A Close Look at SEGA & Parent Company CSK

Alex Smith of They Create Worlds, a podcast focused on documenting the video game industry as a whole, has released a two-part series on SEGA and its parent conglomerate, CSK Corporation (Computer Service Kabushiki-Kaisha). The series offers a well-researched and nuanced look at Isao Okawa, the owner of CSK & subsidiary SEGA Enterprises and the ultimate downfall of SEGA during the Dreamcast era.

Part 1 covers the origin of CSK and major players involved, Okawa’s bold move to pivot CSK during uncertain times, the purchase of SEGA from Gulf and Western, the decade-long corporate transition from U.S. company to a traditional Japanese company, and SEGA becoming publicly traded in Japan.

Dragon Quest Part 2 – They Create Worlds

TCW Podcast Episode 268 – Dragon Quest Part 2   Yuji Horii continued developing adventure games after The Portopia Serial Murder Case, but his growing interest in Ultima and Wizardry led him to incorporate role-playing elements into his work. Karuizawa Yūkai Annai combined adventure-game investigation with Ultima style overworld exploration and a climactic fighting sequence that included leveling, showing Horii’s desire to bring RPG ideas into a different kind of game. As the Famicom became a phenomenon in Japan, Weekly Shōnen Jump editor Kazuhiko Torishima created Famicom Shinken, a regular feature covering games, tips, and tricks. Its material became so popular that the magazine placed it in special envelopes to prevent readers from copying the information without buying an issue. Enix, meanwhile, brought PC successes including Door Door and The Portopia Serial Murder Case to the Famicom. When dedicated game magazines began competing for that audience, Torishima reshaped Famicom Shinken around an inside look at the creation of a new game. He brought together Horii and Koichi Nakamura, who wanted to make an RPG, with Enix as publisher and Shōnen Jump as the source of exclusive development coverage. Torishima also recruited Akira Toriyama, then at the height of Dragon Ball’s success, to design the game’s characters. Horii and Nakamura combined Ultima’s overworld and exploration with Wizardry’s combat and detailed monsters, while Nakamura developed a menu system inspired by the recently released Apple Macintosh. Composer Koichi Sugiyama joined after responding to an Enix survey card for a Shogi game, bringing a new musical approach to Dragon Quest. The first game succeeded, but its sequels turned it into a cultural phenomenon: Dragon Quest II expanded the party to three characters and added broader storytelling, while word of mouth, a delay, and a cartridge shortage drove demand even higher. By Dragon Quest III, the series had become so popular that it sold one million copies on its first day, and store owners held a midweek resupply until the weekend at the urging of the National Police Agency, helping create the enduring myth that new Dragon Quest games could only be released on weekends.   