Royal Reels was falling behind and well-timed rethinking of the business strategy turned out to be a very important step that determined the further development of the company. Royal Reels analyzed the video-reel slot machines that were used for gambling in the USA. They were much better in terms of the customer experience, because they sparked interest, delivered many options, for example the level of risk, and created surprise not only by the possibility to win, but also by some other features such as offering to play “a game within a game” (Grayson 6). So a Gedman’s idea was to design the machines similar to those that were used in the USA. Digital Design Systems could significantly ease the problem of design.
It appears that in general Royal Reels achieved its goals. Acquiring the Digital Design Systems helped to improve the video systems and the graphics of the slot machines, because Royal Reels “did not have enough time to develop the skills to invent and manufacture a competitive video slot game” (Grayson 6). There are much more game options and the game experiences are customized thanks to the innovative experience management system. The updated reel slot machines correspond to the customer preferences and attract attention in the places where they are installed. However, after the launch of the online app by Royal Reels the traditional slot machines are not used as much as before (Grayson 9). And this is going to be the next challenge for Martin Gedman.
The revenue of the Royal Reels continued to grow into the 2000s. From 2003 to 2011 the company’s revenue (from selling the slot machines) grew by 14% and equaled to £301 million. 2006 was the full year when the slot machines designed by the Digital Design Systems were sold and the financial figures became much better than in the previous years. However, the main competitor Generation Games still sells more machines and earns £100 million more (Grayson 11).
Acquisition of Digital Design Systems by Royal Reels was the right step that brought some very positive results in the area in which Royal Reels had never specialized before. The online app Wild Bulls has transformed the company into the market leader and the main competitor Generation Games is far behind at the moment (Grayson 13). Even if the online app had not been introduced, the Digital Design Systems would be contributing to the Royal Reels’ business, because there was a very urgent need for improvement of the game experience and the Royal Reels could not resolve the problems on their own. It is hard to judge how successful the company would be without the online app. Perhaps it would remain the second largest company in the UK and the gap with the main competitor would not grow.
The company has passed the point of development when the key focus was on the slot machines in the pubs. Royal Reels shifted from the pinball machines to the reel slot machines and now to the online app. The latest transition was unexpected and is to some degree dangerous for the company’s financial performance. The customers do not want to use the reel slot machines anymore, because they have a similar app on their smart phones. Perhaps the right next decision would be to differentiate the games for the slot machines that would not intersect with the online app.
Works Cited
Grayson, K. Royal Reels: Enhancing the Customer Experience for Slot Machines and
Beyond. Kellogg School of Management at Northwestern University. 2013. Print.
