IAG: Let’s start at the beginning. Tell us a little about your career before you entered gaming.
Albert Yu: I was born and raised in Hong Kong and then went to the US for high school and university. After I graduated I came back and took over my father’s business manufacturing camera bags. We had 300 workers in our plant in China producing for the likes of Olympus, Nikon and Canon. I was in charge of everything from sourcing materials to logistics, budgeting and marketing, so it was a very good learning experience on how to manage an entire company.
How did you join Aruze?
AY: I had been running the family business for seven years when a Japanese colleague introduced me to Aruze. Gaming and production of gaming machines was a completely different industry, but I knew about manufacturing and marketing so I was able to make the transfer. Kazuo Okada wanted to set up in Hong Kong and he put me in charge of everything from registering the business and hiring staff, to finding him an apartment and buying him a car. Then he sent me to Aruze’s factory in the Philippines to train for a few weeks.
IAG: How did you come to Macau? How was the transition for you personally?
AY: Mr Okada transferred me to Macau to get first hand experience of the casino industry. When I arrived I hadn’t gambled beyond the occasional small-stakes card game with friends. There were slot machines that we could try out in the office, with no money involved. I realized that wasn’t enough. I had to start using my own money in casinos, to play our own machines and those of our competitors. It was the only way to experience the joy and pain that comes from playing slots, and really understand what makes different machines fun and compelling. To begin with I had no idea of how to play and I lost a lot of money, but making the transition from a non-gamer to something of a hard-core gamer was a very memorable experience for me. I also have to say I learnt a great deal from Mr Takahiro Usui. He mentored me for many years and he has been a great teacher and boss.
IAG: How has Macau changed over the years?
AY: When I arrived five years ago Galaxy and Sands Cotai had just opened, and business was booming. Then came the downturn with revenues down every month, junkets moving out and tourist numbers dropping. I think this a normal development because relying 90% on junkets and one game, baccarat, I had to start using my own money in casinos, to play our own machines and those of our competitors. It was the only way to experience the joy and pain that comes from playing slots, and really understand what makes different machines fun and compelling. To begin with I had no idea of how to play and I lost a lot of money, but making the transition from a non-gamer to something of a hard-core gamer was a very memorable experience for me. 14 inside asian gaming FEBRUARY 2016 was not sustainable. We have to make the transition to a Vegas-style massmarket based more on non-gaming entertainment. Of course that will be painful and it won’t happen overnight, but I’m confident it can be achieved. I think in the second half of this year the decline may stop and growth may return; slow, but constant and sustainable.
IAG: How do Aruze’s offerings cater to the Asian market?
AY: We’re an Asian company with one R&D center in Japan and another in the Philippines so our understanding of Asian gamers is very deep. Our background is pachinko and there’s a strong element of that in our designs. Mr Okada himself has made direct input into many of our products.
We don’t do live tables, but on the machine side there’s not one genre we don’t have, whether it’s electronic table games, community games or stepper machines. We have something for any first time player and our diversity makes us well positioned for the current transition to mass-market.
IAG: Obviously there has been a lot of talk about casino gaming coming to Japan over the years. What are your feelings on its chances?
AY: I think it will happen but not very Industry profile soon. Last year there was a push to get a law passed but it was unsuccessful. I think it will be another year before their congress meets again on the matter.
IAG: Who in the industry do you admire most?
AY: I think that has to be my boss, Mr Okada. He has a great deal of experience and understanding of the industry, so he can pinpoint what makes a product stand out from our competitors. He’s personally very involved in the process of product development.
IAG: What do you like to do in your spare time?
AY: My family is in Hong Kong so when I go back there at the weekend the time I can spend with them is very important to me. Apart from that, I’m a huge sports fan. I’ll get up at 4am to watch my favorite team in the NBA or NFL. For the English Premier League I’m a great supporter of Liverpool. Win or lose, I’m forever red.
IAG: Where do you see yourself in five to ten years?
AY: In a stronger Aruze. Although we’re established in Asia there’s a lot we can do to grow our business in Singapore, Malaysia and the Philippines. In Europe we are still young and don’t have much footprint. Step by step, we’re looking to expand our market share.
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