Stern Pinball, Inc. is a pinball manufacturing company founded in 1999 when owner Gary Stern purchased the assets of Sega's pinball division. The privately held company is the oldest continually operational pinball company in the United States and the largest one, producing about 75% of all pinball machines.^[1]

Although it was founded in 1999, Stern's roots in pinball trace back much farther. Gary Stern had a background in pinball, beginning with his work at Williams, which his father Sam Stern had owned.^[2] The two then co-founded Stern Electronics in 1976. In 1984 Sam died, and Stern Electronics closed the following year.^[3][4]The company that eventually became Stern Pinball began in 1986, when Data East established a pinball division with leadership from Gary Stern.^[5] Sega then acquired Data East's pinball division in 1994.^[6]

In 1999, the pinball industry was virtually dead.^[7] Sega left the pinball industry by spinning off their pinball division and selling it to Gary Stern, and the privately-owned Stern Pinball was born.^[6] Gary Stern sought to survive in a struggling pinball market by making simpler games that would appeal to novice players and have fewer complicated features.^[8][9] While they continued to manufacture Harley-Davidson games, originally released by Sega,^[10] Stern's first official game was Sharkey's Shootout in 2000.^[11]

Although Stern Pinball was the only commercial pinball manufacturer left operating, it continued to struggle in the 2000s, producing just 10,000 machines per year and selling the majority of them overseas.^[12][7]

Efforts to remain solvent included continuing trend of designing machines that used existing intellectual property while simplifying the builds. These games relied on more mechanical novelties, and fewer video features (which often required more expensive licensing agreements).^[9][13] Stern also attempted to build interest by promoting pinball at more diverse venues, like cafes.^[9] Games released during this time include High Roller Casino, The Lord of the Rings, Austin Powers, Simpsons Pinball Party, and Spider-Man.^[14] Reviews for the games were mixed, and pinball's popularity continued to decline.^[13]

In 2008, more than half of the company's full-time staff was laid off, including noted designers Keith Johnson, John Borg, and Dennis Nordman. At the same time, Stern began production of the CSI: Crime Scene Investigation pinball machine.^[15][16] In 2009, Dave Petersen of the private-equity firm Hagerty Peterson & Co. invested in the company for an undisclosed amount and became a co-owner.^[17][18]

- Introduction of different trim models

In 2011, Jersey Jack Pinball entered the market and became Stern Pinball's first major competitor.^[13] Jersey Jack introduced several advancements with their first machine in 2013, The Wizard of Oz, including LCD screens and color-changing LED lights.^[19] The games were also sold at a much higher price point, $7,000 compared to Stern's $5,500.^[20][21] Stern soon followed suit with upgrades to their operating system and the introduction of LED lights in 2015.^[17]

-2013 released a $2,700 Transformers home pin available on Amazon Staff was growing, adding two mechanical engineers (4 total) and 6 programmers total.^[21]

- Pandemic uptick

As of 2023, longtime designers Brian Eddy, John Borg (who had been part of the 2008 layoffs)^[15], and George Gomez are designing pinball games at Stern Pinball, alongside top-ranking competitive player Keith Elwin and pinball streamer Jack Danger.^[22] Stern Pinball, Inc. is based in Elk Grove Village, Illinois.

Some Stern pinball tables were also digitally released through The Pinball Arcade and Stern Pinball Arcade.

- Started in Melrose Park, Illinois.^[23]

Stern pinball machines are produced in a 160,000 square-foot Elk Grove Village, Illinois facility, in addition to a 65,000 square-foot dedicated manufacturing space.^[1][24] They expanded from a 40,000 square-foot plant in 2015 and again from a 100,000 square foot facility in 2024.^[21][1] As of 2023 they had 450 employees with plans to add 40 to 50 annually.^[24] The new facility serves as the company's headquarters and houses product development, manufacturing, and distribution facilities. The remainder of the warehouse is leased by FedEx. They received $2 million in tax increment financing to help fund the move.^[24]

Jersey Jack Pinball, Chicago Gaming Company, and American Pinball are notable neighbors in Elk Grove Village and nearby Cicero and Palatine, Illinois, respectively.^[1]

In 2021 Seth Davis became president of Stern Pinball, moving to CEO in 2022. Gary Stern acts as chairman of the company, but is less active in day-to-day operations.^[14]

- They doubled their workforce to 500 employees in 2019.^[1]

In 2000, they produced 15,000 machines per year and sold about half overseas.^[25] In 2003, 15 to 20% of games went to private collectors.^[26] In 2008, they produced 10,000 machines with 30% going to American homes and 40% going overseas.^[12] 2009 more than half of machines went overseas and sold on Amazon.^[17] In 2012, they were producing three games per year and selling roughly 5,000 machines.^[27] 2013 an estimated 80% of domestic sales went into homes.^[21]

Parts are sourced from more than 100 suppliers to build the machines, with more than 60 of the suppliers based in Chicago (as of 2014).^[24][21] Games include over 3,500 pieces and two dozen cables.^[21]

- SAM to Spike systems

- Introduced LED lights in 2015^[17]

-Introduction of Insider Connected in 2021^[13] As of 2014, employees were expected to play pinball for 15 minutes per day.^[21]

Some sources to use:

Masaya Horiguchi interview (about Data East/Sega)^[28]

History of Sega Pinball part 3.^[2] Also lists more sources which could be used directly, though I don't have any printed copies of RePlay magazine.

Interview with Gary Stern to use as a primary source Gary Stern 75th Birthday Interview - Part 1 for Stern Electronics IP bought and owned by Gary Stern and his [now] ex-wife. Part 2 interview also on there, but I haven't listened to it. Another magazine interview with Gary Stern^[29]

Few snippets in The Pinball Compendium 1982 to present.

Links to some interviews which could be helpful - an overview of Stern Gary Stern | Founder of Stern Pinball

Some of these should be helpful Pinball News

Couple more magazine references Canadian Coin Box

“approximately 90% world marketshare and about 40% of (Stern’s) production still goes to the commercial market but yes there has been growth in the consumer market” 2021 George Gomez quote (PDF) Toward a Study of Pinball p.3-4. other useful things in there such as the numbers of the first 125 machines that are licensed.

• List of Stern Pinball machines
• Stern (game company)

Sources to review/add to FarSight Studios:

: https://www.nintendolife.com/news/2012/06/interview_farsight_studios_pinball_on_wii_u_3ds_and_kickstarter, https://www.pinballnews.com/news/sternfarsight.html, https://www.polygon.com/2018/5/8/17333300/pinball-arcade-bally-williams-license/

About specific games: https://www.nintendolife.com/news/2013/07/farsight_studios_aiming_to_have_the_pinball_arcade_released_this_september_on_wii_u

• Company website

Categories: Category:Pinball manufacturers Category:Manufacturing companies established in 1999 Category:American companies established in 1999 Category:Electronics companies established in 1999 Category:Manufacturing companies based in Illinois