings

1612
01:07:36,835 --> 01:07:42,232
by sending the senators
videotapes of our video games.

1613
01:07:42,275 --> 01:07:44,669
- We thought Nintendo
had planted this,

1614
01:07:44,712 --> 01:07:47,019
and it was convenient
that Senator Lieberman

1615
01:07:47,063 --> 01:07:50,066
actually was getting
reelected that year.

1616
01:07:50,109 --> 01:07:52,459
- I found that to be
absolutely incredible.

1617
01:07:52,503 --> 01:07:55,027
This is the guy
that sucks us into this.

1618
01:07:55,071 --> 01:07:58,378
I was trying to figure out
a way to, in effect,

1619
01:07:58,422 --> 01:08:02,948
say, "Buzz off,"

1620
01:08:02,991 --> 01:08:06,908
so I decided to write a poem,

1621
01:08:06,952 --> 01:08:09,128
"Roses are red,
violets are blue.

1622
01:08:09,172 --> 01:08:12,827
So you had a bad day,
boo hoo hoo."

1623
01:08:13,828 --> 01:08:15,656
- [laughs]

1624
01:08:17,223 --> 01:08:18,529
- Come on.

1625
01:08:18,572 --> 01:08:22,010
- I think it sent a message
to Sega

1626
01:08:22,054 --> 01:08:24,230
that we were gonna continue
to fight them.

1627
01:08:24,274 --> 01:08:26,972
[energetic drum music]

1628
01:08:27,015 --> 01:08:28,800
- Every year
at about this time,

1629
01:08:28,843 --> 01:08:30,584
the sharpest of
the cutting-edge electronics

1630
01:08:30,628 --> 01:08:31,759
are unveiled,

1631
01:08:31,803 --> 01:08:33,500
and, oh, the places you'll go.

1632
01:08:33,544 --> 01:08:36,199
[applause]

1633
01:08:37,852 --> 01:08:39,158
- Hey.
- Hey.

1634
01:08:39,202 --> 01:08:41,160
- How you doing?
- What a sight for sore eyes.

1635
01:08:41,204 --> 01:08:42,509
Come and sit down for a minute.

1636
01:08:42,553 --> 01:08:44,207
- All right.

1637
01:08:44,250 --> 01:08:48,124
- We just decided to come out
here on a little hunting trip.

1638
01:08:48,167 --> 01:08:49,386
As a matter of fact,

1639
01:08:49,429 --> 01:08:51,823
there's some
of those little suckers again!

1640
01:08:52,432 --> 01:08:54,391
- Hey.

1641
01:08:54,434 --> 01:08:55,827
[applause]

1642
01:08:55,870 --> 01:08:57,611
- Peter, a lot of people thinkthat Nintendo

1643
01:08:57,655 --> 01:09:00,136
and this whole businessis going right down the river.

1644
01:09:00,179 --> 01:09:02,138
- Yeah, Nintendo
had a bad year.

1645
01:09:02,181 --> 01:09:04,009
Sales dropped.
Profits dropped.

1646
01:09:04,052 --> 01:09:05,880
But the future's
gotta be bright.

1647
01:09:05,924 --> 01:09:07,447
- There was a feeling like,
"You know what?

1648
01:09:07,491 --> 01:09:08,927
"This is a maturing industry.

1649
01:09:08,970 --> 01:09:11,147
We need to start acting
that way a little bit more".

1650
01:09:11,190 --> 01:09:12,539
From now on,
we'll see no repeats

1651
01:09:12,583 --> 01:09:14,802
of the "Mortal Kombat"
incident.

1652
01:09:14,846 --> 01:09:17,153
"Mortal Kombat 2"
will be the same

1653
01:09:17,196 --> 01:09:19,285
whether it's on our platform
or on anyone else's.

1654
01:09:19,329 --> 01:09:20,721
- All right.
- Yeah.

1655
01:09:20,765 --> 01:09:22,897
- We as a company
had to make a decision.

1656
01:09:22,941 --> 01:09:26,074
Were we gonna waver
from the Mario roots?

1657
01:09:26,118 --> 01:09:27,641
This was very tough for us.

1658
01:09:27,685 --> 01:09:29,208
- The contents may be new,

1659
01:09:29,252 --> 01:09:31,558
but the sales formula
hasn't changed at all.

1660
01:09:31,602 --> 01:09:35,736
We did modify our approach but
without sacrificing standard.

1661
01:09:35,780 --> 01:09:37,999
- If kids want video games
to help them define

1662
01:09:38,043 --> 01:09:39,914
their image,
then we're gonna do just that.

1663
01:09:39,958 --> 01:09:42,047
The music comes from two
of the hottest grunge groups

1664
01:09:42,090 --> 01:09:45,616
out there, the Butthole Surfers
and Sweaty Nipples.

1665
01:09:45,659 --> 01:09:49,663
[laughter and applause]

1666
01:09:49,707 --> 01:09:53,841
So live it large, run it free,
and play it loud.

