The Japanese pachinko industry reported a 27 percent decrease in gross profits and sales in 2020 due in part to the Covid-19 pandemic. The drop was also linked to declining interest in the traditional games.
According to equipment manufacturer Daikoku Denki, the industry in 2020 was valued at $133 billion, down $49.2 billion from the previous year. Total gross profits dropped by $8.1 billion to $21.4 billion.
Tsuyoshi Tanaka of Amusement Press Japan said Covid-19 wasn’t the only factor. “Many players feel that the machines are no longer exciting,” Tanaka said. “The segment that lost the highest player population in 2020 was not the elderly but the younger players.”
He added that the industry was in decline even before the pandemic, and pachinko parlors tried to increase their profit margins by tightening their machines and charging people more to play.
One industry insider told Inside Asian Gaming, “There are signs that the pachinko industry will improve, though the market is certainly getting smaller. I think it may have shrunk even more than 27 percent. If you are not a major company, your parlor may struggle with capital investment in your facilities, such as new units or replacing old ones.
“However, for the pachinko industry as a whole,” the source noted, “there are signs that it will trend slightly upward as popular models are released. I think it may take a little longer for pachislots to enjoy this updraft.”
