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Reports of “Experiences that move the heart”
“Experiences that move the heart” is the value SEGA SAMMY Group has been pursuing that exceed customers’ expectations. We introduce the scenes you can only find here such as behind-the-scenes of the development process, feature articles and others.
- Reports of “Experiences that move the heart”
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2023.12.22
Sammy's Development, Production and Sales Capabilities that Overcame a Number of Crises to Create the Hit, Smart Pachislot Hokuto No Ken [Part 2]
In Part 1, we asked about the Smart Pachislot Hokuto No Ken from its conception and planning to the evaluation of the prototype, which was well received.
In Part 2, we interviewed the six members involved in the Smart Pachislot Hokuto No Ken about the topics from prototype testing which is the late stage of development to the whole process to the installation in pachinko halls, including procurement of parts and production where they faced extremely difficulty, as well as the reactions of users and people surrounding them after its utilization began.
If you have not yet read Part 1, please start with Part 1.
- Participants
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A (Development)
Producer of the Smart Pachislot Hokuto No Ken. Responsible for the planning of the title and overall development, cooperating with each person in charge of payout design, image and visual effects, machine design and sound, etc. Also in charge of PR activities before and after sales.
B (Hardware Development)
Responsible for hardware (machinery and mechanism) design. At the development of Smart Pachislot Hokuto No Ken, also work on verification of alternative parts* due to a shortage of parts in cooperation with the Procurement and Production division.
*The use of alternative parts is not ordinarily permitted, but in response to the global shortage of electronic parts caused by the COVID-19 pandemic, etc., it is permitted under some special conditions including limit on period.
C (Production Planning)
Responsible for the planning and general management of the production process, including the formulation of production plans, delivery of parts, and management of materials.
D (Production/Procurement)
Responsible for the overall procurement of parts, including the formulation of purchase plans of parts and the selection of suppliers.
E (Sales Planning)
Formulating sales strategies and considering and implementing marketing & PR activities in collaboration with the Development department.
F (Sales)
Conducting sales and marketing activities and providing follow-up services to pachinko halls.
“No compromise” - persistently worked prototype testing
--We heard that Smart Pachislot Hokuto No Ken took longer than usual to receive approval in prototype testing.
A (Development)：
In order for developed machines to be installed in pachinko halls, the product must pass the “prototype testing” of the Security Communications Association (“SCA”) and the “approval for installation” conducted by the respective prefectures. In particular, prototype testing, which examines the compliance of the machine with the standards set forth in the Act on Control and Improvement of Amusement Business etc. and other related rules and regulations, is extremely strict. If the prototype does not conform to the standards, it is declared “non-approved” and cannot be released to the market. For this reason, pachislot and pachinko machine manufacturers make several prototypes of a single machine and apply to the SCA in case of non-approval.
C (Production Planning)：
With Smart Pachislot Hokuto No Ken, we applied for the prototype testing from a total of four companies—Sammy and three other Sammy Group manufacturers. This was because initially we aimed to obtain approval in time for November 2022, when the smart pachislot machines were scheduled to be introduced to the market. While the Production Division was busy with the production of the then hit Pachislot Kabaneri of the Iron Fortress, we were also responsible for manufacturing machines for prototype testing. Because each manufacturer had different circuit boards and production systems that had to be used, it was, to be honest, a very hard period for us. But if we extended even the slightest complaints, they were brushed off, saying that our priority was to get approval as soon as possible.
A (Development)：
However, it was not easy to get approval, and as a result, the number of prototypes we applied for was unprecedented level in Sammy’s history. Even so, we wanted to deliver the best Smart Pachislot Hokuto No Ken to halls and users at any cost, so we did not compromise on specifications or gameplay to increase approval rates.
F (Sales)：
The market installation of smart pachislot had started around November 2022, but at that point, we had not received approval for Smart Pachislot Hokuto No Ken. As we heard many pachinko halls were eagerly awaiting Sammy’s smart pachislot, we told them that “Our Development Division is working on it without any compromise, so please wait a little longer” as a sales pitch. And this happened to heighten expectations among pachinko halls that the delay in the launch would result in a more great product.
A (Development)：
With the support from the entire company, we worked persistently to the end. As a result, we were able to obtain approval for the prototype whose specifications were satisfactory to the Development Division. It was late December 2022 when we received the notice of approval, and I remember how relieved we all were that we would be able to welcome the New Year!
C (Production Planning)：
At the time, I thought this would finally allow me to get a good night’s sleep! (laughs).
Each division cooperates and works together to overcome the shortage of parts
--I believe that at the same time as the prototype testing, there was a serious shortage of parts.