1667
01:09:53,885 --> 01:09:56,844
- [belches]
[rock music]

1668
01:09:56,888 --> 01:09:59,847
♪

1669
01:10:04,287 --> 01:10:06,941
- Play it loud!

1670
01:10:06,985 --> 01:10:09,901
- And I mean, they--
they kind of got it.

1671
01:10:09,944 --> 01:10:13,383
They started to see
what the consumer wanted.

1672
01:10:13,426 --> 01:10:15,820
Hey, bravo for that.

1673
01:10:15,863 --> 01:10:17,996
Was it iterative of Sega?

1674
01:10:18,039 --> 01:10:21,826
Mm, yeah, it was,
and we were complimented.

1675
01:10:21,869 --> 01:10:23,741
- Sega!
- [belches]

1676
01:10:23,784 --> 01:10:25,438
- We now needed to shift again

1677
01:10:25,482 --> 01:10:28,180
and try to figure out, how do
we manage against a company

1678
01:10:28,224 --> 01:10:30,400
that's starting to awaken?

1679
01:10:30,443 --> 01:10:33,577
- Sega is the current leader
but only by a slight margin.

1680
01:10:33,620 --> 01:10:35,274
In an effort
to keep their edge,

1681
01:10:35,318 --> 01:10:38,364
Sega demonstrated the latest
in player interface,

1682
01:10:38,408 --> 01:10:39,626
the Activator.

1683
01:10:39,670 --> 01:10:41,411
[bell dings]
- Ugh.

1684
01:10:41,454 --> 01:10:44,240
- We had this strategy
to use technology.

1685
01:10:44,283 --> 01:10:45,893
- Not just thinking
one step ahead

1686
01:10:45,937 --> 01:10:47,591
but two and three steps ahead.

1687
01:10:47,634 --> 01:10:49,680
- You look to the right,
and you see the attacker

1688
01:10:49,723 --> 01:10:51,203
coming in on the right;
you look above you,

1689
01:10:51,247 --> 01:10:53,901
and you could see the airplanes
coming above you.

1690
01:10:53,945 --> 01:10:55,773
- Welcome to Sega Channel.

1691
01:10:55,816 --> 01:10:57,992
It's cable,
but you don't watch it.

1692
01:10:58,036 --> 01:10:59,733
You play it!

1693
01:10:59,777 --> 01:11:02,040
- We see the Internet
and online gaming

1694
01:11:02,083 --> 01:11:05,870
as one of the big revolutions
in this business.

1695
01:11:05,913 --> 01:11:07,175
- They were kind of
just throwing things

1696
01:11:07,219 --> 01:11:09,134
against the wall
to see what would work.

1697
01:11:09,177 --> 01:11:11,528
- I didn't want us to become
like Nintendo

1698
01:11:11,571 --> 01:11:13,399
and let somebody pass us by,

1699
01:11:13,443 --> 01:11:16,141
and so having
the next great hardware system

1700
01:11:16,184 --> 01:11:18,012
was really critical.

1701
01:11:18,056 --> 01:11:20,319
- The next big battle
in the video game wars

1702
01:11:20,363 --> 01:11:22,843
is about to begin
as manufacturers

1703
01:11:22,887 --> 01:11:25,542
try to get people
to trash their old systems

1704
01:11:25,585 --> 01:11:27,805
and trade up to new ones.

1705
01:11:27,848 --> 01:11:30,808
- I often get to introduce
our money editor, John Stehr,

1706
01:11:30,851 --> 01:11:32,766
but right now,
for the first time ever,

1707
01:11:32,810 --> 01:11:35,769
I am going to become
John Stehr.

1708
01:11:35,813 --> 01:11:37,684
- It's our way
of introducing you

1709
01:11:37,728 --> 01:11:40,600
to the machine
behind today's movie magic.

1710
01:11:40,644 --> 01:11:41,993
- [screams]

1711
01:11:42,036 --> 01:11:44,604
- It's been a year
of digital distortion.

1712
01:11:44,648 --> 01:11:47,215
Artists reanimated
John Kennedy...

1713
01:11:47,259 --> 01:11:49,392
- I gotta pee.
- And put Brandon Lee

1714
01:11:49,435 --> 01:11:52,525
into scenes
shot after his death.

1715
01:11:52,569 --> 01:11:55,572
One brand of computer made
all these movies possible,

1716
01:11:55,615 --> 01:11:59,489
the blisteringly fast
computers of Silicon Graphics.

1717
01:11:59,532 --> 01:12:01,752
- I got a call from Jim Clark,

1718
01:12:01,795 --> 01:12:04,058
who was chairman
of Silicon Graphics.

1719
01:12:04,102 --> 01:12:06,234
Said, "Hey, we've come up
with a new chipset

1720
01:12:06,278 --> 01:12:08,585
"that we think is perfect
for a video game system.

