Andrew Heighway to Step Down From Heighway Pinball

Pinball News Website·article·analyzed·Jul 1, 2012

Analysis

claude-haiku-4-5-20251001 · $0.023

TL;DR

Andrew Heighway steps down; investors take control to accelerate Alien Pinball production.

Summary

Andrew Heighway stepped down as CEO of Heighway Pinball in June 2017 after five years of leadership. Major investors, seeking accelerated production and resolution of manufacturing bottlenecks, took control of the company to scale production of Alien Pinball and future titles. Heighway's departure marks a transition from founder-led startup to investor-backed manufacturing operation, with hopes for significantly increased output.

Key Claims

Andrew Heighway founded Heighway Pinball in 2012 and announced plans in July 2012
high confidence · Article states 'Pinball News broke the news in July 2012 of his plans to set up a pinball manufacturing business' and 'Almost five years since first announcing his plans'
Heighway Pinball built 250 Bacardi Baffle Ball machines on a tight timescale
high confidence · Direct statement in article: 'In those five years, Andrew built up a manufacturing facility in Merthyr Tydfil in South Wales and built the 250 Bacardi Baffle Ball games to a very tight timescale.'
Full Throttle was the first production pinball with both a playfield and backbox LCD
high confidence · Article states: 'the first production pinball with both a playfield and backbox LCD'
Five years is a make-or-break point for new pinball ventures, citing Magic Girl and Capt. Nemo as precedents
medium confidence · Article commentary: 'but as with Magic Girl and Capt. Nemo, five years seems to be the make-or-break point for new pinball ventures'
Alien Pinball had significant pre-order delays due to parts quality issues and licensing asset clearance
high confidence · Article explains: 'Delays in receiving parts of an acceptable quality, asset clearance from licensors and training staff all lead to increased costs'
Major investors demanded new management and ownership control of company operations
high confidence · Article states: 'The big caveat, though, is that they want to use their combined business skills to run the company their way, not Andrew's way.'
Heighway Pinball relocated twice: from original Merthyr Tydfil facility to larger units across the street, then to Ebbw Vale
high confidence · Article provides timeline: 'Pretty soon the company outgrew its original premises and moved across the street' and later 'moved from Merthyr Tydfil to its current home on an industrial estate in Ebbw Vale'

Notable Quotes

“five years seems to be the make-or-break point for new pinball ventures”
Pinball News (article commentary) @ June 4, 2017 — Establishes industry pattern that new manufacturers face critical viability test around five-year mark
“The big caveat, though, is that they want to use their combined business skills to run the company their way, not Andrew's way.”
Pinball News (article commentary) @ June 4, 2017 — Captures the central tension in transition—investors seeking operational control, not just capital infusion
“There's no doubt Alien Pinball is an excellent game, with an appealing layout, art, sounds and display effects, with the potential to sell by the thousand, if only they could be built by the thousand.”
Pinball News (article commentary) @ June 4, 2017 — Identifies root problem: product quality was strong but manufacturing capacity was crippling
“When extended delays means all that pre-order money is used up, there nothing left in the bank to buy the parts needed to actually build the games.”
Pinball News (article commentary) @ June 4, 2017 — Explains the cash flow trap that new manufacturers face when pre-order financing is exhausted before production
“I am extremely proud of the games that we have produced. In particular, Alien Pinball is the result of tireless work, over the last three years, from a team comprising of some of the most talented and passionate pinball people I could have ever have hoped to assemble.”
Andrew Heighway @ June 17, 2017 (UPDATE) — Heighway's personal reflection on Alien's development and his pride in the team's work despite manufacturing challenges
“As of now, I have now left Heighway Pinball and am no longer involved in any way with the company.”
Andrew Heighway @ June 17, 2017 (UPDATE) — Clear statement of complete departure from the company he founded
“I will likely still be seen at pinball/trade shows and look forward to meeting many of you again in the future.”
Andrew Heighway — Indicates Heighway's intention to remain in pinball community despite stepping away from manufacturing leadership

Entities

Andrew Heighwayperson Heighway PinballcompanyAlien PinballgameFull ThrottlegameBacardi Baffle BallgameMerthyr TydfillocationEbbw Valelocation

