does anyone on here own a real arcade as their buisness?

[Sephroth57]

ive been thinking about different options for what I want to do for the rest of my life. and I could see owning an arcade as a viable option. I was wondering if anyone on here actually owns an arcade or knows what you really need to think about for planning and things to get started. How much money youd need to start off with, location, stuff like that. or are there websites out there with some buisness education on it ?

[Apollo]

Sounds like fun but to be honest you'd be bored off your ass in 5 mins and broke to.

[hyiu]

do you mean opening an arcade ?? (like the 80s ??)

I doubt that's profitable.... time has changed...

well.... but a few arcade with some other business might work... like laundramat... restaurant... etc etc..

or unless you want to go high tech and have those new arcades that doesn't even use tokens... but use those swipe cards.... and all those state of the art big pile up video games...

but I don't know how much that will cost... (I think it'll cost quite a lot of $$...)

[Sephroth57]

well the boardwalks near me seem to do very well, (I live in NJ near seaside heights boardwalk). and I was thinking it would be cool to have a small arcade but have just the best games no dumb skeeball or ticket games, no slots/cranes. Id have like MvC2, Soul Cal 2, newest street fighter, basicly a lot of good fighting/adventure games. and a lot of Bemani games like DDR obviously (major $$$ maker near me), IIDX beatmania, try to get some imports that will be rare in US like pop n music, para para paradise. and have tournaments for the fighting games and music games on certain days. I think it would really bring in a lot of crowds. now this is really a pinpointed market like 14-30 age group but thats the main boardwalk ages anyway.

i dunno just an idea....

[ntjedi]

Not to interrupt, but I've been to Seaside!  I was living in Toms River for about 2 weeks!  

Being from Michigan I had never seen anything quite like it.

[soslo]

Is it anything like the Santa Cruz beach boardwalk? Between that and the SF Piers, I can't say that I've been to any others...

SCBB is pretty cool though...rollercoasters, arcade, mini golf, and junk food on the beach - how can you go wrong?

[dek]

I'd rather have skeeball and redemption games anyday over a Dance Dance Revolution.

[soslo]

I like skeeball and DDR...redemption games...ehhh, ok.

but I burn more calories playing DDR...

to each his own

[spidermonkey]

Seaside is a blast. The arcade near the Funtown pier has quite a few classics. Probably around 25. I was there about a month ago on my lunch break.

[Sephroth57]

yeah i live about 20 min away from seaside, in the summer me and my friend are always bored so we just hang at the boardwalk and arcades up there. plus theres always good street racing in toms river on the way back =)

im a gearhead/computer geek, weird combo right

[soslo]

I am that same combo  

My other hobby is racing my Trans Am

[bluGill]

Location location location

Arcades can still make money in some places.  They won't make money where there are no people, and they won't make money where people are not going to stop.  They can make money in a big mall, but often cannot pay the rent for that space.  

In tourist destinations you hve a good chance if it rains just often enough to get people inside, but not often enough to prevent them from comming.  If you can get some novelties to draw people in that will help.

A better plan might be to scatter machines around the malls and local bars/resteraunts.  Places where one or two machines would fit, but where they don't want to maintain them.  Split the take, and keep the machines working.  Beware that you will spend most of your take on gas going from machine to machine.  Switch out machines when they start getting old, for a different one from a different buisness.

Beware the cost of machines.  I've heard that a new one will run $5000 (I have no idea if that is true), which is a lot of quarters.  Do your buisness plan first to make sure you can pay off your investment.

Avoid legal hastles.  Make sure you have rights to charge for play.  Nobody is going to care about your home machine with illegal games, but once it is in plublic lawyers will be checking you.  (I don't think starroms gives you rights to charge for play, but double check that)  If you can get legal rights to old games though, a few multiplay MAME classics could go over well.

[APFelon]

Blugil has it nailed. It is almost as though he has been in the business.

You guys bagged on redemption and cranes. I hate to say it, but that's where the money is. That is why Chuck E. Cheese isn't packed to the gills with videos. Today it is rides and redemption. DDR is cool and all, but it is a short term investment.

Games like Wheel 'em In are STILL making assloads of money every week, and these machines are over ten years old! I last collected one two years ago, and the bucket was not only full, but I had to spend ten minutes collecting the tokens from the bottom of the machine that spilled out. NO DDR machine will do that. Ever. Not even new.

An aside: a co-worker and I had a joke: We should make a redemption game that is a straight shot in to a toilet which rewards ten tickets. That way people would know that they are flushing their cash down the toilet. The very next year Cut the Cheese came out, and it featured a toilet for a target. People crammed their money in to it like straw in a scarecrow.

Redemption is for kids, videos are for consoles, and nostalgia is for adults. An arcade is a dead bet. Invest in dedicated cabinets if you must invest in anything. At least you will see your money back.