1721
01:12:08,628 --> 01:12:10,717
You wanna come over here
and take a look at it?"

1722
01:12:10,761 --> 01:12:13,372
[Spin Doctors' "Two Princes"]

1723
01:12:13,416 --> 01:12:16,767
♪

1724
01:12:16,810 --> 01:12:19,857
We called Nakayama,
explained the situation,

1725
01:12:19,900 --> 01:12:22,120
and said, "You gotta send
a hardware team out."

1726
01:12:22,163 --> 01:12:24,122
Nakayama even came himself.

1727
01:12:24,165 --> 01:12:26,907
♪

1728
01:12:26,951 --> 01:12:28,605
We had a good meeting
at Silicon Graphics.

1729
01:12:28,648 --> 01:12:30,998
They showed off
these amazing graphics.

1730
01:12:31,042 --> 01:12:33,392
- ♪ That's what I said now

1731
01:12:33,436 --> 01:12:36,961
- They went back to Japan,
and the response to us was,

1732
01:12:37,004 --> 01:12:38,571
"No, that's not good enough."

1733
01:12:38,615 --> 01:12:41,618
They thought there'd be
too much wasted silicon,

1734
01:12:41,661 --> 01:12:43,794
so that was
the excuse they gave.

1735
01:12:43,837 --> 01:12:46,187
- ♪ Yeah, yeah

1736
01:12:46,231 --> 01:12:48,407
- This was the first time
that a major strategy

1737
01:12:48,451 --> 01:12:52,585
that I believed in had been
overridden by Nakayama.

1738
01:12:53,456 --> 01:12:55,414
- It was a surprise to me.

1739
01:12:55,458 --> 01:12:56,763
It was a surprise to Tom,

1740
01:12:56,807 --> 01:12:58,591
a surprise to everybody
that this happened.

1741
01:12:58,635 --> 01:13:02,290
[suspenseful music]

1742
01:13:02,334 --> 01:13:04,902
- Initially, I thought
it was honest differences

1743
01:13:04,945 --> 01:13:07,470
in hardware architecture,

1744
01:13:07,513 --> 01:13:11,735
but I began to see
that there was this jealousy

1745
01:13:11,778 --> 01:13:14,564
that was developing
between Sega Japan

1746
01:13:14,607 --> 01:13:16,348
and Sega of America.

1747
01:13:16,392 --> 01:13:19,873
You could imagine every week,
your CEOs walking in

1748
01:13:19,917 --> 01:13:21,440
and saying,
"How come you're not as good

1749
01:13:21,484 --> 01:13:24,182
as those guys in America?"

1750
01:13:24,225 --> 01:13:26,097
And they started looking
for ways

1751
01:13:26,140 --> 01:13:28,447
where they could disagree
with us

1752
01:13:28,491 --> 01:13:31,450
and perhaps, to some degree,
undermine us.

1753
01:13:32,930 --> 01:13:36,847
I explained the situation
to Jim Clark, and he said,

1754
01:13:36,890 --> 01:13:38,370
"Well, what should I do now?"
and I said,

1755
01:13:38,414 --> 01:13:41,547
"Well, there's this other
video game company in Seattle.

1756
01:13:41,591 --> 01:13:44,071
Maybe you should go
take a visit to them."

1757
01:13:44,115 --> 01:13:45,421
[applause]

1758
01:13:45,464 --> 01:13:47,988
- It's a pleasure to be here
this morning.

1759
01:13:48,032 --> 01:13:51,818
There's a lot of talk today
about new technology

1760
01:13:51,862 --> 01:13:55,169
soon replacing
16-bit video games,

1761
01:13:55,213 --> 01:13:59,739
but ultimately, only hit games
will bring you customers.

1762
01:13:59,783 --> 01:14:02,481
- The Super Nintendo was doing
well and making good money,

1763
01:14:02,525 --> 01:14:03,874
and so we kept
reminding ourselves,

1764
01:14:03,917 --> 01:14:05,266
"It's not about the technology.

1765
01:14:05,310 --> 01:14:07,181
It's about the fun
that you deliver."

1766
01:14:07,225 --> 01:14:08,661
- Here's an old friend
of mine.

1767
01:14:08,705 --> 01:14:10,489
This, of course,
is Donkey Kong,

1768
01:14:10,533 --> 01:14:15,059
the star of Nintendo's
1981 arcade hit.

1769
01:14:15,102 --> 01:14:18,889
Well, ladies and gentlemen,
my friendly gorilla is back

1770
01:14:18,932 --> 01:14:22,588
in his new Nintendo game,
"Donkey Kong Country."

1771
01:14:22,632 --> 01:14:25,591
[relaxed drum music]

1772
01:14:25,635 --> 01:14:29,552
♪

1773
01:14:29,595 --> 01:14:30,988
- Since its release, Nintendo

1774
01:14:31,031 --> 01:14:33,077
has sold more
than 6 million copies.

