In the late 1980s, he was watching his daughter play a Famicom and realized the potential that existed within video games. At that particular time, Sony's executives had no interest in video games. Thus, when Nintendo expressed the need for a sound chip for its upcoming new 16-bit system, Kutaragi accepted the offer. Working in secret, he designed the chip, the SPC700. When they found out, Sony's executives were furious. Only with Sony CEO Norio Ohga's approval was Kutaragi able to complete the chip and keep his job.