Declining fan population and shrinking demand for gaming machines

「In the pachinko market, the introduction of machines featuring the new game format "Lucky Trigger 3.0 Plus" has progressed since July 2025, but operating levels across the pachinko market have not improved. Parlors remain cautious about introducing new machines, and market conditions remain difficult.」

「In the pachinko market, the arrival of machines equipped with the new "Lucky Trigger 3.0 Plus" gameplay was expected to revitalize the market, but utilization has not improved and difficult market conditions continue. In addition, as pachinko utilization at parlors has yet to recover, parlors have become even more cautious when selecting models and determining the number of units to install when introducing new machines.」

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「In the pachinko market, the adoption of machines equipped with the new form of gameplay “Lucky Trigger 3.0 Plus” has driven the spread of smart pachinko machines, while machines showing strong utilization have begun to emerge. Bright signs of market revitalization are beginning to appear.」

「Gameplay has been expanded for smart pachinko machines, or "smapachi," and several products featuring new gameplay have been launched since July 2024, attracting attention. As in the pachislot market, which was revitalized by the arrival of smart pachislot machines, the pachinko market is expected to be revitalized by the emergence and adoption of hit smapachi titles.」

「Smart pachislot machines have continued to produce hit titles and are driving utilization across the pachislot market. By contrast, only a limited number of smart pachinko machines have become hits, and momentum for machine replacement has yet to build. Smart pachislot machines therefore remain ahead of smart pachinko machines in both unit sales and installation ratios.」

「In the pachinko and pachislot industry, the pachislot market has maintained strong operating levels as hit smart pachislot machines have continued to emerge, and conditions have remained favorable as smart pachislot machines account for an increasing share of titles sold and installed machines. In the pachinko market, meanwhile, several smart pachinko machines have become hits, but the shift toward smart machines has not yet gathered full momentum, and no new titles are available to drive operating levels, whether conventional or smart. As a result, conditions remain somewhat sluggish compared with the pachislot market.」

「In the pachinko and pachislot industry, adoption of smart gaming machines has progressed. Smart pachislot has entered a phase of widespread adoption, as many new titles have been launched and hit models have emerged, making a significant contribution to improved utilization. For smart pachinko, however, differentiating its game mechanics from current machines remains a challenge. Although some models have succeeded through trial and error, full-scale adoption is expected to take more time.」

「In the pachinko and pachislot industry, the pachislot market has shown a marked recovery in utilization since the arrival of Type 6.5 machines and smart pachislot machines. In contrast, no new titles have emerged to drive utilization in the pachinko market, where utilization remains sluggish.」

「In the pachinko and pachislot industry, total sales of pachinko and pachislot machines fell below the previous fiscal year, affected by the decline in replacement demand following the removal of machines compliant with the old regulations by the end of January 2022 and shortages of semiconductors and other electronic components. However, pachinko machines continued to show stable utilization and purchase demand, while the pachislot market is gaining momentum following the arrival of Type 6.5 machines, which offer expanded gameplay, and smart pachislot machines that do not require tokens.」

「In the pachinko and pachislot industry, the spread of Type 6.5 pachislot machines, which began appearing in June 2022, has progressed, and operating levels in pachislot, which had remained sluggish, have improved. Smart pachislot machines, introduced sequentially from November, have also achieved operating levels that meet parlor expectations, and improvement in pachislot market conditions is steadily progressing. In pachinko, meanwhile, demand has shifted toward pachislot in the short term against the backdrop of the improving pachislot market, but stable operating levels and demand for new-machine purchases have continued.」

「Following the transition to machines compliant with the new regulations, the pachislot market, which had remained sluggish, saw 6.5 machines with expanded game mechanics begin to gain widespread adoption. Their utilization has met parlors' expectations and is making a significant contribution to the recovery of the pachislot market. In addition, the arrival of smart pachislot in November is expected to drive further improvement in market conditions.」

「The prolonged shortage of semiconductors and other electronic components is having a significant impact on gaming machine manufacturers' sales schedules, and some models cannot be supplied in sufficient quantities to meet parlors' requested purchase volumes. As a result, total pachinko machine sales declined from the same period a year earlier. Meanwhile, difficult conditions continue for pachislot machines, compounded by customers holding back on purchases ahead of the arrival of Type 6.5 machines, which began to achieve full-scale market penetration from July 2022.」

「The pachinko and pachislot industry continues to see declines in the number of parlors, installed gaming machines and players, a situation exacerbated by the prolonged COVID-19 pandemic.」

「Although the industry is facing a difficult operating environment, with the prolonged spread of the infection delaying the recovery of parlor operating levels and shortages of components, including semiconductors, making the supply of gaming machines unstable, unit sales of both pachinko and pachislot machines have remained above the same period a year earlier, which was heavily affected by the infection, supported by replacement demand arising from the removal deadline for older-regulation machines at the end of January 2022.」

「Replacement with machines compliant with the new regulations is progressing ahead of the removal deadline for machines compliant with the old regulations at the end of January 2022. Although the global semiconductor shortage has delayed sales of some new models and limited sales volumes, pachinko replacements are proceeding generally smoothly as manufacturers expand their available titles and fans become established users of machines compliant with the new regulations.」

「With approximately 6 months remaining until the deadline for installing machines compliant with the old regulations following the amendment to the gaming machine regulations, pachinko has seen gameplay expand and several hit models emerge among machines compliant with the new regulations. Unit sales are returning to normal compared with the same period a year earlier, which was heavily affected by COVID-19. In pachislot, however, difficult conditions continue because type-testing pass rates remain low and the supply of leading new models is insufficient.」

