MARKETPLACE
NEWSLETTER
PAGE 14, JUNE, 1978
It seems like the beginning of the 20th century all over again the way
coinmen are turning to arcades. Not the old fashioned arcades of the turn
of the century featuring, mainly, strength testing machines, but arcades
nevertheless.
New type family entertainment centers that are fully carpeted, that are
beautifully decorated, that feature miniature golf and skateboard courts,
even playrooms for tiny tots while mama shops. A new and modern concept of
what used to be called "Penny Arcade".
In addition to the larger family entertainment centers, there are mini-
arcades and, in greatest number, the game rooms. As predicted, there are
expected to be 50,000 game rooms, large and small, of every kind, in the
u. s. by 1980 •
The reason is quite apparent. Operators have turned away from many loca-
tions where, due to overbearing location demands, income has fallen for the
operator - not for the location owner. The arcade, in a busy transient cen-
ter, in a shopping mall, in a bustling neighborhood, assures the operator
a better percentage from the take.
The big problem with the new arcades is outstanding management. And good
managers aren't easy to find. Nor can they be quickly developed. Yet, much
to the surprise of many in the industry, ve-ry fine managers have come into
being. This will help bring about continued game rooms expansion all over
the nation.
Because of the game rooms, the industry is no longer dependent on loca-
tions to help develop new equipment. Nor are a great many operators com-
pletely subject to the whims and fancies of location owners. They have a
better deal for themselves in game rooms. They no longer need kowtow and
bow to locations, especially marginal, nasty locations.
All in all, the turn to arcades has proved highly beneficial, not only
to the individual operators, but to the industry as a whole. It seems the
old fashioned arcade idea of over 100 years ago, is now helping to lead
the industry to better business years while, at the same time, also bring-
ing a stimulating infusion of necessary new blood to the field.
l