Tsuburaya Fields Holdings Inc. is partnering with Daikoku Denki Co. to develop AI-powered pachinko machines and attract new players, as the Japanese entertainment company grapples with declining sales.
The Tokyo-based company reported that first-half profit fell 31% to ¥2.82 billion ($18.8 million), while revenue dropped 32% to ¥45.8 billion. The decrease was primarily driven by lower pachinko and pachislot machine sales, which fell 61% to 48,636 units.
The alliance with Daikoku Denki, a major supplier of information systems to pachinko halls, aims to leverage AI and market analysis expertise to develop new machines and enhance player experience. Tsuburaya Fields owns about 20% of Daikoku Denki’s shares.
The company’s content division showed stronger performance, with overseas merchandise licensing revenue rising 35% to ¥3.17 billion, driven by growth in China. The Ultraman franchise continues to expand globally, with its new Netflix film ranking second globally during its release week.
Tsuburaya Fields maintained its full-year forecast of ¥155 billion in revenue and ¥11.6 billion in profit, betting on stronger machine sales in the second half and continued growth in its content business.