1775
01:14:33,120 --> 01:14:35,253
♪

1776
01:14:35,296 --> 01:14:38,517
[Tarzan yell]

1777
01:14:38,561 --> 01:14:41,868
- "Donkey Kong Country"
was a critical game for us

1778
01:14:41,912 --> 01:14:44,523
to sustain
the momentum of Super NES

1779
01:14:44,567 --> 01:14:48,440
in the battle with Sega
and push it right over the top.

1780
01:14:49,659 --> 01:14:52,879
- But while we were going
through the battles with Sega,

1781
01:14:52,923 --> 01:14:54,315
another competitor
was behind us,

1782
01:14:54,359 --> 01:14:55,839
and he's preparing
to enter the marketplace.

1783
01:14:57,580 --> 01:14:58,842
- Mommy. Mommy. Mommy!

1784
01:14:58,885 --> 01:15:01,279
- It's only a movie,

1785
01:15:01,322 --> 01:15:04,108
except on a Sony
big-screen TV.

1786
01:15:05,849 --> 01:15:08,460
- Oh, good, something romantic.

1787
01:15:08,504 --> 01:15:10,418
- Sony was just desperate

1788
01:15:10,462 --> 01:15:12,246
to get into
the video game business.

1789
01:15:12,290 --> 01:15:15,641
- We support the content,
the formats

1790
01:15:15,685 --> 01:15:17,730
that we think
the consumer's going to like.

1791
01:15:17,774 --> 01:15:20,733
- Olaf Olafsson arrived
in my office one day,

1792
01:15:20,777 --> 01:15:23,867
and we started talking about
ways we might work together.

1793
01:15:23,910 --> 01:15:28,001
- Sony and Sega
secretly agreed to come up

1794
01:15:28,045 --> 01:15:30,221
with a common hardware unit.

1795
01:15:30,264 --> 01:15:32,876
- But we'll each make
our independent profit

1796
01:15:32,919 --> 01:15:34,617
off of the software.

1797
01:15:34,660 --> 01:15:37,358
We were a much better software
developer than Sony was,

1798
01:15:37,402 --> 01:15:39,665
and so I thought,
"Boy, this is a win for us."

1799
01:15:39,709 --> 01:15:43,016
[dramatic music]

1800
01:15:43,060 --> 01:15:45,279
- Consumer electronics giants
Sony and Sega

1801
01:15:45,323 --> 01:15:47,586
are teaming up
on the video games,

1802
01:15:47,630 --> 01:15:49,457
putting Sony music
and movie software

1803
01:15:49,501 --> 01:15:52,939
behind the video game maker.

1804
01:15:52,983 --> 01:15:56,769
- Everybody involved thought
the marriage would happen.

1805
01:15:56,813 --> 01:16:00,512
- Unfortunately, Sega Japan
just couldn't agree

1806
01:16:00,556 --> 01:16:03,341
with the Sony engineers
on specifications.

1807
01:16:04,821 --> 01:16:06,518
I was really upset

1808
01:16:06,562 --> 01:16:09,695
and felt like they
didn't try hard enough.

1809
01:16:09,739 --> 01:16:11,218
- People were coming
to our door to say,

1810
01:16:11,262 --> 01:16:14,613
"Hey, we want to be part of
what you're doing here."

1811
01:16:14,657 --> 01:16:15,962
For whatever reason,

1812
01:16:16,006 --> 01:16:19,009
Sega of Japan
didn't want to play.

1813
01:16:19,052 --> 01:16:21,272
- Kalinske did a good job
of protecting us,

1814
01:16:21,315 --> 01:16:22,839
and it wasn't easy.

1815
01:16:22,882 --> 01:16:24,623
- He was a bit
like the sin eater.

1816
01:16:24,667 --> 01:16:28,671
He was eating all the sins
for the entire SOA group.

1817
01:16:28,714 --> 01:16:30,760
- He would tell me what was
going on over there,

1818
01:16:30,803 --> 01:16:32,239
but I didn't really
internalize it

1819
01:16:32,283 --> 01:16:34,590
'cause I didn't have to
go there and get yelled at

1820
01:16:34,633 --> 01:16:38,071
like he did
and scared like he did.

1821
01:16:38,115 --> 01:16:40,552
- Once the decision was made

1822
01:16:40,596 --> 01:16:42,946
not to do joint hardware
with Sony,

1823
01:16:42,989 --> 01:16:45,426
I knew that things
were different now.

1824
01:16:46,558 --> 01:16:50,649
- Nintendo, together
with Silicon Graphics,

1825
01:16:50,693 --> 01:16:54,435
have entered into a worldwide
joint development

1826
01:16:54,479 --> 01:16:56,350
and license agreement

1827
01:16:56,394 --> 01:16:59,266
under which our companies
will develop

1828
01:16:59,310 --> 01:17:01,529
this new and unique product.

