?How Do I Begin An Arcade(Neo) Business?

avulon

Rip Van Winkle
Joined
Nov 29, 2002
Posts
105
Hello Everyone:

Soon, I'll be forced to quit my job. I'll be
getting some money from the retirement program
at work. With another person in the same
situation, we decided to pool our funds
and maybe open a very small business. We are
thinking about an arcade business; at first buy
two machines, and if it goes good, buy more.
We have enough for about two new ones.
The thing is that we don't know where to begin.
Me being the Neo enthusiast want to evetually
buy a dedicated MVS with the memory card
capability and everything like that, among
the more popular machines we want to buy.

But, since I have no knowledge whatsoever on
how the business works, I need some information
help. All I know is that, if I don't have my
own place, I need to rent them out or whatever
that is called, you know, where I put the machines
in a pizza place or something like that and then
give a percentage of the revenue to the place operator. But how much? Where do I get
the MVS and other machines? What about permits?
Most important, what about maintenance?
Because we all know some people bang and beat
them up.

Does anyone out there have some information they
want to share, or know of articles or publications
relatiing to this topic. I have been searching
libraries web pages all around, and I have only
found one from 1993.

Any information given will be highly appreciated.

Peace,

AVULON
 

chimpmeister

Former Moderator
Joined
Aug 13, 2000
Posts
5,228
Arcades are all dying. There is no money to be had in that business anymore. You really should forget that idea, and find a real job; then you can buy a few arcade cabs to have in your home, as a hobby.
 

FTL

AES Price Guide Analyst, International Moderator,
Staff member
Joined
Sep 27, 2000
Posts
2,489
chimpmeister:
Arcades are all dying. There is no money to be had in that business anymore. You really should forget that idea, and find a real job; then you can buy a few arcade cabs to have in your home, as a hobby.
Here is a real piece of truth.
Arcades are dying in Europe as well.

People play at home new gen consoles games and video pocker and pachinko games are getting the upper hand.

No money to be made,that's why MVS carts drop in price so fast.
There is simply no demand.

Take SVC Chaos:only a fool would buy it at $1000++ for business use.
Operators will buy it when it will be like $600 or little more.
better if $300-400.
No profit,even if the game was awesome.
 

c.t.h

Maxima's Barber
Joined
Apr 17, 2003
Posts
2,350
avulon: Sounds like you're talking more about a vending route rather than an "arcade" per se. You essentially get some vending/arcade machines together, and approach businesses - offer them 10-15% of revenue. You'll probably have best luck with new businesses, rather than already established ones, as they will already have people.

Good luck.
 

neojedi

Member,
20 Year Member
Joined
Apr 19, 2001
Posts
3,314
Most arcades that I've seen die did so because they treated their customers like shit, not because of revenue. It sounds like you really want to open a place where people can play the Neo, not open a vending business. I'd say if a standalone arcade doesn't pan out, open a food business that features arcade machines as well.
 

avulon

Rip Van Winkle
Joined
Nov 29, 2002
Posts
105
Take SVC Chaos:only a fool would buy it at $1000++ for business use.
Operators will buy it when it will be like $600 or little more.
better if $300-400.
No profit,even if the game was awesome.
SVC Chaos for $1000?
I thought it was coming out for the MVS.

Regarding profits, I think it depends on the
region where one lives, and in strategy.

Take the Neo and Mexico for example; there's
virtually a MVS machine in every store corner
over there (though not dedicated ones), with
KOF and FF being the most popular games. Now,
while not every single of those of machines is
packed with people, most always have someone
playing them. They just love the Neo.
I live in TX in a predominately Mexican town;
I think given the right marketing that market
could really take off. All this considering
that the only arcade bendor in town carries
very very few MVS machines.
Regarding non-Neo machines, almost all of them
charge $.50 to $1.00 now. Take a few of the
popular ones and charge a quater like in the
old days, and I think the word will get around.
Imagine charging a quater for one game in one
of those fancy racing games, the ones with
the seat. Profits could be made with the
quantity of players.

That's what I think,
but I'm an amateur though.
 

KOF_FANATIK

Astra Superstar
Joined
Mar 11, 2003
Posts
665
To be honest if you were thinking of doing that,(making a arcade) there are only 2 types of area's you could have it to survive!

#1 a part of town with nothing but asian's or hispanics those are really the only 2 races i ever see playing NEO.

