Japanese gaming equipment maker Sankyo Co. reported a sharp decline in quarterly profit as sales of its traditional pachinko machines dropped significantly in the second quarter.
Net income fell 20% to 26.2 billion yen ($175 million) in the quarter, while revenue decreased 22% to 90.7 billion yen. The Tokyo-based company’s core pachinko machine business saw sales plunge 54% to 37.9 billion yen, with unit sales halving to 83,000 machines from 167,000 a year earlier.
The weaker performance stems from fewer new game releases and tough comparisons with last year’s successful Gundam SEED title, which sold over 50,000 units. However, the company’s pachislot segment proved to be a bright spot, with operating profit more than doubling to 23.2 billion yen on strong demand for titles like “Love is War” and “Symphogear Song of Justice.”
Looking ahead, Sankyo projects full-year profit to decline 22% to 42 billion yen on sales of 180 billion yen. The company has achieved 63% of its annual profit target at the halfway mark, suggesting its conservative outlook despite the growing popularity of its pachislot machines.
