UP FRONT
Some Still Care
About This Industry
No one really expected the coin-operated
amusement industry to be as profitable or as popular
with the public as it was only three short years ago. Still,
there are many who love this industry and intend for it
to be their livelihood for many years to come.
However, an upsetting article appeared in the
Chicago Tribune recently featuring Bob Mullane,
chairman of Bally. Obviously he's not one of those who
will be in the industry much longer. In fact, he said Bally's
decision to get out of the game business may be only a
year away. The theme of the Tribune article was how low
the industry has dropped. He not only spoke with
knowledge about Bally's loss of revenues but also
guessed about other factories' losses.
And that leaves the rest of us to question why. Why
did Mullane go public with his story about the decline in
video game sales? And there's another question . Didn't
he leave out some of the truth?
Sure, many major manufacturers are trimming
down , closing, or selling out. However, there is still an
industry here and one that will continue with or without
some of these factories. Smaller manufacturers have
made surprising inroads into the industry with good
product. Crown Vending presented Superbike and it's
been steady for a long time . Magic Electronics has given
the industry some good product at reasonable prices
with satisfaction guaranteed. Monroe has surpassed
many expectations with the popularity of its Birdie King
series. Kitco is a new company that introduced some
exceptional product at the recent AMOA.
The list doesn't end there . Nintendo, having given
operators solid games, is planning more. Universal has
proved a kit can be a good game. Data East stunned the
industry with Karate Champ as it continues to make
money for the operators. Then there's SNK, a small
manufacturer which has a lot of promise by turning out
some good games. And Digital Controls seems to be able
to know what operators want.
Why? That's a good question and one that should
not be too hard to answer. These companies are not
supporting thousands of employees in thousands and
thousands of square foot of space . Nor have they lost
touch with the operators who buy their products. They
talk to operators. They sense their needs. They are
honestly trying to offer something that will help make
stronger operators, realizing a stronger industry will
result. Ivan Rothstein said when Centuri closed its doors,
"We can't support a factory the way the market is." It
could also be said that operators can't support those
giant companies the way the market is.
Mullane said he wanted to "stick it out" in the
industry, not because Bally has something promising to
offer operators but because "we are dominant .. . " and
because "of Bally's tradition and to wait for arcades to
buy replacements for aging machines."
This industry is changing, but we don't need
someone who is planning on getting out, to be so down
on the industry. There was no reason or need to be so
pessimistic, no need at all.
Now is the time, more than ever, that we need
positive feelings to dominate . Operators are more
optimistic now than in 1982 when Bally said sales were
going great. Operators realize they may never have it as
good as they did , but they are facing the reality they
didn't have it as good years ago either. The lawyers and
doctors have returned to their learned professions
leaving the true coin machine people to reclaim their
industry.
Those manufacturers who intend to sell product
and who will survive are conscious of overhead and
expenses. They are in the same boat as operators- they
must trim the fat. Even Atari is now advertising itself that
way, knowing it must get back in touch with the market.
It's not the industry's fault Bally lost touch with reality,
and Mullane 's comments indicate the giant
manufacturer is still out of touch.
Instead of blaming his company's misfortunes on
the very industry that, only two years ago, reaped profits
for Bally, Mullane should consider something William
Shakespeare once wrote: "The fault, Dear Brutus, lies
not in the stars, but in yourself ... "
Valerie Cognevich
Associate Editor
"''''''''''''''''''''''''''''''''''''''"''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''~
PLAY METER, Februa ry 15. 1985
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