Signals

?
business_signal: New pinball manufacturer faces critical sustainability crisis at five-year mark due to pre-order financing exhaustion, parts sourcing delays, and inability to scale production
high · Article extensively documents cash flow trap: 'When extended delays means all that pre-order money is used up, there nothing left in the bank to buy the parts needed to actually build the games. Without those up-front funds, parts have to be bought in small quantities, and buying parts by the dozen costs significantly more per unit than buying them by the thousand'
?
business_signal: Boutique manufacturer transitions from founder-led startup to investor-backed operational structure with emphasis on scaling and professionalization
high · Investors sought 'new management at the helm to push production forward, resolve outstanding issues with the games, rebuild relationships with suppliers and distributors, and deliver games at a much-increased rate'
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market_signal: Five-year mark established as critical juncture for new pinball manufacturers; Magic Girl, Capt. Nemo, and Heighway all faced major challenges or transitions around this point
medium · Article commentary: 'but as with Magic Girl and Capt. Nemo, five years seems to be the make-or-break point for new pinball ventures'
?
licensing_signal: Alien Pinball licensing approval process created significant delays in manufacturing timeline
medium · Article cites 'asset clearance from licensors' as one of the key bottlenecks preventing production acceleration
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market_signal: Investor confidence in Alien Pinball's market potential ('potential to sell by the thousand') drives substantial capital injection despite production failures

Topics

Manufacturing and Production ScalingprimaryLeadership Transition and Investor ControlprimaryPre-Order Financing and Cash Flow ManagementprimaryStartup Challenges in Pinball ManufacturingprimaryAlien Pinball Development and Production DelaysprimaryLicensing and Asset Clearance BottleneckssecondaryBoutique Manufacturer Business Modelsecondary

Sentiment

mixed(0.45)— Article is factual and measured but carries underlying tension between founder's accomplishments and investors' dissatisfaction. Pinball News commentary is sympathetic to Heighway's challenges while acknowledging investor concerns are valid. Andrew's Facebook response is positive about transition but tinged with bittersweet farewell. Overall tone is optimistic about company's future but acknowledges difficult parting.

