Daikoku Denki

Basic Information

Stock Code
6430
Industry
Machinery
Category Detail
Commercial & Industrial Machinery
Prefecture
Aichi Prefecture
Establishment Year
July 1973
Listing Year
November 2002
Official Website
https://www.daikoku.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Tsuburaya Fields Holdings, Meiji Electric Industries, FuRyu, Fuji Enterprises, Heiwa, SANKYO, Mars GHD, Universal Entertainment, Oizumi, Rackland

Overview

Daikoku Denki, founded in 1973 with headquarters in Nagoya, Aichi Prefecture, is an electronics manufacturer that develops and sells gaming machine-related systems and holds the top market share in the industry.

Current Situation

Daikoku Denki recorded consolidated sales of 31.8 billion yen and net assets of approximately 33.4 billion yen for the fiscal year ending March 2023. It has strengths in systems for pachinko parlors, occupying about 40% of the domestic gaming machine-related market in Japan. It primarily handles control software for gaming machines, parlor computers, and data management systems, making it an indispensable core company in the industry. It is also advancing into the pachislot market through its subsidiary DAXEL, with ongoing maintenance and online services. In recent years, it has focused on the information systems business 'MIRAIGATE' to support customer parlor management analysis. Its financial base is solid, with established social trust through membership in the Keidanren. Recently, it has been promoting business diversification through aggressive M&A. Moving forward, it aims to solidify its position as a growth driver in the gaming machine industry, centered on technological innovation and digitalization.

Trivia

Interesting Facts

  • Industry No. 1 company with approx. 40% share in hall computer market
  • Long-term main sponsor of pachinko programs
  • Characteristic management policy applying 12-year rule for president succession from founding family
  • Pioneered real-time gaming machine data management systems in the industry
  • DK-SIS information network manages over a quarter of market gaming machines
  • Company name originates from Daikokuya footwear store founded in Osaka
  • Strengthened direct sales system with branches and sales offices in major cities nationwide
  • Has subsidiary specialized in manufacturing and sales of anime tie-up pachislot machines
  • Annually publishes industry magazine/report DK-SIS White Paper, influencing industry trends
  • First gaming industry company to join Japan Keidanren, gaining social credibility
  • Fully entered pachislot market since 2009, steadily expanding share
  • Also operates dedicated SkyPerfecTV! channel for gaming machines
  • Subsidiary DAXEL advances popular products in anislo market
  • Took over maintenance operations from defunct Nishijin, strengthening industry role
  • Provides diverse IT solutions through group companies

Hidden Connections

  • Strong group ties with major shareholder Tsuburaya Fields Holdings
  • Collaborates with multiple prominent gaming machine manufacturers on pachinko machine control system design
  • High recognition as sponsor of TV Aichi's 'Appraisal Team: What is it Worth?'
  • Has game development subsidiary, involved in digital content production within the industry
  • Conducts business deeply tied to regional economy, centered on Tokai area
  • Proprietary hall operation support system MIRAIGATE is one of the industry standards
  • Maintains influence in market information through industry specialized news delivery and analysis reports
  • Expanded gaming machine lifecycle by taking over pachislot machine maintenance business

Future Outlook

Growth Drivers

  • Advancement of gaming machines through digital transformation
  • Increasing demand for hall operation efficiency via AI and IoT utilization
  • Demand for safe and secure systems compliant with legal regulations
  • Market expansion of online-linked gaming machines
  • Stabilization of revenue sources through diversified businesses
  • Active entry into smart gaming machine market
  • Market revitalization through measures to rejuvenate gaming customer demographics
  • Expansion of environmentally considerate products and services
  • Business area expansion through M&A
  • Enhanced brand value through strengthened community collaboration
  • Creation of new services through advanced data analysis technology
  • Strengthened policy influence through Keidanren participation

Strategic Goals

  • Further share expansion in gaming machine control and hall information systems markets
  • Establishment of next-generation hall operation support using AI and big data analysis
  • Promotion of environmental impact reduction and sustainable product development
  • Group company management integration and maximization of synergy effects
  • Achieve sales exceeding 50 billion yen through new business development
  • Provision of customized products and services responding to diverse customer needs
  • Entry into new markets through overseas expansion
  • Strengthening sustainable talent development and organizational revitalization
  • Continuation and expansion of community contribution activities
  • Contribution to industry digitalization promotion and ecosystem formation

Business Segments

Gaming Machine Manufacturing Contract Development

Overview
Business specialized in design and development contracts from gaming machine manufacturers.
Competitiveness
Industry-leading technical expertise and reliability
Customers
  • Gaming machine manufacturers
  • Pachinko parlor operators
  • Entertainment businesses
Products
  • Control software development
  • Hardware design
  • Embedded systems

