Play Meter

Issue: 1985 June 01 - Vol 11 Num 10

ATE will make no changes
The ATE show, to be held January 13-16, 1986, at the Grand Hall at Olympia, will follow the previous
format of a four-day show including a preview day.
The show's organizers sent a questionnaire to 131 United Kingdom exhibitors to consider opinions on
whether the show should continue its special preview day with the duration of four days or go with a
three-day show.
Of 46 replies, the majority were in favor of the preview day but divided between a three- or four-day
show.
The board felt that even though there seemed to be a desire for change, the number of responses
did not represent all exhibitors. The board concluded that, had more wanted changes they would have
taken advantage of the chance to express their desires. This, the board felt, could only mean that the over-
whelming majority were satisfied with present arrangements.
--·--
Destron settles
Donald P. Desmond, chairman of Destron Inc., Chicago based manufacturer of coin-operated
vending and amusement machines, announced that a settlement has been concluded to eliminate its debt
with Continental Illinois National Bank. Destron has been operating under Chapter 11 of the bankruptcy
code since June 1983.
This settlement was made possible by an investment group, headed by Jack C. Hand, retired partner
of Touche, Ross & Company, a Big Eight international public accounting firm; and Donald P. Carter, former
chairman and chief executive officer of Cunningham-Walsh, an advertising agency.
The settlement represents the first step towards Destron ' s reorganization. A formal plan will be
submitted to the court shortly. Terms of the settlement will be discussed therein .
According to the company, this will clear the way for Destron to obtain working capital during the
reorganization plan review period and facilitate the forthcoming discharge from Chapter 11.
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Operators are buying again ...
but very smartly
By Valerie Cognevich
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Operators, finally strong enough
to buy new equipment again, are
depending on other operators-more
than distributor recommendations
and manufacturer test reports-when
making their buying decisions. And,
although most concur the manufac-
turers are producing their best equip-
ment in two years and that their hit
ratio has improved dramatically,
manufacturers are still feeling the
pinch that will be magnified by the
natural summer slowdown.
Operators are not investing in
equipment like they once did, but they
are buying more than they had for the
past two years.
According to operator Jim Mason
of High Country Games in Laramie,
Wyoming, " I'm buying more than I
did last year because the equipment is
the best its been for two years. In fact, I
hadn't bought anything in the last two
years."
Echoing Mason, Paul Spiegel of
Active West in Los Angeles said,
"There is a lot of excellent product
because the manufacturers aren't
introducing garbage like two years
ago. They're being more selective
about what they introduce. Before, the
manufacturers, especially the large
ones, were coming out with games, not
because they were good but to keep up
with production. They simply forgot
that supply does not mean demand ."
According to Eric Jacobson of
Amusement Devices in Kaukauna ,
Wisconsin, "Yes, I'm buying more
than I did last year, but I'm watching
very closely and being selective. I am
upgrading my dart and trivia games ."
Although the market has changed
PLAY METER. June 1. 1985
in the last few years, it's very similar to
the way things were before the video
boom. Said Spiegel, "We're back to
being an honest industry. We're back
to the 1980 level." That means back to
phonographs and pool tables as the
staples of an operator's route; and
pinball, too, is enjoying a resurgence.
Play Meter's 1984 "State of the
Industry" survey of operators revealed
the industry staples were earning as
they had through video's boom years.
Now, however, with the video bust,
those steady pool, phonograph, and
pin collections are looking much
better to operators. And that's
reflected in the manufacturers' scram-
ble to suit the operators' changing
buying patterns.
Pinball companies, which had
neglected pinball during the video
boom, are introducing new lines of
pinballs. Even the staid jukebox has
undergone a transformation with
video jukeboxes replacing older
models. And pool tables and table
soccer manufacturers are reporting
increases in sales as the table games are
regaining a higher place on routes .
Electronic darts, though available for
years, are the center of renewed
interest because of promotion techni-
ques.
According to Bob Dumas of
Action Amusement in Corpus Christi,
Texas, "Videos are a thing of the past.
I am starting dart leagues and plan on
starting pool table leagues. These
league programs are what will save
us."
As for video, certain patterns
emerged - trivia games, systems, and
sports themes all prevai led. Operators,
trying to cut costs by converting old
games into something new, were
buying heavily into conversions. And
dedicated games were almost com-
pletely neglected. The video bust had a
sobering effect on operators.
Said Dumas, "If everyone would
go with systems we would all do much
better."
Mason put it this way, "I've tried
the Nintendo system, and it's great. I
haven't tried others, and, though I may
be limiting myself, I would rather be
the last kid on the block to have some-
thing than the first and chance getting
burned . Nintendo made promises and
kept them. They never said they were
considering getting out of the business.
Others made promises and didn't keep
them."
The resistance to being the first on
the block to have anything stands in
stark contrast to how operators rushed
to beat competitors onto the streets
with hot, new games during the video
boom.
Systems
As Mason's comments indicate ,
Nintendo led the way with the system
concept. Only two other companies,
Sega and Data East, had preceded
Nintendo; but it was Nintendo which
surprised the industry by turning out
excellent, low cost kits for its VS.
System. Since the introduction of the
dual YS. System , Nintendo continues
to improve without raising the price.
Most recently, the company intro-
duced the UNI System which is
basically half of the dual VS. System.
All games with the exception of Tennis
and Baseball will adapt to the UNI
9

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