Japanese conglomerate Konami reported a 3.0% year-on-year decline in revenue from its Gaming & Systems segment to JPY10.0 billion (US$68.2 million) in the three months to 30 June 2024, with the company citing normalized demand following a surge in activity post-COVID. Segment profit fell by 35.2% to JPY1.28 billion (US$8.7 million).
Konami noted that the North American and Australian markets remained robust throughout the quarter, buoyed by the constant introduction of new products by competing slot machine manufacturers which has provided new placement opportunities.
However, it added that demand has normalized compared to the corresponding period last year when there was an increase in sales due to the recovery of the Asian market from COVID-19.
Driving the segment’s performance, Konami said, was an increase in sales of its Dimension 49 and Dimension 27 cabinets, while slot machine series Bull Rush performed well in New South Wales, Australia. The company’s SYNKROS casino management system was installed at multiple US casinos, including Ocean Casino Resort in New Jersey, JACK Cleveland Casino and JACK Thistledown Racino in Ohio.
Looking ahead, Konami said of its Gaming & Systems segment that “competitors are introducing new products successively, creating an environment that requires higher product appeal. Under such circumstances, Konami will also enhance our brand value by developing our new game titles and system features.”
The company said it would continue to roll out new game titles such as the recently launched Unwooly Rich and Charms Full Link series, while Crazy Stuffed Coins is due for release in the coming months.
“In our casino management system, SYNKROS will be introduced to several additional casino facilities,” it said. “We will continuously expand the number of casino facilities connected to SYNKROS.
“By proceeding with the development of various functions that utilize cutting-edge technologies, responding to our client needs, we will aim to expand our market share.”
Group-wide, Konami saw its revenues rise by 24.0% year-on-year to JPY90.0 billion (US$614 million), with profit up 46.6% to JPY25.1 billion (US$171 million) thanks to strong gains in both the Digital Entertainment and Amusement segments.
