Yellow Magic Orchestra (YMO) is a Japanese electronic music band formed in Tokyo in 1978 by Haruomi Hosono (bass, keyboards, vocals), Yukihiro Takahashi (drums, lead vocals) and Ryuichi Sakamoto (keyboards, vocals). The group is considered influential and innovative in the field of popular electronic music. They were pioneers in their use of synthesizers, samplers, sequencers, drum machines, computers, and digital recording technology in popular music, and effectively anticipated the "electropop boom" of the 1980s while exploring subversive sociopolitical themes throughout their career. YMO was initially conceived by Hosono as a one-off exploration of computerized exotica and parody of Western conceptions of the orient.

Prior to the group's formation, Sakamoto had been experimenting with electronic music equipment at the Tokyo National University of Fine Arts and Music, which he entered in 1970, including synthesizers such as the Buchla, Moog, and ARP. Hosono, following the break-up of his band Happy End in 1972, became involved in the recording of several early electronic rock records, including Yosui Inoue's folk pop rock album Kori no Sekai (1973) and Osamu Kitajima's progressive psychedelic rock album Benzaiten (1974), both of which utilized synthesizers, electric guitars, electric bass, and in the latter, electronic drums and rhythm machines. Also around the same time, the band's future "fourth member" Hideki Matsutake was the assistant for the internationally successful electronic musician Isao Tomita. Much of the methods and techniques developed by both Tomita and Matsutake during the early 1970s would later be employed by Yellow Magic Orchestra.  Sakamoto first worked with Hosono as a member of his live band in 1976, while Yukihiro Takahashi recruited Sakamoto to produce his debut solo recording in 1977 following the split of the Sadistic Mika Band. Hosono invited both to work on his exotica-flavoured album Paraiso, which included electronic songs produced using various electronic equipment. The band was named "Harry Hosono and the Yellow Magic Band" as a satire of Japan's obsession with black magic at the time, and in late 1977 they began recording Paraiso, which was released in 1978. The three worked together again for the 1978 album Pacific, which included an early version of the song "Cosmic Surfin". Hosono and Sakamoto also worked together alongside Hideki Matsutake in early 1978 for Hosono's experimental "electro-exotica" fusion album Cochin Moon, which fused electronic music with Indian music, including an early "synth raga" song "Hum Ghar Sajan". The same year, Sakamoto released his own solo album, The Thousand Knives of Ryuichi Sakamoto, experimenting with a similar fusion between electronic music and traditional Japanese music in early 1978. Hosono also contributed to one of Sakamoto's songs, "Thousand Knives", in the album. Thousand Knives was also notable for its early use of the microprocessor-based Roland MC-8 Microcomposer music sequencer, with Matsutake as its music programmer for the album.  While Sakamoto was working on Thousand Knives, Hosono began formulating the idea of an instrumental disco band which could have the potential to reach success in non-Japanese-language territories, and invited Tasuo Hayashi of Tin Pan Alley and Hiroshi Sato of Uncle Buck as participants, but they declined. Hosono, Sakamoto and Takahashi eventually collaborated again to form the Yellow Magic Orchestra and they began recording their self-titled album at a Shibaura studio in July 1978. The band was initially conceived as a one-off studio project by Hosono, the other two members being recruited session musicians--the idea was to produce an album fusing orientalist exotica with modern electronics, as a subversion of Orientalism and exoticization.

Answer the following question by taking a quote from the article: when did they first form?
July 1978. The band was initially conceived as a one-off studio project by Hosono,