So, I'm thinking about opening an arcade...

[the7k]

Newer Edit (April 1st, 2011): Newer Polls!
Name - http://micropoll.com/t/KEsotZByBD (cut choices from 10 to the three most popular of the previous poll.
Genre - http://micropoll.com/t/KEsotZByBh (Check box as many as you like, and omit the ones that don't interest you.)
Side-business polls - http://micropoll.com/t/KEsotZByBi (Check box as many as you like, and omit the ones that don't interest you.)


Edit: Polls! Help me out!

The name?
http://micropoll.com/t/KEsotZBxjP

Your favorite genre?
http://micropoll.com/t/KEsotZBxjQ

Arcades go great with what?
http://micropoll.com/t/KEsotZBxj9

Well, to be honest, I've been thinking about it for the past 10 years or so. It's only now that I've become so agitated with my current job that I feel I need a way out, and it might as well be something I've always had a passion for. (Granted, I don't think this is something that is going to happen very soon. Just thinking ahead.)

The way I approach this, though - I'm not totally sure. I've gotta lot of questions, and no one seems to know the answers.

1) There are two malls that have locations available. One is an indoor mall with a lot of foot traffic - although the available area currently gets little foot traffic. The other is an outdoor mall with next to no foot traffic, but a lot of car traffic. The indoor location would be ideal, but it opens and closes strictly at 10AM-9PM. The outdoor location would allow me to choose my hours (and I'd intend to stay open late on Fridays and Saturdays), but would have to depend more on customers at a neighboring Cici's Pizza and Five Guys. What is the ideal location? (I'm leaning towards the outdoor mall location.)

2) I was thinking about having just an entrance fee and having all the machines set to free play. Is this a good idea, or will it bite me in the ass? What amount would bring people in, but not leave me broke? Should I just stick with quarters or tokens?

3) We used to have a place in our town that was one of those 'Console Arcades' - ya know, they charged you an amount of time you could play on PS3s, 360s, Wiis, PCs, all hooked up to some nice monitors and TVs with good sound systems, etc. Is this ever even legal? I mean, when you buy a console game, you are only allowed to use it privately, right? Would you have to buy a license from Capcom if you wanted to run the Xbox 360 version of Marvel vs Capcom 3 in your arcade? These places tended to say "You're paying for the right to use the equipment, not to play the games", but that just reaks of BS.

I mean, if it's legal, what's to really stop me from using the console version inside an arcade cabinet - especially if I just charged at the door and everything would be freeplay anyway?

On top of that, can I legally run arcade machines themselves without an agreement with the manufacturers? I've currently got a Vampire Savior CPS2 - would I be able to run that without asking for Capcom's permission?

4) I'd plan to have vending machines there so that, when people get hungry/thirsty, they don't have to leave the store (plus to get a little extra profit). Would there be any complications to this, like requiring a food license or something?

5) How do I find local laws about arcades? I've tried looking them up online and with some city officials, but it's mostly led to dead searches and shrugged shoulders. I know that my city allows them - there is currently a Chuck E Cheese that has been doing well, and another arcade is just about to spring up (luckily for me, on the complete other side of the city). Still, I don't know if there would be any laws against having 'Red'-rated games like Mortal Kombat II or Killer Instinct - games that I feel would greatly enhance the place, but not worth the possibly legal backlash. I'd plan to keep such games away from kids anyway by having a separate area for the 18+ game (even if it is legal, I don't want to deal with uptight parents), but still.

6) Redemption seems like a giant waste of time to me. Space-hogging games that rarely get played for worthless prizes - yet a lot of arcade operators seem to think this is something arcades need. Is it really? Like I said, rarely did anyone play these games - and the prizes suck. Is it worth bothering with? I just don't get it.

Anyway, I'm still very much in the 'thinking' stage of all this. I see a location, and I know several people who could very easily obtain machines for me. I just need to cover my bases and make sure I'm not walking into a pit.

[Flake]

1) Outdoor Mall
2) Entrance Fees are a terrible idea.
3) The 'console' machines are a great idea as long as you have the latest game in play.
4) No. And if there are, the vendor will inform you.
5) Go to your local chamber of commerce.
6) Redemption is a miniature gold staple.

[J T]

It's hard to get an arcade to survive in this day and age. You should try to do something funky and fresh, sort of like what Baby Castles is doing in New York.

