Market Contraction Driven by a Declining Player Base, Deteriorating Pachinko Parlor Operations and Self-Regulation
First written in FY2016. 12 of 36 entries say "Materialised", first in FY2017-Q1. Latest entry: 2026-08-07.
Sega Sammy Holdings moved to the "Worse" side of this theme in 2016, the same year as the typical company in this theme.
The whole theme swung hardest in 2026: 5 of 9 companies on the "Worse" side.
2 other companies' latest entry also says "Other".
- FY2026-H1Sales schedule changes coinciding with strong title performanceAnnual report
「In the gaming machine business, sales schedules were rearranged due to the status of pachislot model approvals. However, we sold Smart Pachislot Tokyo Revengers for pachislot and e Tokyo Revengers for pachinko, and both titles achieved sales above expectations.」
While the sales schedule was changed due to the status of pachislot model approvals, Smart Pachislot Tokyo Revengers and e Tokyo Revengers both exceeded expectations. Market and regulatory constraints coexisted with strong performance from individual titles. - FY2025Diverging performance by machine type amid market contractionAnnual report
「Over the longer term, the gaming machine market has continued to contract, as shown by declining numbers of venues and installed and sold machines.」
While smart pachislot play has remained firm, the market has continued to contract over the longer term, with the number of venues, installed machines and sold machines declining. - FY2025-H1MitigatedAnnual report
「In terms of levels of play, too, levels have remained above the market average since its introduction in August 2024. A single title has accounted for approximately 5% of total levels of play for 4-yen pachinko, demonstrating support from a broad range of users.」
Against the risk of low pachinko play levels and market contraction, a new smart pachinko title achieved play levels above the market average and secured an approximately 5% share of play, making the recovery evident in actual results. - FY2024Expectations for a pachinko recovery driven by Lucky TriggerAnnual report
「Play levels for pachinko machines have remained sluggish. However, machines equipped with Lucky Trigger, introduced beginning in March 2024, got off to a strong start in terms of play, among other factors, creating expectations for a recovery in play levels as future hit titles emerge.」
While high pachislot play levels coexisted with sluggish pachinko performance, the strong rollout of machines equipped with Lucky Trigger gave concrete form to expectations for a pachinko recovery. - FY2024-Q3Pachinko hit titles emerge, raising hopes for a recoveryAnnual report
「Levels of play for pachinko machines have remained sluggish, but hit titles have recently appeared. In addition, the introduction of smart pachinko machines began in April 2023, and the trend toward regulatory reviews has continued. These developments have raised expectations for a recovery in levels of play driven by the appearance of future hit titles.」
While pachislot machines continued to record high play levels, pachinko machines maintained sluggish play levels. However, the emergence of hit titles and the introduction of smart pachinko generated new expectations for a recovery, with market conditions diverging while signs of improvement emerged. - FY2024-Q1Strong pachislot performance alongside sluggish pachinko performanceAnnual report
「Favourable market conditions have continued in the gaming machine industry, led by pachislot. Pachislot has maintained high play levels as attention-grabbing machines have appeared among 6.5-generation and smart pachislot machines, including Smart Pachislot Fist of the North Star from our group. No new pachinko hit titles have appeared, and play levels have remained sluggish.」
While favourable market conditions and high play levels continued for pachislot, pachinko play levels were sluggish, with both improvement and remaining concerns regarding the risk of market contraction and sluggish sales noted. - FY2023MitigatedAnnual report
「For pachislot machines, play levels are trending higher following the introduction of 6.5-generation and smart pachislot machines reflecting the regulatory review.」
Play levels rose after the introduction of machines compliant with the regulatory review, indicating some easing in the risk of market contraction and sluggish sales. - FY2023-Q3MitigatedAnnual report
「In the pachislot market, smart pachislot machines began to be introduced in November 2022 in addition to Type 6.5 machines complying with the regulatory review, making a significant contribution to higher levels of play. Smart pachinko machines are scheduled for introduction from April 2023, raising expectations for further demand growth.」
Play levels rose following the introduction of 6.5-generation and smart pachislot machines, indicating some easing in the risk of market contraction and sluggish sales associated with the transition from machines under the former regulations. - FY2023-Q2MitigatedAnnual report
