FROM MANAGEMENT INTEGRATION TO THE PRESENT DAY

Graph

Long-Term Trends in Business Conditions

egulatory Changes in the Pachinko and Pachislot Machine Market

Pachinko and Pachislot Machine Player Population
2007 14.5 million
2016 9.4 million

The pachinko and pachislot machine player population has remained on a long-term downward trend due to changes in the market environment resulting from regulatory changes.
Source: White Paper on Leisure Industry 2017

Contraction of the Amusement-Related Market

Size of the Amusement-Related Market(Total of amusement machine and amusement center operations markets)
2007 \897.2 billion
2015 \590.7
billion

The amusement-related market has continued to trend toward contraction due to the diversification of the leisure market as smartphones become more popular.
Source: JAIA, Amusement Industry Survey 2015

Structural Change in the Online Game Content Market

Online Platform Game Content Market
2009 \233.2 billion
2016 \1,080.6
billion

The market’s structure is transforming, with the focus increasingly shifting away from sell-out packaged games toward online game content, mainly games for smartphones and PCs.
Source: Famitsu Game White Paper 2017

Strengthening

Shift from Reliance on Pachislot Machines to Balanced Portfolio (Net sales breakdown)
Graph

Our pachislot and pachinko machines have achieved a strong presence in their markets, and we have made progress in bolstering our business structure.

Rationalizing

Optimizing Amusement Center Portfolio (domestic)
2005 477
2017 191
Streamlining the Number of Titles (packaged games)
2008 80
2017 26

We have been rightsizing businesses in shrinking markets, such as those in the amusement center operations and the packaged games areas.

Refocusing Management Resources

Sales Growth in the Digital Game Area
2013 \ 29.7
billion
2017 \ 47.3
billion

We have advanced business structure changes by concentrating management resources in the digital game area and the Resort Business, which we view as growth businesses.