Play Meter

Issue: 1981 September 15 - Vol 7 Num 17

expert, able to play the game until
too exhausted to press another
button. This is pure skill-something
that pinball as we know it cannot
possibly achieve.
As long as you have a ball (or two
or three) banging around posts,
bumpers, slingshots, etc., you will
not have a pure skill game. Although
expert pin players can stay on a
game for hours, expert video players
can get much more playing time
overall for a quarter because there is
little element of chance that they will
lose.
As a pinball enthusiast and
operator, I find this to be video's
biggest fault. The money made on a
video while the players are learning
the game is electrifying, but the
money lost on experts tying up the
machine potentially all day is
distressing.
However, that is of no concern to
the player, which is one reason video
is on the rampage.
Another reason: Would you
rather watch a movie or a slide
show? That's a lmost what the appeal
of video as against pinball has
become. Most videos present a con-
stantly moving game environment
requiring full attention, while the pin-
ball player focuses on the ball and, no
matter how innovative, an often-
motionless playfield.
The intimidation factor Roger
mentions is not really germane to the
issue at all. What could be a more
intimidating experience than one's
first game of Asteroids? Yet, is it not
the most popular game in the
industry's history?
There may be people out there
who are intimidated by new pinball
machines and features therein, but
these are not true pinball players-
and more than likely not video
players, either. Few true game
players back away from a challenge.
Whither goeth pinball? Naturally,
to incorporate TV machines and
features into pinball itself. I'm sure
this idea is not revolutionary in the
Chicago factories. And I wouldn't
shy away from a bet that the pinball
industry is biding its time (what else
is new?) with the current "multi-
craze" before introducing TV-
pinballs (rudimentary at first, no
doubt) to an eager amusement
community.
In fact, my psychic tendencies
have afforded me a vision of the first
such game, so I will spoil the surprise
unveiling planned by the industry
and tell you that the name of this
game will be ...
"Euel Pong."
Paul M. Thiele
Los Angeles
Home games' effect
For all the operators contemplating
the effects the home game cartridge
market will have on their Missile
Commands and Asteroids, I pose a
question of more serious con-
sequence.
The limited power of the Atari and
Matte] home games prevents them
from coming close to the action and
sounds of the coin-op versions. But
how many of us realize that the
$1000 home microcomputer (Apple,
TRS 80, etc.) has thousands of
inexpensive game programs
available to it, some of which
accurately copy the sounds,
graphics and action of the most
popular coin-op games.
As the decade progresses, the
home computer will become so
affordable, half the households in
America will have one in the living
room. Why should dad and kids
spend their money at the arcade
when they can play "Defendant" and
" Asteroid Field" at home for free?
Let's face the possibility that
people will become saturated with
video games and may tire of them
altogether. Maybe we shouldn't
write off pinball so quickly-after all,
you can't copy a Jungle Lord and sell
it at Sears.
Evan R. Wessel
Mercury Amusement Company
Ardmore, Pennsylvania
[Ed. note: Continuing discussion of the
home games' impact on coin-op has
included 'The Satellite in Your Liuing
Room,' Play Meter September 1 issue,
and 'Don't Panic Pinball Operators' July
1 issue.]
Something on your mind you want
to uent? Got a gripe? Full of praise?
Ha ue a question? If you haue
comments on the coin operated
entertainment industry, write to Play
Meter. Our "Letters to the Editor"
columns are dedicated to you, the
operator/ reader.
All letters must be signed; if
requested, only initials will be used
or the name withheld from print.
Please include return address
(although, for the sake of your
privacy, addresses will not be
printed.) All letters subject to
standard editing. Be concise.
The mark of quality for the world market
of coin machines
1981 confirmed by:
• 8.967 trade v1s itors
- 62% -top level manag~mcn t -
• 150 exh1b tors on 12.000 m 2
exhib't'o" area
• the results of the exh1bltor survey
new business connections: 96%
- d1rect orders booked: 82%,
in the f1eld of vending machines: 73%-
- pos1t ve judgement of business
subsequent to the fa1r: 98% -
0
lma
IMA '82 is building towards
an all-round sucess
and wil l enhance worldw1de 1ts
reputation as the leadmg trade fa1r
of all the branches of I he co1n
machine trade.
IMA '82 - If you want to succeed,
you ought to participate.
Heckmann GmbH,
Fai r management IMA '82
Kapellenstr. 47
D-6200 Wiesbaden, Germany
Tel. 06 121/52 4071,Telex 04 186518
21.-24.January 1982
Frankfurt/Main,Fair Grounds
