Marketplace

MARKETPLACE
NEWSLETTER
PAGE 12, APRIL 30, 1975
The lst Quarter is Over
The first quarter of highly recessive 1975 is, for all business purposes, over. Yet,
reverberations from this quarter, are still ringing loud and sharp thruout the industry.
These were a traumatic three months. Never before have businessmen been faced by such 2
strange and ravishing companions like double digit galloping inflation plus deep, hurt-
ing recession tearing their way thru the nation. Economists will study this phenomenon
for years to come.
The effect upon this industry this first quarter of '75 won't be quickly forgotten.
The entrance of Sega Enterprises,Ltd., Tokyo,Japan, into U.S. coingame manufacture via
conglomerate Gulf & Western Industries, at Williams Electronics,Inc. The changes that
took place at Bally Manufacturing Corp. so this firm could enter into the Nevada gaming
picture. The bankruptcy of MCI,Ltd., Milwaukee,Wis. Many changes of personnel thruout
the industry. Disappearance of a number of small firms creating a more highly concen-
trated industry. Severe loss of vending stability. Acquisition of many routes. The seri-
ous, growing problem of security.
Labor leaders scorn the word "recession", openly labeled this period "depression".
They point to the hundreds of thousands of unemployed as their proof. Economists point
to what "inflation distortion" has meant in overpayment of taxes. Social security, on
which so many depend and on which so many look forward to for their later years, is
threatened and is sure to bring into being higher taxation, possibly hidden taxation.
The energy-caused crisis that brought on this present recession in '73 istl;ill here and,
it seens, Congress can only debate the subject but has no definite solution.
Yet, the movies are booming with pictures of destruction bringing $4 admission fees.
Top athletic events draw record breaking crowds at from $7 to $15 per seat. Pro golfers
shoot for the highest jackpots in all history. Football, baseball, basketball stars talk
millio~ dollar contracts. Entertainment prices double. Pay TV and TV broadcasters battle
for supremacy. New TV video disks with video units priced over $600 and each disk to be
played thru home TV receivers priced over $4 enter the entertainment picture. More and
more money is invested in all forms of entertainment as psychologists explain, "People
want to escape today's problems." Winter resort areas boomed this first quarter. Yet
people are holding back from buying homes, large appliances, many necessities. And the
people are packing up and moving in a growing exodus to other states where employment
still exists.
•
..
No other industry offers such escape to the people so economically as does the coin
machine industry. This industry is a phenomenon in itself, because of its portability.
It can move with the people. Can remove its equip't from losing locations. Offers the
people more fun, more entertainment, more escape for 2-Bits a shot, than any division
of the entertainment industries in all world history. Plus the grandest award of all
family entertainment - together as a family. Keeps kids off the streets. Opens a new
and better path for the public •
This industry desperately needs a new low priced entertainment to boom
zoom its profits. It needs to nationally standardize "1-Play 2-Bits" plus
70/30 commission basis to all locations. It flourishes because it remains
servi ce industry. It faces a fantastically great future. Its booming game
arcades and family centers, so apparent this past first quarter, are only
Its greatest years are ahead.
its ranks and
the better
a great growth
rooms, mini-
a beginning.
What do you think? Write: Marketplace, 185 N.Wabash Ave., Chicago, Ill. 60601.