TCW 114 – The Wizards of Sir-Tech: https://www.theycreateworlds.com/episodes/TCW114-the-wizards-of-sir-tech TCW 115 – The Return of the Sdraziw of Sir-Tech: https://www.theycreateworlds.com/episodes/TCW115-the-return-of-the-sdraziw-of-sir-tech THE HOKKAIDO SERIAL MURDER CASE: https://www.youtube.com/watch?v=WHWnvyK7uvc THE KARUIZAWA KIDNAPPING GUIDE: https://www.youtube.com/watch?v=Y0WGusYjg0E Harvey Birdman – Not there, there!: https://www.youtube.com/watch?v=QeRTo8MuTrw TCW 181 – The Fabric of Koei: https://www.theycreateworlds.com/episodes/TCW181-the-fabric-of-koei Karuizawa Yūkai Annai (Part 8): https://www.youtube.com/watch?v=mhKXziP2JwU Karuizawa Yūkai Annai (End): https://www.youtube.com/watch?v=6m56mYPiauQ TCW 134 – Famicom: https://www.theycreateworlds.com/episodes/TCW134-famicom TCW 135 – The Famicom Disc System: https://www.theycreateworlds.com/episodes/TCW135-the-famicom-disc-system TCW 253 – Masanobu Endō: https://www.theycreateworlds.com/episodes/TCW253-masanobu-endo Door Door (Famicom): https://www.youtube.com/watch?v=IrN0_iGy2DA The Portopia Serial Murder Case (Famicom): https://www.youtube.com/watch?v=hcQhnJxP7qU TCW 011 – The Genesis of JRPGs: https://www.theycreateworlds.com/episodes/TCW011-the-genesis-of-jrpgs Slime concept art: https://www.reddit.com/r/dragonquest/comments/1rmxfgy/do_you_know_the_original_idea_behind_the_slime/ Dragon Quest 1 Art: https://dragon-quest.org/wiki/Category:Dragon_Quest_I_official_art Wizardry 1: https://www.youtube.com/watch?v=3uUHjeWJLUs Dragon Warrior 1 (NES): https://www.youtube.com/watch?v=jmzHrNVelL0 Dragon Quest (Famicom) Cart, Manual, and gamplay: https://www.youtube.com/watch?v=f62DSsg9NXU Morita Kazuro no Shogi (PC 98): https://www.youtube.com/watch?v=2oDGHVj5ask How to play shogi: https://www.youtube.com/watch?v=0ABrpbjoHCk Wingman 2 (PC 8801): https://www.youtube.com/watch?v=T_M2ARASwps The Road to Dragon Quest: https://archive.org/details/roadtodragonquestmanga/Road%20to%20Dragon%20Quest%20%28Searchable%29/ The Road to Dragon Quest (Translated): https://mangadex.org/title/9d751491-a72d-41ae-8d95-3cb420a9d582/the-road-to-dragon-quest Dragon Warrior NES OST: https://www.youtube.com/watch?v=m_jq0eqJKHU&list=PLo-SH6FNUdp3oJua5LbxQ9VL8LOyRVTFl Dragon Quest Symphonic Suite: https://www.youtube.com/watch?v=f-ZqUPMwoSg&list=PLhdWViYE-gnm2kSB2wnAPcq7wbbMNohfr 2020 Tokyo Olympics – Opening Ceremony – Dragon Quest Overture: https://youtu.be/6u6uCbe6zh8?t=3080 Dragon Warrior II (NES): https://www.youtube.com/watch?v=d4NsE4tpb6k Dragon Warrior II Map: https://mikesrpgcenter.com/dw2/maps/world.html Dragon Warrior III (NES): https://www.youtube.com/watch?v=CNnlkwdXNow   New episodes are on the 1st and 15th of every month!   TCW Email: feedback@theycreateworlds.com  BlueSky: @theycreateworlds.bsky.social Patreon: https://www.patreon.com/theycreateworlds Alex's Video Game History Blog: http://videogamehistorian.wordpress.com Alex's book: http://bit.ly/TCWBOOK1   Intro Music: Josh Woodward – Airplane Mode –  Music – "Airplane Mode" by Josh Woodward. Free download: http://joshwoodward.com/song/AirplaneMode  Outro Music: RoleMusic – Bacterial Love: http://freemusicarchive.org/music/Rolemusic/Pop_Singles_Compilation_2014/01_rolemusic_-_bacterial_love    Copyright: Attribution: http://creativecommons.org/licenses/by/4.0/
  1. Dragon Quest Part 2
  2. Dragon Quest Part 1
  3. The 10 Best Selling Atari Games
  4. Hasbro Interactive
  5. Knights of the Old Republic

Part 2 examines the circumstances leading to Okawa’s direct control as CEO of SEGA and the financial difficulties resulting from SEGA’s internal money lending, Okawa’s dream to make CSK and SEGA more network focused and his planned contingencies for potential failure.