1829
01:17:01,573 --> 01:17:04,228
It will feature a new,

1830
01:17:04,271 --> 01:17:09,320
true 64-bit
multimedia engine chipset.

1831
01:17:09,363 --> 01:17:10,800
- That freaked them out at Sega

1832
01:17:10,843 --> 01:17:12,889
because there was
nothing to do about it.

1833
01:17:12,932 --> 01:17:16,196
They just could not get up
to a 64-bit machine right away.

1834
01:17:16,240 --> 01:17:19,156
♪

1835
01:17:19,199 --> 01:17:23,856
- At that time, the strings
were being pulled by Japan.

1836
01:17:23,900 --> 01:17:26,119
We had very limited
degrees of freedom.

1837
01:17:26,163 --> 01:17:28,818
Our ideas were
typically ignored

1838
01:17:28,861 --> 01:17:30,820
or not responded to,
more often than not,

1839
01:17:30,863 --> 01:17:34,693
and I just wasn't looking
for that intellectually.

1840
01:17:34,737 --> 01:17:37,478
And then I got approached
by an executive search firm

1841
01:17:37,522 --> 01:17:39,872
looking for someone to run
the Sony PlayStation.

1842
01:17:39,916 --> 01:17:42,048
- PlayStation.
- And I said, "Well,

1843
01:17:42,092 --> 01:17:43,354
"here's another
interesting challenge.

1844
01:17:43,397 --> 01:17:46,009
I can just undo
what I just did at Sega."

1845
01:17:46,052 --> 01:17:50,274
♪

1846
01:17:50,317 --> 01:17:54,757
- I was a little bit surprised
that they went for Steve.

1847
01:17:54,800 --> 01:17:57,063
- I was done,
and I just wanted to move on

1848
01:17:57,107 --> 01:18:00,284
and didn't want to stay
at Sega any longer.

1849
01:18:00,327 --> 01:18:02,634
- Sony wanted to really
stick it in our eye

1850
01:18:02,678 --> 01:18:03,809
at this point,

1851
01:18:03,853 --> 01:18:08,727
and clearly, Steve
was delighted to do that.

1852
01:18:08,771 --> 01:18:10,729
- My former wife
used to always tell me

1853
01:18:10,773 --> 01:18:12,862
that there's no chance that
I'll ever get a broken heart

1854
01:18:12,905 --> 01:18:14,951
'cause I don't have one.

1855
01:18:14,994 --> 01:18:18,128
To me, it's just a decision
that one makes about business.

1856
01:18:18,171 --> 01:18:19,782
You can't be
terribly emotional.

1857
01:18:19,825 --> 01:18:22,828
You have to be willing to cut
off your hand to save the arm.

1858
01:18:22,872 --> 01:18:25,439
[Jax yells]

1859
01:18:28,094 --> 01:18:29,922
- Sony was really
a scary competitor.

1860
01:18:29,966 --> 01:18:32,359
It was kind of like,
the show business people

1861
01:18:32,403 --> 01:18:33,752
were gonna come
into this thing,

1862
01:18:33,796 --> 01:18:35,623
and their sound and graphics

1863
01:18:35,667 --> 01:18:38,235
were gonna be way
above what we could do.

1864
01:18:39,671 --> 01:18:42,500
There was a lot of fear around
the Sega halls about that.

1865
01:18:42,543 --> 01:18:44,763
Kalinske was coming back
from Japan

1866
01:18:44,807 --> 01:18:48,158
having nervous breakdowns
about what was coming up.

1867
01:18:48,201 --> 01:18:50,290
We had no product at the time.

1868
01:18:50,334 --> 01:18:53,554
- At that point,
Nintendo was on the wane.

1869
01:18:53,598 --> 01:18:56,470
- The biggest problem
that we have with Nintendo 64

1870
01:18:56,514 --> 01:18:58,385
is to try to figure out

1871
01:18:58,429 --> 01:19:01,867
how to make great software
real-time 3-D.

1872
01:19:03,347 --> 01:19:07,786
- We were teasing the retailer
for, like, two years.

1873
01:19:07,830 --> 01:19:09,875
We were showing them
these great graphics,

1874
01:19:09,919 --> 01:19:12,095
but from a sales perspective,
it was a killer.

1875
01:19:12,138 --> 01:19:17,622
- When Nintendo announced
64-bit system,

1876
01:19:17,665 --> 01:19:20,799
Nakayama felt that we got
to make it 64 too.

1877
01:19:20,843 --> 01:19:23,802
[serene music playing]

1878
01:19:23,846 --> 01:19:30,548
♪

1879
01:19:33,725 --> 01:19:37,642
- Introducing...
- Sega Saturn.

1880
01:19:37,685 --> 01:19:41,864
- Sega Saturn was
32-bit machine to start with.

