The fact that IGT has lost market share is not new news. Those share losses have been concentrated on the video side. The hottest new industry product in the stepper segment has been the 5-reel spinner. We spoke to a number of slot managers and other industry participants, including our consultant, and IGT does not appear to be faring well competitively here either. BYI and Konami 5-reel steppers seem to be getting better play. Konami is probably the biggest surprise. 5-reel steppers will not make or break IGT’s future, but IGT’s performance in yet another key new game category is discouraging. As I’ve written about before, IGT needs to rationalize its R&D. Too much was spent on server based gaming systems and not enough on new game development. Look for an R&D shake up as part of a larger corporate reorganization.
Konami 5-reels generating higher play levels than IGT in many casinos