SANKYO

Basic Information

Stock Code
6417
Industry
Machinery
Category Detail
Commercial & Industrial Machinery
Prefecture
Tokyo
Establishment Year
April 1966
Listing Year
October 1991
Official Website
https://www.sankyo-fever.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Nippon Litec, Tsuburaya Fields Holdings, Fuzee, Fuji Sangyo, Heiwa, Mars GHD, Universal Entertainment, Oizumi, Daikoku Denki, Sega Sammy

Overview

Sankyo is a major pachinko machine manufacturer founded in 1966, holding the largest market share in the industry and boasting strong brand power through the development of innovative gaming machines.

Current Situation

Sankyo recorded consolidated revenue of approximately 157.2 billion yen, operating profit of approximately 58.5 billion yen, and net profit of approximately 46.9 billion yen for the fiscal year ended March 2023, maintaining a stable business foundation. Headquartered in Shibuya-ku, Tokyo, its main businesses are the manufacturing and sales of gaming machines and gaming-related services, holding the top position in the pachinko industry. It is proactive in technological innovation, with the high-continuation Type 1/Type 2 hybrid machine 'Senki Zesshou Symphogear' series performing strongly in operation. In recent years, it has also developed machines with playtime features, responding to market needs amid stricter regulations. It secures revenue through a wide product lineup including subsidiaries' businesses and stable demand, while focusing on product development for new regulations. Toward sustainable growth, it is expanding collaborations with anime and cultural content as well as marketing activities. With risks of performance fluctuations and regulatory changes in mind, it plans to strengthen competitiveness as the industry-leading company going forward.

Trivia

Interesting Facts

  • Fever brand is a widely recognized registered trademark in the industry.
  • Only Sankyo machines feature shouting 'Fever' in pachinko models.
  • First in the industry to launch the inaugural machine under new regulations.
  • Official sponsor of popular anime 'Genesis of Aquarion' in 2007.
  • Suspended CMs temporarily after the Great East Japan Earthquake and resumed them.
  • Only company in the pachinko machine industry to introduce high-continuation Type 1/Type 2 hybrids early.
  • Major trust banks and prominent companies among main shareholders.
  • Owns multiple subsidiaries including JB and Bistee.
  • High recognition among younger demographics through anime tie-up products.
  • Has its own gaming hall design division and handles interior construction.
  • Founder was a key executive at former Heiwa Kogyo with deep industry knowledge.
  • One of the few companies developing both pachinko and slot machines.
  • Track record of program sponsorship on multiple TV networks including TBS.
  • Long-running machine 'CR Fever Great Yamato 2' remains a legend in the industry.
  • Company employee badge motif is in-house character 'Drum-kun'.

Hidden Connections

  • Founder Kunio Busujima was a key executive at former Heiwa Kogyo, with strong industry networks.
  • Pachislot machines from related company Bistee are top runners in the scene.
  • Tie-up with anime 'Senki Zesshou Symphogear' is a successful sales strategy example.
  • Numerous trust banks and major telecom companies among shareholders, ensuring stable capital structure.
  • Headquartered in Shibuya, Tokyo, but originated in Nagoya with strong regional roots.
  • Famous actors and singers in TV CMs boosted brand recognition.
  • Collaborates with Gaming & Entertainment Academy for specialized education.
  • The special rhythm 'Fever' in pachinko machines is registered as the company's trademark.

Future Outlook

Growth Drivers

  • Increasing demand for high-continuation gaming machines
  • Powerful tie-ups leveraging existing IPs
  • Spread and expansion of smart pachinko machine technology
  • Improved product development through strengthened related company collaborations
  • Product innovation considering regulatory easing trends
  • Stable demand in domestic gaming hall market
  • Enhanced customer experience through digital technology utilization
  • Potential for overseas market expansion
  • Response to societal demands emphasizing sustainability
  • Further fusion with anime and entertainment culture
  • Product strategies adapting to changing consumer preferences
  • Business efficiency through DX promotion

Strategic Goals

  • Maintain and expand market share as industry leader
  • Increase environmentally considerate products to over 50%
  • Develop new markets with smart gaming machines
  • Secure 5 or more new IP partnerships annually
  • Achieve industry-top sustainability activity record
  • Expand and raise awareness of products for women and youth
  • Maximize synergies among related companies
  • Establish DX-leading business operations
  • Build systems for regulatory compliance and swift response to legal changes
  • Prepare foundations for globalization and initiate overseas expansion

Business Segments

Gaming Machine Manufacturing and Sales

Overview
Manufactures and sells gaming machines and related equipment to support gaming hall operations.
Competitiveness
Innovative technology and strong brand.
Customers
  • Gaming Hall Operators
  • Agents
  • Sales Agents
Products
  • Pachinko Machines
  • Pachislot Machines
  • Gaming Hall Peripheral Equipment