APf

[tbombaci]

Soslo,

The Jersey shore is much nicer that the BB here. The quality, style, size, atmosphere, etc... reign supreme on the east coast, in my opinion.

The last time I was at the BB, the arcade was a dump. We usually go every year in August.

-Tom

[RacerX]

Blugil has it nailed. It is almost as though he has been in the business.

You guys bagged on redemption and cranes. I hate to say it, but that's where the money is. That is why Chuck E. Cheese isn't packed to the gills with videos. Today it is rides and redemption. DDR is cool and all, but it is a short term investment.

APf

I could not agree more.  We have a GattiTown pizza place here (a *really big* Mr. Gatti's with an arcade inside).  It has a few really new, big, cutting edge video games in it like Turret Tower, but it is *loaded* with redemption games because that's what the little kids like.  It even has a room-sized crane that gives out huge stuffed animals.

[Sephroth57]

thx for lots of good replies =)

[SNAAAKE]

You need a licence for have more then 4 machines at a location and they dont give you any now a day.
No reason,the city just dont want more arcades.
(thats my local,NYC)

However,our local arcade(chinatown fair) still makes serious money.Its packed all the time.

[bluGill]

I'm stilling looking for a get rich quick that will let me retire by 30.   Running an arcade isn't it.  I'm getting desprite as there are only a few months left to go.  

If your local government won't give you the permit, get out the vote, and get rid of them.  Doesn't apply to all countries, but if it doesn't apply to you, you have bigger worries.

[paigeoliver]

I'm stilling looking for a get rich quick that will let me retire by 30.   Running an arcade isn't it.  I'm getting desprite as there are only a few months left to go.  

If your local government won't give you the permit, get out the vote, and get rid of them.  Doesn't apply to all countries, but if it doesn't apply to you, you have bigger worries.

If you REALLY want to retire at 30, then follow this plan. (I am going to assume you are 20 now).

Stay at your parents house, work a full time job, and a part time job, invest the entire proceeds from your full time job at 7 percent. By age 30 you should have enough money to buy a house somewhere with cash (may require changing location if you live in a high property value area), and still have $150,000 left over which should bring you $10,000 a year at 7 percent. Guess what, $10,000 a year is more than enough to live on if you already own your own home. Especially if you get a roommate to split the bills and pay $300 rent too. (Which should cover your entire part of the bills and leave some left over). That will leave you with $10,000 a year to live on, with absolutely no bills other than automotive/insurance (your car expenses should be LOW, since you won't have to go most anywhere).

[Sephroth57]

I'm stilling looking for a get rich quick that will let me retire by 30.   Running an arcade isn't it.  I'm getting desprite as there are only a few months left to go.  

If your local government won't give you the permit, get out the vote, and get rid of them.  Doesn't apply to all countries, but if it doesn't apply to you, you have bigger worries.

If you REALLY want to retire at 30, then follow this plan. (I am going to assume you are 20 now).

Stay at your parents house, work a full time job, and a part time job, invest the entire proceeds from your full time job at 7 percent. By age 30 you should have enough money to buy a house somewhere with cash (may require changing location if you live in a high property value area), and still have $150,000 left over which should bring you $10,000 a year at 7 percent. Guess what, $10,000 a year is more than enough to live on if you already own your own home. Especially if you get a roommate to split the bills and pay $300 rent too. (Which should cover your entire part of the bills and leave some left over). That will leave you with $10,000 a year to live on, with absolutely no bills other than automotive/insurance (your car expenses should be LOW, since you won't have to go most anywhere).

i wish that would work, cept you have car insurance, cell phone bills, car payments, etc to pay while you live with your parents, plus some charge rent. you could probably put away like half your checks though, i pay 400$ a month on car payments alone that couldve been adding up to a nice amount saved but i wanted a pimp car so oh well =P

[Buddabing]

Paige, I respect you greatly for your faith, for your knowledge of arcade controls, and for your ability to create MAME cabinets for next to no money.

That said, I think your "retire at 30" plan is incredibly naive.

Stay at your parents house,

Until you are 30 years old?

work a full time job, and a part time job, invest the entire proceeds from your full time job at 7 percent.

What about getting an education, dating, getting married, having kids, having a life? I personally worked two jobs for a while, I hated it. There was nothing but work. I tutor high school kids for extra money now, my wife still thinks I'm gone too much.

By age 30 you should have enough money to buy a house somewhere with cash

Unless you have a college degree, this is unlikely. If you are a $10 checker at Walmart that's about $200,000 over the 10 year period. Unless you want to live in the ghetto, not even close.

(may require changing location if you live in a high property value area), and still have $150,000 left over which should bring you $10,000 a year at 7 percent.

Strongly disagree. Where are you getting these returns? The stock market? Definitely not in bonds.

