G2E: KONAMI COMMENTS

Here are some tidbits from our Konami meeting at G2E

 

  • There is more focus on video products by having a 3 reel product and a new Dynamic 5 reel product transferred to KP3 platform for all video slots
    • Dynamic 5, a duel-reel steeper that is not transmissive, has a skill stop on bonus and will be a participation product in 2Q12
  • The new slant top machines have a nice backlog
  • Fortune Chaser - Progressive product to be released in 1H12'.  Fixed fee per day of $50-60.  Konami doesn't want the game to compete on the WAP side.  Also, the game may drive their participation base.
  • Lot-A-Bucks, a 3D software-based game, has a skilled-based button on side.  Konami is learning how to use 3D in collaboration with their Playstation division.  Lot-A-Bucks will be available on a limited basis as a direct sale product.
  • Aside from Fortune Chaser, base games are all for sale unless they are linked to a progressive
  • 5 reel market is somewhat falling off.  3 reel market is approaching a replacement cycle so they are enhancing their 5 reel with lights, music, and sound.
  • Konami will have games that if you bet more, the payout increases.
  • Their iView versions go on all devices when you get a Konami system.  Senia, Grand Falls, Ohara property, Evil Mountain, and Echo Entertainment in Australia are all new systems projects.
  • 75% of their offering is sales based.  The balance is participation.
  • Through June, Konami has 15.2% of the market.  This quarter is very strong for them. Most of the video products have already met their plan of YoY growth.  They also have a nice backlog. 
  • Konami ran a volume-based discount promotion from last week of August through last Friday
  • "Trade, no trade" is a program that pays people to take things off the market.  They sometimes don't want the box back.
  • Lots of industry folks felt like WMS was too aggressive. Konami and most other suppliers will not raise prices this year.  It is not the time to anger your patrons.

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