Sony board members. Kutaragi unveiled a proprietary CD-ROM-based system he had been secretly working on which played games with immersive 3D graphics. Kutaragi was confident that his LSI chip could accommodate one million logic gates, which exceeded the capabilities of Sony's semiconductor division at the time. Despite gaining Ohga's enthusiasm, there remained opposition from a majority present at the meeting. Older Sony executives also opposed it, who saw Nintendo and Sega as "toy" manufacturers. The opposers felt the game industry was too culturally offbeat and asserted that Sony should remain a central player in the audiovisual industry, where companies were familiar with one another and could conduct "civili[s]ed" business negotiations. After Kutaragi reminded him of the humiliation he suffered from Nintendo, Ohga retained the project and became one of Kutaragi's most staunch supporters. Ohga shifted Kutaragi and nine of his team from Sony's main headquarters to Sony Music Entertainment Japan (SMEJ), a subsidiary of the main Sony group, so as to retain the project and maintain relationships with Philips for the MMCD development project. The involvement of SMEJ proved crucial to the PlayStation's early development as the process of manufacturing games on CD-ROM format was similar to that used for audio CDs, with which Sony's music division had considerable experience. While at SMEJ, Kutaragi worked with Epic/Sony Records founder Shigeo Maruyama and Akira Sato; both later became vice presidents of the division that ran the PlayStation business. Sony Computer Entertainment (SCE) was jointly established by Sony and SMEJ to handle the company's ventures into the video game industry. On 27 October 1993, Sony publicly announced that it was entering the game console market with the PlayStation. According to Maruyama, there was uncertainty over whether the console should primarily focus on 2D, sprite-based graphics or 3D polygon graphics. After Sony witnessed the success of Sega's Virtua Fighter (1993) in Japanese arcades, the direction of the PlayStation became "instantly clear" and 3D polygon graphics became the console's primary focus. SCE president Teruhisa Tokunaka expressed gratitude for Sega's timely release of Virtua Fighter as it proved "just at the right time" that making games with 3D imagery was possible. Maruyama claimed that Sony further wanted to emphasize the new console's ability to utilize redbook audio from the CD-ROM format in its games alongside high quality visuals and gameplay. Wishing to distance the project from the failed enterprise with Nintendo, Sony initially branded the