SANKYO CO., LTD.

Business Details

The primary revenue sources are the manufacture and sale of pachinko machines, Pachinko Machine Gauge Boards, and related parts, along with associated royalty income. Group companies including SANKYO Co., Ltd., Bisty Co., Ltd., and JB Co., Ltd. work in coordination to supply products to parlors (halls) under a two-brand structure comprising the SANKYO brand and the Bisty brand. In FY2026 (ending March 2026), the company launched 9 new titles, achieved a unit sales share of over 30%, and secured the top share in the industry for the fourth consecutive fiscal period.

Recent Overview

With 9 new titles launched, unit sales reached 251 thousand units and the top share was secured for the fourth consecutive fiscal period, with increased sales and profit.

In FY2026 (ending March 2026), the Pachinko Machine Business achieved sales of ¥119,809 million (up 11.2% year-on-year) and segment profit of ¥49,386 million (up 12.7% year-on-year), representing increased sales and profit. The company actively introduced models equipped with "Lucky Trigger 3.0 Plus" as well as new tie-up models such as "e-Fever Blue Lock" and "e-Neon Genesis Evangelion," securing unit sales of 251 thousand units (up from 224 thousand units in the prior period). The company achieved a unit sales share of over 30%, securing the top industry share for the fourth consecutive fiscal period. On the other hand, the order backlog declined sharply to ¥12,204 million, down 48.0% year-on-year, and unit sales for the next fiscal period are projected to decrease to 225 thousand units compared to the prior period. The company is also working to revitalize the market and ease the burden on parlors of introducing new machines through the new pricing policy "SANKYO Yell Price."

Key Products

Growth Drivers

• Expansion of unit sales (251 thousand units, up 27 thousand units year-on-year) driven by large-scale tie-up models such as "e-Fever Blue Lock" and "e-Neon Genesis Evangelion ~ Memories of the Beginning ~"
• Progress in the adoption of Smart Pachinko Machines and contribution to market revitalization through new gameplay features such as "Lucky Trigger 3.0 Plus"
• Diverse product lineup development and approach to a broad customer base through the two-brand structure of SANKYO brand and Bisty brand
• Stable order base and negotiating power resulting from maintaining the top industry share (unit sales share of over 30%) for four consecutive fiscal periods
• Market revitalization and improved sales competitiveness by reducing the burden of new machine introduction on parlors through the new pricing policy "SANKYO Yell Price"
• Cost reduction and maintenance of high profit margins (41.2%) through parts standardization, improved recycling rates, and development efficiency
• Efforts toward market expansion through acquisition of new fans and reactivation of dormant fans via initiatives such as the "KUGITAMA Project"

Risks

• Expected decline in unit sales for the next fiscal period (FY2027 plan: 225 thousand units, down from the prior period) due to stricter machine selection by parlors and a more cautious stance on the number of units introduced
• The order backlog declined sharply to ¥12,204 million, down 48.0% year-on-year, creating a downward pressure on sales for the next fiscal period
• Overall pachinko market operating conditions remain sluggish, and even models equipped with "Lucky Trigger 3.0 Plus" have not led to overall market revitalization
• Risk that the impact on unit selling prices from the promotion of the new pricing policy "SANKYO Yell Price" could put pressure on sales and profit in the next fiscal period
• High risk of earnings fluctuation depending on the success or failure of the title lineup, requiring continuous creation of hit models
• Fan population has not seen a substantial increase, and expanding the fan base remains an ongoing key challenge for sustainable market growth