The Economics Of Arcades In The 21st Century
September 9, 2015 in Daily Bulletin
It’s been a while since arcades were a part of the national conversation. Willie Clark looked at the ones that still run today and how they work:
- It’s difficult to make any real money from games so most modern arcades are game areas with bars attached.
- At one arcade, games make up just 4% of revenue. The other 96% is mostly food and drink.
- Arcade owners are experimenting with different pricing models. Some still charge the quarter per play common when arcades were popular in the 80s and 90s.
- Others are trying out flat rate models where, for example, a customer pays $7 to play unlimited games for an hour – although this can lead to people hogging machines.
- Many of the arcades are filled with classic games from the arcade era. The machines can be bought on eBay and can cost anywhere between $1,000 and $3,000.
- Given the age of the machines, arcades also have to factor in about $200 a month to pay for maintenance.
Read more about arcade games with drink holders, how Dave and Buster’s is an exception, lingering legal obstacles, and other details here.
Source: Polygon
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