SEGA SAMMY to reveal Naomi 3!

Yeah my ideal business model would be to have a place with a front area coffee bar/lounge with perhaps a place for local bands to perform (a very very small stage/performance area like you find in some coffee shops) then in the back have pool/air hockey/skeeball/maybe one or two of those hoops games (though I think they're really lame, I could just have them there for free.)

Then in a separate room off of the pool area have a game room with a small but good collection of the best games. Two or three top notch fighters, a few shmups, several racing games, some music games...you know something for everyone. By keeping the areas semi-separate you could attract a lot of folks. The problems would be: Premises, staff, and maintenance of the games. Also getting the capital to start it. You'd probably have to start as just a coffee shop or just a pool hall, but then you'd run out of room trying to expand.

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Originally Posted by Cowutopia

Yeah my ideal business model would be to have a place with a front area coffee bar/lounge with perhaps a place for local bands to perform (a very very small stage/performance area like you find in some coffee shops) then in the back have pool/air hockey/skeeball/maybe one or two of those hoops games (though I think they're really lame, I could just have them there for free.)

Then in a separate room off of the pool area have a game room with a small but good collection of the best games. Two or three top notch fighters, a few shmups, several racing games, some music games...you know something for everyone. By keeping the areas semi-separate you could attract a lot of folks. The problems would be: Premises, staff, and maintenance of the games. Also getting the capital to start it. You'd probably have to start as just a coffee shop or just a pool hall, but then you'd run out of room trying to expand.

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You know, I've actually had the same idea (minus the bands and some of the redemption stuff and maybe add in a bar and HDTV(s) for BYOC play). I even thought about doing it, since I don't think the capital required is nearly as bad a opening a franchise or movie theatre. The thing that really disuaded me (aside from my day job being cushy enough for me to post this) is that Austin has a great arcade scene by U.S. standards and I'd be competing for the same niche market as my competitors, except with higher overhead and with an even riskier business model. Only good place in Austin would be right next to all the other good arcades...

As for the naomi 3- I've gotta go with DiffX on that one. You gotta aim higher than what's going to immediately be able to be done at home. Say what you will about the MVS, but it was noticeably ahead of home consoles when it was first deployed.

On the arcade vs home thing in general, diffX and TrialSword both give points I agree with. My compromise is only going to 1 arcade where I know people and those people aren't whiny/annoying-types and inviting over the few decent arcade game players that I know for some lag-free vs. matches.

When I go to an arcade I play racing games almost exclusively. For example, I had to go to a local Chuck E. Cheese's for the first time yesterday (Yeah...apparently they are still in business. This one's new), and found a pretty nice Sega Club Kart cabinet...which is a Euro-style kart racing game. I thought the game was awesome, especially how the cabinet was designed to recreate the feeling of racing a go-kart. It had one of those card-based saving system that would track your stats and all that good stuff. All said, I ended up pumping almost $5.00 into and have since decided to go back there in a few days simply to play it some more. Even with a force-feedback wheel and everything, I still think playing a great arcade racing game in a well-kept cabinet in an arcade is something ummatched at home.

In fact, that's probably all arcades have on home consoles anymore. Big, elaborate, gimmicky cabinets. Well, that and face-to-face competition. I'm still looking for an F-Zero AX machine...

Unfortunately, OH is a ghost town for decent arcades. Dave & Buster's is allright, but GameWorks totally blows.

GameWorks is crap mainly because of their prices, and the pace of new games being added isn't even a trickle. You'd be lucky to see a new game there every 3-6 months. Racing games unfortunately seem to be what they focus on. Then again, it seems like they care more about their Jax Grill, appetizers, and alcohol than games.

My idea for an arcade would have a small snack bar (no alcohol) and some more variety in games- some older and some new. Tokens would be sold at 6 for $1. Some more expensive games (newer sim games and music titles) would be Quarters Only at first to help pay them off faster.

1 token- Ketsui, Espgaluda, Border Down, GGXX#Reload, SF3 Third Strike, Metal Slug 3, Ultracade with default gamelist, Mr. Driller G, Kollon (Taito G-Net), Strikers 1999, Neo Turf Masters, Namco Classics Vol 1 & 2.

2 tokens- Giga Wing Generations, Raiden III, Ibara, Mushihimesama, Shikigami no Shiro 3, Neo-Geo Battle Coliseum, Tekken 5, Senko no Ronde, Samurai Shodown Tenka, Strike Fighter DX (Sega 1991), Time Crisis 3, VF4 Final Tuned.

3 tokens- DDR Extreme, GHOST Squad, Out Run 2 SP, Beatmania IIDX 12th, Police 911 2, Taiko no Tatsujin 6.

