“We have to build a game with the right capabilities for millennials”

What products did you introduce at the 2015 G2E? What was the feedback from attendees?

We launched our brand new cabinet, Concerto, which features dual 27-inch high-definition touch screen monitors along with enhanced KP3+ platform processing power, a 19.5-inch video topper, and a proprietary new DynamicDash button panel. The Concerto was designed to incorporate specific customer feedback and is characterized by its ability to attract and entertain casino patrons.

We also debuted Frogger, a classic that leverages part of Konami's digital entertainment IP library. I'd challenge anyone to play Frogger and not smile! This title has universally made people smile. Most people remember playing Frogger in video arcades when they were young, and Konami has transformed the game so that people remember the experience they had when they played it years ago.

In addition, we showcased our new Rapid Revolver titles, combing video reels on the bottom screen with vertically-mounted mechanical reels on top that fluidly interact. These products—plus a host of brand new titles—were the stars of our G2E booth, and the response to them was phenomenal.

Podium has been a successful cabinet for Konami for so many years, and Concerto is our first refresh of our core cabinet in about six years. People were truly excited, as they understand that they're going to get great Konami content.

Millennials have been a hot topic for quite some time. Why is attracting and engaging younger audiences more of a challenge for the gambling industry?

The challenge of attracting millennials may exist because the existing product doesn’t resonate with millennials. Perhaps the millennials have different focuses and ideas. To solve the problem, it's not about the millennials themselves, but about understanding what motivates them. Millennials have different needs than our core demographic. At Konami, we're evaluating what motivates the millennials to figure out how to best interest them. And that is part of why the industry has passed such regulations as SB9 in Nevada, to open up gaming from being a simple, reel-spinning game to involving certain levels of skill.

Millennials may enjoy playing skill-based games but only if we build the right skill-based game for them. Is it just in the nature of skill-based? Is skill-based going to attract millennials simply inherently? No. We have to build a game with the right capabilities for millennials. The first step to do so is to understand their gaming needs.

Skill-based gaming in the U.S.

“Once States see success in skill-based gaming for one jurisdiction, other jurisdictions will start to follow. It has taken a lot of time, but I do think this time will happen quickly. However, the industry should be cautious not to be too aggressive on this. We were once very aggressive in pushing server-based gaming as a solution to driving revenue, and it was overhyped. Skill-based gaming is not just a way to attract a millennials, but a way to improve our existing core base so that patrons want to play more and enjoy an exciting experience. Frogger works perfectly both as a gaming device and, who knows, when skill is allowed we could translate it into a skill-based game,” Walther stated.

Nevada revenue down

“The focus here should be on how people are spending their money based on the impact of the global financial crisis and other factors. Casino venues have been investing tons of money outside the gaming space—adding better hotel rooms, shows and restaurants to increase revenue. Nowadays, every celebrity chef has a restaurant in Vegas. Twenty years ago, it all went to gaming because food and beverage was for a loss leader. Things have changed since the addition of great rooms, clubs, restaurants and entertainment. We must not forget that Las Vegas is an entertainment destination and while gaming revenue may be declining, people are still spending in Las Vegas. Our challenge is to continue to build gaming products that provide the entertainment people want to seek out when they come to Las Vegas or any of their regional casinos,” Walther noted.

Atlantic City

“Atlantic City is suffering for reasons of not remaking itself like Las Vegas did to handle regional competition. There’s a direct correlation in the decline of Atlantic City once regional markets around it started opening up. The competition hurt Atlantic City because it was not able to adapt as fast as Las Vegas did. With the reduction in the number of venues in Atlantic City, we are hopeful that business will improve for the remaining operations and bring a resurgence to the Boardwalk,” Walther concluded.