Guess what, $10,000 a year is more than enough to live on if you already own your own home. Especially if you get a roommate to split the bills and pay $300 rent too. (Which should cover your entire part of the bills and leave some left over). That will leave you with $10,000 a year to live on, with absolutely no bills other than automotive/insurance (your car expenses should be LOW, since you won't have to go most anywhere).

So you're going to live by yourself in a ratty house, drive a junk heap, have no social life for ten years, have no health insurance (<--- IMPORTANT!). At least you'll have your video games to keep your company.

I apologize again for flaming you, but you needed a reality check.

B.

[Sephroth57]

uhhh yeah what he said =P

Paige is a meanie, he should burn!!!!!!    in post flames...

[tiggertoo]

Ahhhh,......

I think Paige's response was sarcasm.

Actually, I'm sure.

OTOH, instead of an arcade, go with a gamers cyber cafe. We have one in our mall with 40 computers and five x-boxes. The kids love it. They charge a flat fee of $5 per hour and have overnight lan parties on the weekends for which they charge $20. I wouldn't say it's packed, but it doesn't need to be. After your initial investment, anything you make beyond your monthly bills/costs would be profit. Just make sure you get the latest and greatest games for the kids to tryout. It's only been around for about 6 months, so it's hard to say how successful it will be.

I understand it's not as simple as I make it sound. Computers need to be upgraded regularly, software as well. But, at least you'd be presenting people with a platform that they're more familiar with.

Just a thought...

[Sephroth57]

yeah those things are all the rage in europe. i met a guy at a car meet once who opened up a bunch of those and was doing awesome. he came over from europe where he got the idea and start doin it here

[paigeoliver]

Yeah guys I was kidding, no one would actually do that. Sure it would work, but no one is going to do it.  

[SirPeale]

Paige, I respect you greatly for your faith, for your knowledge of arcade controls, and for your ability to create MAME cabinets for next to no money.

That said, I think your "retire at 30" plan is incredibly naive.

Eh...some parts yes, some parts no.

Stay at your parents house,

Until you are 30 years old?

Yeah, that wouldn't work.  I'm 30 now, and can't possibly imagine living with my mom until now.

work a full time job, and a part time job, invest the entire proceeds from your full time job at 7 percent.

What about getting an education, dating, getting married, having kids, having a life? I personally worked two jobs for a while, I hated it. There was nothing but work. I tutor high school kids for extra money now, my wife still thinks I'm gone too much.

All depends on the person, I suppose.  If I had to do it all again I wouldn't change anything, but I don't think my life would have been bad had I not married.

By age 30 you should have enough money to buy a house somewhere with cash

Unless you have a college degree, this is unlikely. If you are a $10 checker at Walmart that's about $200,000 over the 10 year period. Unless you want to live in the ghetto, not even close.

I would love to live in a $200,000 dollar house.  But then again, I guess it depends on where you live, right?

(may require changing location if you live in a high property value area), and still have $150,000 left over which should bring you $10,000 a year at 7 percent.

Strongly disagree. Where are you getting these returns? The stock market? Definitely not in bonds.

Can't comment here, don't know dick about the stock market.

Guess what, $10,000 a year is more than enough to live on if you already own your own home. Especially if you get a roommate to split the bills and pay $300 rent too. (Which should cover your entire part of the bills and leave some left over). That will leave you with $10,000 a year to live on, with absolutely no bills other than automotive/insurance (your car expenses should be LOW, since you won't have to go most anywhere).

So you're going to live by yourself in a ratty house, drive a junk heap, have no social life for ten years, have no health insurance (<--- IMPORTANT!). At least you'll have your video games to keep your company.

Some stuff here I agree with, some I don't.  No social life?  Eh, there are moments for everything.  Junk heap?  Get a Toyota, a decent one, keep it in good repair and you should have few issues.  Health insurance?  Where does it say to not have health insurance?  

[Buddabing]

I would love to live in a $200,000 dollar house.  But then again, I guess it depends on where you live, right?

You're right, a $200k home in California is going to be a hovel compared to a $200k home in other states.

My math was probably a bit wrong, $10 per hour times 40 hours/week times 50 weeks/year times 10 years=
$200k. If you take out taxes it'll be much less. Paige's original post was that you'd have $150k left over after buying the house.

Can't comment here, don't know dick about the stock market.

Neither do I, having dropped my net worth by half over the last three years.

Some stuff here I agree with, some I don't.  No social life?  Eh, there are moments for everything.  Junk heap?  Get a Toyota, a decent one, keep it in good repair and you should have few issues.  Health insurance?  Where does it say to not have health insurance?  

Health insurance premiums are sky-high and climbing like a rocket every year. And I forgot to mention property taxes.