「The rollout of 6.5-generation machines, the new standard reflecting the regulatory review, has progressed gradually since June, and play levels have recovered following their introduction, with a succession of titles supported by users. Smart pachislot, which will further broaden the range of gameplay, is scheduled to be introduced from November 2022, followed by smart pachinko around spring 2023, creating expectations for further demand growth.」
Play levels recovered after the introduction of 6.5-generation machines and supported titles appeared, indicating some easing in the risk of market contraction and sluggish sales associated with the regulatory changes. - FY2023-Q1MitigatedAnnual report
「In the gaming machine industry, the removal of machines subject to the former regulations was completed at the end of January 2022, and the market transitioned to machines under the new regulations. Several popular pachinko titles were released and continued to attract strong play. In pachislot, some customers held back on purchases ahead of the introduction of 6.5-generation machines, the new standard reflecting the regulatory review, but since their introduction in June, titles supported by users have begun to appear, leading to expectations for further demand growth.」
The removal of machines subject to the former regulations was completed, the transition to machines under the new regulations progressed, popular titles maintained strong play, and supported titles appeared after the introduction of 6.5-generation machines, indicating some easing in the risk of market contraction and sluggish sales. At the same time, customers holding back on purchases before the introduction of 6.5-generation machines was also noted. - FY2022WorsenedAnnual report
「The number of venues and installed machines in the market declined, affected by the removal of machines subject to the former regulations and other factors. As of the end of March 2022, the number of venues had fallen to approximately 7,900, down 7.9% year on year, while installed machines had fallen to approximately 3.66 million, down 6.1%.」
While the transition to machines under the new regulations was completed, the number of venues and installed machines declined in numerical terms, and the risk of market contraction worsened in the full-year results. - FY2022-Q3Pachinko machine replacement advances alongside sluggish pachislot salesAnnual report
「In the gaming machine industry, replacement of pachinko machines is progressing steadily ahead of the removal deadline for machines under the old regulations at the end of January this year, helped by the appearance of multiple popular titles for machines under the new regulations. Pachislot machines have remained relatively sluggish, but as the scope of gameplay is expected to broaden further, the introduction of titles supported by users is anticipated.」
While the transition to machines under the new regulations progressed smoothly, pachislot was considered relatively sluggish. Improvement and remaining concerns regarding the risk of market contraction and sluggish sales were both noted. - FY2022-Q2MitigatedAnnual 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, the launch of new-standard Type 6.2 machines began in September this year. As the scope of gameplay is expected to broaden further, the introduction of titles supported by users is anticipated.」
The transition from machines under the former regulations to machines under the new regulations progressed, and the rollout of 6.2-generation machines also began, indicating some signs of easing in the risk of market contraction and sluggish sales associated with the regulatory changes. - FY2022-Q1MitigatedAnnual 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 transition from machines under the former regulations to machines under the new regulations progressed smoothly, and expectations were indicated for popular new-regulation titles and 6.2-generation machines. The risk of market contraction and sluggish sales was therefore described as showing some signs of easing. - FY2021WorsenedAnnual report
「In pachislot machines, we sold titles including Pachislot Fist of the North Star: Shukumei, resulting in sales of 35 thousand units (previous fiscal year: 123 thousand units). In pachinko machines, we sold titles including P Shin Fist of the North Star: Musou Chapter 3, resulting in sales of 69 thousand units (previous fiscal year: 104 thousand units).」
While the rollout of machines under the new regulations and new standards began, pachislot and pachinko unit sales fell substantially from the previous fiscal year, and market contraction and weaker purchasing appetite were reflected in the full-year results. - FY2021-Q3WorsenedAnnual report
「In pachislot machines, we sold titles including Pachislot The Seven Deadly Sins, resulting in sales of 12,487 units (same period of the previous year: 105,860 units). In pachinko machines, we sold titles including P Shin Fist of the North Star: Musou Chapter 3, resulting in sales of 59,359 units (same period of the previous year: 75,094 units).」
