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Chapter 556: Finance Report on 1994
🕑 Added 2025-08-03 02:25:11 +0000 UTCAN: In this story 1994 1 USD = 200 Yen
Tuesday, 6 January 1995
After a long weekend and with the close of 1994, Zaboru promptly made his way to the highly anticipated yearly revenue meeting of ZAGE. The air in the boardroom was thick with expectation as all ZAGE higher-ups had gathered, ready to evaluate the company’s financial outcomes and discuss its future direction. Zaboru took his seat among them, settling in with a sense of quiet anticipation. Leading the discussion was Sayuri Yamaguchi, the astute and detail-oriented head of ZAGE Finance. With her usual calm precision, she began outlining the key financial figures and breaking down the major revenue streams derived from ZAGE’s diverse product lines, setting the tone for a thorough analysis of the company’s performance throughout the year.
Sayuri adjusted her glasses. “Okay, first, let us review the yearly total sales of ZEPS 2 consoles in Japan, the USA, and Europe. Since its release on 30 March, total ZEPS 2 units sold have already reached a staggering 4.5 million units. This marks the highest annual console sales for us so far, even surpassing the last year sales of our previous flagship, ZEPS 1.”
Zaboru was taken aback. Four and a half million? It hadn’t even been a full year—just around nine months. The number stunned him. Back in his previous life, It only confirmed what he had already suspected: in this world, people’s spending power was considerably higher. Consumers were not only willing but eager to spend on entertainment, and the ZEPS 2 clearly hit the sweet spot in both timing and value. He nodded subtly to himself, feeling a small surge of satisfaction at how far they had come in such a short time.
Sayuri then said again, “For ZEPS 2, the price for producing each unit is around 12,500 yen. We sold it to retailers at approximately 19,000 yen, which means we gained about 6,500 yen in gross profit per console. Considering we sold 4.5 million units, our total revenue from ZEPS 2 console sales alone reached an impressive 29.25 billion yen.” She gave a small pause, glancing at the boardroom before continuing. “This figure excludes additional revenue from accessories or bundled deals, which are also expected to contribute notably in the next quarter.” Zaboru nodded, his expression serious. Sayuri then adjusted her glasses with a practiced motion, signaling she was ready to move on to the next item.
“This year, while sales are declining, ZEPS 1 still performed quite well. Altogether, it sold 1.5 million units globally. Each ZEPS 1 unit required a production cost of 4,300 yen. We sold it to retailers for 8,000 yen—1,000 yen lower than the usual price, based on your directive, boss. That gave us a gross margin of approximately 3,700 yen per unit. As a result, we earned roughly 5.5 billion yen from ZEPS 1 sales this year.”
Zaboru nodded in approval. The idea to lower the price had been his own. He wanted to ensure that consumers who couldn’t afford the newer ZEPS 2 could still enjoy the ZAGE gaming experience through the more accessible ZEPS 1. It was a strategic choice that not only kept the older console relevant but also expanded their reach to budget-conscious gamers, especially for people who can't really afford more money and where affordability played a bigger role in purchasing decisions.
Sayuri then continued, “Lastly, for the ZGB handheld, despite being on the market for a while, it still performed impressively on a global scale this year. We saw total unit sales hit 3 million, which is quite commendable considering the rising popularity of home consoles. For each ZGB unit, our production cost stood at 4,000 yen, and we sold it to retailers for 7,500 yen, giving us a solid profit margin of 3,500 yen per unit. This resulted in a revenue of 10.5 billion yen from ZGB sales alone.”
Zaboru nodded thoughtfully. The ZGB continued to hold strong in markets where affordability and portability were key, and its longevity was proving to be a real asset to ZAGE's portfolio. Then Sayuri said, “All of this shows that our major consoles and handhelds have sold remarkably well. Altogether, including ZEPS 2, ZEPS 1, and ZGB hardware, we generated a total of 40.5 billion yen this fiscal year. And this doesn’t even take into account the limited edition and collector’s value of ZEPS 2, which also contributed significantly to its continued high demand.”
