claude-haiku-4-5-20251001 · $0.040
Gary Stern reflects on 78 years in pinball, company history, and Insider Connected strategy.
Gary Stern has been involved in pinball for 78 years, since age 2 when his father entered the business
high confidence · Gary explicitly states: 'I actually say I've been doing it 78 years because I was two when my father, he had been an operator, and then he became a distributor.'
Stern Pinball operates in 230,000 square feet across two modern facilities (main building and woodworking building) in Elk Grove Village near O'Hare
high confidence · Gary describes: 'Between this building and a woodworking building around the corner, we're in 230,000 square foot. This building, fairly air conditioned, great manufacturing facility.'
Stern has over 300,000 Insider Connected players and over 1,000 Stern Army members organizing monthly location events
high confidence · Gary states: 'we have over 300,000 insider-connected players' and 'we've got over 1,000 Stern Army members, and they each have a location that they do an event at least once a month.'
70% of Stern's games are placed in homes, but 30% in street locations generate 70% of revenue
high confidence · Gary states: 'although 70% of our games are in the home the 30% that are in the street make 70% of the money'
Stern releases three new cornerstone games per year in Pro/Premium/Limited Edition tiers
high confidence · Gary explains: 'we have three new Cornerstone games a year. Each of them have good, better, best. Cornerstone is our main game.'
Stern's CEO Seth Davis is 47 years old, Wharton MBA, 10+ years at Disney in games/streaming, and 10 years at GE
high confidence · Gary describes Seth: 'Seth is 47 or so, turning 47... Undergraduate degree in accounting and information technology. a decade at GE when GE was a training ground to be at, Wharton Business School grad, and then a decade plus at Disney in games and in streaming.'
Stern invested millions in Insider Connected technology six years ago based on investor/lender feedback that connected products have future viability
high confidence · Gary states: 'every product that was interesting to the lenders or investors, Products that we're going to have a future. We're connected... And that's when we invested millions into our Insider Connected.'
“Without Insider Connected, a pinball's a box on four legs. It's a little arrogant on my part. But I truly believe that we've got to have connectivity in products in our business.”
Gary Stern @ mid-interview — Core strategic philosophy: connectivity is existential to pinball's future; reflects Stern's conviction in digital ecosystem model
“If the product is not connected, it's not going to have a future. And I'm not talking just about games. I just mean in general. Everything is connected.”
Gary Stern @ late interview — Broader technology/business philosophy extending beyond pinball to entire industry
“I'm just a businessman who needed a job, and that's why I'm here... I needed a job, so I had to create this company, which was in 1986, originally with Date East as an investor.”
Gary Stern @ mid-interview — Self-deprecating framing of his role; emphasizes pragmatism over visionary status; explains origin of Stern Pinball founding
“You should have it when it's – buy it anytime, but certainly buy it when it's first coming out because there's 300,000 people going to be looking for that game.”
Gary Stern @ mid-interview — Marketing strategy: Insider Connected creates artificial demand/FOMO by advertising new games to connected player base
“The dungeon changes every week. We send out contracts with John Wick. We have a level up where in Venom, and Venom earns great. In Venom, whatever level you got to on the game in Chicago, you go play in Germany, it knows where you were, and it picks you up at that level.”
Gary Stern @ mid-interview — Concrete examples of Insider Connected cross-location progression and dynamic code updates as revenue driver
“George Gomez was just inducted because he's in George's history. George is fascinating. George's family left Cuba when he was five. He is probably the only trained designer, degree designer, industrial... He's the only degree educated as a designer, designer probably in the business.”
Gary Stern @ late interview — Industry profile of key creative talent; establishes George Gomez as formally trained industrial designer, unique in pinball
business_signal: Data East/Stern survived multiple existential threats (1980s skepticism, 1986 market entry resistance, 2008 Lehman recession, 1999 Williams exit); company positioned as niche survivor in consolidating arcade market
high · Gary describes era when 'people thought, well, why do we need another pinball company?' and 'When we started this company, people thought... why do you need another one?'; references Lehman recession as 'difficult'
community_signal: Stern Army (1,000+ members, monthly events with 40-60+ attendees per location) creates organic demand and drives new game placement through grassroots enthusiasm rather than traditional marketing
high · Gary states: '1,000 Stern Army members, and they each have a location that they do an event at least once a month... 40, 50, 60 people at them.'
sentiment_shift: Operators increasingly adopt Premium tier (vs Pro) for location placement, signaling quality-over-price preference; Insider Connected locator map drives first-time players to discover new titles; positive feedback loop for new game adoption
medium · Gary notes: 'We see more and more operators operating the premium... It's attracting a better player. They're all mechanical action games with a toy in it.'
