Posted tagged ‘economy’

Chuck E. Cheese posts profit jump in Q3 – How is your arcade doing?

October 31, 2009

cec

stinger

For the past little while, the only stories we have posted regarding Chuck E. Cheese have been negative stories, dealing with the wave of adults who get into fights with each other at their kids’ birthday parties. So it’s nice to see a positive story about the company popping up for a change, especially where they are posting a nice increase in profits for the 3rd quarter of 2009. With this story dropping it leads me to ask those of you out there who are running an arcade/FEC/route location – how did your business do last quarter (or how has it been doing for the past year)? I have heard from some operators recently that they have been having a good year, one even told me that they were having their best year ever. Personally the beginning of this year was pretty bad but after I moved locations last quarter we are seeing our best earnings yet but since we are in a different spot, it is difficult to pin it up against last year seeing how the new place naturally picks up more foot traffic by being inside of the mall.

If you would like to share how your arcade is doing, comment below or discuss it on the forums.

 

One place getting rid of an arcade machine does not mean that all games are seeing hard times

May 1, 2009

stinger11

When it comes to the economy, you can’t base the performance of one game to demonstrate how it must be for all arcade games. Especially if said game is two years old and has a better earning sequel out there. But that is essentially what is done in the article that I will link to below. The writer saw some guys pulling a Big Buck Hunter Pro out of some establishment in New York City so he proceeded to check out what was going on. Apparently the machine wasn’t doing very well so the owner was getting rid of it but considering that the machine was not an online bbhleaveversion of BBH and it wasn’t a Safari, one can understand why it isn’t pulling in $300 a week anymore. For the writer of this article to headline his piece with “The Hard Economics of Arcade Games” shows that he really didn’t look into the subject properly however. It is obvious that the writer is not an avid game fan but it doesn’t take a lot of effort to look up information related to this subject, in particular with games like Guitar Hero Arcade which is earning gobs of money everywhere right now. As a local example, I know of at least one arcade down the street from where I am where they have already paid their GHA machine off, even in this down economy. All you need is the right location and the right games and suddenly the economics of arcades are quite easy to get a handle on.

[Via WNYC News Blog] [Discuss on the Forums]

Wall Street Fighter IV

April 23, 2009

[Thanks for the link Paul]

It’s a little cheesy but it’s been a  little while since I had seen these fighter mock-ups between two people with a video game appearance. This one is about the state of the US economy and who is kicking who’s butt. Of course it’s a very simplified view of everything that has gone on and it’s a bit cheesy but it’s good for a laugh.

[Discuss on the Forum]

Worried about the economy? Advertise

November 14, 2008

The AAMA has created a very interesting document that is of value to arcade operators and soon-to-be aamaoperators alike – something that deals with making money during a recession. Can such a thing be done? Absolutely, as there are people who make fortunes in recessions.And one thing that the AAMA recommends is marketing. They take a look at certain recessions since 1970 and come to the conclusion that companies that maintain an aggressive marketing posture can also maintain profitablity through and after the recession, so they recommend not cutting back on your marketing budget, if you have one. If you don’t have one then make one! Relying solely on word of mouth where you cannot control the message about your business is a poor way to get people through the door on a day-to-day basis.

You can read the AAMA’s article (PDF format) by clicking here. (Link found on this page)

The article does offer some suggestions abotu marketing, such as monitoring competitors and their marketing, avoid gimmicks, stress benefits and spend carefully (i.e. efficiently) but some of the venues I suggest you consider for getting the message out include: direct mailing (usually coupon deals), phone book ads, flyers, street signs (like political signs but with your message on them), Facebook, Myspace or other social networking sites, online ads with a local news station website, press releases for major events (hold tournaments), your own website, newspaper ads (some are getting desparate as revenues fall, they might offer good deals) and of course if you have the money, radio and TV advertising. You can also consider doing something with other local businesses – trading flyers, coupons, whatever. I have something like that going on with two game stores in the mall I am located at and it has helped.

Personally I think that part of it is having ‘nerves of steel’ – if you panic every time you hear the news media talk about recession then the stress will damage your health. I find it better to not pay much attention to them, I think of the quote/joke that “the media has correctly predicted two out of the last ninety-seven recessions” meaning that they always overhype and exagerate conditions that aren’t necessarily a recession. Of course right now the indicators seem to be pointing that direction but I’ve been hearing the recession drum beat since early 2007 as though some people have been begging for one so I’m always a little skeptic until results of the GDP are in. Either way, I think that the AAMA has given some good advice on the subject and I personally understand that it can be difficult to come up with cash if you are struggling but as they say, you have to spend money to make money.

[Discuss on the Forum]