Pachislot unit sales fell from 105,860 units in the same period of the previous year to 12,487, while pachinko unit sales fell from 75,094 to 59,359, quantifying the impact of market contraction and weak purchasing appetite among halls. - FY2021-Q2WorsenedAnnual 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.」
While hall operations were recovering, the extension of the deadline for removing machines subject to the former regulations delayed the recovery in purchasing appetite, and the risk of market contraction and sluggish sales continued. - FY2021-Q1WorsenedAnnual report
「Although we recorded sales and other revenue from Sammy Networks Co., Ltd., which provides content for PCs and smartphones, neither pachislot nor pachinko machines had any new-title sales. Sales therefore totaled 485 pachislot units (same period of the previous year: 17,930 units) and 177 pachinko units (same period of the previous year: 16,212 units).」
Temporary closures and the suspension of new-title sales reduced pachislot sales from 17,930 units in the same period of the previous year to 485 units and pachinko sales from 16,212 units to 177 units, making the market contraction and sluggish sales even more evident in the figures. - FY2020-Q3MaterialisedAnnual report
「In the gaming machine industry, the conformity rate for model testing by the General Foundation of the Security Communications Association (Ho-tsu-kyo) remained low, while the rollout of machines compliant with the regulatory revisions gradually progressed. In pachinko machines, we sold titles including P Gao Gao King 3, resulting in sales of 75 thousand units (same period of the previous year: 136 thousand units).」
While the rollout of machines compliant with the regulatory revisions progressed, pachinko unit sales fell from 136 thousand in the same period of the previous year to 75 thousand, and market contraction and sluggish sales continued to be reflected in results. - FY2020-Q2MaterialisedAnnual report
「In pachislot machines, we sold titles including Pachislot The Flower We Saw That Day, resulting in sales of 28 thousand units (same period of the previous year: 12 thousand units). In pachinko machines, we sold major titles including P Fist of the North Star 8: Haoh, resulting in sales of 66 thousand units (same period of the previous year: 117 thousand units).」
While pachislot sales increased year on year, pachinko sales fell from 117 thousand units to 66 thousand. Market conditions under the regulatory revisions and sluggish sales continued to be reflected in results. - FY2020-Q1MaterialisedAnnual report
「In pachislot machines, we continued selling titles released in the previous fiscal year, resulting in sales of 17 thousand units (same period of the previous year: 9 thousand units). In pachinko machines, although we sold machines featuring high continuation rates, sales fell to 16 thousand units (same period of the previous year: 40 thousand units).」
Pachislot sales increased year on year, while pachinko sales fell from 40 thousand units to 16 thousand, and market contraction and sluggish sales continued under the regulatory changes. - FY2019WorsenedAnnual report
「In pachislot machines, we began introducing 5.9-generation machines, 6th-generation machines and cabinets manufactured by 株式会社ジーグ, resulting in sales of 67 thousand units (previous fiscal year: 85 thousand units).」
While the rollout of 6th-generation machines began, pachislot unit sales fell from 85 thousand units in the previous fiscal year to 67 thousand, and the effects of market contraction and regulatory compliance continued. - FY2019-Q3MaterialisedAnnual report
「In pachislot machines, we sold 31 thousand units, including Pachislot Chain Chronicle, our first 6th-generation machine (sales in the same period of the previous year: 75 thousand units).」
While the rollout of 6th-generation machines began, pachislot unit sales fell from 75 thousand in the same period of the previous year to 31 thousand, and market contraction and sluggish sales continued to be reflected in results. - FY2019-Q2MaterialisedAnnual report
「Pachislot machine sales declined from the same period of the previous year, when a major title was sold, and totaled 12 thousand units, compared with 75 thousand units in the same period of the previous year. Pachinko machine sales totaled 117 thousand units, including titles such as “Pachinko CR Shin Hokuto Musō Chapter 2,” compared with 119 thousand units in the same period of the previous year.」
Pachislot unit sales fell from 75 thousand in the same period of the previous year to 12 thousand, while pachinko sales declined from 119 thousand to 117 thousand. As new machines compliant with the regulatory revisions were introduced, market contraction and sluggish sales continued to be reflected in results. - FY2019-Q1MaterialisedAnnual report
「Pachislot machine sales included titles such as “Pachislot Fist of the North Star: Shura no Kuni Hen Rasetsu ver.,” a specification-change title, and totaled 9 thousand units, compared with 25 thousand units in the same period of the previous year. Pachinko machine sales totaled 40 thousand units, as sales of “Pachinko CR Nisemonogatari,” which recreates the world of the anime, and “Pachinko CR Fist of the North Star 7 Hyakuretsu Ranbu,” the first title in the Fist of the North Star series to feature a small-hit RUSH mode, remained strong. This compared with 97 thousand units in the same period of the previous year.」
