Key Moments:
- Konami Group Corporation’s Gaming & Systems segment saw profits fall 60.1% in the first half of 2025 compared to the same period last year
- Segment revenue dropped 4.5% to JPY17.76 billion (approximately US$115.23 million)
- The company received a gaming vendor license in the United Arab Emirates, aligning with new regional expansion efforts
Financial Overview
Konami Group Corporation reported a significant contraction in profitability within its casino-focused business during the first half of 2025. The Gaming & Systems segment, which includes product lines such as casino slot machines and floor management systems, delivered a profit of JPY949 million (US$6.16 million) over the period. This represents a sharp 60.1 percent decline from the prior year’s comparable period. Revenue within the segment declined by 4.5% year-on-year to JPY17.76 billion, or about US$115.23 million.
The company cited increased U.S. tariffs and a cautious approach from customers awaiting the Solstice gaming cabinet launch as main contributors to this downturn.
Competitive Market Forces
While Konami noted that markets in North America and Australia remained stable overall, the company observed ongoing pressure from frequent product introductions by rival slot machine manufacturers. This intensified competition has made it more challenging for Konami to maintain or expand its market share, especially as new entrants bring innovative offerings into the space.
Strategic Actions and Product Development
In response to these challenges, Konami is accelerating its work on new slot machines, enhanced game content, and advancements to its casino management systems. The company highlighted the Solstice cabinet, which was introduced globally at the Global Gaming Expo in Las Vegas in October 2025, as a crucial product to drive future sales growth. Additionally, Konami is placing emphasis on expanding its reach into Specialty Markets and iGaming platforms to diversify revenue streams.
Recent Global Expansion Efforts
Konami has extended its footprint into the United Arab Emirates, obtaining a gaming vendor license. The UAE is preparing for the launch of the integrated resort Wynn Al Marjan Island in 2027, potentially offering new avenues for Konami’s gaming-related products and services.
Navigating Headwinds With Innovation
The pronounced setbacks in the casino segment have been offset, in part, by growth across other divisions, notably in digital entertainment. Konami regards ongoing innovation and new market creation as pillars of its strategy to restore momentum. The company’s approach focuses on timely responses to market developments and diversification, aiming to ensure ongoing stability and growth despite recent profitability challenges.
| Segment | Profit (First Half of 2025) | Year-on-Year Change | Revenue | Year-on-Year Revenue Change |
|---|---|---|---|---|
| Gaming & Systems | JPY949 million (US$6.16 million) | -60.1% | JPY17.76 billion (US$115.23 million) | -4.5% |
- Author
Daniel Williams
