Thinking of conversion or replacement ? Want to know exactly when which machines must go? Life-Cycle Analyser can give you the answer....Here is how:
The revenue of a gaming machine, from day one of inception through to the end of its productive life, typically follows a long-term curved pattern with a number of distinctive phases as shown here.
The introduction phase of a new machine yields low revenue. Depending on promotional activities to launch its arrival, this phase may last only few days before the gaining the attention of the gaming crowd. Revenue gradually increases as more and more players become aware of and attracted to the new machine.
By the time the machine has completely “set in”, it will have a number of regular established players. At this point, the growth of the machine reaches “maturity”, and thanks to recurring gaming activities from devoted players, performance remains steady. The duration of a machine’s maturity is determined to a large extent by:
- Competition among gaming operators; as they strive for maximum profit and customer satisfaction, machine installations need to be regularly updated, requiring conversion and replacement of older machines with the latest products.
- Competition among manufacturers; as they strive for larger markets they must continuously develop and sell new machines with new appealing technological features.
An aged machine is a waster that must be disposed of or converted
Demand for play of older machines generally defuses after arrival of new machines. Thereafter, the revenue of older machine beings to drop, its life-cycle shifting from maturity to “decline”. Previous mature machines become less and less productive, sometimes drastically, sometimes slowly.
The velocity of transition by players of an old to new machine is determined by its new appealing features. Revenue from old machines continually declines, becoming “aged” at the end of life-cycle.
Aged machines are likely to continue to generate some marginal revenue as it may still be attractive to few loyal devotees. Nevertheless, an aged machine is a waster that must be disposed of or converted.
There are two other instances where positive results from conversion can be achieved, one is the time when a machine's life cycle has been shifted from maturity to decline, and the other is immediately after inception. Should the revenue of a machine in its early stages of growth fail to pick up sufficiently enough to match the venue's average, it will be wise to abort that machine before it grows into a mature but unproductive device.
How does life-Cycle analyser works?
Based on the above analytical framework and incorporating the principles of our ABC analysis, this module provides solid information about the status of each machine at the time of report. By using advanced charting techniques it depicts historical trends of revenue for each and every machine and dynamically compares the trends with venue's averages over a twelve-month period.
Life-cycle analyser is a powerful, low-cost, high-value application which is entirely based on Microsoft Excel. The source data is readily available from any gaming data system. During training workshop you will learn how to use Excel to design and build this application,— and of course you can further unleash your creativity and apply your new skills in other areas of club's management reporting.