1881
01:19:41,907 --> 01:19:44,083
It was too late
to redesign the machine,

1882
01:19:44,127 --> 01:19:49,001
and we ended up
putting two 32-bit chips.

1883
01:19:49,045 --> 01:19:52,744
That made the programming
challenging and complex.

1884
01:19:54,137 --> 01:19:56,226
- The software
looked like shit.

1885
01:19:56,269 --> 01:19:58,619
Not until three months
before launch did we find out

1886
01:19:58,663 --> 01:20:01,927
that the software was not
gonna be there to support it.

1887
01:20:01,971 --> 01:20:04,408
- Not only did
we not have enough software.

1888
01:20:04,451 --> 01:20:05,888
We didn't even
have enough hardware,

1889
01:20:05,931 --> 01:20:08,281
so we had to limit

1890
01:20:08,325 --> 01:20:10,544
the retail distributors
who carried it,

1891
01:20:10,588 --> 01:20:13,852
and we cut out
Target and Wal-Mart,

1892
01:20:13,896 --> 01:20:17,203
and these guys
were furious with us.

1893
01:20:17,247 --> 01:20:19,727
I expressed
all this to Nakayama,

1894
01:20:19,771 --> 01:20:21,599
and he disagreed with me.

1895
01:20:21,642 --> 01:20:24,863
He was afraid that Sony
was gonna steal our thunder,

1896
01:20:24,907 --> 01:20:30,608
so he wanted an immediate
launch of Saturn at E3.

1897
01:20:32,479 --> 01:20:34,830
- When giants
in the video game industry

1898
01:20:34,873 --> 01:20:37,571
square off against each other
at a major trade show,

1899
01:20:37,615 --> 01:20:39,747
people pay attention.

1900
01:20:39,791 --> 01:20:42,489
With $10 billion on the line,

1901
01:20:42,533 --> 01:20:44,578
it's all about
which expensive toys

1902
01:20:44,622 --> 01:20:46,972
consumers will pay
to play with.

1903
01:20:47,016 --> 01:20:49,888
- This is no game; this is
a multibillion-dollar gamble

1904
01:20:49,932 --> 01:20:51,629
for a lot of entertainment
companies.

1905
01:20:51,672 --> 01:20:54,675
To borrow from a couple
of their more popular titles,

1906
01:20:54,719 --> 01:20:56,242
they're locked
in "Mortal Kombat."

1907
01:20:56,286 --> 01:20:58,810
For the losers,
it could spell "Doom."

1908
01:21:01,944 --> 01:21:03,554
- Without the right games,

1909
01:21:03,597 --> 01:21:06,426
we're delaying the launch
of Nintendo Ultra 64.

1910
01:21:06,470 --> 01:21:07,906
- We feel it's more important

1911
01:21:07,950 --> 01:21:09,473
to make
a good first impression,

1912
01:21:09,516 --> 01:21:11,301
have the absolute best possible
software when we launch.

1913
01:21:11,344 --> 01:21:12,998
- So you're willing to wait
till '96?

1914
01:21:13,042 --> 01:21:14,695
- Yeah, we're gonna wait.

1915
01:21:14,739 --> 01:21:16,306
- Product launched in Japan.

1916
01:21:16,349 --> 01:21:18,482
We sold 100,000 units
on the first day,

1917
01:21:18,525 --> 01:21:20,223
300,000 units
in the first month.

1918
01:21:20,266 --> 01:21:22,660
We're approaching
a million units sold in Japan.

1919
01:21:22,703 --> 01:21:24,705
We just need to replicate that
in the United States.

1920
01:21:26,185 --> 01:21:28,013
- No question in my mind,
there are gonna be casualties,

1921
01:21:28,057 --> 01:21:29,623
and there are gonna be
casualties soon.

1922
01:21:29,667 --> 01:21:32,626
[suspenseful music]

1923
01:21:32,670 --> 01:21:34,890
♪

1924
01:21:40,983 --> 01:21:43,115
- Tom and I were both
staying at the same hotel,

1925
01:21:43,159 --> 01:21:45,204
and they had taken over
the lobby

1926
01:21:45,248 --> 01:21:46,597
and the swimming pool,

1927
01:21:46,640 --> 01:21:49,295
and they had these large
inflatable balloons

1928
01:21:49,339 --> 01:21:52,559
of some of their iconic
characters like Sonic.

1929
01:21:52,603 --> 01:21:54,910
Somehow those blow-up balloons
wound up

1930
01:21:54,953 --> 01:21:56,868
in the bottom of the pool.

1931
01:21:56,912 --> 01:21:58,870
- He had them deflated,

1932
01:21:58,914 --> 01:22:01,960
stuck pins in them
or something.

1933
01:22:02,004 --> 01:22:05,572
- After Sonic was found dead
in the bottom of the pool,

1934
01:22:05,616 --> 01:22:07,618
Tom came to me and said,
"Steve, can you cut it out?"

1935
01:22:07,661 --> 01:22:09,141
and I said, "Tom, no.

