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As business owners and marketers, we constantly need to be aware of changes in our marketplace and in our world.  Our financial survival depends on being quick to make the neccessary corrections to our marketing plans, the way we handle our business or the relationships we manage.  We face many challenges every day in every facet of  our businesses and we must learn to adapt and change as our business environment evolves… if we fail to read the signs on our financial horizon, we face the challeges of buggy-whip manufactures or of Sony with their BetaMax or maybe of the pinball industry.  This article is an interesting insight into the growth and decline of an industry; will it provide a view into your future?

Having survived a couple of World Wars, countless recessions, the indignation of lifestyle police, and most recently the video game phenomenon it appeared that pinball was just too tough to kill. That’s why it was a surprise when WMS Industries, the dominant player in the industry for the past decade and the maker of Williams and Bally machines, announced that it was getting out of the business several years ago. WMS wasn’t in any sort of financial peril, but rather they wanted to focus on their more lucrative slot machine and video poker business.

At one point, pinball dominated the arcade. During the mid to late 1970s and on the heels of the movie version of the Who pinball themed rock opera Tommy arcades nationwide featured row upon row of gleaming new machines from one of over a half dozen US manufacturers (with many others made worldwide). The first salvo of the video game industry was fairly innocuous”Pong didnt do much to dent pinballs popularity since it didnt exactly offer the same immersive challenge. Besides, it took two to tango when it came to Pong, so that game and its progeny had more of an impact at the home level (and paved the way for what would become a huge industry). The first challenge to the popularity of the pinball machine in the arcade began with Midways Space Invaders and Ataris Asteroids. These games could be played alone, and offered the same sort of escapism that pinball provided. For the arcade owner, these games took up less space, required less maintenance, and offered a higher customer turnover.

Pinball put up a good fight, and popular games continued to appear through the mid 1980′s. Several pinball games were actually spinoffs of popular video games–”Spy Hunter and Space Invaders and a number of not so good ones based on the Pac Man video games. For awhile, pinball and video games enjoyed an uneasy co-existence, much like Mac and Windows in the computer world.

It was the late 1980s”when video games became more technologically advanced and began to offer superior play experiences”that pinball lost its way. Depending on the manufacturer, they did it in different ways. Gottlieb and others made simple, traditional games that just couldnt compete with their video counterparts. Bally and other manufacturers went the opposite route”by cramming so much onto a playfield that the game hardly resembled traditional pinball. Some of Ballys late 1980s games”with so much playfield gimmickry going on”were nearly unplayable. By this point the video game had taken over the arcade. Some larger arcades continued to offer a few pinball machines to placate hardcores, while some eliminated pinball altogether. In the 1970′s most decent arcades would feature over a dozen machines, with large facilities having several dozen. By the mid 1980′s, it was rare to see more than three or four pinball machines in one location.

Pinball began to experience a bit of a comeback in the 1990′s driven by well designed, enjoyable games that finally got the balance between traditional gameplay and modern technology right. Williams and Bally (whom WMS later acquired), along with Data East, were making the majority of new games and some would become classics. Pin-Bot, Earthshaker The Adams Family and Diner are among my favorites of this era. Articles started to appear in the traditional media about the durability and timelessness of pinball, about how the average pinball machine received much more repeat business than the average video game and about the devotion of the pinball player.

With the century drawing to a close, it seemed that the Williams/Bally outfit had found a niche and would be able to grind out pinball machines for the aficionados forever. The final nail in the coffin, however, was a lot of societal changes beyond their control. For one, video games and video arcades became less profitable as companies like Sony and Nintendo were able to transform a lot of the high end gameplay to the home platform. Meanwhile, trends like new urbanism,which saw a return to downtown storefronts and the growth of online shopping combined to hurt traditional shopping malls. Fewer people were going to malls, and they werent staying as long when they did. Mega-malls like the Mall of America and the Forum Shops at Caesar’s were the exception to this, but there just werent enough to these to sustain demand. As the century ended, the WMS corporate braintrust decided to pull the plug on pinball and concentrate on their highly profitable gambling machine business. From a business standpoint, it probably made sense but that didnt make it any easier for lifelong pinball enthusiasts to reconcile with.

So what now? Stern Pinball is still committed to building new games, and is starting to get some traction both among retail owners and home collectors. Still, it appears that the only hope for pinball players is that some effort will be made to preserve the machines that already exist. With the capital investment required for a new company to get into the business, its hard to envision any new manufacturers popping up.

Ross Everett is a experienced freelance writer who covers travel, casino gambling and sports handicapping. He is a consulting handicapper for Anatta Sports where he is responsible for providing daily free sports picks. In his spare time he enjoys fine dining, flower arranging and deep sea diving. He lives in Southern Nevada with four dogs and a pet coyote.