「Although there are concerns about a decline in demand for new machines following the removal of machines compliant with the old regulations, we believe that the next-generation gaming machines being promoted jointly by the industry, namely "managed gaming machines" and "medal-less gaming machines," will provide an opportunity to stimulate new demand after the replacement with machines compliant with the new regulations is complete.」

「In pachinko, manufacturers' product lineups have become more comprehensive, and total market unit sales in October-December 2020 recovered to above the previous year's level. In pachislot, where the sales market has stagnated because few machines compliant with the new regulations have passed testing, the number of compliant models is gradually increasing as manufacturers build their development expertise. A recovery in demand is expected in line with replacement demand going forward.」

「Operating conditions have been recovering from their low point in May, when the state of emergency was lifted, and parlours' appetite for purchasing new machines has accordingly shown signs of improvement. Against this backdrop, in pachinko, the change to the "Technical Standards Interpretation Guidelines" has accelerated the introduction of so-called machines compliant with the new interpretation standards, offering gameplay not previously available. Expectations among fans and parlours for these machines are rising, and planned replacement of machines compliant with the old regulations is proceeding in line with removal deadlines set by industry organisations. We therefore expect monthly unit sales to recover to around the previous year's levels toward year-end. In pachislot, however, type-testing pass rates have remained low and the supply of new models has been insufficient.」

「Concerns over infectious diseases have not been fully dispelled, and we believe it will take some time for parlours' appetite for purchasing new machines to recover fully.」

「Under the amended gaming machine regulations that took effect in February 2018, all machines compliant with the old regulations must be removed by the end of January 2021 as part of the pachinko and pachislot industry's transition. In pachinko, however, parlours have not developed sufficient momentum to actively replace machines compliant with the old regulations before their certification and approval periods expire. In pachislot, meanwhile, replacements were made, mainly of popular machines compliant with the old regulations that reached their removal deadlines toward the end of 2019. Nevertheless, the introduction of machines compliant with the new regulations and their installation share at parlours have remained sluggish for both pachinko and pachislot.」

「Although major titles and hit products for new-regulation machines had begun to emerge, the continued low pass rate for type-approval testing meant that they had not yet raised parlors' willingness to purchase, and introduction of new-regulation machines remained sluggish in both pachinko and pachislot.」

「In the cumulative consolidated first quarter, sales of older-regulation machines by each manufacturer had run their course and sales of new-regulation machines became the main focus. However, particularly for highly popular older-regulation machines, parlors remained cautious about replacing them before the validity periods of their approvals and certifications expired, and introduction of new-regulation machines remained sluggish in both pachinko and pachislot.」

「Because there is a grace period for the transition to machines compliant with the new regulations until the end of January 2021 at the latest, parlours have not actively purchased them, and awareness and adoption of the new machines have remained sluggish.」

「Pachinko parlors were seen continuing to use older-regulation machines whose installation periods had not expired, while monitoring the future potential of new-regulation machines to attract customers, and replacement of new machines remained sluggish.」

「Pachinko parlors were seen continuing to use older-regulation machines whose installation periods had not expired, while monitoring the future potential of new-regulation machines to attract customers, and replacement of new machines remained sluggish.」

「However, replacements of new machines remained sluggish because the permitted installation period for older-regulation machines had not yet expired.」

「Machines currently installed at pachinko parlours that comply with the old regulations may continue to be installed for up to 3 years under transitional measures, and machines already compliant with the old regulations may continue to be sold for the time being. However, because new machines that pass type testing after the amended gaming machine regulations take effect will have lower total payouts than before, it is difficult to predict how fans will respond. Pachinko parlours, our group customers, therefore tended to postpone decisions on purchasing and replacing new machines.」

「Machines compliant with the old regulations will gradually be replaced by machines compliant with the new regulations during the 3-year transitional period. However, market introduction of machines compliant with the new regulations has not yet begun, and because it is difficult to predict how fans will respond to the new machines to be introduced, our customers, the pachinko parlours, have postponed decisions on reviewing the mix of existing machines installed. As a result, sales of pachinko and pachislot machines remained sluggish.」

「As a result, our customers, the pachinko parlours, will gradually replace machines compliant with the regulations before the amendment with machines compliant with the amended regulations during the 3-year transitional period. However, because it is difficult at this stage to predict how fans will respond to machines compliant with the amended regulations, they have postponed decisions on reviewing the mix of existing machines installed.」

「As a result, our pachinko parlor customers need to gradually replace machines complying with the current regulations with machines complying with the revised regulations during the 3-year transitional period, but they are taking a cautious approach to machine purchases because the outlook is uncertain.」

「In pachislot, although efforts were made, following a decision by a pachinko parlour organisation, to gradually reduce the installation ratio of "reel-based gaming machines not covered by the new standards," the popularity of machines compliant with the old standards remained strong and sales of machines compliant with the new standards remained sluggish.」

「However, the sales market remained sluggish because many loyal fans of both pachinko and pachislot continued to support major titles for machines meeting the old standards, while the rollout of sequels for machines meeting the new standards had yet to gather momentum.」

「Meanwhile, amid uncertainty over the outlook caused by the large-scale collection and removal of pachinko machines following the above-mentioned "statement," pachinko parlours have shown little enthusiasm for investment and have continued to take a cautious approach to purchasing new machines.」

「The pachinko and pachislot industry as a whole is working to halt the decline in its fan population, while gaming machine manufacturers are developing a diverse range of easy-to-play machines under voluntary restrictions intended to prevent excessive play.」