The trouble with arcades is the cost of the games for sure. as explained a tenner lasts ten minutes but from the operators point of view that is the cost of the game.
I tried to put a serious business case for setting up an arcade in the North East. Middlesbrough, Newcastle or one of the seaside towns. Owning an arcade is a lifelong dream, I was and still am deadly serious about it.
The cost of the building is about £30,000 per year. Business rates maybe as much again. Then there's the cost of kitting it out and putting in games. So now we are on at least £150,000.
But let's put that to one side and talk profit, the operator needs to make his wage plus the outgoings per year. So 60,000 for the building and rates plus an employee (15,000) plus the operator's wage. Thus £75,000 per year or to make it easy at least £1500 per week plus the operator's wage.
If you charge 20p per go thats 7,500 games that have to be played per week, just to break even and get no money for yourself to live on or pay the startup costs, or buy any new games etc! It just isn't going to happen, especially if it's an arcade full of retro games and shmups, like my arcade was. The only way you can get your grand and a half per week is to charge a quid a go. But then people don't show up, the demand vanishes!!
It's far more complicated than that and the costs are actually far dearer, but you get the idea.
My way around this is to change the business model. In my business model the games are free you don't pay a penny to play them. The arcade makes money through membership and only allows members in (you can have daily members). Now, all of a sudden, the maths work.
Now to break even you need £75000 per year in membership money (unsing the figures above). That's 500 people paying 150 pounds per year each. That seems much more realistic to me. I know for a fact that if there was an arcade near me charging £150 per year (3 quid a week) to play games I like and giving me the ability to play a game, rather than just throw my money away, I would definitely join. As would probably most of you.
However there is still a problem and that is getting the 500 people to shell out £150 each. Without having an idea of demand you can't get funding and in this case it's a new model, you have no idea of demand.
There are a few people here from the North. How many of you, seriously, would pay £150 to join a club to play arcade games as often as you like?
I had loads of ideas, including getting the games in that people want (unsing a voting system). I would have had lot's of classics but also a shooting alley with all our favourite shmups in. I was even going to set up a supergun room so that, as well as the cabs, I could get tons of PCB's and set them up for people quickly, thus letting me have a much wider choice of games on offer.
Anyway, I ask the question seriously, how many of you would pay the £150. I don't mean just say that you would hypthetically. I mean how many of you actually would part with the cash?
Cheers
Lee
Calling all UK shmuppers . . .
I wouldn't be able to pay £150 a year to play - I couldn't guarantee getting there each week etc. However I do like the idea and you could break down further. i.e. you could buy a week at a time (handy for school holidays) 4 hours for an afternoon etc.
An arcade in Florida airport did this and the place was packed. I think it was about $10 for an hour. You end up playing games you aren't too fussed about because you aren't playing per go. Also you can play house of the dead with two controllers
An arcade in Florida airport did this and the place was packed. I think it was about $10 for an hour. You end up playing games you aren't too fussed about because you aren't playing per go. Also you can play house of the dead with two controllers

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Guardians Knight
- Posts: 502
- Joined: Tue Jan 25, 2005 10:15 pm
- Location: England
it does sound good in theory mate, however the startup costs seem a bit prohibitive, probably more realistically would be start on smaller premises in not so hot an area of town and build up a membership and reputation for a year or two to get off the ground and then think about moving to larger surroundings.
the yearly membership idea would likely fall flat mate, people dont want/have that kinda money to just pay out like that, i go to a gym and prefer to pay £2.50 a session rather than £180 a year even tho if i went on average 3 times a week i would be in pocket. a weekly or even daily entry fee as suggested above would work far better imo, maybe let people have a guided tour before they pay then say ok now you need to pay up front if you want to stay and play for free £3 a day, tenner a week whatever
the yearly membership idea would likely fall flat mate, people dont want/have that kinda money to just pay out like that, i go to a gym and prefer to pay £2.50 a session rather than £180 a year even tho if i went on average 3 times a week i would be in pocket. a weekly or even daily entry fee as suggested above would work far better imo, maybe let people have a guided tour before they pay then say ok now you need to pay up front if you want to stay and play for free £3 a day, tenner a week whatever
001
London Meet II - Ketsui
Heads Up: We installed KETSUI in Casino Arcade on Friday.
The board is on loan from the very generous ill6!
London Meet II will now go ahead.
Details will soon be on the Meets Forum.
More shooters and VS PCBs will be installed in the arcade over the next few weeks, before the Meet.
Regs, DEL
The board is on loan from the very generous ill6!
London Meet II will now go ahead.
Details will soon be on the Meets Forum.
More shooters and VS PCBs will be installed in the arcade over the next few weeks, before the Meet.
Regs, DEL
Leeram wrote:Anyway, I ask the question seriously, how many of you would pay the £150. I don't mean just say that you would hypthetically. I mean how many of you actually would part with the cash?
Cheers
Lee
Well, it's an interesting idea but . . .simple economics would count me out cos I ain't got £150 to spare and, I suspect, a lot of yer average arcade enthusiasts might have the same problem.
I hate paying in advance for ANYTHING to be honest because you just never know if you're gonna get shafted or not. Has happened - plentya times.
Shoot, dodge, collect . . .it's the ONLY way to be !!
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Leeram
- Posts: 217
- Joined: Tue Jan 25, 2005 10:40 pm
- Location: United Kingdom, Middlesbrough
- Contact:
That kind of illustrates my point. People are preoared to pay in short bursts because they aren't prepared to commit for whatever reason, which is why the demand disappears.
Charging per day is a good idea (that's why I said there will be daily mnembership) but you can't then guaruntee or even accurately guess demand. You're completely reliant on passing trade.
£3.00 per week is an absolute bargain, most would pay that for each visit, but even at such a small cost it just isn't feasible, or should i say the business case doesn't stack up.
Games are destined to be £1.00 per shot.
Cheers Leeram
Charging per day is a good idea (that's why I said there will be daily mnembership) but you can't then guaruntee or even accurately guess demand. You're completely reliant on passing trade.
£3.00 per week is an absolute bargain, most would pay that for each visit, but even at such a small cost it just isn't feasible, or should i say the business case doesn't stack up.
Games are destined to be £1.00 per shot.
Cheers Leeram
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Halloween Jack
- Posts: 132
- Joined: Sun Aug 14, 2005 2:00 pm
- Location: Cyberspace, England.
Drink and arcades dont mix (and I *like* a drink so its a shame)... Arcades playing shmups are £1 for 3x credits (or sometimes 4x) so stop complaining and get to your arcade!Halloween Jack wrote:Great idea. However, I think that the chances of success would be better if you started a 'theme pub'. The drink keeps the non-playing punters happy, and the cabs present the 'theme' for the real audience. Agree with the concept of start small....
Halloween Jack
Re: London Meet II - Ketsui
Sweet! I knew I should have listened to the nagging voice in my head telling me to go into town on Saturday..DEL wrote:Heads Up: We installed KETSUI in Casino Arcade on Friday.


"I LIKE SHOTS BULLITS AT BAD MAN"