Market Overview

The pachinko equipment market size (the total market size of pachinko machines, pachislot machines, and peripheral equipment) in FY2022 reached 763,800 million yen, up 248,000 million yen from the previous fiscal year (103.4% YOY, based on the sales at manufacturers). Viewing by the product segment, while the pachinko machine market diminished slightly to 410,500 million yen (94.5% of the previous fiscal year), the pachislot machine market and the peripheral equipment market expanded, attaining 279,400 million yen (107.8% of the previous fiscal year) and 73,700 million yen (162.8% of the previous fiscal year), respectively.  

End of the special demand for machine replacement in FY2021 and solid sales of pachislot machines resulted the pachinko machine market to level off in FY2022.

Meanwhile, with the introduction of No. 6.5 machines in June and “smart” pachislot* in November have led to a significant recovery in business performance of pachislot business at pachinko parlors. High utilization rates of the mainstay pachislot machines have led pachinko parlor operators to incline to purchase pachislot machines rather than pachinko machines.

As for the peripheral equipment market, which had been dependent on the replacement of old equipment, showed some expansion despite the sluggish sales of medal feeders and ball dispensers that fell below the previous year's level. Introduction of “smart” pachislot gave rise to a demand for new peripheral equipment called CR units, which are essential for installation of smart gaming machines. Introduction of the CR units started in October 2022 in preparation for operation of smart pachislot machines, and in just six months, its market size by far exceeded the size of the ball/medal dispenser market. In addition, the demand for changing store layouts and replacing prize management POS associated with the introduction of CR units contributed to the growth of the peripheral equipment market.

* “Smart pachinko” is a type of pachinko machine that circulates balls within a gaming machine so that players do not have to touch them while playing. “Smart pachislot” is a type of pachislot machine that uses digital medals instead of physical medals. Revised regulations (of Nihon Yugiki Kogyo Kumiai [Nikkoso], the association of pachinko machine manufacturers) have made more diverse game designs possible for “smart” pachinko and pachislot gaming machines.

Noteworthy Topics

Pachislot Business Recovering Perspicuously, Installation Share on the Rise

Reflecting the strong performance of the No. 6.5 model of pachislot machines newly introduced in FY2022 as well as the smart pachislot, pachinko parlor operators opted for investing in pachislot business. Smart pachislot, which was released in November 2022, has been showing high utilization rate right from the start. Generation of constant revenue by pachislot machines, especially the new machines, is seemingly leading pachinko parlor operators to focus on pachislot business further in FY2023.

On the other hand, unlike the utilization of smart pachislot machines that started off strong, utilization rate of smart pachinko machines introduced in April 2023 is not very high. Perhaps the success is just not yet to come, but pachinko parlor operators are showing disappointments in the introduction of smart pachinko machines.  

At the start of the year 2023, the ratio of pachinko machine to pachislot machine by the number of installations was 6 to 4, which is equivalent to the ratio of No. 4 pachislot machine at its initial installation. Considering that pachislot machines are generating more revenue than pachinko-machines at present, it is highly probable that the share of pachislot machines will expand hereafter.

In fact, movements to increase pachislot machine installation, centrally smart pachislot machines, are observed in the market. The percentage of pachislot machines among all gaming machine is likely to rise accordingly.

Future Outlook

​In FY2023, the pachislot business at pachinko parlors was boosted by the notable ‘outflow of game players' from pachinko to pachislot, while the pachinko business precipitated a severe downturn. The trend of focusing on pachinko business (over pachislot business) was overturned in just a year, with pachinko parlor operators increasing investment in pachislot business, implying an increase of pachislot machine installations and a decrease of pachinko machines.

The rise in investment in pachislot business, centered on smart pachislot, is expected to continue for the time being. However, there is still a good chance of smart pachinko, which is now in the doldrums, seeing a surge in popularity, depending on (the attractiveness of) machines to-be-introduced hereafter.

As smart pachislot and smart pachinko use same CR unit, switching either way can be done without cabinet replacement. This means parlor operators can respond quickly to changes in player trends. The penetration of “smart” pachinko and pachislot may stimulate fast-moving player trends further.

Research Outline