Business Strategies

Business Outline

Business Outline
Business Outline

Business Plan

In addition to Pachislot and Pachinko Machines Business which consist of pachislot and pachinko machines, the Group is engaged in a diverse array of entertainment businesses such as Entertainment Contents Business which consists of Consumer area which handles the video game software for smartphones, PCs and home video game console, Amusement Machines Sales area, as well as Animation and Toys area. Additionally, we are aiming to make a full-fledged entry into the integrated resort facility business and will make active efforts to make the Resort Business, which involves development and management of resort facilities, a new core business.

(JPY Billion)

  FY Ended March 2022 FY Ending March 2023
Net sales Overall 320.9 375.0
  Entertainment Contents 235.9 277.0
  Pachislot and Pachinko Machines 75.8 86.0
  Resort 8.6 11.5
  Other / Elimination 0.6 0.5
Ordinary income Overall 33.3 40.0
  Entertainment Contents 36.8 40.0
  Pachislot and Pachinko Machines 10.2 12.0
  Resort -6.7 -3.0
  Other / Elimination -7.0 -9.0
Ordinary income to net sales 10.4% 10.7%

Business Plan by Segment

 

1.Entertainment Contents Business

Issues to be Addressed

Regarding the environment of the Entertainment Contents Business, in the market of digital games, the competitive environment is further intensifying, with titles that capitalize on powerful IPs (Intellectual Properties), in addition to being high-quality products, take up the top spots in sales rankings. With regard to the packaged games market, expectations are rising, mainly in North America and Europe, for the expansion of the game software sales market due to the growing penetration of current-generation video game console hardware. In addition, game distribution platforms such as Steam are expanding in the PC games market. Under these circumstances, in the Entertainment Contents Business, concentrating management resources in areas that are expected to expand, and further enhancing IP roll-out for a wide range of regions, devices and platforms, is considered a management issue.

【FY2022/3 Results】

Overall
    • Both sales and profit increased YoY

    • Strong performance of Consumer area continued

    • Recovery of earnings in Amusement Machine Sales area which was affected by COVID-19

Consumer area
    • (Full Game) Strong performance of new titles, Recorded royalty income from some titles

    • (F2P) Strong performance of "HATSUNE MIKU:COLORFUL STAGE!",  Released new title "PHANTASY STAR ONLINE 2 NEW GENESIS"

Amusement Machine Sales area
    • Strong sales of UFO Catcher ® series, prizes for prize machines, etc.

    • Launched new title "EIKETSU TAISEN"

Animation / Toys area
    • (Animation) Released the theatrical version of "Detective Conan:The Scarlet Bullet“, Recorded animation production revenue, allocated revenue, etc.

    • (Toys) Launched new products, "With a front camera! Fun to change mouse covers! Sumikkogurashi Personal Computer Premium" and "Demon Slayer POD"

【FY2023/3 Forecast】

Overall
    • Higher sales and profits by increase in new titles (Consumer area)

    • Expect to maintain strong performance in the prize category (Amusement Machine Sales area)

Consumer area
    • (Full Game) Significant increase in new titles (+5,180 K unitsYoY), Growth in repeat titles due to a large number of new titles in the previous fiscal year

    • (F2P) Enhance the operation of existing titles, Schedule to release new titles

Amusement Machine Sales area
    • Strengthen sales of UFO Catcher® series, prizes for prize machines, etc.

    • Schedule to release new title "HORI A TALE"

Animation / Toys area
    • (Animation) Release the theatrical version of "Detective Conan:The Bride of Halloween" ,Scheduled to record revenue from animation production and distribution, etc.

    • (Toys) Sales of new products and regular products

2.Pachislot and Pachinko Machines Business

Issues to be Addressed

In the pachislot and pachinko industry, amidst the significant reforms in the regulation environment and market environment, while the number of pachinko halls is on a declining trend, the trend of enlargement of pachinko halls is progressing and the number of machines in each hall is increasing. On the other hand, the number of titles supplied for the No. 6 model machine continued to be sluggish, because the approval rate of prototype testing for pachislot machines, which was conducted by Hotsukyo also continued to be low. Under these circumstances, in the Pachislot and Pachinko Machines Business, it is necessary for the Group to develop and supply products with innovative gameplay that meet market needs and comply with regulations to maintain and expand market share. In addition, the need to improve profitability by increasing efficiency in areas such as development and by reducing costs through such means as the reuse of components for pachislot and pachinko machines is considered as a management issue.

【FY2022/3 Results】

    • V-shaped recovery from deficit of the previous fiscal year

    • Increase in unit sales

    • Fixed expenses remained at low level due to the effect of structural reform implemented in FY2021/3, etc.

【FY2023/3 Forecast】

    • Expect increase in unit sales, increase in sales and profits

    • Launch machines responding to the relaxation of regulation

    • Component procurement status continuously needs to be monitored closely

3.Resort Business

Issues to be Addressed

With regard to Resort Business, it is an important management issue of the Group to accumulate expertise through the development and operation of resort facilities in Japan as well as integrated resorts (IR) overseas, while preparing for a full-fledged integrated resort business in the future. 

【FY2022/3 Results】

    • PHOENIX RESORT: Reduction in loss margin YoY

    • PARADISE SEGASAMMY: Continued to be sluggish

【FY2023/3 Forecast】

    • PHOENIX RESORT: Return to profitability

    • PARADISE SEGASAMMY: Reduction in loss margin

    •  
 

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