Casio's keyboard business is losing money — and the company is shrinking to survive
Casio's keyboard and electronic instrument business lost ¥3.4 billion (roughly $21 million) in fiscal 2024, even as revenue held roughly flat at ¥21 billion ($132 million). The company has now published a recovery plan that involves pulling out of unprofitable markets, moving some regions to online-only sales, and cutting staff — all aimed at reaching break-even by fiscal 2029.
The numbers
Revenue in the Sound division — Casio's umbrella term for electronic musical instruments — barely moved year-over-year, which means the losses aren't a one-off shock. The company is targeting a 2.1% operating margin on revenue of around ¥24 billion by FY2029, per its Medium-Term Plan. That's a thin margin even by the standards of consumer electronics manufacturing, and it requires growing revenue while simultaneously cutting costs.
The Casiotone 201, launched in January 1980, launched a product category that made Casio a household name. More than four decades later, that same category is the company's biggest drag.
What's changing — and what it means if you're buying
Casio is betting its future in keyboards on the Privia line of digital pianos and deeper integration with a companion mobile app. In the US, Privia models are available at Guitar Center, Sweetwater, and Amazon; in the UK, Amazon and specialist retailers carry the range. Entry-level Casio keyboards — the cheap, colourful boards that have been a staple of music classrooms and starter packs for decades — are likely to see fewer options as the company narrows its focus.
The broader market context is real: the pandemic-era boom in home instruments has faded, and budget keyboards face competition from tablet-based learning apps that don't require any hardware at all. Roland and Yamaha dominate the premium end; Casio is trying to follow them upmarket rather than defend the low end.
One risk specific to the US market: Notebookcheck notes that Casio manufactures 100% of its Sound division products for American customers in China, making the business exposed to tariff changes that could push prices higher.
The outlook
Casio isn't exiting keyboards entirely — the plan is managed contraction, not collapse. But if you're shopping for a beginner or mid-range Casio keyboard, the selection is likely to thin out over the next few years. For anyone already eyeing a Privia, the brand is clearly where the company intends to focus its remaining investment.