You are certainly right about the Toyota part. My wife insists on buying new cars, she won't listen to the fact that it loses a third of its value once it is driven off the lot.


By the way, Paige's post was meant as sarcasm. I should not have posted my comments.

[Harakiri]

I have a friend who's father is a arcade technician! He kinda owns some arcade cabs and putts them in places for profitt!

[bluGill]

Everyone's money calculations are WAY off.   If I had elected to continue working for McDonalds after high school instead of getting a bachlors degree I would just now be making as much per YEAR as I would at McDonalds.

Sure they start you out a $5/hour (or whatever minimum wage is), but it doesn't stay that way for someone who places money as the first concern.  They are always looking for managers, and they pay for all your training.   All that is asked is a willingness to work long hours.  (forget about friday nights, that is the big money maker for the store so you have to work)  

Note that living with my parrents could not have worked out, company policy is to move those who are moving up the ladder from store to store where there is need.  Anyone going for the money will be better off in the long run in a cheap apartment with no lease so they can move when the job calls.

And don't forget the fringe benifits, I haven't worked with a pretty girl in a long time.   Back then they had to talk to me once in a while.  Health and 401k benifits are good too.

Note that most stores are privately owned so those opertunities don't always exist, I worked for a company owned store and watched others move along the above path. They generally were trying to support a family that started right out of high school (or before) higher education is out for them.  

Factor that into your analysis.  It can be done.  It isn't worth it, but it can be done.

[BLACK KNIGHT]

Yeah, living with parents until 30...I don't think so.  I didn't run the numbers on the rest of what he wrote...but the part about living on $10,000 a year even with no mortgage payment there is NO way I could live off of $10,000 a year.  I spend that eating in restaurants in a year!  

Now, back on topic.  I think that the only way an arcade would really work in my area is if it were combined with a some sort of eatery or laundromat or something.  I know when I didn't have a washer/dryer I used to goto the laundramat down the street and pump quarters into the pool tables and arcade games.  But of course the biggest thing you have to think about in business is Location, location, location...that'll make or break an arcade.  

In my area those little arcade computer LAN party things don't work.  One in the mall went away and my friends and I were thinking of doing one but the numbers never worked out.  The cost of games and hardware was too much compared to the hourly rate you could charge.  We have LAN parties at our houses all the time for free and I think most other people do this as well at this point.  Heck I just bought a Wireless 10/100 router with built in switch for $10 at an after Thanksgiving sale!

[SpamMe]

SCBB is pretty cool though...rollercoasters, arcade, mini golf, and junk food on the beach - how can you go wrong?

I live near there. The machines are poorly maintained at this point. Lost about $4 of the last $10 I spent there due to jammed coin mechs, or brken buttons/joysticks etc. Darn shame.

[Dak-ak]

Location Location Location??

AIRPORTS.. muahaha... hundreds of thousands of people per year wandering through, almost constant traffic... all bored/peeved, looking for a vent...

but you open up a smallish shop in the airport... a couple mame cabs... get some decent boards off of ebay or something...

its sorta gray area... but if you have say, ddsom, ddtod, and the simpsons 4 player game boards... it seems to me it would be greyarea-legal (new term ;-)) to run a 4 player mame box with those three games on it...

i would think the audience would be superkeen on it...

a place like the boardwalks might have a lot of people going in and out... but you would typically only have SO many people... in an airport, your audience is almost limitless, because each day brings new people from out of town..

[Sephroth57]

yeah thats true but im sure airport space to rent is a ton, and most people frequenting them are buisnessmen and stuff i dont think they like video games?

[GamingGreg]

The traditional arcade seem to be a dying breed these days.  Probably due to the abundance of console and PC games nowadays.  Most arcades in my area are now just a part of something else, such as a pizza joint, bowling alley, movie theater, or larger entertainment center (Laser Tag, miniature golf, etc.).  There are two exceptions: One is a full arcade in the mall (mostly rundown machines, but somehow surviving). And the other is "Nickelcade", a run down place with older machines (and redemption machines), but cheaper (nickels instead of quarters). However to their credit they are still in business after about ten years, and it's also where I bought my used cabinet.

Perhaps you could expand your arcade idea into an "Amusement Center", and you might have a better shot of making it.  However, you certainly won't be "rolling in dough" (be realistic).  The LAN party places haven't taken off here, but if it was also combined into this larger "Entertainment Center", it might fly also.

I think what bluGill said is Key "Location, Location, Location".  You need to be where the people are; where you have a captive audience. I think that's another reason why most arcades are a part of something else. The people are already there, and the games are "supplemental income".

Someone mentioned arcades in airports.  Since most of these are adults, perhaps something like a few Ultracade machines (similar to a MAME machine but legal for commercial profit) might work there.  A lot of adults nowadays grew up with video games, so this might be appealing to our retro or nostalgic side.

Just some thoughts.