Recovery of the Pachinko and Pachislot Fan Base

「The fan base has shown positive signs, including indications that its decline has bottomed out and an influx of younger people, but it has not yet begun to increase on a full scale. We recognize that expanding the fan base and creating an environment that is easy to enjoy remain important challenges for sustainable market growth.」

「In our pachinko machine-related business, we actively launched new tie-in products based on popular anime titles such as “Tokyo Ghoul” and “Blue Lock.” Among these, “e Tokyo Ghoul,” launched in April, became a hit that drove utilization across the market, and we increased production several times. In addition, by launching “e Fever Fire Force 2” with “Lucky Trigger 3.0 Plus,” the industry's first such machine, and offering a strong lineup, we steadily increased unit sales.」

「Against this backdrop, our Group simultaneously launched the conventional machine (P machine) and smart pachinko version of “Fever Mobile Suit Gundam Unicorn: Rebirth—The White Unicorn and the Black Lion.” Conventional machines accounted for the majority of sales, but the smart pachinko version, featuring the new “Lucky Trigger” gameplay and “Super Big START,” has been well received for its distinctive gameplay since installation, and we have decided to increase production in the third quarter.」

「Our share of pachinko machine unit sales exceeded 30%, and we achieved the top sales share for the second consecutive year.」

「Against this backdrop, in pachinko we sold 50,000 units of “Fever Mobile Suit Gundam SEED,” introduced in August 2023. In addition, the latest Evangelion title, “Pachinko Shin Evangelion Type Rei,” introduced in December 2023, and the first smart pachinko machine in the series, “Smart Pachinko Shin Evangelion Type Kaworu,” recorded combined sales of more than 60,000 units and are expected to drive utilization.」

「Against this backdrop, in pachinko we sold 50,000 units of “Fever Mobile Suit Gundam SEED,” introduced in August, launched the new tie-in machine “Fever Fire Force,” and continued rereleasing “Neon Genesis Evangelion: Roar of the Future,” which has recorded long-running utilization since its launch in December 2021. In pachislot, both “Pachislot Fire Force” and the smart pachislot machine “Pachislot Karakuri Circus” sold more than 10,000 units, attracting fan support after installation and building a track record of strong utilization. In addition, sales of “L Evangelion: Creation for the Future,” introduced to the market in October, were recorded during the second quarter, helping us increase unit sales, mainly of smart pachislot machines.」

「During the cumulative first quarter of the fiscal year, we simultaneously launched pachinko and pachislot tie-in machines based on “Fire Force,” which enjoys tremendous support among younger audiences through its manga and anime. The pachinko machine became a hit with sales exceeding 30,000 units, while the pachislot machine sold more than 10,000 units.」

「In our pachinko machine-related business, we developed products tailored to fans' diverse preferences by combining established series with new tie-in machines. Together with the tailwind from stronger brand power supported by the operating performance of products launched in recent years, this led to a 60% year-on-year increase in pachinko machine unit sales, allowing us to return to the top sales share by a wide margin over the companies ranked below us.」

「Against this backdrop, our Group sustained the momentum through the second quarter, when stronger brand power significantly expanded the sales share of its core pachinko machines. In the third quarter, “Godzilla vs. Evangelion: G Cell Awakening,” launched during the quarter, recorded the industry's highest unit sales among pachinko machines introduced in 2022, enabling us to steadily increase unit sales.」

「As interest in our products increased on the back of stronger brand power from the operating performance of products launched in recent years, products sold during the cumulative second quarter generally attracted substantial customer interest. We worked hard to secure materials so that we could meet as much demand as possible. As a result, we increased unit sales at a pace not seen in recent years and significantly expanded our sales share.」

「During the cumulative first quarter of the fiscal year, despite difficulties in procuring components, our Group worked to keep operations on plan by taking every available measure, including advance ordering, expanding procurement channels, and strengthening the trade-in and component recycling of gaming machines. As a result, in the pachinko machine-related business we sold 5 titles in total, including 2 new titles, rereleases, reuse machines and other products, such as the new title “Fever Is It Wrong to Try to Pick Up Girls in a Dungeon?” and additional sales of “Fever Mobile Suit Gundam Unicorn,” released in August 2021 and still well received.」

「In our pachinko machine-related business, we have worked to further strengthen the brand power improved by the operating performance of products launched in recent years. In addition to core titles such as the “Mobile Suit Gundam” and “Neon Genesis Evangelion” series, which have established popularity in the market, we have advanced product development aimed at creating new popular series and will seek to recapture the No. 1 sales share.」

「During the cumulative third quarter of the fiscal year, our Group launched 7 pachinko titles, excluding reuse machines and similar products, and 2 pachislot titles.」