3. International amusement and vending trade fair
PLAY METER, September 15,1981
9
conuartlbla
a ames
by david rosen
OF SEGA ENTERPRISES
We must not be lulled into believing, even for a
moment, that our industry's past success will be as easy
to come by in the future . The rapid growth we have all
enjoyed has brought with it some very real problems-
problems which must be studied and analyzed and dealt
with if the industry is to continue to grow and prosper.
Market Maturity. The first issue confronting our
industry is market maturity- that is to say, market
saturation. Much of the prime real estate for new arcades
and street locations has already been pre-empted. Most
regional shopping malls have arcades, and the 7-lls of
the world already have the latest in video games, or are
testing the concept for their particular operations.
This means the pipeline for new equipment sales will
be slowing down.How long before we see this
happening? My best guess is before year-end.
What will a matured market for new equipment sales
look like in six months from now? We should plan our
business strategies around what will be a three-tier
market segmentation for new equipment sales.
A word about each market segment...
New "Hot" Games. Regardless of market maturity,
we will continue to see a large and growing market for
new "hot" games. But operators will be more and more
selective in their choice of models as there are just so
many "winners" an operator can absorb. Moreover, we
will see a continuing trend in arcades to "banking" two,
three, or four of the same model. The demand for new
"hot" games, coupled with "banking" of games will add to
distributor sales of the current winners, but will also take
away from sales of the " average" $250-a-week game.
Bottom line, we can expect to see the latest "hot"
model sell very well, but the new equipment market for
all other models may well be sluggish compared with
sales levels enjoyed today.
Replacement Market. The second and largest
segment in a mature marketplace is the replacement
market, which is enormous-estimated to be about
700,000 computer video games. This is where the bulk of
future new equipment sales will come from. The problem
is how to tap the replacement market realizing the
economics of equipment trade-ins are not attractive to
operators- except to purchase the latest "hot" new
game. More about the replacement market and trade-ins
later.
The third segment o{ a mature market for new
10
equipment sales is the steady, albeit slower, s!ream of
pipelines sales to new arcades and street locat1ons. We
can expect to see an increase in the trend towards
"space theme" type arcades. and r~pid expansi~n of
pizza parlor type formats. Major cham street locations,
such as Dunkin' Donuts and Winchell's Donuts, also
offer significant opportunity for new equipment sales.
The words "market maturity" or "market saturation"
may at first sound ominous and foreboding- however,
change always presents new opportunities. And
foresight and proper planning will allow us all to prosper
from such new opportunities.
The pace of new game debuts
.
The second industry issue before us today IS the
problem of rapid introduction of new gam~s.
Distributors and operators alike are being flooded w1th
new games-some "hot" and others not so hot, but
nonetheless good money earners.
Broad player appeal and enthusiastic response to new
video games has turned out to be a double-edged swo~d.
On the one hand, both distributors and operators enJOY
record sales and earnings. On the other hand,
distributors and arcade and street location operators
alike, are virtually forced to carry all the latest games.
The problem is common to every operator: how to have
all the latest games, when prices are up and trade-in
values are down?
For example, every operator must keep on location
the "good earning games" which today have relatively
high trade-in values. At the same time, the operator must
continue to buy the new "hot" games. Taking it one step
further, when this same operator decides to trade in a
particular model, his decision is made about the same
time as everyone else. The market is then flooded with
that particular model, and the floor drops out of the
resale market .
Therefore, the operator has little or no trade-in to
offset the initial purchase price of a new "hot" game-
and the problem then becomes "How do I obtain the
capital to sustain operations?"
We can all remember back a few years ago when the
timing of trade-ins was critical to an operator's financial
success. Today the element of timing is virtually non-
existent; it's simply a matter of survival that an operator
must have all the best new games.
Suffice it to say for now that trade-ins are the key to
video conversions
from a major U.S.
manufacturer:
what do they hold
in store for the
coin industry?
PLAY METER, September 15, 1981

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