design_philosophy: Tier differentiation strategy: Limited Edition has 'eye candy' cosmetics; Premium has identical playfield/rules but less visual polish; Pro is mechanically complete but simplified toys (e.g., D&D dragon moves left-right only in Pro vs all directions in Premium)
high · Gary explains: 'All of them are mechanical action games with a toy in it. You know, Dungeons & Dragons has a dragon that's going to spit pinballs. Instead of fire, it's going to spit pinballs at you in the premium where it is going to only move left and right instead of all directions in the pro'
groq_whisper · $0.111
Sam Stern (Gary's father) sold Williams to Seabird in 1964; Stern Electronics closed in 1984/1985
high confidence · Gary confirms: '1964 that he sold it to Seabird... Stern closed their doors in 85. 84 was the Stern Electronics.'
“I'm just the guy who needed a job and to start a company to get a job... I may love games and pinball, but I'm a business guy, just a business guy. The creative people are the ones.”
Gary Stern @ late interview — Deflects credit to creative staff (George Gomez, designers); positions self as operational/business leader, not visionary designer
“When we started this company, people thought, well, why do we need another pinball company? You know, you had Gottlieb and Williams and Valley... And why do you need another one? And once again, needed a job.”
Gary Stern @ mid-interview — Addresses skepticism of 1986 Data East startup; emphasizes survival/employment necessity over market opportunity thesis
industry_signal: Gary Stern (78 years in industry, chairman) and George Gomez (only formally trained industrial designer in pinball, Chief Creative Officer) both recently inducted into AAMA Hall of Fame; positions Stern as legacy manufacturer with continuity
high · Gary states: 'Both you and your dad were inducted into the AAMA Hall of Fame over the last few years... we had cupcakes and ice cream... George was just inducted... He was 70 on June 1st'
licensing_signal: All current cornerstone games rely on licensed IP (King Kong public domain, D&D licensed); strategy assumes stable licensing pipeline and consumer FOMO around pop culture tie-ins drives new game purchasing
high · Gary states: 'All of them are licensed or King Kong public domain But because of these titles that brings people to them... you should have it when it's – buy it anytime, but certainly buy it when it's first coming out because there's 300,000 people going to be looking for that game'
market_signal: Historic context: Stern Electronics closed 1984/85; Data East founded 1986 as 'bare wall start with nothing'; survived Sega ownership 1993-1999; repurchased 1999 when Williams exited pinball entirely; Stern is sole major pinball manufacturer post-consolidation
high · Gary documents timeline: 'Stern closed their doors in 85... we started this... in order to have a future... Williams quit pinball in 99... bought it back from Sega... in 99'
market_signal: Street location revenue (30% of machines) generates 70% of Stern's earnings; breweries are emerging as primary location vertical with 80-20 revenue splits; pinball requires multiple machines per location for operator viability
high · Gary clearly states revenue distribution and emphasizes brewery partnerships: 'pinball and beer go together' with video series showing locations; operators need 2-3 machines minimum per venue
personnel_signal: CEO succession to Seth Davis (47, Disney/GE pedigree, tech-native) signals Stern's shift from founder-led (80-year-old Gary) to professionally managed, pop-culture-attuned leadership aligned with licensing/streaming strategy
high · Gary emphasizes Seth's qualifications: 'He's smarter than I am, and he's more attuned to the world today... He's a gamer. He plays pinball. He plays games in general. He's much more attached, aware of pop culture than I am.'
product_strategy: Holiday code update blitz across 8 titles (King Kong, D&D, John Wick, Venom, Uncanny X-Men, Metallica, Star Wars, Jaws) signals systematic post-launch content strategy to maintain player engagement and location revenue
high · Gary states: 'we updated King Kong, Dungeons & Dragons, John Wick, Uncanny X-Men, Metallica, Star Wars, and Jaws, all in that week. So all these games got updated, and people knew that. And people came to play them again.'
business_signal: Stern pivoted from traditional arcade/location-based revenue to connected, digital-first platform with cross-location progression, achievements, and weekly dynamic content; 300,000+ player base justifies continued licensing investment
high · Gary emphasizes Insider Connected as existential; states 'without Insider Connected, a pinball's a box on four legs'; describes cross-game progression (Venom level sync), weekly dungeon updates (D&D), and automatic code distribution
technology_signal: Insider Connected's automatic code download/update model (similar to Xbox Live) enables continuous gameplay iteration post-launch; cross-location progression (Venom level sync Chicago to Germany) tested as engagement/monetization lever
high · Gary describes: 'If they're connected, the code's going to load automatically... In Venom, whatever level you got to on the game in Chicago, you go play in Germany, it knows where you were, and it picks you up at that level.'