D (Production/Procurement)：
We had been procuring parts and materials since around 2021 in the early development stage. But in addition to the impact of COVID-19, Russia’s invasion of Ukraine began in February 2022, and we faced a shortage of parts including semiconductors, resins and steel. This was an unprecedented situation we had never faced before, and by around May 2022, we were in the situation unable to receive the parts we had ordered.
B (Hardware Development)：
In response to this, we closely communicated with the Procurement Division by holding a weekly cross-divisional information sharing meeting to confirm insufficient parts in real time and discussed strategies to maximize sales. However, the situation was getting worse day by day. On the other hand, mitigation measures were in place — if parts could not be procured due to COVID-19 or other factors, we were able to use alternative ones that guarantee the same performance with prior approval from the government.
D (Production/Procurement)：
So we looked for alternatives to the missing parts, and repeatedly made proposals to the Hardware Development Division asking if this or that part could be used, and asked them to prepare an alternative circuit board in a short period of time.
B (Hardware Development)：
Normally, after development is completed, we proceed to production phase with the flow of procuring parts and manufacturing, but at this time, there was already a serious shortage of parts during the development stage. So we were forced to proceed with a different process than usual, prioritizing procurement and using parts that could be procured at that point in time.
In addition, we usually start production right after approval using the procured parts, but due to its shortage, the Procurement Division had to look for parts that could be procured even after approval. As soon as such parts were available, the Development Division would immediately verify whether the parts made it possible to produce the same prototype as the approved one, complete the quality evaluation and then sent it to the Production Division.
D (Production/Procurement)：
In the fall of 2022, while we were managing to make progress in this way, the worst happened—a fire broke out at the plant of one of our parts suppliers, and the parts we planned to procure from were damaged. We felt devastated, but scrambled to procure necessary parts by utilizing a network of contacts, conducting online searches, going to Akihabara to directly procure the parts and so on. Although procurement costs should be kept as low as possible, in this case we put aside the price and prioritized procurement at all costs.
C (Production Planning)：
In order to increase production by even one unit, we also collaborated with the Sales Division to purchase machines on the market to reuse their parts. I still believe that without the cooperation and collaboration with the Hardware Development and Sales Departments, we would not have been able to meet the production schedule.
Supported by the users that knew the first Pachislot Hokuto No Ken, the number of orders received was double our expectation.
--When did you start sales to pachinko halls?
F (Sales)：
From the beginning of 2023, we proposed Smart Pachislot Hokuto No Ken to each pachinko hall in the form of individual business meetings. Many of the persons engaged in the pachinko halls were of the generation that had played the first Pachislot Hokuto No Ken, and when they actually saw the machine, we received many compliments such as “faultless,” “simply perfect,” and “certain to succeed,” and the response was beyond what we had imagined.
Later, when we started our nationwide sales activities, industry participants posted their evaluations on social networking sites. Thankfully, the advance reputation of Smart Pachislot Hokuto No Ken continued to grow. Our initial goal was to launch 30,000 units, but as a result, we received more than double the number of orders.
-- 60, 000 units orders! It's double the planned number. Wasn't the production system unable to keep up?
C (Production Planning)：
Due to the shortage of parts and the production of other machines was also in progress, the initial production capacity was limited to 30,000 units. The only way to prepare 60,000 units was the delivery in several installment, so we asked the Sales Division for cooperation, saying, “Please proceed with deliveries in several installments.”
F (Sales)：
Expectations for Sammy’s pachislot machines were rising due to the high evaluation of Smart Pachislot Hokuto No Ken as well as the strong performance of Pachislot Kabaneri of the Iron Fortress. We were under so much pressure from pachinko halls to get them sooner, but we explained the situation honestly to them and asked for their understanding about deliveries in several installments. When we received an order for 60,000 units, double the number of our initial expectation, the sales personnel truly turned pale. Pachink halls had catched our such situation, and we were able to gain their understanding about just how severe the situation we faced was. In April, we began sequential installations at pachinko halls. Thanks to the efforts of Hardware Development, Procurement and Production Divisions, we were able to gradually deliver machines ahead of schedule, and by May, installation was completed at all pachinko halls that had signed contracts with us.
--There has never been a PR campaign that focused mainly on TV commercials, right?
E (Sales Planning)：
We focused our promotional efforts on the Smart Pachislot Hokuto No Ken under the theme of “bringing dormant users back to pachinko halls” with “a full-fledged remake of the first Pachislot Hokuto No Ken” as the keyword. TV is the most viewed media by users in their 40s and 50s who had played the first Pachislot Hokuto No Ken and had now moved away from pachinko halls, so we decided to use TV commercials to target these generations.
A (Development)：
The number of orders from pachinko halls was more than our expectations, but without users actually playing the game, it would not be a hit. While it is difficult to motivate dormant users to come back to pachinko halls, we decided to allocate a large budget for PR activities, believing that only this machine, which has inherited the great brand power of the first Pachislot Hokuto No Ken, could bring such users back.
