G2E: WMS NOTES

Some detailed notes from meetings with WMS at G2E

  • The new product is performing at a better level than their old product.  Have more new products.  Over 100 new titles.  80 of them are on the new platform.
  • When will they produce cash?  They took the time to invest in their business.  This year, they are investing in interactive.  Have an opportunity to provide more transparency and milestones on how much they will invest in interactive on the call.
  • Five cabinet configurations now and launching five new ones on their new operating systems.  5th cabinet is their poker platform launching at STN's and CZR's.
  • How do they fill the gap between now and when the new cabinet comes out?  Pricing discounts - G2E specials targeted at bridging the gap.  Took four quarters after BB2's launch to reach 50% of sales.  In theory, ASPs will go up after the launch of the new cabinet.
  • No product sales guidance for FY13': "could be lumpy" because of IL and Canada which have lower price points
  • Where is WMS in IL?  Gaming control board going through beta test phase.  Once that's over, operators can place games at approved locations.  Have an agreement with Betsson and going direct with others.  Betsson units will be for sale.  Others will be operating leases.  Thinks that they can get upper teens/ low 20s share when it's all said and done.  
  • Canada:  Alberta - ordered 2000 units - WMS got 500 of those - will be in the September Q
  • Manitoba and BCLC (got an award) 
  • Oregon state lottery - will be at the proposal stage soon
  • Class II:  teamed up with Blueberry technologies initially to service class 2.  They now have integrated that system with their CPU Next system. 
  • Consolidation?  Unidesa is selling their slot ops to Novamatica.  Doesn't think that there is anything imminent among the Big 5.
  • Blade I - March 2013 release initially - will have 15 titles
  • Aladdin is doing well for them.  Super Team hasn't done as well.  New Lord of the Rings is doing well.  New Wizard of Oz is doing well.  
  • The Kiss games get approved this Q 
  • Spiderman in March and Willy Wonka in June Q. 
  • Thinks that participation yields have stabilized 
  • Wizard of Oz was performing very well, though not where it was 
  • Macro view on WAP/Participation market:  % of their install base that's remained WAP is still 36-38%.  Have turned the tide on the declining install base.  Have more participation titles in their booth than IGT at this year.  They are making some headway.  Doesn't think that they have hired anyone from IGT.  At this show, IGT did more internal vs external development.
  • CPU 2 strategy:  will still create content for the next 3 years.  If you buy a BB2 now, then you get a free upgrade to the CPU3 in a year.  They stripped down their games to bring them back to the basics that worked before.  Stripped out the noise from the games.  Took out the "bank" strategy with a new look so every game has a new look.  These games are targeted towards the gamer.  The WAP games are for the more casual player that wants to enjoy time on device.
  • Have double money burst (similar to IGT's DUO).  Very volatile experience. 
  • Colossal Reels did well out of the gate.  Now when they have a hit, they "fast track" new content for those boxes.
  • Spiderman is a follow up to Aladdin.  Hoping to capture a younger player with Spiderman
  • Willy Wonka - hope that this will be the next Wizard of Oz 
  • Monopoly refresh on the the xD.  Not too many original Reel 'Em Ins! on the floor - relaunching the brand.
  • Wheel on the Cheers game and Monopoly money.  Game of Life is doing really well - Craps-like features.
  • BBxD for their poker game.
  • How big will the poker launch be at CZR and STN?  Licensed names from Double Double Poker (IGT) and Deuces Wild.  Launching in September with Stations.  Stations is committed to keeping them on the floor for a year.
  • The new game field cabinet.  Looks like a pinball machine.  First games are progressives.  No buttons.  Available in FY4- May 2013 and Wizard will come out on this platform in February.
  • Blade:  looks like the Veridian cabinet.  Addressed some customer complaints:  wager saver (when customers are down to small change- they can get one last spin- win or lose or just cash in).  When there is petty cash left on a ticket, it's a pain for customers.
  • Bonus Guarantee:  guaranteed to give players a 10x on their win.  Giving players a small win even if they lose.
  • The participation stuff looks good but are very back end loaded (Q4)
  • Everything on the floor is ready to go this fiscal year
  • Have a 25% increase in mathematical product that is unique.  Only a handful of clones for the fast track games that are hot (can get out in 4-6 months).
  • Gamefield xD (pinball game):  can do more with the game because there is more within the players' line of vision
  • Sensory immersion 2.0 cabinet/chair:  Willy Wonka and Spiderman
  • MyPoker:  working on it for 3 years.  Comfort of the game is really unique.  Players can also save their configuration.  When the player puts their card in, they are automatically logged into Player's Life.
  • Blade:  aside from a new look; the fluidity of play is second to none.  Had multiple repeat visits from their customers to see the product again, which is a good sign.

WMS Product Details from the G2E Booth

  • All of the Blade stuff is CPU NXD 3 system
  • KISS game:  can change songs while playing.  They are trying to do more music themes in general since Michael Jackson is such a hit. 
  • Yahtzee: Q1 2014
  • New Lord of the Rings:  42" top screen.  Very successful license for them.  These are entertainment products - i.e. more time on device.
  • Gamefield xD: everything on the machine in players peripheral view.  32". Thinks that this is the key differentiator for WMS. Also really comfortable. First games come out March time frame. Wheel bonus feature
  • Cheers: new franchise for them. Also a wheel topper. 80/20 pricing.
  • Monopoly Legends:  integrated 4 themes of Zeus, Reel 'em In!, Jackpot Party, and Goldfish for the bonus round.  Also has a wheel.  Q4 release.
  • Willy Wonka:  thinks that this is the best game they've made in a long time.  Should appeal to the Wizard of Oz crowd.  Lots of motion on the chair.  Graphics were really great.  WAP game.  Q4 release.
  • Spiderman:  brand new license for them.  For any spin, you can get up to 8 wheel arrays.  Q3 release.  WAP game.
  • Price is Right:  they learned that they put too much into the first 2 versions.  Just focus on the singular game in Price is Right.  In each bonus, you are guaranteed to win one of the progressive bonuses.  Plinko is doing well - out the last few months.  This is the follow up to Plinko.  Q4 release.
  • Godfather:  second product in this line.  3 reel mechanical:  can also go as a video.  Clone of Lord of the Rings-The Fellowship.  Lord of the Rings that is out on the floor is one of their better participation WAP titles.  Original didn't do well.
  • MyPoker:  multi-game video product.  One of the reasons that IGT players stop playing is because they get tired of sitting - games not comfortable. 
  • For sale:  Colossal Reels:  this one has been a big hit.  Have five more versions out.  The math is just good.  High volume game.  8 total titles.
  • Portal applications:  still supporting it.  Not doing well.
  • Networked gaming: 
    • Remote configuration and download /portal app
    • They have 60 installs in NA and some international ones too
    • Sent companies a DVD with all the titles.  Allows customers to pay a subscription plan to their library.
  • Williams Interactive:
    • Partouche, Jadestone, Phantom EFX, and 888/Dragonfish alliance
    • Phanton has the #3rd best monetization and 5th largest Facebook play for fun game