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ASCII Corporation was a Japanese technology publisher and entertainment company associated with computer magazines, the MSX home-computer standard, video games, peripherals, and programming software.

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Overview

ASCII Corporation was a Japanese publishing and technology company founded in Tokyo in 1977 by Kazuhiko Nishi, Akio Gunji, and Keiichiro Tsukamoto. The company began as the publisher of a magazine titled ASCII and took its name from the American Standard Code for Information Interchange, a character-encoding standard central to early personal computing. Its early publishing activities quickly developed into a broader technology business. A defining early relationship was Nishi's collaboration with Bill Gates. In 1978, ASCII became the basis for Microsoft's first overseas sales operation through ASCII Microsoft. The relationship gave ASCII a major role in distributing and licensing Microsoft software in Japan, particularly Microsoft BASIC. By 1980, licensing revenue from Microsoft BASIC was reported to have produced 1.2 billion yen in sales, representing a substantial share of Microsoft's business at the time. Nishi also became Microsoft's vice president for Far East sales. This partnership ended after Microsoft's 1986 public offering, when Microsoft established its own Japanese subsidiary, Microsoft Co., Ltd., later commonly known as Microsoft Kabushiki Kaisha. ASCII expanded aggressively during the first half of the 1980s. It entered semiconductors in 1984 and launched the ASCII-NET commercial online service in 1985. The company also became involved in software and peripheral development for popular Japanese game platforms, including Nintendo's Family Computer and Sega's Mega Drive. Its most consequential hardware initiative was MSX, a standardized 8-bit home-computer specification announced in 1983 by Microsoft and ASCII. MSX was intended to let multiple manufacturers build compatible systems and became particularly influential in Japan and other markets. The platform hosted important early Japanese computer games and helped establish ASCII as both a technology standard-setter and an entertainment company. The company's diversification created financial and organizational strain. ASCII became publicly listed in 1989, but accumulated debt and difficulties maintaining a coherent business focus continued through the 1990s. Its operations included publishing, games, systems, semiconductors, and other businesses. For the fiscal year ending in March 1996, reported revenue was divided among publications, game entertainment, systems and semiconductors, and other activities. In 1997, CSK Corporation made a major investment in ASCII as part of a restructuring effort. During the 1990s, ASCII continued to develop and publish games and related products. It acquired Something Good and renamed it ASCII Something Good, producing titles such as AI Shogi, AI Igo, and AI Shogi 2 for the Sega Saturn. In 1998, it entered an exclusive agreement with Konami to produce third-party PlayStation controllers for Beatmania releases. Its international game-publishing operation used names including Nexoft, ASCII Entertainment, and Asciiware. The American interactive-entertainment business was later separated into Agetec, which became an independent publisher. Ownership changed substantially in the early 2000s. CSK and Unison Capital Partners arranged a transfer of control in 2002. ASCII was subsequently made a wholly owned subsidiary, delisted, and reorganized. In November 2002, the former Astroarts subsidiary was renamed ASCII, while the original ASCII entity was renamed MediaLeaves. Kadokawa Group Holdings acquired MediaLeaves in 2004. Kadokawa later combined MediaWorks and ASCII under the name ASCII Media Works, effective April 1, 2008. The remaining MediaLeaves entity was merged into Enterbrain in January 2010, ending the separate ASCII corporate entity. The ASCII name nevertheless remained associated with technology publishing, software, game development, and the historical MSX platform.