Amid market conditions surrounding the timing of the launch of machines対応 to regulatory revisions, pachislot sales fell from 25 thousand units in the same period of the previous year to 9 thousand units, while pachinko sales fell from 97 thousand units to 40 thousand units, demonstrating the market contraction and sluggish sales in actual results. - FY2018WorsenedAnnual report
「In the gaming machine business, we substantially revised the sales schedule for the second half following regulatory revisions. As a result, pachislot machine sales totaled 85 thousand units, compared with 215 thousand units in the previous fiscal year, while pachinko machine sales totaled 140 thousand units, compared with 138 thousand units in the previous fiscal year.」
The sales schedule was substantially revised in response to regulatory revisions, and pachislot unit sales declined sharply, causing market contraction and regulatory risks to worsen in quantitative terms. - FY2018-Q3MaterialisedAnnual report
「In the gaming machine industry, sales of new pachislot machines have continued to trend sluggishly. In the pachinko machine market, titles receiving strong reviews have begun to emerge, particularly among certain established series.」
Sluggish sales of new pachislot machines have continued, and the risks of market contraction and increasing uncertainty have continued to materialize in the market environment. Meanwhile, highly rated titles have emerged in certain pachinko series. - FY2018-Q2MaterialisedAnnual report
「In the gaming machine industry, sales of new pachislot machines have continued to trend sluggishly.」
Sluggish sales of new pachislot machines have continued, and the risks of market contraction and increasing uncertainty in the gaming machine market have continued to materialize in the market environment. - FY2018-Q1MaterialisedAnnual report
「In the gaming machine industry, sales of new-standard machines have continued to trend sluggishly in the pachislot machine market.」
Sluggish sales of new-standard pachislot machines have continued, and the risks of market contraction and increasing uncertainty in the gaming machine market have continued to materialize in the market environment. - FY2017-Q3MaterialisedAnnual report
「In the pachinko machine market, collection and removal of the relevant machines proceeded based on the “Statement on Promoting Soundness in the Gaming Industry.” The statement, issued by the 21st Century Association for the Pachinko and Pachislot Industry, comprising 14 industry associations, declared that machines potentially having performance characteristics different from those of certified machines would be collected and removed by the end of December 2016, among other measures.」
Based on a statement by 14 industry associations, collection and removal of the relevant machines actually proceeded, and uncertainty in the market environment continued. - FY2017-Q2MaterialisedAnnual report
「In the pachislot machine market, operators of pachinko halls have taken a cautious view of replacing machines with models対応 to changes in the operation of type-testing methods by the Security Communications Association (abbreviation: Hōtsūkyō), a general incorporated foundation that conducts type testing of gaming machines. In the pachinko machine market, uncertainty has persisted, partly because the new agreement on measures to address “excessive play” adopted by the Japan Pachinko and Pachislot Manufacturers Association (abbreviation: Nichikōso) came into effect.」
Changes in the operation of type-testing methods and the application of voluntary industry restrictions have led hall operators to take a cautious view, and market uncertainty has continued. - FY2017-Q1MaterialisedAnnual report
「Against this backdrop, during the first quarter, we refrained from replacing machines with new models in connection with the 42nd G7 Summit held in Ise-Shima. As a result, the number of titles sold declined, and replacement of pachinko and pachislot machines with new models temporarily remained at a low level.」
In addition to voluntary industry restrictions, the decision to refrain from replacing machines with new models in connection with the Ise-Shima Summit actually resulted in low levels of titles sold and new-machine replacements. - FY2016First statedAnnual report
「In light of the declining number of players and the Japan Pachinko and Pachislot Manufacturers Association (abbreviation: Nichikōso) adopting new measures to address excessive play, we expect the business environment to remain challenging.」
The company identified a declining player base, low-rate pachinko operations, competition among halls and new voluntary industry restrictions as market risks, and also referred to the decline in unit sales during the current fiscal year.