Gaming Hall Store Design and Interior Business

Overview
Provides design and construction services to enhance gaming hall comfort.
Competitiveness
Total proposals leveraging industry knowledge.
Customers
  • Pachinko Shop Owners
  • New Store Development
Products
  • Store Design and Interior Construction
  • Equipment Introduction Consulting

Related Equipment Manufacturing and Sales

Overview
Provides equipment to support efficient gaming hall operations.
Competitiveness
Reliability of industry-standard equipment.
Customers
  • Gaming Hall Operators
  • Gaming Machine Manufacturers
Products
  • Gaming Ball Supply Devices
  • Peripheral Equipment

Video and LCD Development

Overview
Develops video content and LCDs for gaming machines.
Competitiveness
Advanced technological and design capabilities.
Customers
  • In-House Products
  • Related Companies
Products
  • LCD Development
  • Character Design

Game Card Related Business

Overview
Supports gaming halls through card system provision.
Competitiveness
Fusion of IT technology and gaming hall expertise.
Customers
  • Game Centers
  • Amusement Facilities
Products
  • Game Cards
  • IC Card Systems

Logistics and Transportation Services

Overview
Safe and rapid transportation services for gaming machines and parts.
Competitiveness
Industry-specialized transportation network.
Customers
  • Group Companies
  • External Warehouses
Products
  • Gaming Machine Logistics Services
  • Parts Transportation

Education and Training Business

Overview
Provides education programs for employees and the industry.
Competitiveness
High-specialty educational content.
Customers
  • In-House Employees
  • Industry Professionals
Products
  • Gaming Entertainment School

Competitive Advantage

Strengths

  • Industry-leading brand power
  • Innovative gaming machine development capabilities
  • Diverse product lineup
  • Long years of industry experience
  • Strong group of related companies
  • High-profit structure
  • Advanced R&D capabilities
  • Anime and content collaboration strength
  • Rapid product deployment responding to industry needs
  • Collaboration with wide distribution channels
  • Stable financial base
  • Pioneer in high-continuation specs
  • Differentiation through new frame technology
  • Precise market analysis capabilities
  • High-quality service provision

Competitive Advantages

  • Leading product development adapting to regulatory changes
  • Overwhelming recognition of Fever brand
  • Customer attraction through strong IP tie-ups
  • In-house production of advanced LCD and video technology
  • Abundant design and planning capabilities
  • Consistent product system coordinated with related companies
  • Expansion of ancillary services for gaming halls
  • Track record of market introduction of high-performance spec machines
  • Adaptability to diverse player demographics
  • Synergies with game cards and other ancillary businesses
  • Rapid product improvements reflecting market trends
  • Early adoption of new paradigms ahead of competitors
  • Maintenance and management of strong customer networks
  • Stable procurement and production systems
  • Efficient advertising, promotion, and marketing

Threats

  • Market contraction due to stricter regulations
  • Intense competition with rivals
  • Shrinking pachinko industry market size trend
  • Demand fluctuations from diversifying consumer preferences
  • Response burden from accelerating technological innovation pace
  • Customer loss due to health trends and changing entertainment forms
  • Risk of regulatory violations and administrative penalties
  • Rising procurement costs for raw materials and parts
  • Challenges in overseas market entry
  • Impact of economic conditions on consumption decline
  • Influence of new entrants
  • Sales pressure from market saturation

Innovations

2020: Expansion of Playtime-Equipped Machines

Overview
Launched numerous machines with industry-first playtime function to improve customer satisfaction.
Impact
Contributed to curbing customer loss and stabilizing performance.

2022: Introduction of New 'Neo Stella' Frame Technology

Overview
Developed and launched a new frame achieving high-performance displays and effects.
Impact
Achieved differentiation and enhanced market competitiveness.

2023: Expansion of Smart Pachinko Machines

Overview
Rolled out multiple user-friendly smart pachinko machines.
Impact
Successfully acquired new customer segments.

2024: Strengthened Collaboration with JB

Overview
Improved design and development efficiency through collaboration with manufacturing subsidiary JB.
Impact
Contributed to faster product development and quality improvements.

2021: Renewal of High-Continuation Spec Machines

Overview
Launched high-continuation pachinko machines compliant with new internal standards.
Impact
Improved market support and expanded sales.

Sustainability

  • Promotion of energy-saving designs in gaming machines
  • Reduction of environmental impact in production processes
  • Active contributions to local communities
  • Promotion of diverse hiring and work-style reforms
  • Strengthening of compliance systems
  • Support for corporate activities with social responsibility
  • Promotion of recycled material use
  • Product development for enhanced customer safety
  • Thorough fair trade practices
  • Employee awareness improvement through education and training
  • Introduction of effective waste management systems
  • In-house awareness activities on environmental protection