#2 a university or a college it would have to be very close alot of the guys at my university go to this slamming arcade to vent their stress on the arcade games namely MVC2, KOF(any year after 99)or Street fighter 3 3rd strike mainly i always see people playing any new DDR.

to be honest that would be the only 2 ways i can see your buissness doing well at all!
good luck :)
 

Giby

Disciple Of Orochi
Joined
Sep 14, 2002
Posts
3,263
KOF_FANATIK:
To be honest if you were thinking of doing that,(making a arcade) there are only 2 types of area's you could have it to survive!

#1 a part of town with nothing but asian's or hispanics those are really the only 2 races i ever see playing NEO.

#2 a university or a college it would have to be very close alot of the guys at my university go to this slamming arcade to vent their stress on the arcade games namely MVC2, KOF(any year after 99)or Street fighter 3 3rd strike mainly i always see people playing any new DDR.

to be honest that would be the only 2 ways i can see your buissness doing well at all!
good luck :)
Middle Eastern people play the Neo I have seen a grip of them on the machines.
 

KOF_FANATIK

Astra Superstar
Joined
Mar 11, 2003
Posts
665
Giby you are right, at camelot i almost got my ass kicked from some kick ass lebanon dude, good player but had a very bad attitude towards losing to a guy who was younger then him buttrock

i guess he was pissed also cause his girl was with him and i broke his winning streak of 16 wins he was using yamazaki, blue mary, and terry B
we were going at it in kof 02.

but you are right most of the middle eastern people who kick ass in neo are the dudes who play KOF also! =) :)
 

Nesagwa

Beard of Zeus,
20 Year Member
Joined
May 17, 2002
Posts
21,322
Your best bet would to go the leasing route for a while. Two machines wont really make a good arcade anyway. Just make up some brand stickers with your company name, number, site, etc., slap them on the top corner of the cab, lease them to small businesses (resteraunts work good, pizza places especially), they keep a small amount of the profit for letting you put your cabinet there and you are swimming in quarters.

Thats how most arcade machines make money now adays...... Unless its Tekken 4 at the shitty Namco arcades in the mall.
 

T_Smallz

Big Bang Pro Wrestler
Joined
Apr 18, 2003
Posts
885
I do this with 4 machines and my machines take more abuse than I make in revenue (Well Almost). It does support itself, broken joysticks and buttons are cheap to replace. Nicer cabs do draw more attention, but it's hard to keep them nice. Placement is key wink
 

Freelancer

Banned
Joined
Apr 16, 2003
Posts
3,592
T_Smallz:
I do this with 4 machines and my machines take more abuse than I make in revenue (Well Almost). It does support itself, broken joysticks and buttons are cheap to replace. Nicer cabs do draw more attention, but it's hard to keep them nice. Placement is key wink
Where are your machines located in NH? I live in the general area, so I'd like to see some of your cabs!
 

Gamefan

OldSkool4Life,
20 Year Member
Joined
Jun 27, 2001
Posts
3,728
If you are really serious about making a profit and want to offer some entertainment in your area, I suggest opening a LAN gaming zone.


You should purchase several gaming rigs and network them, then purchase popular FPS games and offer them to kids after school and or adults. Something like an internet cafe but for gamers!


There is one clsoe to me and it is always packed with people. They charge upwards of ten dollars an hour and they are always full.

Just a thought...


GAMEFAN
 

Nesagwa

Beard of Zeus,
20 Year Member
Joined
May 17, 2002
Posts
21,322
They opened that shit in my mall.

They fucking closed the Game Keeper (a fine non videogaming store) to put in this retarded ass PC game thing.

You pay like 10 bucks an hour to sit in a black open room to play counter strike and unreal tournament for an hour.

For the money you pay to play that shit you could go home, buy it, and play forever for basically free.

I hate the idea of renting time on games like that. 5 bucks for a weekly rental at blockbuster is one thing, but 10 bucks for an hour of a shitty PC FPS is another.
 

Gamefan

OldSkool4Life,
20 Year Member
Joined
Jun 27, 2001
Posts
3,728
Remember though, you are not paying to play the game, you are paying to play the game with others. That is why it is so expensive. Also most kids don't have kick ass PC's at home.


GAMEFAN
 
Joined
May 23, 2002
Posts
521
mikace01:
Get Initial D and DDR and your arcade will be rich.
Get initial D, i first played it in London bout October time and since then it has been spreading accross the SE even BRIGHTON has a set up, this game is ALWAYS busy ihave always had to queue to get on it (not done that since virtua racing back in 92).

I was thinking of doing a business myself here in the UK but as people have said placement is key.

