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- A Message from the CEO [Medium-Term Growth Scenario]
Looking ahead to the period after we are back on a growth track, our targets are the same as before. We aim to raise operating income above the ¥100 billion mark, the level it was at immediately after management integration. Moreover, our roadmap for reaching this target is unchanged. In other words, we envision the Pachislot and Pachinko Machine Business segment stably generating earnings of around ¥70 billion, while SEGA earns about ¥20 billion by strengthening the profitability of existing businesses and growing earnings in the digital game content business, and other subsidiaries contribute earnings of approximately ¥10 billion.
Rather than solely pursuing short-term results, we will always keep our medium-term growth scenario in mind and take appropriate steps accordingly.
Focused on adding the No. 1 share of the pachinko machine market to its No.1 share of the pachislot machine market, the Pachislot and Pachinko Machine Business segment will continue strengthening its development system and further refining marketing. However, our goal is not simply to increase earnings in the pachinko machine market, which offers considerable scope for market share expansion. We also aim to build a business structure that can generate earnings stably even amid cyclical peaks and troughs in pachinko and pachislot machine sales, which stem from player preferences and pachinko halls' financial positions. The balanced portfolio that our initiatives have established has been steadily realizing its true value in recent years.
In Japan, amusement centers continue to face tough market conditions because consumer spending is slumping. Stimulating the market is SEGA's responsibility as a market leader as well as a task the company must tackle to grow earnings continuously. Accordingly, we are proposing business models that mitigate amusement center operators' initial investment burden and widen our player base. In fiscal 2014, we are considering introducing the industry's first free-to-play business model. Also, with a view to broadening its player base, the Amusement Center Operations segment plans to open next-generation amusement centers and amusement centers based on new business formats over the medium term. For example, in partnership with BBC Worldwide Limited, SEGA unveiled the world's first nature-themed museum, Orbi Yokohama, in August 2013. By providing entertainment that grandparents, parents, and children can enjoy, we will capture familyrelated demand. Looking further ahead, we plan to package the museum as a successful model and license it out worldwide. Providing entertainment that three generations can enjoy is a goal not only of the Amusement Center Operations segment but one that SEGA as a whole is pursuing. In light of declining birth rates, we will provide entertainment that, in addition to young adults, appeals to grandparents and their grandchildren. Through this approach, we aim to unearth new customer groups and grow.