Pinball machine maker expands with rising demand

The market for pinball machines is on an upswing, and one of the biggest players in the space is riding a new wave of interest in the old-fashioned arcade game.

Founded in 1986, Stern Pinball has weathered multiple shifts in demand. One of its biggest pivots took place about a decade ago, when demand from individual consumers who were looking to bring the arcade into their own homes started outpacing commercial businesses.

As a result, consumers now make up roughly 70% of sales, according to general manager Ryan Cravens.

The pandemic further fueled the growth of the B2C market; sales have doubled in the years since. This pushed Stern in 2023 to open a new factory in Chicago, which was once the pinball machine manufacturing capital of the world, just to keep up with demand.

But now sales to enterprises are ticking up as well, Cravens told Retail Brew at the Consumer Electronics Show earlier this month, although arcades and pizza parlors are no longer its bread and butter.

“Post-pandemic, we’re seeing a resurgence in the commercial market, especially in breweries, because breweries are perfect for pinball,” Cravens said. “It’s a communal place and it’s also a family place, so you’re seeing kids getting introduced to pinball for the first time.”

Cravens explained that breweries themselves are not buying pinball machines. Stern sells to operators who then split the revenue with establishments that host their machines.

Regardless, Stern is now marketing to breweries directly.

“We’re targeting brewery conventions and things of that nature,” Cravens said.

He noted the uptick in commercial demand is beginning to shift the ratio of 70% consumers and 30% enterprise that has held strong for the last 7–10 years.

The company’s success also recently earned it industry recognition: The Business Intelligence Group named Stern Pinball CEO Seth Davis in its 2024 Big Innovation Awards.