Oh, and one obserfvation, judging by the state of play in the uk arcades seem to be getting more popular again there is a lot mor people around.

also the one bit of advice i KNOW works. I'm an arcade NUT and i spens a hell of a lot of time in them there are only two types of game that work. games that have the WOW factor and games that get very competitive (score based or whatever)
 

trunks218

Edo Express Delivery Guy
Joined
Dec 25, 2001
Posts
344
If you are wanting to open up a small arcade you can put pool tables in it to bring people in. People are always looking for cheap places to play pool and most bowling allys and upper class bars now charge by the hour and are way over priced. About the only place that you still see 25 or 50 cent pool tables are it redneck bars. And if you put a MVS in it make sure that you put more than just fighters in it because most main steam people can't play 2D fighting games.
 

avulon

Rip Van Winkle
Joined
Nov 29, 2002
Posts
105
Thanks alot for all the responses I got.
There seems to be mixed opinions to this
issue here.
I wonder how the general population feels.
When I say the "general population", I'm
referring to the general gaming population
of course; because, here, we are all
Neo crazy.

Maybe I'm doing this so that I can get my
very own MVS dedicated cab with a
good excuce. That way I can tell my girl:
"Woman, I'm getting this machine not because
I'm a Neo maniac, but because it's going to
make us rich. See, I do care about our
future baby".
 
Joined
Apr 20, 2003
Posts
1,018
avulon:
Thanks alot for all the responses I got.
There seems to be mixed opinions to this
issue here.
I wonder how the general population feels.
When I say the "general population", I'm
referring to the general gaming population
of course; because, here, we are all
Neo crazy.

Maybe I'm doing this so that I can get my
very own MVS dedicated cab with a
good excuce. That way I can tell my girl:
"Woman, I'm getting this machine not because
I'm a Neo maniac, but because it's going to
make us rich. See, I do care about our
future baby".
Hi,

just go to this group:

<a href="http://groups.google.com/groups?oi=djq&as_q=&as_ugroup=rec.games.video.arcade.collecting" target="_blank">http://groups.google.com/groups?oi=djq&as_q=&as_ugroup=rec.games.video.arcade.collecting</a>

There you will be able to get information from people who are in the arcade business: operators, traders, etc.

Heck, they should give you a better inside view of the arcade business and how to start with one.

Charles
 
Joined
Apr 20, 2003
Posts
1,018
Gamefan:
If you are really serious about making a profit and want to offer some entertainment in your area, I suggest opening a LAN gaming zone.


You should purchase several gaming rigs and network them, then purchase popular FPS games and offer them to kids after school and or adults. Something like an internet cafe but for gamers!


There is one clsoe to me and it is always packed with people. They charge upwards of ten dollars an hour and they are always full.

Just a thought...


GAMEFAN
Hey,

Are you talking about the one located in the Great Mall in Milpitas, CA. The one located next to GameStop.

Damm, that place is always crowded.

Charles
 

avulon

Rip Van Winkle
Joined
Nov 29, 2002
Posts
105
Member
Member # 3285

posted May 22, 2003 12:20 AM
--------------------------------------------------------------------------------
Get Initial D and DDR and your arcade will be rich.

--------------------

Introducing Leeann Tweeden, the hottest woman alive.
Forget about arcades!!
I want to be a lingerie photographer!!
 

Loefye

Lt. Laser,
Joined
Feb 27, 2002
Posts
2,835
KOF_FANATIK:
To be honest if you were thinking of doing that,(making a arcade) there are only 2 types of area's you could have it to survive!

#1 a part of town with nothing but asian's or hispanics those are really the only 2 races i ever see playing NEO.

#2 a university or a college it would have to be very close alot of the guys at my university go to this slamming arcade to vent their stress on the arcade games namely MVC2, KOF(any year after 99)or Street fighter 3 3rd strike mainly i always see people playing any new DDR.

to be honest that would be the only 2 ways i can see your buissness doing well at all!
good luck :)
Funny, I am white and know alot of white people that play the Neo-Geo.
 

Loefye

Lt. Laser,
Joined
Feb 27, 2002
Posts
2,835
avulon:
Member
Member # 3285

posted May 22, 2003 12:20 AM
--------------------------------------------------------------------------------
Get Initial D and DDR and your arcade will be rich.

--------------------

Introducing Leeann Tweeden, the hottest woman alive.
Forget about arcades!!
I want to be a lingerie photographer!!
Hell yeah. If you get Initial D you will be set. My arcade just got version 2 and it is always packed. I am not good at version 2 since they changed it so much from version 1 control and gameplay wise. Alot of the cars handle much different. For example, I have a Skyline GTR-34 and in the old one I shifted every 6,000 RPM's, and now I have to shift every time I redline since it will go to slow otherwise. They really powered down alot of the cars also.

<small>[ May 23, 2003, 08:33 PM: Message edited by: mikace01 ]</small>
 
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