Gaming machine business surges in the first half, but sustainability will be tested by the 26,000 units already ordered for Q3

In 1H FY2026, the gaming machine business generated revenue of ¥45,926 million and segment operating profit of ¥14,166 million, up 69.1% and 173.7%, respectively, year on year. The business accounted for a substantial share of consolidated revenue of ¥76,566 million and also made a major contribution to company-wide operating profit of ¥10,219 million. Total first-half sales reached 87,915 units, so it is necessary to determine whether the improvement reflected increased product launches and unit sales, rather than higher average prices alone.

The company said it sold 5 smart pachislot models and 3 pachinko models in the first half. For Q3, it has indicated market launches and sales of “Sengoku Collection 6,” for which it is the primary distributor, “Smart Slot Yajikita Dōchūki Mairu!” from the Yajikita Dōchūki series, and “Smart Slot Tacoslo” from A PROJECT. The product lineup combines established core series with revival-style titles. At the next earnings release, we would like to confirm the number of units introduced, additional orders and operating performance for each of the 3 models.

First-half sales totaled 26,378 units in Q1 and 61,537 units in Q2, indicating that sales were concentrated toward the second half. The company reported 26,000 units already ordered for Q3, making the extent to which this figure translates into actual sales an important short-term checkpoint. Without disclosure of the gap between ordered and actually sold units, delivery timing differences, and the breakdown between pachislot and pachinko, it will be difficult to determine accurately whether the first half’s revenue growth was reproduced in Q3.

The full-year consolidated forecasts are revenue of ¥140,000 million and operating profit of ¥16,000 million, and first-half operating profit had reached 63.9% of the full-year forecast. In Q3, it will be necessary to examine not only unit sales, but also revenue per unit, the model-by-model sales mix, whether production was increased for sales, and changes in selling expenses and manufacturing costs. As of now, the company has not disclosed revenue, gross profit, order backlog value or selling prices by model, so it has not been verified whether unit growth is translating directly into improved margins.