Cover Story
(January 2008)Cover Story
(January 2008)Stern Pinball is the last remaining pinball machine manufacturer. It's natural to want to know how one man could have survived the fallout of pinball manufacturers. Here's the story:
In the 1930s a young invincible 20-something Sam Stern began his career in the coin machine business as an operator in Philadelphia, Pa, when friends convinced him to get some countertop pinball machines, the simple games with pins (nails) to guide the ball and a push chute to accept the coins.
Sam
Stern with Harry Williams.
Sam put the games in a location and was anxious to see how they did. When he came back the following day, he was introduced to his first coin-op industry lesson: do not place your machines in another operator’s location as he retrieved his games from the floor behind the counter.
He was upset and decided to quit the brand-new, modern business. But his friends encouraged him to try again. Well, maybe one more time, Sam agreed. He put the games in another location but that same night he got a phone call from the location telling him the machines were broken. OK, this really is the end of this business, Sam swore as he drove to the location to fix the games. He found the problem right away: There was so much money in the game that the push chute was jammed. Sam stayed in the coin machine business, beginning a family tradition.
Many early distributors were originally operators and Sam was no exception. It only made sense. He initially became a distributor to get the new games early and cheaper. Once he began distributing he concentrated on his distribution business.
In 1947, as a young 35-year-old kid, Sam was in Chicago, Ill., visiting his
suppliers. One was Williams Mfg. and he began talking to Harry Williams. Sam put
his feet upon the desk and in a kidding manner asked Harry to sell him the
company. Harry did his best thinking in his Bonanza airplane so after Sam made
his offer, Harry flew around Chicago for three hours. When he landed he sold Sam
one-half interest in the company.
History
So, when Sam’s son Gary says he’s been in the pinball business all of his life, he is not exaggerating. As a child Gary spent many hours around the Williams factory, often going there on weekends, holidays, and after school with Sam.
Gary recalls being at the dinner table when Sam, Harry, and other legends of the industry discussed business. When he was 16 he began working during summer vacations at Williams. He must have been the envy of his friends!
After graduating from law school in Chicago and earning his undergraduate BBA majoring in accounting from Tulane in New Orleans, La., Gary practiced law for a few years, but the industry beckoned. He soon hung up his law books and joined Sam full time at Williams. Gary worked with Sam in the pinball business until Sam’s death in 1984.
Two years later Gary started Stern Pinball, which was originally the Data East Pinball Co. In 1994 he sold the company to Sega and it became Sega Pinball. In 1999 Gary bought the company from Sega and renamed it Stern Pinball Inc.
Gary
Stern, President and Owner,
with Phillis Rosenthal, BOM Engineer.
Many of the people at Stern Pinball, including designers, engineers, buyers, salespeople, and production people, have been in the pinball business virtually all of their adult life.
“At Stern we all want to make a living,” Gary said. “In addition to that
we have a mission and that’s to keep pinball alive.”
Gary believes that no serious major company will ever try to enter the
pinball business. Why is he so sure? “The investment would be too great. With
the size of the coin-op industry today, there is room for one pinball
manufacturer. The world would continue without pinball machines,” Gary added,
“but a little of the fabric of life would be gone. Operators would lose a
genre of games with less variety to offer their locations.”
The game of pinball
“Pinball is unique. It is a mechanical action game, a ball game like most great sports,” Gary explained. “It cannot be simulated. Although there have been attempts to simulate pinball on monitors, none captured the soul of what pinball is all about. All attempts failed and they will always fail. It was best explained by legendary designer Harry Williams, who said, ‘The ball is wild!’
Gary
Stern, President and Owner,
and Pinball Enthusiasts from Pinball Expo 2007.
Gary believes that pinball has the best return on investment (ROI) of any coin-op game. After operating a pinball machine the operator always has a resale opportunity either with his distributor or homeowners directly. Often operators have negative depreciation, or appreciation; it’s not unusual for used games to sell for more than initial cost.
“Coin-op opportunities are shrinking worldwide,” Gary opined. “All countries are passing no smoking laws and stronger driving under the influence (DUI) restrictions and the trend will continue. Plus, we compete with other leisure activities, including in-home entertainment.”
One growing opportunity is pinball competition. All Stern games are now equipped with an easily operated on site tournament play system. The pinball does virtually all the work; its computer does all the computations. Operators who would like to know more can contact Joe Blackwell, (800-KICKERS).
The International Flipper Pinball Association (IFPA) overseen by the Sharpe boys (Josh and Zach are Play Meter columnists as their father Roger was before them) sanctions tournaments throughout the world and ranks players. The number of pinball tournaments everywhere is growing. There are now tournaments held during the major trade shows.