「During the cumulative second quarter of the fiscal year, our Group launched 4 pachinko titles, excluding reuse machines and similar products, and 1 pachislot title. “Fever Mobile Suit Gundam Unicorn,” launched in August, has maintained high utilization since installation, supported by television advertising, and became a hit that generated additional orders.」

「During the cumulative first quarter of the fiscal year, our Group launched only 2 pachinko titles, excluding reuse machines, and 1 pachislot title, in light of the impact of COVID-19 and replacement demand for new-regulation machines. Looking ahead to the full-scale replacement of new-regulation machines from the second quarter onward, however, we prepared to launch strong titles, including a television commercial for “Fever Mobile Suit Gundam Unicorn,” scheduled for release in August.」

「Against this backdrop, our Group launched 9 pachinko titles and 2 pachislot titles. Although the number of titles sold declined from ordinary years because we limited releases after assessing market trends during the COVID-19 pandemic, we stimulated demand by introducing a wide variety of products, including machines featuring “Yutime,” drum machines and dot machines without LCD displays.」

「During the cumulative third quarter of the fiscal year, our Group launched 5 pachinko titles, excluding reuse machines, and 1 pachislot title. Through the second quarter, we limited the number of titles sold while assessing parlors' appetite for new machines amid the COVID-19 pandemic. From the third quarter onward, however, we accelerated the launch of new machines to meet replacement demand. In pachinko, we actively launched products featuring “Yutime,” a new form of gameplay, thereby stimulating demand from parlors.」

「“Fever Symphogear 2,” launched in April, became a hit that generated additional orders and drove performance. From the third quarter onward, to meet replacement demand that is expected to gather pace, we announced 5 other new pachinko titles, beginning with “Fever Queen II,” launched in October, and orders have been progressing smoothly.」

「During the cumulative first quarter of the fiscal year, our Group launched 2 pachinko titles, excluding reuse machines. “Fever Symphogear 2,” launched in April, is the successor to “Fever Symphogear,” launched in August 2017 and an unusually long-running seller in recent years. Like its predecessor, it was well received by many fans immediately after launch, and we have received additional orders.」

「Our Group launched 9 pachinko titles, excluding reuse machines, and 4 pachislot titles. “Fever Mobile Suit Gundam: Char's Counterattack,” launched in September, became a hit with sales exceeding 20,000 units, while “Neon Genesis Evangelion: Shito, Shinsei,” the 14th title in the Evangelion series and launched in December, sold more than 30,000 units.」

「Against this backdrop, “Everyone's Pachinko Fest” was held in February 2019 and “Pachislot Summit 2019 in Akihabara” in September 2019, hosted by industry associations including gaming machine manufacturers' organizations. By creating opportunities for many fans to experience new-regulation machines, the industry is working together to promote their adoption and attract new and lapsed fans.」

「Following revisions to the gaming machine regulations and the easing of self-regulation, gaming machine manufacturers are actively developing products compliant with the revised regulations, including products with diverse gameplay that keep play costs low, while working to generate replacement demand for new-regulation machines.」

「Alongside old-regulation machines, our Group successively introduced new-regulation machines to the market and sold 12 pachinko titles, excluding reuse machines. In August 2018, we launched “Fever Kakumeiki Valvrave W,” the industry's first pachinko machine with selectable settings. In addition, for machines with high continuation rates in probability variation, which became eligible for installation from February 2019 following revisions to the internal rules of the Japan Amusement Machine Industrial Association (Nichiyukyo), we were among the first companies to launch “Evangelion: Ultra-Burst,” a flagship title of the Group.」

「During the cumulative third quarter of the fiscal year, our Group introduced pachinko machines with selectable settings, newly permitted under the new regulations, to the market faster than any other company in the industry. We subsequently built a track record of passing model testing for new-regulation machines, sold those machines as well as old-regulation machines that remained eligible for sale, and launched 8 new pachinko titles and 2 new pachislot titles.」

「During the cumulative second quarter of the fiscal year, our Group introduced pachinko machines with selectable settings, newly permitted under the new regulations, to the market faster than any other company in the industry.」

「New-regulation machines are expected to be dominated by types that are easier to play than before, and may also introduce elements leading to new forms of gameplay, such as pachinko machines with selectable settings. Accordingly, gaming machine manufacturers are actively submitting model applications, and machines that have passed the testing process are already beginning to appear. Our Group has decided to launch the first pachinko machine with selectable settings under the SANKYO brand, “Fever Kakumeiki Valvrave W,” in August 2018, ahead of its competitors.」

「As a Group, we will move swiftly to develop gaming machines with lower play costs and lead the market in promoting their adoption.」

「We will continue working to develop gaming machines that appeal to a broad range of people and contribute to the recovery of the fan base.」