Dragon Quest Part 2 – They Create Worlds

TCW Podcast Episode 268 – Dragon Quest Part 2   Yuji Horii continued developing adventure games after The Portopia Serial Murder Case, but his growing interest in Ultima and Wizardry led him to incorporate role-playing elements into his work. Karuizawa Yūkai Annai combined adventure-game investigation with Ultima style overworld exploration and a climactic fighting sequence that included leveling, showing Horii’s desire to bring RPG ideas into a different kind of game. As the Famicom became a phenomenon in Japan, Weekly Shōnen Jump editor Kazuhiko Torishima created Famicom Shinken, a regular feature covering games, tips, and tricks. Its material became so popular that the magazine placed it in special envelopes to prevent readers from copying the information without buying an issue. Enix, meanwhile, brought PC successes including Door Door and The Portopia Serial Murder Case to the Famicom. When dedicated game magazines began competing for that audience, Torishima reshaped Famicom Shinken around an inside look at the creation of a new game. He brought together Horii and Koichi Nakamura, who wanted to make an RPG, with Enix as publisher and Shōnen Jump as the source of exclusive development coverage. Torishima also recruited Akira Toriyama, then at the height of Dragon Ball’s success, to design the game’s characters. Horii and Nakamura combined Ultima’s overworld and exploration with Wizardry’s combat and detailed monsters, while Nakamura developed a menu system inspired by the recently released Apple Macintosh. Composer Koichi Sugiyama joined after responding to an Enix survey card for a Shogi game, bringing a new musical approach to Dragon Quest. The first game succeeded, but its sequels turned it into a cultural phenomenon: Dragon Quest II expanded the party to three characters and added broader storytelling, while word of mouth, a delay, and a cartridge shortage drove demand even higher. By Dragon Quest III, the series had become so popular that it sold one million copies on its first day, and store owners held a midweek resupply until the weekend at the urging of the National Police Agency, helping create the enduring myth that new Dragon Quest games could only be released on weekends.   TCW 114 – The Wizards of Sir-Tech: https://www.theycreateworlds.com/episodes/TCW114-the-wizards-of-sir-tech TCW 115 – The Return of the Sdraziw of Sir-Tech: https://www.theycreateworlds.com/episodes/TCW115-the-return-of-the-sdraziw-of-sir-tech THE HOKKAIDO SERIAL MURDER CASE: https://www.youtube.com/watch?v=WHWnvyK7uvc THE KARUIZAWA KIDNAPPING GUIDE: https://www.youtube.com/watch?v=Y0WGusYjg0E Harvey Birdman – Not there, there!: https://www.youtube.com/watch?v=QeRTo8MuTrw TCW 181 – The Fabric of Koei: https://www.theycreateworlds.com/episodes/TCW181-the-fabric-of-koei Karuizawa Yūkai Annai (Part 8): https://www.youtube.com/watch?v=mhKXziP2JwU Karuizawa Yūkai Annai (End): https://www.youtube.com/watch?v=6m56mYPiauQ TCW 134 – Famicom: https://www.theycreateworlds.com/episodes/TCW134-famicom TCW 135 – The Famicom Disc System: https://www.theycreateworlds.com/episodes/TCW135-the-famicom-disc-system TCW 253 – Masanobu Endō: https://www.theycreateworlds.com/episodes/TCW253-masanobu-endo Door Door (Famicom): https://www.youtube.com/watch?v=IrN0_iGy2DA The Portopia Serial Murder Case (Famicom): https://www.youtube.com/watch?v=hcQhnJxP7qU TCW 011 – The Genesis of JRPGs: https://www.theycreateworlds.com/episodes/TCW011-the-genesis-of-jrpgs Slime concept art: https://www.reddit.com/r/dragonquest/comments/1rmxfgy/do_you_know_the_original_idea_behind_the_slime/ Dragon Quest 1 Art: