Aristocrat packs up Japanese subsidiary

Aristocrat Leisure announced that following a strategic review of its Japan businesses it will close its subsidiary KK Aristocrat Technologies and cease the development of new pachislot games.

In a filing to the ASX, the company said it will maintain a small presence in Japan with its subsidiary KK Spiky providing support services for recent game releases.

“After thorough consideration of alternatives, and significant management effort aimed at reducing the performance volatility of the Japan business, we have concluded that our best option is to exit the Japan market,” said Aristocrat CFO Toni Korsanos.

Korsanos went on to say that the pachislot segment has become “less relevant…with no scope for value-adding creative or technical synergies.”

“In addition, increasing performance volatility, regulatory uncertainty and intensifying competition has steadily eroded our opportunity in Japan while increasing scope for management distraction.”

In its 2014 annual report for the 12 months to September 30, Aristocrat said it had incurred an AUD78-million (US$60.5-million) impairment on the valuation of its pachislot business in Japan.

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