Shinsuke, the Marketing Head of ZAGE, leaned forward and said, “Boss, how about we halt the production of ZEPS 1 and shift all our focus toward ZEPS 2 instead? I believe we could potentially maximize our revenue by capitalizing on the strong momentum of the newer console.”
Zaboru shook his head firmly. “It’s not time yet, Shin-san. The 8-bit console era isn’t over. There are still numerous developers creating engaging content for ZEPS 1, and many loyal players continue to enjoy it. Our mission isn’t just to follow market trends blindly—it’s to support all our users. When the time comes to transition away from ZEPS 1, it should be a natural evolution driven by the release of a more advanced generation of consoles, not just profit motives.”
He paused, then added, “That said, we might adjust the production levels—perhaps reduce ZEPS 1 slightly and boost ZEPS 2 to meet demand. But pulling the plug on ZEPS 1 entirely isn’t the answer.”
Shinsuke sighed and gave a reluctant nod, understanding his boss’s viewpoint. Meanwhile, Zanichi, the CTO of ZAGE and Zaboru’s father, chuckled softly in the background. In his mind, he thought, 'Zaboru may not be the most business-minded leader, but his heart lies with the players. That’s what sets ZAGE apart and gives us our unique strength.Shinsuke and Zanichi both knew it—this was the very soul of the company.
Sayuri then nodded and continued with clarity. “Next, let's move on to game cartridge sales. For ZEPS 2, all of our ZAGE-published titles combined sold a remarkable total of 20 million copies. That’s an exceptional figure considering the console has only been on the market for nine months. For ZEPS 1 titles, total game sales were around 6 million copies, and for our ZGB handheld games, we sold approximately 13 million copies globally. Naturally, the cartridge pricing varies depending on the platform.
For ZEPS 2, the production cost of each cartridge averages around 2,500 yen. We sold these to retailers for approximately 6,000 yen apiece, giving us a solid margin of 3,500 yen per unit. With 20 million units sold, that brought in an astounding 70 billion yen in gross revenue from ZEPS 2 cartridge sales alone.”
She paused for a moment, allowing the room to absorb the figure. Zaboru nodded appreciatively and clapped, prompting the rest of the boardroom to join in with approving applause.
Sayuri then continued, “Next, let’s look at the performance of ZEPS 1 cartridges. We opted to reduce the price compared to last year in order to stimulate continued sales. Each ZEPS 1 cartridge still costs us around 2,000 yen to manufacture. Currently, we sell them to retailers for 5,000 yen, giving us a profit margin of approximately 3,000 yen per unit. This pricing strategy resulted in a total revenue of 18 billion yen from ZEPS 1 cartridges.
Now, for ZGB cartridges, production costs came in at about 1,800 yen per unit. These were sold to retailers for an average of 4,500 yen, providing us with a profit of 2,300 yen per cartridge. Altogether, ZGB cartridge sales brought in 29.9 billion yen. These figures further reinforce the sustained demand and market strength of our software titles across all platforms.
When adding the cartridge revenues from ZEPS 2, ZEPS 1, and ZGB together, we achieved a total cartridge sales revenue of 117.9 billion yen. This not only reflects our successful game library but also demonstrates that cartridge sales continue to outperform hardware in terms of revenue generation.”
Zaboru smiled, clearly pleased. Game cartridge sales were indeed the lifeblood of the business, and the numbers painted a powerful picture of success. It was evident that customers deeply trusted ZAGE products, and that trust had been earned through consistent quality and engaging content. He knew that as long as ZAGE continued to deliver standout, high-quality games, players would remain loyal and enthusiastic. Their commitment to innovation and player satisfaction was proving to be their greatest asset in an increasingly competitive market.
Sayuri then adjusted her glasses with her usual composed demeanor. “Next, we will shift our focus to the remaining sectors of our gaming division beyond home consoles—specifically, the arcade and PC markets,” she said clearly, ensuring all eyes were on her. Zaboru nodded in acknowledgment, mentally preparing for the next set of data as the meeting transitioned smoothly into the next segment of analysis.
To be continue