On another side coin-op games go
into homes both new and used. This
is especially true of pinball. Pinball
generates a special interest with the public.
Pinball games were featured on Good Morning America in December, further
generating interest. Prices quoted
for home pinball sales are often high, such as at the Sharper Image selling
pinball to homeowners for $5,000 plus delivery and tax.
Licensing and designing
Licensed
titles help promote location earnings, new games, home sales, and resale by
operators into the home, according to Gary. That’s why, he emphasized, that
all Stern titles are licensed because using licensed titles attracts players.
If the game is designed right, it will have elements of the title so the
player will have an idea of what to do.
For example, sink the ship by hitting it in Pirates of the Caribbean. The title gives designers ideas to develop the game. Most important is that the use of licensed titles puts the pinball design staff in touch with other interesting and creative people from different genres: television, movies, sports like NASCAR, and even products like Harley-Davidson.
Gary is adamant that one thing has not changed since Sam’s days: Gary heard Sam talk about and learned from Sam that game designers must make a game that appeals to the great players but is also fun for the lesser players. It must challenge remarkable, talented players without frustrating beginners. “The game has to be fun and challenging for everyone,” Gary noted.
He continued, “Today I read about and hear the same thing from game designers everywhere that they are trying to broaden their player base to include more casual players without losing core players. This is true of home video games, slot machines, English amusement with prize (AWPs), and all game design.”
The theory, Gary explained, is that if you get more players to play you make more money. If you add casual players, you make more, unless you lose the core players, then you make less.
To add to this design task, games have become far more complex, as have all products. Video games are more multifaceted and realistic. Slot machines have top games or high-tech games. Pinball is more intricate than games of Sam’s time as Gary explained, “You can’t sell cars with roll-up windows or AM radios today. And, games must have lots more to do than in the past.”
Stern is in production of Wheel of Fortune pinball and it will be produced into February or March. Three bobble head contestants try to solve puzzles displayed in the dot matrix; they spin the wheel to determine points just like in the very well known title from a show that has been on television 25 years. In fact, it’s the most popular game title in Las Vegas; from the time you get off the plane until you leave, the chant of “Wheel of Fortune” rings in your ears.
The show is watched in bars
throughout America, especially blue collar bars, five nights a week, unless a
ball game is on. Stern’s Joe
Blackwell, Director of Customer Service, reports, “I see more women playing
Wheel of Fortune and they try to
guess the puzzle.” Stern will have a free update on its Web site offering even
more puzzles.
Home sales
It’s
obvious that Wheel of Fortune is a great bar game, but it’s also perfect for
home sales. Look at it like this: There are three million members of the Wheel
Watchers Club. When a man tells his
wife he’s buying a Wheel of Fortune pinball “for the kids,” she’ll love
having it in the house and playing it.
Stern selects titles for game location appeal and for later home sales. Stern’s Family Guy has been #1 on all pinball charts. “It could be our top earner,” reports Stern’s Sales Director Jolly Backer, who added that Subway is using “Family Guy” in all their advertisements, it is on four different television networks, and WB shows it 10 times a week in a family time slot and an adult time slot. It’s a household phenomenon.
Jolly added, “This title appeals to our street location players. It is the #1 syndicated sitcom in male and female 18 to 34 age groups. That’s our market. This game at least belongs in every yuppie and college bar in the country.”
Unlike in the past when new pinball machines were made in one production run, never to be made again, Stern continues to rerun popular titles. The company has just made more of The Simpsons Pinball Party, Family Guy, and Pirates of the Caribbean. It is making more Spider-Man pinballs too and it will make more of these next year. Likewise, there will be more of “The Simpsons” and “Family Guy” TV episodes, new and in syndication. There will be more “Pirates” and “Spider-Man” movies. The pinball games with these themes will be around a long time.
In addition, about once a year Stern makes special limited editions of some titles. For instance, the company made 500 Gold Edition Elvis pinball machines, which have had great value. Stern made 600 limited edition Dale Jr. pinball machines with all new artwork and lots of chrome as befits the title. This game was made in conjunction with Dale Earnhardt Inc., and so it has the red car, Budweiser, and the #8.
Stern also made a limited edition Black Spider-Man in November. During part of the last Spider-Man movie, his suit changes from the familiar red and blue to black. The Stern 500 game limited edition has new cabinet and back glass artwork featuring Black Spider-Man. It has chrome side armor, legs, back box hinge, and front molding; the side armor has spider webs cut into it. And, it has an actual silk-screened and mirrored back glass, something that has not been done for over a decade. This month Stern will be making a special run of a new licensed title, Shrek.
