Konami announces strategic company split for arcade and pachinko units

Published 15/05/2025, 07:20
Konami announces strategic company split for arcade and pachinko units

TOKYO - Konami Group Corporation (Tokyo and London Stock Exchanges:9766.T and KNM.L) has declared a reorganization of its business structure, as reported on Thursday. The Japanese entertainment conglomerate will execute an absorption-type company split, transferring part of its subsidiary Konami Amusement Co., Ltd.’s operations to a newly formed entity, Konami Arcade Games Co., Ltd.

The decision, made by Konami’s Board of Directors today, is set to take effect on October 1, 2025. The move aims to create separate, highly focused entities for arcade games and pachinko and pachislot machines, each with its own dedicated management team. This strategic reorganization is designed to foster quicker and more effective responses to the rapidly evolving market environment surrounding these businesses.

Konami Arcade Games will be established on June 2, 2025, and will take over the arcade game business currently under Konami Amusement. The company split is scheduled for execution on June 16, 2025. As part of the internal reorganization within wholly owned subsidiaries of Konami Group, no shares or other forms of consideration will be exchanged.

This restructuring is intended to accelerate decision-making processes and enable more flexible management that aligns with the distinct characteristics of each market segment. The goal is to drive further growth and expansion for both the arcade and the pachinko and pachislot businesses. However, manufacturing and logistics functions will remain centralized within Konami Amusement to maintain operational efficiency across the Group.

Konami has stated that the financial positions of both the splitting and the succeeding companies are expected to remain robust post-split, with no anticipated issues regarding the fulfillment of obligations.

The impact of this reorganization on Konami’s consolidated financial results is projected to be minimal. The company has issued a cautionary statement regarding forward-looking statements, reminding stakeholders that actual results may differ materially due to various factors including economic conditions, currency exchange rates, and market acceptance of new products.

This business move is based on a press release statement from Konami Group Corporation.

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