Dependence on the Gaming Machine Business and Legal Regulations
First written in FY2016. 7 of 21 entries say "Materialised", first in FY2018. Latest entry: 2026-08-07.
Sega Sammy Holdings moved to the "Worse" side of this theme in 2018.
0 other companies' latest entry also says "Mitigated".
- 2026-08-07MitigatedEarnings
「Although regulatory approvals for pachislots across the amusement machine industry as a whole remain at a low level, the Group has been steadily obtaining approvals recently.」
While regulatory approvals across the industry remain low, progress in obtaining approvals by the Group indicated a partial reduction in regulatory and compliance risks concerning the sales schedule. - FY2026-H1MaterialisedAnnual report
「In the gaming machine business, sales schedules were rearranged depending on the status of conformity approval for pachislot machines.」
The status of conformity approval for pachislot machines affected actual business operations through changes to the sales schedule. Risks related to regulations and conformity approval have been reflected in the timing of sales. - FY2025Resilient pachislot performance and sluggish pachinko performance coexist with market contraction.Annual report
「In the gaming machine industry, pachinko operations have recently remained sluggish, while pachislot machines have maintained resilient operating levels as hit titles have continued to emerge among smart pachislot machines. Over the long term, however, the gaming machine market has continued to contract, with the number of stores and the number of machines installed and sold trending downward.」
Resilient pachislot performance and sluggish pachinko performance coexist, while long-term market contraction continues. - FY2024-Q1Market conditions diverged by gaming machine category.Annual report
「Pachislot machines have maintained high operating levels, as attention-grabbing titles have emerged among 6.5-generation machines and smart pachislot machines, including Smart Pachislo Fist of the North Star from our Group. Pachinko machines have remained sluggish, with no new hit titles emerging and operating levels also remaining low.」
While high operating levels have been maintained for 6.5-generation machines and smart pachislot machines, pachinko machines have been sluggish, indicating that market conditions following the regulatory response have diverged by gaming machine category. - FY2023MitigatedAnnual report
「In the gaming machine industry, pachinko machines have continued to operate mainly around established titles, while operating levels for pachislot machines have been trending upward with the introduction of 6.5-generation machines and smart pachislot machines reflecting the revised regulations.」
Operating levels have risen following the introduction of 6.5-generation machines and smart pachislot machines after the regulatory review, indicating that market adaptation following the regulatory changes is progressing. - FY2023-Q3MitigatedAnnual report
「For pachislot machines, in addition to 6.5-generation machines introduced in response to the revised regulations, smart pachislot machines began to be introduced in November 2022, making a significant contribution to higher operating levels.」
The introduction of 6.5-generation machines and smart pachislot machines in response to the regulatory review, together with rising operating levels, is noted, indicating easing in the product rollout and market adaptation phase following the regulatory changes. - FY2023-Q2MitigatedAnnual report
「For pachislot machines, the rollout of 6.5-generation machines, a new standard reflecting the revised regulations, has been progressing sequentially since June. Since their introduction, operating levels have recovered, and a steady stream of titles supported by users has been launched.」
The introduction of 6.5-generation machines following the regulatory review and the recovery in operating levels are noted, indicating some easing in the product rollout and market adaptation phase following the regulatory changes. - FY2023-Q1MitigatedAnnual report
「In the gaming machine industry, removal of machines under the old regulations was completed at the end of January 2022, and the market transitioned to machines under the new regulations. Several popular pachinko titles appeared, maintaining resilient levels of play.」
The completion of the removal of machines under the old regulations and the transition to the market for machines under the new regulations were described, showing progress from the transition phase associated with the previous regulatory changes to the next market stage. The impact of the regulatory environment itself continues. - FY2022-Q1RestatedAnnual report
「In the gaming machine industry, replacement with machines under the new regulations is progressing ahead of the removal deadline for machines under the old regulations scheduled for the end of January next year. In the pachinko machine market, replacement is progressing steadily, with multiple popular titles for machines under the new regulations appearing. For pachislot machines, applications for type approval of new-standard Type 6.2 machines began in May this year. As the scope of gameplay is expected to broaden, the introduction of titles supported by users is anticipated.」
The company has reaffirmed that the regulatory environment is affecting the gaming machine market and product launches, including the removal deadline for machines under the old regulations, the transition to machines under the new regulations, and applications for type approval of Type 6.2 machines. - FY2021RestatedAnnual report
「In the gaming machine industry, while the number of pachinko halls is trending downward amid major changes in the regulatory and market environments, halls are becoming larger and the number of machines installed per location is increasing.」