Hall Information System Provision

Overview
Provision of information management and analysis systems necessary for parlor operations.
Competitiveness
Industry-leading data accumulation and usability
Customers
  • Pachinko parlor owners
  • Gaming-related service providers
Products
  • Hall computers
  • Operation analysis systems
  • Network management

Marketing and Customer Management Support

Overview
Supports marketing to customer management for the gaming machine industry.
Competitiveness
Analytical capabilities based on extensive customer data
Customers
  • Pachinko parlors
  • Advertising agencies
  • Development manufacturers
Products
  • Membership information management
  • Advertising delivery platform
  • Customer analysis services

Online Media and Content Provision

Overview
Operates online media and content specialized for the gaming industry.
Competitiveness
Content planning capabilities unique to a dedicated operator
Customers
  • Gaming parlor employees
  • Gaming fans
  • Pachinko-related businesses
Products
  • Pachi-Slot Site Sevens TV
  • Specialized news delivery
  • Video content

Maintenance and Support Services

Overview
Provides installation, maintenance, and support services for gaming machines and related systems.
Competitiveness
Rapid response based on long years of industry experience
Customers
  • Gaming machine manufacturers
  • Parlor operators
Products
  • Gaming machine maintenance
  • System operation support

Competitive Advantage

Strengths

  • No. 1 in hall computer market with approx. 40% share
  • High technological capabilities in gaming machine control systems
  • Extensive know-how in gaming data management and analysis
  • Strong customer base and stable financial position
  • Diversified revenue sources through multifaceted business expansion
  • Business growth through aggressive M&A
  • High social credibility including Keidanren membership
  • Deployment of operation support network 'MIRAIGATE'
  • Strengthened integration of information systems and gaming machine development
  • Product and service expansion through wide range of subsidiaries
  • Brand strengthening via pachinko dedicated channel operation
  • Stable management respecting the founding family's philosophy
  • High capability in adopting latest technologies and proprietary development
  • Long-cultivated industry track record and trust
  • Nationwide sales and service network

Competitive Advantages

  • Exclusive market position in parlor computer systems
  • Strong provision of information systems specialized for parlor management analysis
  • High technology and flexibility in control systems for gaming machine manufacturers
  • High revenue stability due to diversified business model
  • Rapid business area expansion and technology acquisition via M&A strategy
  • Service deployment leveraging strong parlor network
  • Analytical capabilities from long-accumulated gaming machine data
  • Product integration across gaming machines and hall systems
  • Industry information dominance through gaming machine specialized media operation
  • Reliable expansion and nurturing in pachislot machine market
  • Enhanced customer response with stores and branches in major cities nationwide
  • Improved external credibility and network expansion through Keidanren participation
  • Enhanced product competitiveness through proactive adoption of advanced technologies
  • High customer satisfaction and comprehensive support system
  • High expertise in niche fields

Threats

  • Market shrinkage risk due to stricter gaming industry regulations
  • Competition with speed of product development from emerging technologies
  • Suppression of parlor equipment investment due to economic fluctuations
  • Delay in industry's digital transformation
  • Declining gaming population trend due to aging and low birthrate
  • Intensifying technological innovation and price competition from rivals
  • Business constraints from legal compliance and social criticism
  • Supply chain instability due to geopolitical risks
  • Delayed response to rapid changes in customer needs
  • Increased burden from strengthened personal information protection regulations
  • Continued decline in parlor operations due to COVID-19 impact
  • Service interruption risk from external system failures

Innovations

2024: Strengthening system development through acquisition of subsidiary Stadd

Overview
Acquired Stadd under Logon Systems to expand development capabilities.
Impact
Enhanced development resources and promotion of new technology introduction

2024: AI-utilizing parlor operation support via MIRAIGATE

Overview
Introduced hall operation support system incorporating AI analysis technology.
Impact
Improved parlor management efficiency and customer satisfaction

2023: Development of network-linked new pachislot models

Overview
Launched 6.5-type PB machine using Net Corporation cabinets.
Impact
New market development and brand expansion strengthening

2024: Strengthening collaboration through third-party allotment investment in Nanaba

Overview
Capital participation in dining-related company Nanaba to advance diversification strategy.
Impact
Expansion into new business areas

2022: Making Global Wise a subsidiary

Overview
Acquired IT systems-related company to expand service areas.
Impact
Strengthened IT technology and acquired new customers

2020: Expansion of pachislot-linked online content

Overview
Strengthened planning and development of gaming machine online services.
Impact
Expanded customer base and built new revenue models

Sustainability

  • Promoting work-life balance to improve working environment
  • Developing energy-saving products to reduce environmental impact
  • Educational and cultural support activities for local communities
  • Efforts to reduce plastic usage
  • Strengthening information security and personal data protection