Taito as a Trading Company
While Taito is widely known today as a game company, its founding period was heavily characterized by its function as a trading company, and it operated a wide range of businesses.
Taito in its Founding Period: Taito Trading Co., Ltd.
Taito's roots trace back to 'Taito Yoko,' a private import company established in 1950 by Russian-Jewish businessman Michael Kogan. Its formal founding was 'Taito Trading Co., Ltd.,' established on August 24, 1953.
As the name 'Trading' suggests, it initially focused on the sale of imported miscellaneous goods. Specifically, it was involved in the following businesses:
Sale of imported goods: The company imported and sold a variety of miscellaneous goods from overseas.
Japan's first domestic vodka brewing and sales: Surprisingly, Taito was also the first in Japan to brew and sell vodka domestically. The vodka, named 'Troika,' was produced by commissioning a brewery in Nagoya, investing in equipment, and inviting Russian technicians. It was of such high quality that it was even served at the Imperial Hotel bar.
Manufacturing and sales of small vending machines (peanut vendors): The company entered the vending machine market, which was still rare in Japan at the time, and handled products such as peanut vendors.
Leasing and sales of jukeboxes: In 1954, the company began a jukebox rental business, and in 1956, it developed the first purely domestic jukebox, showing the early signs of its later amusement business.
Leasing of flippers (pinball machines): Focusing on the popularity of flippers brought in by the occupation forces, the company achieved great success in the leasing business.
Handling of Pachislo (Olympia Games): In 1964, the company began handling 'Olympia Games,' amusement machines later known as Pachislo, and expanded them into amusement facilities after obtaining permits under the Act on Control and Improvement of Amusement Business.
These businesses, in terms of being novel to Japan at the time, incorporating overseas culture, or providing entertainment, were a combination of the functions of a trading company and a frontier spirit that created new markets.
Shift to Amusement Business and Change of Trade Name
Based on the know-how and capital gained from the import business, Taito Trading strengthened its sales and rental business for amusement equipment such as jukeboxes and flippers. In 1965, it developed 'Crown 602,' the first domestic crane game machine, and in 1968, it opened Japan's first game center, shifting its focus toward the amusement business that forms the foundation of Taito today.
Then, in 1972, the company changed its trade name from 'Taito Trading Co., Ltd.' to the current 'Taito Corporation.' This name change can be said to be an event that symbolized the shift of its center of gravity from the trading business to the amusement business.
Summary
As 'Taito Trading Co., Ltd.' in its founding period, Taito operated a diversified trading business, including imported goods, vodka brewing, vending machines, and the import, sale, and rental of amusement equipment. The experience cultivated through these businesses and the ability to grasp market needs became the foundation that led to the later massive hit 'Space Invaders' and established its position as a leading company in the game industry.
It may be hard to imagine from the current Taito, but there is a solid history as a 'trading company' at its roots.