Konami Gaming profit drops as tariffs hit cabinet sales

Konami’s Gaming and Systems division endured a difficult period, reporting a sharp year-on-year drop in profitability for the nine months ending 31 December 2025. Segment business profit fell 61.4% to approximately JPY1.82bn ($11.89m), even though revenue declined by a comparatively modest 5.7% to JPY28.71bn ($187.62m).

Margins were squeezed by rising costs linked to US tariffs, combined with operators delaying purchases ahead of Konami’s next-generation cabinet launch. While activity in North America and Australia remained broadly stable, intense competition for casino floor space continued as rival manufacturers accelerated new slot releases.

In response, Konami introduced the Solstice cabinet range, its first major hardware refresh in nearly six years, designed to reinvigorate operator demand. Alongside hardware, the company expanded deployments of its SYNKROS casino management system at several California properties and onboard cruise ships. Facial recognition capabilities were also extended beyond slot machines to table games, enabling more comprehensive player insights. Meanwhile, Konami Online Interactive made its debut as the group sought to strengthen its position in the increasingly crowded iGaming market.

Tariffs and Delayed Purchasing Hit Margins

Higher US import tariffs coincided with cautious buying behaviour, creating a challenging environment in which even slight revenue pressure translated into a steep profit decline. Operators across key regions opted to wait for Konami’s new cabinet offerings before committing capital, particularly as competitors continued to roll out fresh titles.

The Solstice platform introduces updated design and configuration flexibility aimed at reclaiming floor presence. At the systems level, SYNKROS continues to support operational efficiency across diverse environments, from land-based casinos to maritime gaming floors. The expansion of facial recognition into table games further strengthens Konami’s data and loyalty capabilities without disrupting the player experience.

Digital Businesses Drive Group Performance

Despite weakness in the Gaming and Systems unit, Konami’s broader business delivered record results for the second consecutive year. Group revenue rose 13.6% to JPY353.02bn ($2.3bn), driven largely by Digital Entertainment, which climbed 16.3% to JPY266.2bn ($1.74bn) on the back of sustained engagement with key titles.

Group profit also increased 17.8% to JPY74.34bn ($485.86m), highlighting how diversification across digital and entertainment segments helped offset softness in casino-focused operations.

Upgraded Outlook Signals Confidence

Konami revised its full-year forecast for the fiscal year ending March 2026, lifting revenue expectations to JPY468bn ($3.06bn). Profit attributable to owners is now forecast at JPY86bn ($562.01m), exceeding both earlier guidance and the prior year’s result.

Within Gaming and Systems, revenue guidance remains at JPY43bn ($281.01m), slightly above last year, while segment profit is expected to decline to JPY5bn ($32.68m). The company is relying on new product rollouts to support a recovery in performance.

Global Expansion and Product Focus Continue

Konami signalled a renewed emphasis on strengthening its slot portfolio, systems capabilities and iGaming offerings amid intense global competition. Specialty markets remain a focus, while the company’s gaming vendor licence in the UAE positions it for future opportunities ahead of Wynn Al Marjan Island’s planned 2027 opening.

Although slot-related challenges persist, Konami’s digital momentum and expanded international footprint provide stability as the Gaming and Systems segment works toward recovery.