1936
01:22:09,185 --> 01:22:11,317
There's no way
we're gonna cut it out."

1937
01:22:11,361 --> 01:22:14,451
- Clearly they were trying
to out-Sega Sega.

1938
01:22:17,019 --> 01:22:18,194
- You know, if you're
planning to buy

1939
01:22:18,237 --> 01:22:19,586
a new video game machine
this year,

1940
01:22:19,630 --> 01:22:21,501
you better start saving
for one now.

1941
01:22:21,545 --> 01:22:23,764
Some supersophisticated
new systems

1942
01:22:23,808 --> 01:22:26,724
are about to hit the market,
and they are pricey.

1943
01:22:26,767 --> 01:22:28,421
- Sega rushed Saturn
on the market,

1944
01:22:28,465 --> 01:22:31,076
and it sells for around $399,

1945
01:22:31,120 --> 01:22:34,166
and don't expect that price
to come down anytime soon.

1946
01:22:34,210 --> 01:22:35,602
- I wish that we could say

1947
01:22:35,646 --> 01:22:36,952
we were gonna see prices
come down,

1948
01:22:36,995 --> 01:22:38,605
because I think
it would help my business

1949
01:22:38,649 --> 01:22:40,042
and we'd sell a lot more units.

1950
01:22:40,085 --> 01:22:41,608
- I'm gonna talk to my parents
about this one.

1951
01:22:41,652 --> 01:22:43,567
I like this one a lot.

1952
01:22:43,610 --> 01:22:45,525
- You better tell them
it's $399.

1953
01:22:48,615 --> 01:22:50,530
- Up next,
the Sony PlayStation.

1954
01:22:53,011 --> 01:22:55,274
- I'm going to ask
Sony Computer Entertainment

1955
01:22:55,318 --> 01:22:56,972
president of America,

1956
01:22:57,015 --> 01:23:01,759
Steve Race, to join me
for a brief presentation.

1957
01:23:01,802 --> 01:23:04,762
[applause]

1958
01:23:09,245 --> 01:23:12,204
[cheers and applause]

1959
01:23:12,248 --> 01:23:15,207
[desolate music]

1960
01:23:15,251 --> 01:23:16,774
♪

1961
01:23:16,817 --> 01:23:19,037
- I was sitting
right in front of him.

1962
01:23:19,081 --> 01:23:21,909
It was Tom and I
and Shinobu, and...

1963
01:23:21,953 --> 01:23:23,563
we were just
sitting there watching.

1964
01:23:23,607 --> 01:23:30,614
♪

1965
01:23:31,310 --> 01:23:34,487
- [screams]

1966
01:23:34,531 --> 01:23:37,882
Sony PlayStation!

1967
01:23:37,925 --> 01:23:40,711
[cheers and applause]

1968
01:23:40,754 --> 01:23:42,626
- What is that?
What is that?

1969
01:23:42,669 --> 01:23:46,108
- It's an enormous parade,
including 16 balloons.

1970
01:23:46,151 --> 01:23:49,067
- Yeah!
- All right.

1971
01:23:49,111 --> 01:23:51,461
- It was a cold and windy day
this Thanksgiving,

1972
01:23:51,504 --> 01:23:54,681
and some of the new balloons
didn't fare terribly well.

1973
01:23:56,944 --> 01:23:59,077
Sonic the Hedgehog
hit a utility pole

1974
01:23:59,121 --> 01:24:01,514
around 58th Street
and Broadway.

1975
01:24:01,558 --> 01:24:05,170
- Oh!
Oh!

1976
01:24:05,214 --> 01:24:07,259
- Sonic wounded
an off-duty police officer

1977
01:24:07,303 --> 01:24:09,522
and caused minor injuries
to a young woman

1978
01:24:09,566 --> 01:24:12,047
and a ten-year-old girl.

1979
01:24:14,745 --> 01:24:17,182
Sonic the Hedgehog
didn't finish the parade.

1980
01:24:17,226 --> 01:24:20,185
[warm music]

1981
01:24:20,229 --> 01:24:27,236
♪

1982
01:24:28,367 --> 01:24:30,543
- The success of Sega
of America

1983
01:24:30,587 --> 01:24:34,112
really is American dream.

1984
01:24:34,156 --> 01:24:35,331
- All right.
- Yeah.

1985
01:24:35,374 --> 01:24:38,116
- Americans like challenges,

1986
01:24:38,160 --> 01:24:40,684
so I think, overall,
battle against Nintendo

1987
01:24:40,727 --> 01:24:45,297
was perfect
for the spirit of Americans

1988
01:24:45,341 --> 01:24:47,691
to fight David and Goliath
sort of battle.

1989
01:24:48,866 --> 01:24:52,783
So I think I'm very proud
to be part of,

1990
01:24:52,826 --> 01:24:55,090
you know,
whole Sega phenomenon.