Transcript

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Date: 4th June, 2017, updated 17th June, 2017 Almost five years since first announcing his plans to set up a pinball manufacturing business, Andrew Heighway is to stand down from leadership of the company he established. The Heighway Pinball logo Heighway Pinball was an established business operating and trading pinball machines before Andrew took the decision to tackle the lack of choice for operators looking for an attractive, affordable and full-featured game to place on location. Andrew Heighway when he announced his plans Pinball News broke the news in July 2012 of but as with Magic Girl and Capt. Nemo, five years seems to be the make-or-break point for new pinball ventures. 2017 saw all the Capt. Nemo machines delivered and some semblance of a Magic Girl manufactured and made available to original buyers. Five years is also the point where Heighway Pinball sees a change of leadership. In those five years, Andrew built up a manufacturing facility in Merthyr Tydfill in South Wales and built the 250 Bacardi Baffle Ball games to a very tight timescale. The original Heighway Pinball factory in Merthyr Tydfill The Bacardi Baffle Ball games He also announced the Circe's Animal House game, re-themed it to Full Throttle after taking on board potential buyers' feedback, and built the game - the first production pinball with both a playfield and backbox LCD. Full Throttle From the start, the focus was on keeping manufacturing costs low. Development grants and other commercial assistance allowed Heighway Pinball to set up and kit out the factory using a mix of manufacturing kit bought at auctions and ex-demonstration devices. The first Heighway Pinball factory Pretty soon the company outgrew its original premises and moved across the street to a pair of units which, while providing much more space, ultimately proved too large and costly. In a quest for a manufacturing home which was large enough but not too large, had more modern facilities and provided an attractive relocation package, the company moved from Merthyr Tydfil to its current home on an industrial estate in Ebbw Vale. The current Heighway Pinball factory While Full Throttle was highly-regarded by those who bought or played it, sales were modest. What really excited buyers was the company's second full title and their first licensed theme, Alien Pinball. However, pinball manufacturing - especially in the early years - need to be a lean business. With minimal income from sales of the initial title, much of the development and building - both of the company and the machines - for the second and future titles needs to be done on a shoestring, helped along by favours and promises. But that goodwill and the assorted start-up discounts can only go so far, and so in order to keep the business running, paying wages and paying suppliers for parts, a number of investors were brought in. Five major investors and several smaller ones provided financing to Heighway Pinball, following Andrew to pinball shows in Europe and the US to see how the company and its products were received. All the investors were owners of other companies with a love of pinball who saw, in Heighway Pinball, the opportunity to help the company and the market grow by producing high-quality full-featured games of a kind not currently available. However, despite the number of investors with a stake in the business, the running of the company stayed with Andrew. We've covered why 'Making Pinball is Hard' before, but besides being hard it is also costly. Delays in receiving parts of an acceptable quality, asset clearance from licensors and training staff all lead to increased costs, and with minimal sales of existing products, manufacturers can be excused for relying on pre-order money to finance ongoing development. When extended delays means all that pre-order money is used up, there nothing left in the bank to buy the parts needed to actually build the games. Without those up-front funds, parts have to be bought in small quantities, and buying parts by the dozen costs significantly more per unit than buying them by the thousand, pushing up costs further. The frustration of being unable to produce the game wanted in the quantities needed also leads to increased stress taking its toll throughout the business, and especially on the guy in charge. It's a downward spiral which can only really be escaped with another large injection of capital to build the games on a grander scale at reduced cost, and bring in many more sales. There's no doubt Alien Pinball is an excellent game, with an appealing layout, art, sounds and display effects, with the potential to sell by the thousand, if only they could be built by the thousand. Andrew Heighway with Full Throttle and Alien The investors can see that potential and have agreed to make another sizeable injection of capital into the company. The big caveat, though, is that they want to use their combined business skills to run the company their way, not Andrew's way. Pinball News has spoken to some of the major investors in Heighway Pinball and it is clear they see a bright future for the company, but believe it needs a kick-start with new management at the helm to push production forward, resolve outstanding issues with the games, rebuild relationships with suppliers and distributors, and deliver games at a much-increased rate. So, Andrew has agreed to stand down from running the business which bears his name and which he founded back in 2012. While exact terms are still being ironed-out and he may do some consultancy work for the firm, the major investors have been working together use their combined business experience and skills to push Heighway Pinball forward. Looking ahead, the future of Alien Pinball and the next few titles in the Heighway Pinball pipeline look far more assured. In the short term one of the major investors is likely to spearhead the changes, but the search is on for a new leader to push ahead with product development, promote the company and its products, and be the public face of Heighway Pinball. For pre-orderers of Alien Pinball and anyone looking to buy one the message is clear - expect some rapid movement over next few weeks to ramp up production and deliver fully-functioning games. Parts orders are going in now, existing bottlenecks are being overcome, and there is a concerted effort to not just throw more money into the company, but utilise all available skills to accelerate the company's growth. Meanwhile, the company continues without the man whose passion for pinball was the driving force behind the establishment of Heighway Pinball as a manufacturer and who put his heart and soul into creating hugely playable games which could bring operators back to a game they may have previously written-off. UPDATE: Just under two weeks after we published the report above, Andrew made this posting to Facebook. Just over five years have passed since I started Heighway Pinball Limited in my home garage. Now, the company has grown to be a multinational business with customers spread throughout the globe. The company has faced many challenges along the way, which has culminated in our first game, Full Throttle, and our current game, Alien Pinball. I always strived to create a modern and relevant quality pinball product, with many exciting new ideas. I believe that we have fulfilled many of the goals I set for this company. I am extremely proud of the games that we have produced. In particular, Alien Pinball is the result of tireless work, over the last three years, from a team comprising of some of the most talented and passionate pinball people I could have ever have hoped to assemble. ‘Alien’ is personally my favourite movie of all time, closely followed by ‘Aliens’. I could not be happier with the finished product and how it represents both movies. The time has come for a change at Heighway Pinball. Substantial monies are being pumped immediately into this company by our existing investors to drive this company forward to producing hundreds of games every month within the coming months. These investors have not been actively involved in the running of the business up to this point but they bring a huge amount of pinball experience to the operating of this company. They are also very successful businessmen in their own rights. Their passion for pinball, business acumen and love of the company’s products will drive this company forwards. There are a lot of expectant customers out there who want delivery of this epic game as quickly as possible – and this is a commitment this company will now strive to deliver as soon as is possible. As of now, I have now left Heighway Pinball and am no longer involved in any way with the company. A new management structure is already in place at the company, that is committed to delivering games to all of its customers and building the company up into becoming an important market player within the coming years. The company is being left in good hands, with the investors bringing a wealth of pinball experience into this company and everyone is committed to delivering customer games as quickly as possible. I have not left pinball permanently – but am taking a break away from it as fresh finances and ideas drive the company forwards. I will likely still be seen at pinball/trade shows and look forward to meeting many of you again in the future. I will no longer be contactable at andrew@heighwaypinball.com and I will not be posting here, any other pinball forums, on Facebook or on Twitter as ‘Heighway Pinball’ from now onwards. I have met some amazing people over the last five years and would like to thank all of my customers, staff, contractors, investors, distributers and suppliers - who have shared my dream and supported myself and this company over the years. I step away from Heighway Pinball at an exciting time for the company and wish all those associated with the company all of the best for the future. Andrew Heighway Former CEO/Managing Director – Heighway Pinball Back to the News page Like this page? Share it with your Facebook friends: Back to the front page