The gaming market is shifting, from niche to global brand, said Michael Moritz, co-founder and chief executive officer of Pinball.
He said the new “M-rated” category has more than doubled in volume in just two years and will be more than triple in volume by 2020.
“There are a lot of pinball machines that are becoming more mainstream, and a lot that are being sold in more and more of the world,” Moritz said.
That’s a sign of success for the company, which started as a small pinball shop in Brooklyn, N.Y., in the 1970s.
The company was founded by two brothers in 1993 and now has more customers than any other pinball company.
Its brands include Pinball Magic and Pinball Machine, and it is the only pinball manufacturer with a global presence.
As of July 2020, the company was in the process of relocating from Brooklyn to its new facility in Las Vegas, Nevada, where the company is building an 800,000 square foot gaming center.
The company said the shift to the M-rated category is part of a broader shift in the industry.
Pinball Machines in the M category now sell for $1,400 or less, compared with $1.5 million in 2011, the latest year for which figures are available, according to Pinball Machines.
At the same time, the number of machines sold in the category increased from 3.2 million in 2012 to 4.4 million in 2020.
Pinball machines in the G category are now selling for $3,500 or less compared with a high of $5,000 in 2011.
Moritz said the move to the new category was “a very good thing.”
“This is a game that has a long history and is very important to the consumer,” he said.
The move is also a positive development for the industry, which has seen its share of the market decline from more than 20 percent in 2009 to 6.4 percent in 2019.
In addition to the move, Pinball Machines is looking to diversify its portfolio to include more products, he said, including a new line of bowling balls.
Moritz and his brother are also investing in other games.
Pinball Machines plans to launch a new online game in the next few weeks that will allow users to compete in online multiplayer tournaments, which can be played on mobile devices and other devices.
The new M-category is not the only change coming to the company.
On July 5, Pinball Machine said it was taking a $5 million buyout from a Chinese company called Pinball China.
The company did not say how much it will buy, but it is expected to be worth about $3.5 billion.
Pizza Hut is also taking a stake in Pinball Machines as part of an $8.7 million buyback.
The deal also includes a $500 million investment from former owner of the Los Angeles Dodgers, Peter Angelos, in 2020 and 2021.
As part of the deal, Pinball is acquiring Pizza Hut’s arcade, the largest gaming machine factory in the country.
The investment in Pinball will help drive revenue growth, Moritz noted.