Get artists, modders, and game developers involved to create unique cabs that only you have access to. Create a different more hip and mature atmosphere. Serve drinks. Have live chiptunes musicians. The way things were done in the past is in the past because it doesn't work anymore. Redefine the arcade and create something special.

[brunoafh]

1) I used to frequent an indoor mall that got HUGE amounts of traffic. Either could work if you ask me, it's all situational.

2) An entrance fee only would seemingly no doubt lead to less profit. Then again, I'm not a mathematician.

3) Not too sure about in-depth legal issues, but I've been to plenty of places like this that ran (and are currently running) with no problem. I'd say having consoles in your arcade with a wide selection of games would definitely be a plus.

4) Probably nothing to worry about here, but I have no real in-depth knowledge on the subject.

5) No idea man.

6) Well, I've frequently a lot of arcades, and it really depends on your location. Redemption machines are largely in place for people that aren't typically arcade goers (gamers). You'll see dozens of claw machines on boardwalks, and see em in restaurants a lot. It's just for random folk to pump some quarters in, in hopes of getting whatever prize lies within. A big profit point on redemption machines is that winning is nearly impossible, but playing is highly addictive. If your arcade is mainly appealing to the gamer crowd, then I'd say having a claw machine present would be a waste of space indeed.

Side note) Honestly, if you're serious about the notion, I'd assist you in investing in it. This is an idea I've toyed with myself, and I've got a fair amount of money and time to invest into it.

[the7k]

@Flake
So, I'd suppose tokens are the way to go if not admission fees? At least with tokens, sales can be offered. Then again, that would make the whole vending machine deal more aggravating, what with getting tokens and quarters mixed up.

I took a look at Arcade UFO's site, and it seems like they have a 'console arcade' set-up where putting quarters in adds time - when time runs out, it disconnects the controls. I'd really like to know where I could get this sort of thing... and again, I'd like to know the legality of charging for a console game.

I still don't get the redemption thing, though. I can understand the appeal of skee-ball, but every single other ticket-spitter seems so boring - not to mention the arcade itself will be very small, so I wouldn't have a ton of room.

One plan I do have is to sell gaming-related t-shirts as well as other items. Perhaps I could use unsold inventory for the redemption tickets or something.

@JT
Unfortunately, my area is very low on 'culture' in that respect. Also, I'd think live musicians would be hard to do because the location itself is pretty small. It won't be completely cramped, but it won't be free from claustrophobia either.

I dunno if my area is the type that would look at an arcade that served beer and not go into 'Pitchforks and Torches' mode. I do realize I need a 'pull', though.

@brunoafh
Interesting. This is a 'future' thing, but I'm really hoping it's a 'near future' thing. I'm still doing homework, but I want to see it happen.

[Flake]

If you do offer merchandise, have you thought about contacting racketboy for merch? I bet Racket would love to get in cheap on an arcade start up.

[CFFJR]

About the redemption thing:

Just because it doesn't appeal to you doesn't mean its an unappealing thing in general. Redemption machines make money, especially with kids who want this or that trinket behind the counter, and the parents who are determined to shut them up.

I understand the space issue, I'm just saying you shouldn't knock it. Balancing the different types of games is important in an arcade.

[Hobie-wan]

Tokens is probably better. As you said you can have specials where $5 gets you 2 extra tokens or something. You could try out the admission thing on a few days or something just to see how it goes, though you'd have to stamp hands or use club bracelets and have someone man the door.

[the7k]

@Flake
Hadn't thought of it, though I was thinking more along the lines of gaming-related apparel, those stuffed Nintendo dolls and figures, pins, posters - ya know, stuff they sell on fangamer.net and sharkrobot.com.

Then again, maybe selling retro games would be a good draw to bring in customers - then I'd definitely have a place for racketboy's services.

@CFFJR
Yeah, I understand the need to diversify. Even though the dance, rhythm, and racing genres are things I'm not interested in, I'm definitely going to be having at least one DDR, Beatmania and Wangan Midnight Maximum Tune machine - even if they are pretty damn expensive.

I suppose if I am to have Redemption games, I'll need to know exactly which ones are the best/most used. I know I have a preference for skee-ball, but those things do take up some room, and if they aren't that popular, best not to bother and instead use a claw machine or *shutter* Deal or No Deal.

[sevin0seven]

Tokens is probably better..

yep. ToKen is better: