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Q&A: Adam Steinberg
Published:  08 September, 2010

What really makes the top people in this sector tick? In the first of a series of profiles, we talk to the chairman of Embed International as he announces the firm’s merger with Playsafe

How did you first get involved with the amusements industry?

My father Malcolm Steinberg has been involved in the coin-op industry since 1958 so it was probably always destiny. My first exposure was working holiday jobs in my father’s LAI Group factory where games from U.S. and Japanese game companies were built under licence for the Australian market – videos, redemption and pinball.

After university I spent a few years working in engineering but by the early 1990s I was back in LAI Group’s Timezone FEC operations division based in Melbourne. Over the decade we expanded into a number of Asian markets. Working in operations is where I really learned about the industry and gained an appreciation of what the player is looking for.

This led to my involvement in the development of Embed’s systems for amusement and redemption management, cashless, loyalty and marketing.

What attracted you to this sector?

I probably went out of my way in my early years to look for other careers – I really didn’t think this business was for me. What drew me back and held me was the ever-changing nature of the industry. In the early 1990s there seemed to be new games and technologies every week. There was a real pioneering feel.

How has it changed since then?

Out-of-home amusements are no longer the trendsetter in entertainment technology. We have seen the rise of the home games consoles and then the even bigger rise of the Internet. Amusements runs the risk of further decline: many locations still offer the same old games operated in the same old way, but consumers are bombarded with alternative options in their homes, on their computers, on their phones and everywhere else.

At 50p or more a play amusements start to look expensive against all the free or low-cost options. The value proposition to the consumer needs to be overhauled.

What are the biggest positive factors for the sector right now – the drivers of growth and development?

Times of economic downturn can be positive as consumers defer big spending on expensive holidays and luxury items in favour of lower-cost outings; in the UK we are seeing the much-talked-about “staycation” phenomenon.

Amusements also still has something which can’t be delivered in software alone, that real and tactile experience.

And there is technology now – as delivered by my own company – that allows operators to package, price and market their entertainment service to the public in a way not previously available through coin operation. This technology can also drive operating efficiencies and cost savings.

And what are the negative ones – the obstacles to growth?

The fear of change and the fear of trying something new. Sure, we need great games, but we also need to present and market what we have in new and interesting ways.

Redemption is a great example. This is considered a growth area in the UK. Redemption games are nothing new but some operators are starting to present them in a family-friendly way and are using quality prizes, displayed and merchandised as successful retailers do. It’s something different, and customers are responding.

Gone are the days when amusement operators made money by buying a machine, plugging it in and coming back at the end of the week to collect the cash. Understanding what the customers want and marketing it in a professional way is essential.

Looking at your whole career, what do you reckon was your smartest move, large or small?

Founding Embed in 2001 and evolving the debit-card product within a dedicated business would have to be my smartest move because the company has become the market leader. And the decision to open our U.S. office in Dallas in 2005 has probably been one of the keys to Embed’s success over the last five years. I am hoping that our recent merger deal with Playsafe here in the UK will give us a similar clout and position in the UK and European markets.

And your dumbest one?

I have learned a lot from my mistakes along the way. Probably the dumbest thing I did over my career was a few years back when I was involved in a venture that would turn a run-down pub in Australia into a Dave & Buster’s-style food-and-games operation.

We had no idea about the food-and-beverage business and put our faith in a supposed expert. Needless to say the venture failed miserably. Ever since then I have been very careful to make sure I properly understand a business before getting involved with it.

Where do you hope you’ll be, professionally, in ten years’ time?

The rate of change in technology is going to be phenomenal. It is hard to predict what Embed will look like in ten years but with our industry experience and strategic position in the major markets of Australasia, the U.S., the Middle East and Europe I think we are poised for a period of terrific growth.

And finally...if you’d never embarked on this career, what other line(s) of work would you have liked to pursue?

I think I would have been attracted to things like property development. The concept of taking something and innovatively developing it into something that has a higher and better use appeals to me. I appreciate the built environment when it works well in harmony with the natural environment and society – there will be some exciting opportunities for technology in this field.

Curriculum vitae

Born: 1964, Perth, Western Australia

Education: University of Western Australia – Bachelor of Engineering, then MBA

Career:

1986-89 project engineer, Clough Engineering Group

1991-93 national development manager, Leisure & Allied Industries (LAI), Perth then Melbourne

1994-98 general manager/operations, LAI, Melbourne. Also became a director of LAI.

1999-2001 COO, LAI, Perth

2001-08 MD and CEO, Embed International, Perth

2008-09 chairman and CEO, Embed International, Perth

Since 2009 chairman of Embed International and still a director of LAI Group, based in Norwich, UK







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