From the Editor
It is report card time for the industry as we
present this, our second annual "State of the
Industry" Issue. As another coin-op year draws to a
close, the industry as a whole should take this time
to review its efforts, analyze the results of those
efforts, and use those results to plan for the year
that lies ahead.
For the very first time, we are incorporating our
Annual Operator Survey into this "State of the
Industry" Issue. Up until now, this important
operator poll had been published in our AMOA
Convention Issue. By virtue of the tremendous
amount of statistical data generated by the
operator poll, it was felt that it would be far more
appropriate to publish these results in the "State of
the Industry" Issue. We think you'll find these
results interesting, as well as encouraging-as far
as the health of this industry.
While it is important to keep a close eye on
what's happening at the grassroots level of this
industry, it's just as important to take a close look
at what's going on at the manufacturing level. After
all, by their very nature, the manufacturers, to a
very large degree, influence the overall success of
the industry. They make the games people play and
in so doing, hold the future of this industry in their
hands. This issue takes a long hard look at the
dilemma facing manufacturers today. The problems
of complacence, innovation, licensing, and copying
are all dealt with first hand.
It can be said that this still blossoming industry
is not without its problems. The current economic
recession is taking its toll on a great many
industries, and this one is no exception. However,
while other industries are being hit from both sides
of this economic squeeze, the coin-op industry thus
far has been hit from only one side. Manufacturers
of automobiles and appliances, home builders, and
makers of other big ticket items are being hurt by
rising costs and decreasing demand. The
coin-operated entertainment industry, on the other
hand, has only felt the blow of higher costs.
Demand for the specialized form of entertainment
that this industry provides has shown no signs of
decreasing. On the contrary, demand for coin-op
entertainment has increased significantly over the
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past several years, and there is every indication
that this demand will continue to increase in the
years to come.
What can we all do to combat the threat of
higher costs? How can we insure the continued
demand for our services? The answers are not easy
to come by. Some possible solutions do seem
apparent. Granted, operators can do little with
regard to fighting higher costs outside the realm of
their own operations. They can, however, be more
prudent with their purchasing.
It makes no sense for operators to put all their
eggs in one basket. Going all out and investing in
only one type of equipment such as videos or pins in
many cases results only in a transfer of income. An
operator who puts all his money in videos, for
example, may find out that additional revenue
generated is, for the most part, offset by losses in
revenue from his other types of equipment.
Operators need to balance their equipment
purchases so as to keep this transfer of income at an
absolute minimum. To put forth all efforts in
promoting one type of equipment while forsaking
the other staples of the industry is like taking one
step forward and one step backward-you're
ending up in the same place you were in before.
Manufacturers can do their part by becoming
less complacent and relying heavily upon their own
research and development programs. They must
resort to bolder design concepts and imaginative
ideas in all areas. All too often a manufacturer has
been lulled to sleep by the success of one or two
games. To continue to thrive, this industry needs a
continuous supply of fresh ideas. The days of
copycat engineering and re-hashed games must
come to an end. Such practices create boredom
among the player population and, most of all, tear
away the incentive of the all-important few who are
the true innovators of this industry.
~4:C.Lally~
Editor and Publisher
PLAY METER, November, 1980