Posted tagged ‘growth’

Article: How video arcades are adapting to modern times

March 6, 2010

For some years now, one argument has dominated the existence of coin-op arcade games in asking whether they are relevant in today’s world. Some sources say no; that arcades are dead and so unless someone ports a hugely popular title like Guitar Hero or Metal Gear over to arcades for some wacky reason, then there is no reason to waste time on them. On the other side of the fence are those of us who say yes, they still are relevant and worth noticing. Arcades have needed to adapt to changing tastes and ideas and they certainly haven’t handled that as well as they should have but they are still here and this article I am linking to today discusses how coin-op video as well as locations that host such games are adapting to current circumstances. Topics discussed are price to the player, what kind of games it takes to interest people, how older games play into the mix, and the trends which are currently affecting the industry. 

The article also discusses how many businesses are using console games to shape their business, which brings us to this mention of how Cedar Fair Amusement parks will be using the game Rock Band as a park attraction this summer (which Kevin Williams who sourced this post wants to remind us, was covered first in the Stinger Report e-newsletter). Why a business would use console games as opposed to coin-op is simple to understand – they are capitalizing on the popularity of things like the Wii, even though I’m not 100% sure if all legal questions have been ironed out with those things yet and a lack of knowledge/understanding about the current state of coin-op video games. This is changing a little bit as more coin-op games continue to grab headlines as they have in the past year but we still have some work to do. There’s no reason to limit coin-op games to just an arcade/FEC facility, in fact on reason why arcades were popular in the early 80’s was because they were installed in locations such as offices, bars, etc.

Anyways, enough of my analysis, here is the article at IAAPA.org

Dave and Busters looking to reduce debt and exploring a sale?

February 21, 2008

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Fox Business reports that the arcade restaurant chain Dave and Busters has retained Jefferies & Company to reduce it’s debt and explore a possible sale of the company. According to the CEO of the company Steve King “The decision to engage Jefferies & Company and reduce debt is a direct result of our continued strong comparable store sales growth, substantial earnings growth and significant free cash flow generation”. In other words the company has been doing well despite slightly rough economic circumstances. Dave & Busters is one of the largest arcade chains in the US and combines a restaurant and bar with the arcade element – a little like Chuck E. Cheese’s but geared towards adults. If the company is sold off, it’s hard to say if things will change drastically for the company but it’s good to point out that in the press release they say that they experienced a strong 4th quarter – despite factors that other companies seem to have a difficult time with such as the Nintendo Wii.

[Fox Business – Dave & Buster’s Press release] [Dave And Busters Website] [Discuss on the Forum]

Square Enix 1st-half Net Profit up 32% thanks to arcades

November 20, 2007

Software giant Square-Enix has announced that it’s net profit for April-September jumped up 32.5% and it’s not thanks so much to console games but arcade titles. As quoted by an article found on @ JCNNetwork, profit from Square-Enix games such as Final Fantasy XII dropped while it climbed up in arcades:

Despite solid sales of Final Fantasy XII software for Nitendo Co.’s <7974> Nintendo DS portable game machine, operating profit at the game business declined 3.8 pct due to falling software retail prices.

By contrast, the amusement arcade business turned around to a profit of 1,349 million yen from a loss of 328 million yen a year before, due to closures of unprofitable outlets.

Square Enix is another Japanese game company that owns a number of it’s own arcades and due to a plan similar to Capcom in restructuring it’s arcade business, it has turned a profit. Square Enix also has a few coin-op games of it’s own that it has created, including titles like Dragon Quest Swords (arcade) and most recently the popular Eternal Wheel.

[Via The Stinger Report via JCNNetwork] [Discuss on the Forum]

Article: "Evolving Arcade Culture"

November 17, 2007

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[Via Argus Leader, Sioux Fall SD]

Here is another news article that discusses the current state of arcades as well as the culture of arcades. While it misses the target on a few points(such as Ms. Pac-Man and Galaga sitting unplayed  – those still make a steady although not overwhelming amount of income today), it is overall positive and makes a good point that one reason why people go out to the arcade is because of the social aspect it brings along with it. The article also doesn’t state that ‘arcades are dead’ so I give it a thumbs up for not spreading FUD.

It does focus a bit on game LAN cafés making it appear that those have replaced arcade entirely although locally I know of one arcade that boasts more than 10x the amount of income per week than a local computer game center. But the sense of competition is generally greater at the PC game centers as it is a bit easier to organize a competition over PCs than it is in an arcade (although it’s not impossible for arcades to do it – any arcade that doesn’t hold regular competitions is shooting itself in the foot).  The article also talks about arcade collecting, which is becoming more popular than ever (and more expensive on some fronts as well). The only other thing it lacks is that it could point out that arcades are becoming more popular with a plethora of great games headed their way to the arcade now and throughout next year.

[Discuss on the Forum]

Article: “Evolving Arcade Culture”

November 17, 2007

hollyarc.jpg

[Via Argus Leader, Sioux Fall SD]

Here is another news article that discusses the current state of arcades as well as the culture of arcades. While it misses the target on a few points(such as Ms. Pac-Man and Galaga sitting unplayed  – those still make a steady although not overwhelming amount of income today), it is overall positive and makes a good point that one reason why people go out to the arcade is because of the social aspect it brings along with it. The article also doesn’t state that ‘arcades are dead’ so I give it a thumbs up for not spreading FUD.

It does focus a bit on game LAN cafés making it appear that those have replaced arcade entirely although locally I know of one arcade that boasts more than 10x the amount of income per week than a local computer game center. But the sense of competition is generally greater at the PC game centers as it is a bit easier to organize a competition over PCs than it is in an arcade (although it’s not impossible for arcades to do it – any arcade that doesn’t hold regular competitions is shooting itself in the foot).  The article also talks about arcade collecting, which is becoming more popular than ever (and more expensive on some fronts as well). The only other thing it lacks is that it could point out that arcades are becoming more popular with a plethora of great games headed their way to the arcade now and throughout next year.

[Discuss on the Forum]