Building a flexible structure capable of responding to an uncertain market environment

「In addition, we continue to strengthen our integrated business structure from planning and development through manufacturing by integrating our organization with the production division.」

「We also strengthened our integrated business structure from planning and development through manufacturing by further strengthening collaboration with group companies and integrating our organization with the production division.」

「Against this market backdrop, as part of efforts to transform our business structure, we implemented organizational restructuring to adapt to changes in the market environment, in addition to thoroughly reducing costs through ongoing work-style and operational reforms and a review of outsourcing expenses.」

「In the control systems business, we implemented major operational reforms and organizational restructuring to improve profitability.」

「In line with these developments, this business also actively worked on measures including reallocating resources and reviewing processes to minimize the impact on the sales schedule.」

「As our gaming-machine customers closed their offices or introduced teleworking to prevent the spread of COVID-19, we took similar measures while using email, web conferencing systems and other tools to share information with customers and carry out planning and development work remotely, thereby striving to minimize the impact on development and sales schedules.」

「In the pachinko industry, the environment surrounding the industry remains challenging as companies increasingly refrain from investing in new outlets and large-scale renovations in response to the Regulation for Partial Revision of the Enforcement Regulations of the Act on Control and Improvement of Amusement Business and the Regulation on Certification and Type Testing of Gaming Machines, the Basic Act on Measures to Prevent and Address Gambling Addiction, and the revised Health Promotion Act, which strengthens measures against secondhand smoke.」

「The industry must sequentially address issues including the Basic Plan for Promoting Measures to Prevent and Address Gambling Addiction, approved by the Cabinet on 19 April 2019, the revised Health Promotion Act, which strengthens measures against secondhand smoke, and the transition to machines subject to the new regulations as existing certifications expire.」

「Under the new regulations that took effect on 1 February 2018, gaming machines must be changed from machines subject to the old regulations to machines subject to the new regulations in stages by the end of January 2021, but the adoption of machines subject to the new regulations has remained sluggish.」

「In the Control Systems Business, the company analyzed the performance of “pachinko machines with settings” and promoted proposals for attractive gaming experiences suited to the market following the regulatory revisions.」

「Responding flexibly to changes in the business environment resulting from measures such as the Basic Act on Measures to Prevent and Address Gambling Addiction (passed on 6 July 2018) and the revised Health Promotion Act to strengthen measures against secondhand smoke (passed on 18 July 2018) has become an urgent issue.」

「It is necessary to respond flexibly to these changes in the business environment, including measures to address addiction under the Basic Bill on Measures to Prevent and Address Gambling Addiction and measures to address secondhand smoke under the bill to revise the Health Promotion Act and strengthen such measures.」

「We also worked to create new forms of play with lower gambling appeal, while focusing on acquiring and proposing new technologies and content.」

「In the control systems business, ahead of the enforcement of regulatory revisions, we promoted the planning and proposal of gaming machines that can be brought to market quickly, while working to create new forms of play with lower gambling appeal.」

「We will continue striving to contribute to market revitalization by responding flexibly to changes in the market environment and promoting measures to address pachinko addiction (problem gambling).」

「In the Control Systems Business, the company closely monitors the responses of gaming machine manufacturers to regulatory revisions and regularly reviews product development schedules and sales plans.」

「Because pachinko machines are scheduled to be collected and sold in an uncertain market environment and greater flexibility is required, the company strengthened its collection of market trend information and worked to review the procurement of individual components and production processes.」

「We aim to build a structure capable of responding flexibly even in an uncertain market environment.」