Tech budgets to remain under pressure in 2016, Aristocrat to gain share

Thursday 24th of September 2015

The technology budgets of the world’s major gaming suppliers are expected to remain under pressure next year, though Aristocrat is likely to continue gaining market share, according to a report from analysts at Wells Fargo.

The note said analysts met with numerous slot managers in recent weeks ahead of the Global Gaming Expo in Las Vegas, where many are expected to debut new products.

Some of the main takeouts were that slot technology continues to converge and it’s becoming increasingly difficult to identify the next big thing.

The analysts expect a solid lineup of new products, but no radical new technology.

The much-vaunted skill-based slot machines will still take several years to develop and therefore are likely to be “evolutionary” rather than “revolutionary,” it said. There are some regulatory issues and difficulty developing a revenue model.

“We understand IGT is quite advanced in developing skill-based games, and helped develop the regulatory framework,” it said.

Aristocrat’s premium games--including Sons of Anarchy, Britney Spears and Big Bang Theory—all received high praise from operators, while there is considerable anticipation for the company’s new Arc Cabinet at this year’s show.

Wells Fargo also said there’s growing excitement around IGT’s 3D Wheel of Fortune game, which will be featured on Spielo’s 3-D Sphinx technology. “We note that the company hasn’t yet publicly revealed the product; though we expect it to debut at next week’s show.”

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