Gaming Giant Konami Facing Challenges Due to US Tariffs
Konami Group Corp has reported a significant decline in revenue in its gaming and systems division for the first fiscal quarter. The main reason, according to the company, is challenges stemming from US tariff measures and rising raw material costs.
LISTEN TO THIS ARTICLE:For the three-month period ending June 30, the company's gaming and systems segment, which includes casino slot machines and floor-management systems, recorded revenue of just over JPY7.51 billion (US$50.2 million), representing a 22.5% year-on-year decrease from the JPY9.70 billion (US$65.96 million) reported in the same quarter of the previous year.
Related: Konami Secures UAE Gaming-Related Vendor LicenseThe downturn in this division contributed to a business loss of JPY166 million (US$1.13 million) for the quarter, a stark reversal from the JPY1.28 billion (US$8.7 million) business profit posted during the same period in 2024. Konami attributed the weakened performance in part to increased raw material prices and adjustments in shipment schedules due to recent US tariffs, which disrupted the company's international distribution plans.
Despite these headwinds, the company reported that the gaming markets in North America and Australia remained stable during the reporting period. Konami Gaming Inc., based in the US, and Konami Australia Pty Ltd continue to serve as the company's primary operational arms outside Japan, distributing slot machines and related systems in key global casino markets.
In the area of product development, Konami reported active sales of its Dimension 49 and Dimension 27 slot machines. The Dimension 49 features a 49-inch ultra-high definition portrait display, while the Dimension 27 combines three 27-inch monitors. Both products are part of the company's strategy to offer visually compelling hardware to enhance player engagement on casino floors.
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Gaming Content Deliver Strong Results
Konami also saw a solid performance from its gaming content. The Falling Coins Link series demonstrated steady results in the North American market, according to the company. Meanwhile, the Crazy Stuffed Coins series, noted for its elaborate visual effects such as golden coin animations, was described as being well received by players and operators alike. In Australia, the Fortune Hearts series maintained its popularity among casino patrons.
In addition to gaming machines, Konami continues to expand its presence in casino systems through Synkros, its casino management platform. During the reporting quarter, Synkros was installed in multiple land-based casinos across Illinois and New Mexico.
The company stated that the system's reliability remains a key factor in its widespread acceptance among casino operators. Furthermore, Konami expanded its Synk Vision facial recognition technology, initially developed for slot machines, to table games, aiming to improve operational efficiency and customer convenience.
While the gaming and systems segment experienced financial strain, Konami's broader business operations posted growth. Overall group revenue for the three-month period rose 7.7% year-on-year, reaching just over JPY96.96 billion (US$659.33 million).
In addition, net profit for the company increased by 3.5%, amounting to JPY19.83 billion (US$134.84 million), reflecting solid performance in other business units such as digital entertainment, pachinko machines, and sports-related services within Japan.
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