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

[Anapan]

Lobster Catcher!

Seriously tho, the boxing games and jumbotron classics at my local arcade get a lot of play.
The main reason I stopped visiting was the upkeep of the classics is terrible. The controls are unresponsive and the F1 Race died but still took tokens for a couple of months. Half of the games I like have "out of order" taped over the coin slot most of the time. It all went down hill after the owners changed and Bibmo 3 Ring Circus stopped working. There's definitely a market, but pandering to the masses will be tough.
I really couldn't say if retro, pizza, automaton-performers, mini golf, pinball and redemption machines
or
Shmups, DDR, timed-consoles, Wifi gaming tournaments, bubble tea and anime prizes would work out better.
I wish you luck! It's rare to find a dedicated arcade that's worth visiting lately and I'd be there all the time if I'd seen one in the last 10 years.

[Flake]

I would also suggest emailing the owners of successful arcades that are geographically removed from where you want to open yours.

Ask them what they have done to be successful, what pitfalls they have avoided, and if there are any secrets to gauging the needs of your customers. Odds are (as long as you won't be opening in an area where you would compete with them) they will be happy to share their methods.

Two I can think of that are (as far as I know) nowhere near you are Arcade UFO and Pinballz here in the Austin, TX area. Arcade UFO has been around for years - they have to have a pretty good gameplan, right? Pinballz is new but so far has been a raging success. They have an interesting business scheme where every machine in the place is actually for sale. From the oldest 1970's pinball machine straight up to the newest arcade cabs, you can actually buy anything in the building.

[the King]

I'm assuming you know how to work on and fix arcade games?

[joehero]

I think its a great dream. All of us that have a passion for video games, have similar dreams. But the fact is, this isnt the 80's or even the 90's. Back in the day, all you had to do is put up a sign and throw in a bunch of arcade games and it would be successful. You couldnt go into a local convenience store without seeing a gathering of kids around a machine,plugging them with quarters. Unfortunately, times have changed. Have you been in an arcade lately? All you find are machines that a home console cant emulate. Ticket rewarding machines, driving games, a few shooting games. I know in my part of the US, the type of arcade/store that you want to open, seems go as quickly as they come. I get the passion side of this, but really look into the financial side also. You could really spend your life savings & owe thousands for a small business loan and loose everything. I dont think the risk is worth the reward here.

[Retrozoa]

2. There's a local arcade (well 30 minutes away anyways) called Nickel City, and they do a hybrid model. As the name implies, the games are based on nickels instead of quarters, and while in reality it doesn't actually come out as hugely cheap as it sounds, it does come out pretty cheap. They simply charge a 2 dollar cover fee to get in, and they've been there for at least 10-15 years or so, though I have no idea how well the business actually does. Another thing they have is a line of older arcade games on one wall that are free, which complements the door fee nicely.

Cool, you guys have a Nickel City too? I've got one a half hour away north of Chicago. Great Arcade, with tournaments, redemption, and some really great machines(SF3 3rd strike!).

One thing to consider is that the Nickel City here has a Snackbar next to the Tournament/Birthday party area, and for events like those it seems to do very well. Might lead to messy kids gunking up the systems though if youre not careful.

[joehero]

2. There's a local arcade (well 30 minutes away anyways) called Nickel City, and they do a hybrid model. As the name implies, the games are based on nickels instead of quarters, and while in reality it doesn't actually come out as hugely cheap as it sounds, it does come out pretty cheap. They simply charge a 2 dollar cover fee to get in, and they've been there for at least 10-15 years or so, though I have no idea how well the business actually does. Another thing they have is a line of older arcade games on one wall that are free, which complements the door fee nicely.

Cool, you guys have a Nickel City too? I've got one a half hour away north of Chicago. Great Arcade, with tournaments, redemption, and some really great machines(SF3 3rd strike!).

One thing to consider is that the Nickel City here has a Snackbar next to the Tournament/Birthday party area, and for events like those it seems to do very well. Might lead to messy kids gunking up the systems though if youre not careful.

We had a "Nickel Palace" here in Idaho. Same concept, $2 entry nickel games. One thing to keep in mind is, some of these successful business have been around for 15-30 years. Some may actually own the building by now, to lease a space in the mall is going to break you. Look at how often businesses come and go in the mall, even some of the anchor stores.

[final fight cd]

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?

i this is a great idea. something like 7-10 bucks for all day free play. if you have good shit in there i guarantee people would come and come again. or do something like 5 bucks for 2 hours of free play.

anything but having people drop quarters in a machine is the way to go.

[irixith]

You could always have certain times of day (6-8pm as an example) where $5 nets you unlimited play, and have tokens the rest of the time. The flexibility is endless!

[BlackDS]

Redemption machines are great only if they have good prizes in them. I've blown a solid $20 at one of them trying to get the grand prize - a PSP Slim. Haven't spent a cent on any other machine then or since.

[aaron]

there's nothing wrong with redemption machines. you just have to find the right ones.