The company continues to describe the gaming machine business as being affected by changes in the regulatory and market environments. - FY2021-Q2MaterialisedAnnual report
「In the gaming machine industry, levels of play at pachinko halls have gradually begun to recover following the lifting of the state of emergency. However, the extension of the removal deadline for machines under the old regulations is expected to delay the recovery in halls' willingness to purchase, which will continue to take time.」
The extension of the removal deadline for machines under the old regulations has manifested in a delayed recovery in halls' willingness to purchase, and the effects of legal and voluntary industry regulations continue. - FY2021-Q1MaterialisedAnnual report
「On 20 May, the National Public Safety Commission decided to extend the transitional period for machines under the old regulations by 1 year through revisions to the enforcement regulations of the Act on Control and Improvement of Amusement Business. In addition, the Pachinko and Pachislot 21st Century Association, comprising 14 industry organizations, resolved to remove in stages machines under the old regulations whose certification and approval periods were scheduled to expire.」
The extension of the transitional period and phased removal of machines under the old regulations were decided, with legal regulations and voluntary industry regulations having a tangible impact on the sales and replacement environment for gaming machines. - FY2020-Q3RestatedAnnual report
「In the gaming machine industry, the conformity rate for type approval testing at 保通協 (the Security Communications Association) remained low, while the launch of gaming machines complying with regulatory revisions gradually progressed.」
The continued low conformity rate for type approval testing demonstrates that regulatory risk remains evident in the launch timing and supply environment for machines complying with regulatory revisions. - FY2020-Q2RestatedAnnual report
「Meanwhile, the conformity rate for type approval testing of pachislot machines at 保通協 (the Security Communications Association) remained low.」
The continued low conformity rate for type approval testing related to regulatory compliance reaffirms legal and regulatory risk in the gaming machine business. - FY2020-Q1RestatedAnnual report
「Meanwhile, as the conformity rate for type approval testing of pachislot machines at 保通協 (the Security Communications Association) remained low, the supply of Type 6 titles remained sluggish.」
The continued low conformity rate for type approval testing and sluggish Type 6 title supply have been described again, reaffirming that regulatory compliance is constraining the supply of gaming machines. - FY2019WorsenedAnnual report
「As the conformity rate for type approval testing of pachislot machines at 保通協 remained low, the supply of Type 6 titles remained sluggish.」
The continued low conformity rate for type approval testing has manifested regulatory risk as an actual business constraint through sluggish Type 6 title supply. - FY2019-Q3MaterialisedAnnual report
「In the gaming machine industry, the launch of gaming machines, including Type 6 machines, in the pachislot market that comply with regulatory revisions and new voluntary industry regulations has begun, raising expectations for a fuller lineup and contributions to levels of play. In the pachinko machine market, the launch of machines complying with regulatory revisions has begun in addition to machines under the old regulations.」
Compliance with regulatory revisions and new voluntary industry regulations has actually begun to materialize in the launch of Type 6 machines and pachinko machines complying with regulatory revisions, with legal regulations affecting product launch timing and the market environment. - FY2019-Q2MaterialisedAnnual report
「In the gaming machine industry, expectations are increasing for the launch of gaming machines, including Type 6 machines, in the pachislot market that comply with regulatory revisions and new voluntary industry regulations. In the pachinko machine market, the launch of machines complying with regulatory revisions has begun in addition to machines under the old regulations.」
Compliance with regulatory revisions and new voluntary industry regulations is actually affecting the launch timing and market environment for Type 6 machines and machines complying with regulatory revisions. - FY2019-Q1MaterialisedAnnual report
「In the gaming machine industry, expectations are increasing for the launch of gaming machines in the pachislot market that comply with regulatory revisions and new voluntary industry regulations. In the pachinko machine market, installation of machines under the old regulations is progressing, and the launch of machines complying with regulatory revisions is expected from the second quarter onward.」
Regulatory revisions and new voluntary industry regulations are affecting actual product launch timing and market composition, making legal and regulatory risk evident in the business environment. - FY2018MaterialisedAnnual report
「In addition to the regulatory revisions, voluntary industry regulations were also revised by 日電協 and 日工組.」
Regulatory revisions and revisions to voluntary industry regulations were implemented in February 2018, making legal and regulatory risk in the gaming machine business a tangible business-environment factor. - FY2016First statedAnnual report
「The Group's overall business performance is highly dependent on the gaming machine business and tends to be affected by trends in that business's performance.」
The company identifies its dependence on the gaming machine business as a structural risk and explains that regulatory changes and other factors affected sales of titles other than its core titles during the fiscal year.