1991
01:24:55,133 --> 01:25:01,487
♪

1992
01:25:01,531 --> 01:25:04,055
- 19 more shopping days
until Christmas,

1993
01:25:04,099 --> 01:25:08,015
and the heat is on for parents
all over the country

1994
01:25:08,059 --> 01:25:10,888
from kids who simply have to
have this year's hottest toys.

1995
01:25:10,931 --> 01:25:15,153
- It's no longer Sega.
Now I'm into Nintendo.

1996
01:25:15,197 --> 01:25:17,373
- Nephew wants one,
my son wants one.

1997
01:25:17,416 --> 01:25:18,939
- Oh, that's a--that's
a lot of systems.

1998
01:25:18,983 --> 01:25:20,027
- Go!

1999
01:25:22,987 --> 01:25:26,730
- Nintendo's top execs traded
suits and ties for helmets

2000
01:25:26,773 --> 01:25:28,427
and racing togs today.

2001
01:25:29,994 --> 01:25:31,169
- Here comes another finisher!

2002
01:25:31,213 --> 01:25:32,910
It's Howard Lincoln,

2003
01:25:32,953 --> 01:25:35,391
Howard Lincoln,
ladies and gentlemen!

2004
01:25:35,434 --> 01:25:37,741
- An incredible race,an incredible effort.

2005
01:25:37,784 --> 01:25:40,265
What's with thecome-from-behind strategy here?

2006
01:25:40,309 --> 01:25:43,703
- Well, at first I thought his
go-kart was faster than mine.

2007
01:25:44,704 --> 01:25:48,621
♪

2008
01:25:48,665 --> 01:25:50,797
But then I found
when I kept crashing into him,

2009
01:25:50,841 --> 01:25:52,799
he started moving a little bit
to the right side,

2010
01:25:52,843 --> 01:25:54,279
and I was able to get by him.

2011
01:25:54,323 --> 01:25:58,849
♪

2012
01:25:58,892 --> 01:26:01,373
- Hey, plumber boy,
mustache man,

2013
01:26:01,417 --> 01:26:03,288
your worst nightmare
has arrived.

2014
01:26:03,332 --> 01:26:04,768
Pack up your stuff.

2015
01:26:04,811 --> 01:26:11,818
♪

2016
01:26:14,256 --> 01:26:17,215
[applause]

2017
01:26:19,261 --> 01:26:22,220
- In my life, I've been
very fortunate to have worked

2018
01:26:22,264 --> 01:26:24,701
with great, wonderful people,

2019
01:26:24,744 --> 01:26:28,313
and my proudest
business accomplishment

2020
01:26:28,357 --> 01:26:32,012
was seeing all those people
all doing so well,

2021
01:26:32,056 --> 01:26:37,844
all of you who I worked with,
that I owe this--this honor to.

2022
01:26:37,888 --> 01:26:44,895
♪

2023
01:27:10,703 --> 01:27:12,531
- Sega!
- Sega.

2024
01:27:12,575 --> 01:27:14,011
- Sega!
- Sega!

2025
01:27:14,054 --> 01:27:16,187
- Sega!
- Sega!

2026
01:27:16,231 --> 01:27:18,320
- Sega!

2027
01:27:18,363 --> 01:27:25,370
♪

2028
01:27:30,549 --> 01:27:33,596
- ♪ You know very well

2029
01:27:33,639 --> 01:27:36,163
♪ Who you are

2030
01:27:36,207 --> 01:27:38,601
♪ Don't let 'em
hold you down ♪

2031
01:27:38,644 --> 01:27:40,951
♪ Reach for the stars

2032
01:27:40,994 --> 01:27:42,213
♪ You had a goal

2033
01:27:42,257 --> 01:27:44,215
- I understand.
- [chuckles darkly]

2034
01:27:44,259 --> 01:27:46,130
- ♪ But not that many

2035
01:27:46,173 --> 01:27:48,001
♪ 'Cause you're the only one

2036
01:27:48,045 --> 01:27:50,177
♪ I'll give you
good and plenty ♪

2037
01:27:50,221 --> 01:27:52,963
- ♪ Super Nintendo,
Sega Genesis ♪

2038
01:27:53,006 --> 01:27:55,357
♪ When I was dead broke, man,
I couldn't picture this ♪

2039
01:27:55,400 --> 01:27:57,924
[blipping]

2040
01:27:57,968 --> 01:27:59,970
- We would like
to convince you

2041
01:28:00,013 --> 01:28:01,972
that there is indeed a market
in which one money--

2042
01:28:02,015 --> 01:28:04,366
money can be made
in the near future.

2043
01:28:04,409 --> 01:28:07,369
[dramatic music]

2044
01:28:07,412 --> 01:28:10,372
♪

2045
01:28:10,415 --> 01:28:13,375
[dramatic electronic music]

2046
01:28:13,418 --> 01:28:20,425
♪