Play Meter

Issue: 1977 June - Vol 3 Num 11

ROBBINS: Well, it's just something that happens
when you come out of a boom period and you start
to slide into a plateau area. Sales begin to level off
and the operator becomes selective in his buying.
When you're in a boom period, he buys almost
anything. When video games were booming in
1974-75, he'd buy almost any game you threw at
him. But now, it had better be a good game, a real
good one, or he passes. He just won't buy the
average or the mediocre game. Also, everything
the operator today buys is "on trial." He picks it up
and if it does well, he pays for it; if it doesn't do
well, he returns it. So the distributor has to be very
careful about what he buys. He can't sell or lease
equipment that is not good. So you just have to
judge the equipment, and you'd better be right
most of the time.
PLA Y METER: How do you judge the equipment?
ROBBINS: Well, when we get a piece of equipment
in, we'll view it-all of our people-and we'll take
an initial consensus of opinion. We usually take
several pieces and we'll put one on the floor and
we'll put some out for test. We combine our initial
reactions with the reactions of the people who see it
and play it on the floor and with, most important,
the results of the tests-two or three weeks
anyway-in the field. We put that information into
a hopper, and then we know pretty much what we
got, though we can still be wrong.
PLAY METER: You don't operate yourselves, do
you? How do you work these tests?
ROBBINS: We farm the equipment out to
operators. We watch then what it takes in, how
the service is, and we watch the income. If it starts
to slide rapidly, then you've got problems.
PLA Y METER: Do you show the data collected to
prospective customers?
ROBBINS: No, they don't ask to see it; they'll ask
just, "How's it doing?" And we've found that it
always pays to be honest. If we've had it out for a
period of time, and we can say that it's testing
beautifully, they'll buy it. But if it's not testing
beautifully, then there's no sense in being dishonest
with the factory or the customer; we'll tell both of
them the truth.
PLAY METER: Do you think two or three weeks is
long enough to get a good test on a piece of
equipment?
ROBBINS: Ordinarily but not necessarily. Nor-
mally you can get a pretty good feeling, but you can
get fooled. So you've got to be careful: it could be a
two or three week wonder. And on some pieces we
will insist on a longer test. But then with some
pieces you just know . You take a Sea Wolf or a
LeMans, for example. You put it out and it takes in
money, but you know more from the enthusiasm,
the feeling of the players-you watch them and you
know that you can go with that piece. So really
judging a piece takes a tremendous amount of
experience and knowledge. You're talking about
someth~ng intrinsic, intangible, that you can't really
Quantify. And you can be in this business a
hundred years, and let me tell you something, you
can still make mistakes. You can get carried away.
I've seen that, at conventions particularly,
distributors and operators getting carried away by
a game, "the best of show," and really it was just a
game.
PLAY METER: How did you feel about the
blocking games that came out of this past AMOA??
ROBBINS: They were fairly good games. I never
thought that they were as good as the reaction of
the show indicated, and that's the way it has
worked out. They turned out to be good but not
extraordinary.
PLAY METER: What about all the copying that
goes on? How do you feel about that?
ROBBINS: I think that's quieted down quite a bit.
You cannot exist as a real entity in this business and
go by primarily copying the other guys. Sooner or
later it catches up with you. You must have your
own innovations, and if you do not, you will not stay
around very long. The guys that are left today,
Midway, Atari, Gremlin and the few others-I
don't think you're going to see them copying each
other.
PLAY METER: Why not?
ROBBINS: Because, I think, these people that are
left, the big ones especially, the successful ones,
they want to keep the respect they have gained.
They have pdde in the business, in their company,
and they have found that they do not have to copy
to be successful, that it is not in their interests to
copy from the next guy, because he'll copy from
you. If you'll just behave like a gentleman, you'll be
treated like one, normally. And that's the best way
to run the business. It would have to be a
gentleman's agreement really, unwritten, because
patents are something very difficult to prove up in
court. And nobody likes to go to court anyway.
PLAY METER: How do you think the operators
have fared in this plateau period that you
mentioned earlier?
ROBBINS: Not very well. I think that the operator
is not making the margin of profit he's entitled to;
he is having difficulties.
PLAY METER: What are some of the most serious
of these difficulties?
ROBBINS: Well, in the urban areas, his biggest
difficulty is the loan demands from the locations.
They are sapping his cash, draining it, making it
more difficult for him to buy equipment and sustain
the income from the route that he needs by fusing in
new equipment all the time. The operator in the
city is not so concerned with the 50-50 as with the
horrible drain on his money from the loans. He has a
location, a good location-he's been in there for ten
years and everything's fine. He walks in one day
and the guy says, "Hey, I need five grand." He
says, "Five grand? I can't ... " The guy says, "Well,
so and so .. .1 can get it." What the hell do you
do- it's a good spot; you can't lose it. Sure the other
guy's an imbecile, but he'll give it to them. It's
horrible.
The operator's expenses are going sky high all
over the place. The equipment is gong sky high all
over the place. One of the things he needs is the
new small dollar coin. He may not know it, but this
is where organizations like AMOA and NAMA
come into play; and they're working on it. He's at a
quarter play on arcades and novelties now. If they
get that small dollar, in certain instances, he'll be
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able to go to three for a dollar in the near future.
And that's going to increase his income- it's got
to.
In order for the operator to pay the rising prices
for equipment, he must make more money. He must
somehow get away from the loans in the urban
areas and in all areas he must som.ehow get away
from the 50-50 operation.
PLAY METER: How would you do that, move
away from 50-50, if you were an operator?
ROBBINS: I'm studying it. In one of our
newsletters, I asked for responses and I've gotten
many ; now I'm correlating all the information,
examining it, studying it. And I hope to come back
with some type of practical solution to attacking the
50-50 problem. I don't know what that might be at
this point. But I do know that the 50-50 operation
has got the operator strangled.
PLAY METER: Are there any ways an operator
can predict what kind of year he's going to have, or
does he pretty much have to fly by the seat of his
pants?
ROBBINS: Sometimes he can, especially if there is
something economically predictable in his area, an
industry perhaps. A lot of operators are in areas
where there might be one or two industries that are
really significant. He can get an economic picture of
those industries, and if those industries are healthy
and growing, his year is probably going to be a good
one. On the other hand, if he's in an area where that
industry might have a bad couple of months, or if
it's on a downward trend, he could have a bad year.
Also, you can look sometimes at where the industry
is going equipment·wise. If something dramatic has
just come out, it may zoom income for some
operators like when the video games came out. You
could see almost right away that the next year was
going to be super unbelievable, and it was. Right
now, if you asked me to forecast on the next six
months, I would expect them to be in the normal
range. I see nothing that's going to be super
sensational, but I see no reason economically why
there should be much of a downtrend either.
PLA Y METER: What about the Chicago market in
particular? What actually started the ball rolling to
get pins legalized in Chicago?
ROBBINS: You're going back now to 1958. There
has been a constant effort since then on the part of
one or more distributors to get pins legalized. It's
always been the distributors who kept the ball
alive, but in the final enactment, it was the power of
the manufacturers- that they are located in the
community and employ local people- and the
sudden kind of zooming popularity of pinball that
served. Pinball was suddenly palatable to the
public. The publicity that was allover the country,
that started with Wizard and the picture Tommy,
fed back to Chicago. And even the members of the
council realized, "Well, if everyone likes pinball,
what's the matter with it? Here's the center of the
industry and we ban the flipper." So all these things
helped. The atmosphere changed and pinball was
legalized.
PLAY METER: What do you think about all these
new investors coming into the business, Warner,
Columbia, etc.? Is that a good sign?

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