Quarters Only- The Fast & The Furious ($1), Battle Gear 4 ($1), Guitar Freaks V & Drummania V (75c)

The math just doesnt add up. I really think you have to be insane to open up a new arcade nowadays, in any capacity. The only games these days that bring in any business whatsoever are the big gimmicky ones, which cost around $10,000. Same with the dance games which can run up to $20,000. Yea you could get an old machine but then people log on to sites like TNL and talk about how much the place sucks.

Anyway, these games are on dollar play. Lets say your place is open 12 hours during the day. The average game lasts, lets say, 10 minutes (to compensate for the uberl33t and the newbies). That is $6 an hour, or $72 a day. Its gonna take you almost 5 months before you made back that cash you invested, and thats not counting the repairs (people stamp on those pads) and the huge gobs of electricity that all those flashing lights and huge CRTs consume. And thats just one game, to be a decent arcade you need dozens of games, all of which are a nightmare to maintain, some of which nobody cares about, etc. And videogame publishers, being publishers, churn out shit nonstop so you have to stay on top of the game. And arcades opened late tend to attract a sleazy crowd, so you might need to get some off-duty cops to maintain it, thus adding to the cost.

Yea, this is simplified, and I know every business has challenges, but I think you can see why its just a better bet to open up a Starbucks.

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Originally Posted by diffusionx

The math just doesnt add up. I really think you have to be insane to open up a new arcade nowadays, in any capacity. The only games these days that bring in any business whatsoever are the big gimmicky ones, which cost around $10,000. Same with the dance games which can run up to $20,000. Yea you could get an old machine but then people log on to sites like TNL and talk about how much the place sucks.

Anyway, these games are on dollar play. Lets say your place is open 12 hours during the day. The average game lasts, lets say, 10 minutes (to compensate for the uberl33t and the newbies). That is $6 an hour, or $72 a day. Its gonna take you almost 5 months before you made back that cash you invested, and thats not counting the repairs (people stamp on those pads) and the huge gobs of electricity that all those flashing lights and huge CRTs consume. And thats just one game, to be a decent arcade you need dozens of games, all of which are a nightmare to maintain, some of which nobody cares about, etc. And videogame publishers, being publishers, churn out shit nonstop so you have to stay on top of the game. And arcades opened late tend to attract a sleazy crowd, so you might need to get some off-duty cops to maintain it, thus adding to the cost.

Yea, this is simplified, and I know every business has challenges, but I think you can see why its just a better bet to open up a Starbucks.

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I agree, by and large, but I'm wondering if there isn't just a new twist on the formula that would work. That's kinda where the bar came in as markup on alcohol is huge...still that opens up the whole needing cops/security thing. The only plan I could think of would be unbranded coffee shop maybe with a liquor license and pickup up the slack of other arcades (like having the only GGX#R cab in town). Paying for any franchise is a huge amount of money and some franchises won't sell to you unless you have a certain amount of capital or even agree to open other shops within a specified timeframe.

I look at the "successful" arcades in Austin and I just wonder how the math works out. They take in NOTHING on weekdays during school, at least the one I go to, pay the attendants as low as legally allowed and still seem to get by with little turnover. In fact, I'm gonna go ask tonight if I can look at the books for one of the places (if they even keep books)....got a friend who works at the arcade where I play.

I have more fun talking to people in person than on aim or over the phone. I know I can talk to hundreds of people on blizzard, but I don't, nobody does. I had more fun with the arcade release of Tekken 5 than I have come even close to having with the home release, and i have played alot more of the home release. The atmosphere created for the game in the arcade (our arcade had a decent scene), was something worth spending some time and money on.

What's stopping Arcades from trying the subscription model? I could see paying $25-$30 a month for a pass to play games for as much as I want. Blockbuster has started doing it with DVD rentals and game rentals. If they could advertise it enough and get enough customers, a store could do very well.

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Originally Posted by Hardknock

What's stopping Arcades from trying the subscription model? I could see paying $25-$30 a month for a pass to play games for as much as I want. Blockbuster has started doing it with DVD rentals and game rentals. If they could advertise it enough and get enough customers, a store could do very well.

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Not a bad idea, I still think it would be hard. What should be done is this, game developers need to release the home version first and then the arcade machine. Give the players time to develope their skills at home and then 75c a shot doesn't seem so bad, once you have already got some practice. This model would work extremely well for fighters. The arcade machine itself could be nothing but the damn console really and then give your machines online capabilities. So a race in Daytona 3 could literally be up against 32 people, with screens above the racers displaying whats happening in the other location for the locals observers to see, but really only have 4 sitting in one building at a time.

Thats my suggestion.

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Originally Posted by Hardknock

What's stopping Arcades from trying the subscription model? I could see paying $25-$30 a month for a pass to play games for as much as I want. Blockbuster has started doing it with DVD rentals and game rentals. If they could advertise it enough and get enough customers, a store could do very well.

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Some do this, actually.