Stern may be known throughout the
world for its pinball machines but the company also makes redemption games,
about one new title every year and a half. These, too, are licensed titles. By
using the same titles as it does for pinball, putting some of the work developed
for pinball in the redemption game, Stern can add much more to the game than one
could normally afford. Stern’s The Simpsons Kooky Carnival has been a huge
success with over 1,100 sold so far.
The staff
Gary wanted to get back to the subject of the Stern Pinball staff. He tells us that the company employs many experienced pinball people. It contracts with other pinball legends of design outside the company. Like Gary, these people are experts in pinball and game theory and are as devoted and committed to seeing pinball thrive.
Game
Designer Dennis Nordman
Stern has the best of pinball designers. It contracts with the well known Williams designers Pat Lawler (Adams Family, to name just one great game and at Stern its Monopoly) and Steve Ritchie (High Speed, again to name one great game and at Stern its Spider-Man). In house also from Williams is Dennis Nordman, who designed Stern’s Pirates of the Caribbean, Wheel of Fortune, and The Simpsons Kooky Carnival. Recently returned to Stern is one of its early designers, John Borg, who designed Stern’s Star Wars games among others.
Sheridan
Oursler, BOM Engineer, and Ray Tanzer, Director of Mechanical Engineering.
Director of Mechanical Engineering Ray Tanzer, who comes from the old D. Gottlieb & Co., oversees mechanical engineering and playfield design. He is assisted by John Rotharmel, Oleg Korepanov, Rob Blakeman, and Mike Redoble.
Lonnie
Ropp, Director of Software Engineering.
Technical and documentation work is done by Phillis Rosenthal and Sheridan Ousler, both of Williams. Gary first worked with Phillis in 1973. Stern’s rule design work and programming is headed by Director of Software Lonnie Ropp, who has been involved in Stern programming since its inception in 1986. Ropp’s staff includes Lyman Sheats, Dwight Sullivan, and Keith Johnson; all worked on memorable games at Williams.
Shah
Jahan, IT Director, and Mark Galvez, Dot Matrix Display Artist.
Dot animation is by Mark Galvez. Lonnie has added to his staff a gamer-programmer named Mike Kyzivat as one of the few new design people. Much of Stern’s sound work is done by David Thiel, who did work for Gottlieb and Incredible Technologies before a stint at Microsoft in Seattle, from where he now works.
Art direction and licensor relations and approvals are handled by Marc Schoenberg. He has been around pinball since he was a little boy; his father has been a business associate of the Sterns. Licensor relations is one of the most important tasks at Stern and, Gary adds, most difficult.
Art is contracted with experienced pinball artists, Kevin O’Connor and John Youssi, who have done work for Williams, Stern, IGT, and others. Sometimes the licensor of a title does the cabinet and playfield art, giving it their authentic look. Playfield art is a unique talent, handled always by Kevin and John.
Production and finance are overseen by 20-year Stern veteran Michael O’Donnell, Vice President/ General Manager/Controller. He is assisted in finance by Shirley Zebro, her daughter Andrea Palacios, and accountant/AR supervisor Jackie Harris; all have been with Stern as long as 20 years.
Director of Manufacturing Don Thorne has been with the Sterns since they took over the assets of Chicago Coin in 1976. Assisting him are Plant Manager Fernando Hurtado formerly of Williams and Assistant Plant Manager Scott Spirawk. Fernando’s son used to design at Stern and is working on a playfield now.
Purchasing Director Eddie Spears, formerly of Bally MFg., is aided by Purchasing Agent Arnie Mahler. Marsha Rosenblum is Director of Human Resources. Stern’s computer genius/MIS Director is Shah Jahan, with the company almost two decades.
Gary brags that Stern Pinball has the best parts and service organization of any company. It’s headed by Joe Blackwell and two technical people, Patrick Powers formerly of Aladdins Castle and Chas Siddiqi, who started as a final tester at Stern. They can be reached at (800-KICKERS). Parts orders are handled by Dorothy Brown. Jay Alfer is the technical writer responsible for the most complete manuals around.
Sales director is Jolly Backer, who got into the industry at Betson, Bally, Sega, and Jaleco. He was at Data East in 1986 when the pinball company started.
And, of
course, Shelley Sax, who has worked with Gary almost 30 years, with just one 11
month restbit at Capcom. It’s impossible to pigeonhole Shelley with one title
so she wears a number of hats under Jack of all Trades (JOAT).
Finally,
many of the line workers have been with other pinball companies, as well as with
Stern nearly since its inception. Stern just had a retirement celebration for a
factory worker retiring after 20 years with the company.
To leave you with a few words about Stern: know-how, experience, perseverance, dedication, commitment, persistence, and tenacity.