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 2020 FY Ending March 2021
(announced on Feb 12)
Net sales Overall 366.5 276.0
  Pachislot and Pachinko Machines 108.5 51.5
  Entertainment Contents 247.6 218.0
  Resort 10.4 6.0
Ordinary income Overall 25.2 7.0
  Pachislot and Pachinko Machines 22.7 -12.5
  Entertainment Contents 16.2 36.0
  Resort -5.3 -9.0
  Eliminations -8.4 -7.5
Ordinary income to net sales 6.9% 2.5%

Business Plan by Segment

1.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.

【Forecasts】

Overall
    • Due to the review of sales schedule, launch of some FY2021/3 titles will be postponed to the next fiscal year, resulting in decrease of number of titles.

    • Expect to record one-off expense due to the review of inventory assets such as components.

 

2.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.

【Forecasts】

Overall
    • Continue to expect strong performance in Consumer area. Also areas other than Consumer area also improving.

    • Amusement Center Operations area is excluded from consolidation from 4Q.

Consumer area
    • (Full Game) New titles will be launched, and expect to maintain strong repeat sales.

    • (F2P) New titles are expected to perform steadily. For existing titles, expect the transfer of operation and decay of some titles.

Amusement Machine Sales area
    • Mainly sell regular products such as UFO CATCHER series machines and prizes for UFO CATCHER.

Amusement Center Operations area
    • Profit and losses will be insignificant due to the transfer of the shares of the company engaged in amusement facilities operation.

Animation / Toys area
    • (Animation) Record revenues from animation production and distribution, etc.

    • (Toys) Sell regular products, etc.

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. 

【Forecasts】

Overall
    • Expenses for domestic IR expect to decrease from initial assumption.

    • PHOENIX RESORT: Decline of travel demand is expected due to temporary suspension of “Go To Travel Campaign” nationwide, and declaration of state of emergency.

    • Expect to record losses in PARADISE SEGASAMMY (non-operating expenses).

PARADISE SEGASAMMY
    • Expecting that the restriction of foreign visitors in each country will continue.

    • Expect to record losses due to a decrease in utilization of facilities.

 

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