History

ASCII Corporation was established in 1977 in Japan by Kazuhiko Nishi, Akio Gunji, and Keiichiro Tsukamoto. It originally focused on publishing a computer magazine named ASCII. The company soon expanded beyond publishing after Nishi developed a relationship with Bill Gates. In 1978, ASCII became the basis for Microsoft's first overseas sales office, ASCII Microsoft, and helped distribute and license Microsoft software in Japan. Microsoft BASIC became an important early commercial success, and Nishi took a senior role in Microsoft's Far East sales organization. ASCII pursued broad diversification in the 1980s. It entered semiconductors in 1984 and launched ASCII-NET, a commercial online service, in 1985. It also developed software and peripherals for Japanese home consoles. The company's most influential technology project was MSX, announced in 1983 with Microsoft. MSX provided a common specification for 8-bit home computers made by different manufacturers. It became particularly successful in Japan and several other countries and served as an important platform for early Japanese computer games. The Microsoft relationship ended in 1986 after Microsoft established its own Japanese subsidiary. ASCII was required to adjust after its rapid expansion, but continued operating across magazines, computer publishing, games, hardware, semiconductors, and software. It became publicly listed in 1989. By the mid-1990s, publications remained its largest business area, while game entertainment and systems-related activities also contributed materially to its operations. Financial pressure from accumulated debt led to a major investment by CSK Corporation in 1997. ASCII's entertainment business included the Derby Stallion series, programming software such as RPG Maker, and various console products. Through the acquired company Something Good, renamed ASCII Something Good, it developed Sega Saturn titles including AI Shogi, AI Igo, and AI Shogi 2. In 1998, ASCII also secured an exclusive arrangement with Konami to make third-party PlayStation controllers for Beatmania. Its international publishing operations used the names Nexoft, ASCII Entertainment, and Asciiware. The American interactive-entertainment operation was separated into Agetec, which later became independent. The corporate structure changed repeatedly after 2001. CSK and Unison Capital Partners arranged a transfer of control in 2002, and ASCII became wholly owned and was delisted. The corporate entity was renamed MediaLeaves, while the former Astroarts subsidiary was renamed ASCII and inherited the publishing business. Kadokawa Group Holdings acquired MediaLeaves in 2004. In 2008, Kadokawa merged MediaWorks and ASCII to create ASCII Media Works. The remaining MediaLeaves company was merged into Enterbrain in 2010, ending ASCII as a separate corporation. Its historical contributions remain associated with Japanese computer publishing, MSX, video games, console peripherals, and software-development tools.

  • 2010

    The remaining ASCII entity is dissolved

    [1]

    MediaLeaves is merged into Enterbrain, ending ASCII as a separate corporate entity.

  • 2008

    ASCII Media Works is formed

    [1]

    Kadokawa merges ASCII and MediaWorks under the ASCII Media Works name.

  • 2004

    MediaLeaves is acquired by Kadokawa

    [1]

    Kadokawa Group Holdings acquires the corporate successor to ASCII.

  • 2002

    ASCII is transferred to Unison Capital Partners and delisted

    [1]

    The company becomes wholly owned, is delisted, and undergoes a corporate reorganization.

  • 1998

    Agetec is spun off

    [1]

    ASCII separates its American interactive-entertainment operation into Agetec.

  • 1997

    CSK invests in ASCII

    [1]

    CSK makes a major investment as ASCII addresses accumulated debt and organizational difficulties.

  • 1989

    ASCII becomes publicly listed

    [1]

    ASCII enters the public markets while maintaining a diversified technology and entertainment portfolio.

  • 1986

    Microsoft establishes its own Japanese subsidiary

    [1]

    Microsoft ends its earlier partnership with ASCII in Japan after creating its own local subsidiary.

  • 1985

    ASCII-NET launches

    [1]

    ASCII enters commercial online services under the ASCII-NET brand.

  • 1984

    ASCII enters semiconductors

    [1]

    The company expands its technology activities into the semiconductor business.

Products and positioning

A Japanese technology-media and interactive-entertainment company that combined specialist computing publications with software, hardware standards, game publishing, peripherals, and programming tools.

  • Home-computer standard · 1983

    MSX

    MSX was an 8-bit home-computer specification developed and promoted by Microsoft and ASCII. Announced in 1983, it sought to create compatibility among systems made by different manufacturers. MSX computers became especially prominent in Japan and several other countries and provided an important early platform for Japanese computer games. Companies including Konami and Hudson Soft developed software for the standard, and the platform is associated with the first version of Konami's Metal Gear.