E (Sales Planning)：
Because the YouTube video of the comedy duo “Kamaitachi” playing the first Pachislot Hokuto No Ken went viral, we featured Kamaitachi in the commercial and directed it to rekindle motivation of dormant users – our goal was to create a commercial that would remind users of the days when they played the first generation and make them want to play it again. Although many pachislot and pachinko machine commercials are aired before they are installed in pachinko halls, the commercial for the Smart Pachislot Hokuto No Ken was strategically aired after installation at pachinko halls so that users could play the machine as soon as they saw the commercial. We believe that it was also a positive factor in the high utilization. We also put up posters in pubs and used hanging advertisements on trains. On the other hand, for users in their 20s and 30s, we communicated through SNS and web advertisements. As such, we devised various measures to meet the needs of each target group.
A view of lively pachinko halls – Moved by the sight of users enjoying Smart Pachislot Hokuto No Ken even at closing time
--The total number of installations has exceeded 60,000 units. What is the reaction of users and others around you, and how do you feel about it?
A (Development)：
The launch day of the Smart Pachislot Hokuto No Ken was very exciting. It attracted so many users that there were standees at some pachinko halls. In fact, when I visited pachinko halls myself, I saw a sight that I had not seen for a long time, and I had confidence that dormant users had returned. Seeing users playing the Smart Pachislot Hokuto No Ken even at closing time, I was deeply moved to see how much they were enjoying the game.
B (Hardware Development)：
Because the machine uses a new cabinet and has been installed in large numbers, we were concerned that there might be some problems. But I am honestly relieved that we have made it this far without any serious problems, thanks to the excellent development team members.
C (Production Planning)：
I felt like a weight has been lifted off my shoulders. The fact that we were able to come this far from a hard situation through the cooperation of three divisions also gives me confidence for the future.
D (Production/Procurement)：
When I visited the pachinko hall to see the utilization of Smart Pachislot Hokuto No Ken, there were no idle machines. While I was happy to see that, I felt that we needed to prepare additional orders more quickly.
E (Sales Planning)：
With the installation of Smart Pachislot Hokuto No Ken, the number of users has clearly increased and I experienced a lively pachinko hall for the first time in a long time. Seeing such scenes makes me want to play too! (laughs)
F (Sales)：
My wife used to play the first Pachislot Hokuto No Ken with me before, but she has become a dormant user. But when she saw the TV commercial, she said she wanted to play it. This was the first time she had this kind of reaction since she quitted playing pachislot machines, so I realized that the commercial had an impact on first generation users.
--What is your outlook for the future?
A (Development)：
Completion of development is not the end. We will continue to strive for better development with the viewpoint of letting users know and enjoy our products. We want to increase the number of Sammy fans by valuing opportunities to interact with users, such as the “Sammy Develop Voice”*, where questions and comments from users are wanted.
*A website where the development staff provides information that will make playing Sammy’s machines a bit more enjoyable. Questions and comments from users are also wanted.
B (Hardware Development)：
Although there were various difficulties, I feel that we were able to demonstrate Sammy’s underlying strength through cooperation in each division and company-wide efforts. I want to maintain and improve this kind of relationship in the future and also extend our research and development that take advantage of Sammy’s technological capabilities in various directions.
C (Production Planning)：
This was my first experience of production under such a difficult environment, and it made me understand Sammy’s organizational strength. I want to continue to further enhance this strength while providing users with experiences that move the heart.
D (Production/Procurement)：
I was very impressed by the strong will and energy of each division to navigate difficulties and the organizational strength of Sammy over the past two years. I will continue to take on new challenges, not settling for the status quo.
E (Sales Planning)：
We were able to achieve this result in cooperation with various divisions. I believe that this experience and the strengthened cooperative relationships will be useful in the future. I hope that many of you will enjoy our lineup of interesting machines, including smart pachislot machines.
F (Sales)：
Through the sales activities of the first Pachislot Hokuto No Ken, I realized that the most rewarding aspect of the job of sales is to make the customers happy. I believe that the similar experience young sales personnel had this time will be helpful in their future work. I want to continue to confidently propose to pachinko halls Sammy’s attractive machines created by the Development and Production Divisions.
©Buronson & Tetsuo Hara／COAMIX 1983, ©COAMIX 2007 Approved No.YRA-114
©Sammy
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Going forward, Sammy Corporation will continue to develop pachislot and pachinko machines day by day through which we provide users with experiences that move the heart. We will also aggressively introduce mainstay titles, such as the smash hit Smart Pachislot Hokuto No Ken, to further expand its share of utilization.
Please see Part 1 of this article below.
