How to Start a Successful Arcade Games | Business Ideas

An arcade game (or coin-op) is a coin-operated entertainment machine, usually installed in public businesses, such as restaurants, bars, and particularly amusement arcades. Most arcade games are video games, pinball machines, electro-mechanical games, redemption games, and merchandisers (such as claw cranes)

Video arcades — which primarily but not exclusively attract children, teenagers and young adults — were hugely popular before the introduction of home console games. Many people, however, still enjoy playing video games in an arcade setting. The initial investment and the process required to start such a business will depend on the number of arcades you open and the size — measured both by space and number of video games — of each location.

An arcade symbolizes fun and affordable, carefree times for all visitors. Young and young-minded alike enjoy a test of skill against a machine. Although the cost for an afternoon or evening of fun is among the least costly forms of entertainment, start-up costs for this type of business typically run high. If you thrive on gaming and providing a standby form of ageless entertainment, then opening an arcade may be right up your alley.

Arcade genre

• Arcade games often have short levels, simple and intuitive control schemes, and rapidly increasing difficulty. This is due to the environment of the Arcade, where the player is essentially renting the game for as long as their in-game avatar can stay alive (or until they run out of tokens).
  
• Games on consoles or PCs can be referred to as "arcade games" if they share these qualities or are direct ports of arcade titles. Many independent developers are now producing games in the arcade genre that are designed specifically for use on the Internet. These games are usually designed with Flash/Java/DHTML and run directly in web-browsers.
  
• Arcade racing games have a simplified physics engine and do not require much learning time when compared with racing simulators. Cars can turn sharply without braking or understeer, and the AI rivals are sometimes programmed so they are always near the player (rubberband effect).
  
• Arcade flight games also use simplified physics and controls in comparison to flight simulators. These are meant to have an easy learning curve, in order to preserve their action component. Increasing numbers of console flight video games, from Crimson Skies to Ace Combat and Secret Weapons Over Normandy indicate the falling of manual-heavy flight sim popularity in favor of instant arcade flight action.
  
• Other types of arcade-style games include fighting games (often played with an arcade controller), beat 'em up games (including fast-paced hack and slash games), light gun rail shooters and "bullet hell" shooters (intuitive controls and rapidly increasing difficulty), music games (particularly rhythm games), and mobile/casual games (intuitive controls and often played in short sessions).

How to Start a Successful Arcade Business

Instruction:

1. Develop a business plan for your arcade game operations. You will need to include your investment costs, operating costs and your expected profits.
   
2. Seek a local business counselor to help you develop a solid business plan. This is one industry where an investment in business knowledge cannot be underestimated. Your projections must be on point for the company to break even and become profitable in the least amount of time.
   
3. Determine your start-up costs. Arcade businesses can cost from thousands to hundreds of thousands of dollars initially. To cut costs, lease your video games until you can determine which ones are the most popular and profitable.
   
4. Acquire the financing necessary to start your business. You will require funds to rent or purchase a location unless you own a space that will accommodate an arcade. If you do not have the initial capital investment, speak with a bank or credit union about a small business loan.
   
5. Find a location or locations for your arcade game business. Each location must be exposed to a significant amount of foot traffic. Shopping malls remain a popular for video arcades.
   
6. Obtain the state and local licenses and permits required for your business. Contact your local chamber of commerce or the licensing office for your county or municipality to determine what is required.
   
7. Conduct a market survey to determine the best commercial location. Arcades thrive in areas with plenty of teenage and young adult foot traffic. Therefore, a quiet residential neighborhood won't be suitable, nor are buildings that are not constructed well enough to hold or handle large games and electrical requirements.
   
8. Register your business with the secretary of state office in your area, Internal Revenue Service and other business agencies, if required. You need business insurance, workers compensation coverage and a federal tax ID number.
   
9. Conduct research to identify the most popular video games. Purchase or lease a range of games that will attract novices, those with intermediate skills and advanced players.
   
10. Offer a variety of products and services to increase sales and visitor regularity. Food concession stands, T-shirt sales, party-rental events and discount coupons make your arcade family friendly and entertainment focused.
    
11. Develop a marketing strategy. Since this type of business depends on attracting a continual volume of passers-by into the establishment, advertising and marketing should also be continual and aggressive. Encourage your customers to think of your arcade as the place to go to relax and have fun.
    
12. Advertise your business in local newspapers, in the Yellow Pages, on the Internet and through flyers posted at various locations.

Tips and Warning:

• If you are concerned about how to conduct your market study, hire a professional to do it. Since a large financial investment is required, it is worth starting with everything in your favor, including a market survey to back up your plan.
  
• Starting an arcade game business will require start up costs that can range from $10,000 to $50,000.
  
• Consult an accountant to make sure all of your finances are in order when starting your business.
  
• Think about adding additional services such as food and beverages or a vending machine.
  
• You business will ultimately fail if you do not have the right types of arcade games to attract customers to your business.
  
• Ask your soon-to-be commercial and residential neighbors how they feel about having an arcade in the area. Others who live and work in the area should be convinced the business is an asset and not a curse or business could be affected.

References

Entrepreneur: Business Idea Center: Video Arcade

Start An Arcade Business: How to Pick an Arcade Location

How to Start a Successful Arcade Business

How to Start a Successful Arcade Business