  • Video-game series

    Derby Stallion

    Derby Stallion was a horse-racing and racehorse-management video-game series associated with ASCII. It formed part of the company's Japanese entertainment portfolio and reflected ASCII's broader move from computer publishing and technology into software development and game publishing.

  • Game-development software

    RPG Maker

    RPG Maker is a line of software-development tools designed to let users create role-playing games. The product line was among ASCII's best-known programming and creative-software offerings and helped extend the company's computing expertise into accessible game creation.

  • Computer magazine

    Monthly ASCII

    Monthly ASCII was the company's principal computer and technology publication. It represented the original publishing foundation of ASCII and provided coverage aimed at Japan's personal-computer and technology audience.

  • Strategy video game · 1995

    AI Shogi

    AI Shogi was a computer shogi title developed through ASCII Something Good. The company produced a Sega Saturn version in the 1990s, demonstrating ASCII's involvement in Japanese strategy-game software and console publishing.

  • Board-game software · 1997

    AI Igo

    AI Igo was a computer Go title developed through ASCII Something Good. Its Sega Saturn release formed part of ASCII's series of artificial-intelligence-themed board-game products.

  • Video-game peripheral · 1998

    Beatmania controllers

    Under an exclusive arrangement with Konami, ASCII produced third-party PlayStation controllers for Beatmania releases. The ASC-0515BM controllers were designed for the arcade-style rhythm game and were sometimes bundled with the associated software.

Brand decisions

  • 2010

    Merge MediaLeaves into EnterbrainM&A

    Background

    MediaLeaves represented the final corporate successor carrying the original ASCII entity's name lineage.

    Action taken

    MediaLeaves was merged into Enterbrain.

    Aftermath

    The last separate ASCII corporate entity was dissolved.

  • 2008

    Merge ASCII with MediaWorksM&A

    Background

    Kadokawa Group Holdings controlled both ASCII and MediaWorks as related publishing businesses.

    Action taken

    Kadokawa combined the subsidiaries under the ASCII Media Works name, effective April 1, 2008.

    Aftermath

    ASCII ceased to operate as a separate company, while its publishing and media activities continued within the Kadokawa group.

  • 2002

    Accept transfer of control to Unison Capital PartnersM&A

    Background

    CSK was refocusing on business-to-business operations while ASCII faced accumulated debt and the need to reorganize its businesses.

    Action taken

    Control was transferred to Unison Capital Partners; ASCII became wholly owned, its debt to CSK was forgiven, and the company was delisted.

    Aftermath

    ASCII's operations were reorganized, with publishing and entertainment activities separated from the narrower PC and IT-publishing focus of the restructured company.

  • 1998

    Produce third-party Beatmania controllersProduct launch

    Background

    Konami's arcade rhythm-game franchise required specialized controls for home-console versions.

    Action taken

    ASCII signed an exclusive agreement with Konami to produce PlayStation controllers for Beatmania releases.

    Aftermath

    ASCII added a prominent rhythm-game peripheral to its console hardware portfolio, alongside Konami's more premium official controller.

  • 1986

    Separate from Microsoft's Japanese sales operationStrategy

    Background

    Microsoft created its own Japanese subsidiary after its public stock offering.

    Action taken

    Microsoft ended the earlier ASCII partnership and assumed direct responsibility for its Japanese corporate operation.

    Aftermath

    ASCII continued as an independent, increasingly diversified publisher and technology company.

  • 1983

    Launch the MSX standardProduct launch

    Background

    The home-computer market contained many incompatible systems, limiting software portability and manufacturer scale.

    Action taken

    ASCII worked with Microsoft to announce a shared 8-bit home-computer specification that manufacturers could implement.

    Aftermath

    MSX became an important Japanese and international home-computer platform and supported a substantial library of early computer games.

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