https://dragon-quest.org/wiki/Category:Dragon_Quest_I_official_art Wizardry 1: https://www.youtube.com/watch?v=3uUHjeWJLUs Dragon Warrior 1 (NES): https://www.youtube.com/watch?v=jmzHrNVelL0 Dragon Quest (Famicom) Cart, Manual, and gamplay: https://www.youtube.com/watch?v=f62DSsg9NXU Morita Kazuro no Shogi (PC 98): https://www.youtube.com/watch?v=2oDGHVj5ask How to play shogi: https://www.youtube.com/watch?v=0ABrpbjoHCk Wingman 2 (PC 8801): https://www.youtube.com/watch?v=T_M2ARASwps The Road to Dragon Quest: https://archive.org/details/roadtodragonquestmanga/Road%20to%20Dragon%20Quest%20%28Searchable%29/ The Road to Dragon Quest (Translated): https://mangadex.org/title/9d751491-a72d-41ae-8d95-3cb420a9d582/the-road-to-dragon-quest Dragon Warrior NES OST: https://www.youtube.com/watch?v=m_jq0eqJKHU&list=PLo-SH6FNUdp3oJua5LbxQ9VL8LOyRVTFl Dragon Quest Symphonic Suite: https://www.youtube.com/watch?v=f-ZqUPMwoSg&list=PLhdWViYE-gnm2kSB2wnAPcq7wbbMNohfr 2020 Tokyo Olympics – Opening Ceremony – Dragon Quest Overture: https://youtu.be/6u6uCbe6zh8?t=3080 Dragon Warrior II (NES): https://www.youtube.com/watch?v=d4NsE4tpb6k Dragon Warrior II Map: https://mikesrpgcenter.com/dw2/maps/world.html Dragon Warrior III (NES): https://www.youtube.com/watch?v=CNnlkwdXNow   New episodes are on the 1st and 15th of every month!   TCW Email: feedback@theycreateworlds.com  BlueSky: @theycreateworlds.bsky.social Patreon: https://www.patreon.com/theycreateworlds Alex's Video Game History Blog: http://videogamehistorian.wordpress.com Alex's book: http://bit.ly/TCWBOOK1   Intro Music: Josh Woodward – Airplane Mode –  Music – "Airplane Mode" by Josh Woodward. Free download: http://joshwoodward.com/song/AirplaneMode  Outro Music: RoleMusic – Bacterial Love: http://freemusicarchive.org/music/Rolemusic/Pop_Singles_Compilation_2014/01_rolemusic_-_bacterial_love    Copyright: Attribution: http://creativecommons.org/licenses/by/4.0/
  1. Dragon Quest Part 2
  2. Dragon Quest Part 1
  3. The 10 Best Selling Atari Games
  4. Hasbro Interactive
  5. Knights of the Old Republic

With Okawa’s passing in 2001, CSK shifted in a financial services direction, and ended up selling their stake in SEGA to Sammy, who then used this leverage to completely buy out SEGA a year later.

Alexander Smith is a reference librarian with a background in history, research, and law who has been delving into the history of the video game industry for over ten years. He has played a crucial role in the preservation of certain documents and artifacts in early video game history and has conducted over 100 oral history interviews with key executives in the evolution of the industry. Currently, he co-hosts a bi-monthly podcast dedicated to the history of the industry (also called “They Create Worlds”) and serves as a researcher and consultant for the Video Game Pioneers Archive oral history project of the Smithsonian Institution.

Smith claims his information is derived from “rare primary sources” including little-studied trade publications, personal papers collections, and oral history interviews with designers and executives, many of whom have never told their stories before.

About the author

SaturnDave

A massive Saturn fan since Christmas '96, Dave is enthusiastic about growing the community and spreading Saturn love and knowledge to fans old and new. Co-founding the SEGA SATURN, SHIRO! podcast back in 2017 and creating the SHIRO! SHOW in 2020, he seeks to create interesting and engaging Saturn-related content for the community. Dave's interests circle around game preservation, and he is a huge fan of game magazines and developer interviews.

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