Play Meter

Issue: 1986 July 15 - Vol 12 Num 12

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UPFRONT
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Alternatives worth a look
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A Play Meter issue featuring novelty pieces, private pay telephones, and kiddie
rides may not have brought more than a glance a few years ago when everyone had video
fever. But with operators now looking at equipment that does not have a prohibitive price,
has staying power, will earn a fair profit, and will be in demand, this issue featuring some
of the alternatives to video games should be popular.
Bonnie Theard , Play Meter's contributing editor, spent a lot of time compiling the
product photos, and making this the most comprehensive buyers guide for novelties,
phones, and kiddie rides ever. Some innovative and exciting product has been
introduced in those categories.
The private pay-telephone industry has been growing. New companies have
been added to the list of pay-phone manufacturers and distributors, and operators still
are seeking any and all information about this potentially lucrative industry. Our 1984
Buyers Guide was published just before deregulation made the private pay-phone ind us-
try possible , and no pay phones were listed in it. Since then the emergence of pay-phone
manufacturers has been tremendous. I can't imagine having to choose equipment from
all that is offered , and it is getting better all the time. But my advice to operators is to know
exactly what you need and make sure you buy equipment that is compatible with regula-
tions in your area. The private pay-phone industry has a lot of growing to do yet.
When looking at the new kiddie rides, I can honestly say I wish I were a kid again
with a parent who understood a child 's craving for a thrilling escape on a kiddie ride.
Maybe kids sense that these marvels were designed with only them in mind . The equip-
ment is ageless . Bonnie's November 15, 1985, Play Meter article on kiddie rides is worth a
look back to read the views of kiddie-ride operators.
The novelty pieces continue to amaze . They are geared for all ages , from the
older "kids" playing Ski//-0-Bingo, Four Kings, Pop-0-Shot, Batter Up! , and Idea
Ball to the teenagers testing their prowess on the Love Meter and Wheel of Love, to the
youngsters throwing balls at characters in garbage cans in Can Alley or pounding
critters on Whac-A-Mole .
Some operators will say they have no use for this kind of equipment. They may
profess to be making so much on video and pins that they don't need to operate "the
other stuff." Fine. Let them ignore it while others make a steady income with a low initial
investment on some of the most exciting equipment available.
No one will promise that this equipment will make you a million dollars the first
month . They won't even guarantee it will make you a fortune, ever. All anyone can
promise is that it makes good sense to look at a variety of equipment, keep an open mind ,
and study the potential. And for those who decide to give this equipment a try, we hope
you will use our gallery of photos and study the details from companies who have given
you more information in an ad . You have nothing to lose and everything to gain .
g
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Valerie Cognevich
Director of Advertising/
Executive Assistant
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~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Digital Controls
closes doors
Two weeks after filing for reorga-
nization under Chapter 11 of the bank-
ruptcy code. Digital Controls. Inc .. on
July 7 laid off its employees and closed
its Norcross. Ga .. facility.
"When the call went out for more
capital to continue building games
and paying employees' salaries.'' a
company source said. "the answer we
got back was 'no.' "
That answer came from the firm's
major stockholder. Si Redd. who.
according to another source. twice
before had bailed the company out
when it was threatened by rising
debts. Early last year. the source said.
Redd assumed control of most of the
company's stock by buying off a bank
debt of more than $2 million and later
in the year put up another $1 million to
keep Digital running.
In late June this year. Redd. foun-
der and chairman of Reno. Nev .. slot-
machine manufacturer International
Game Technology. again found
Digital in trouble. He accepted the
resignation of Mike Macke. the com-
pany's co-founder and president. and
filed for reorganization in federal
bankruptcy court. Under the cloak of
Chapter 11 reorganization status. a
company is given relief from its cur-
rent debt and an opportunity to con-
tinue operating while it devises a plan
to pay off all or at least part of its debt.
Although Redd is listed as Digital's
major creditor-abou t $2. I million of
the company's $2.6 million debt is
owed him-he apparently changed
his mind about the company's future
and opted to close down.
Digital Controls opened in 1981
when Atlanta natives Macke and
Mike Pace set up shop in Norcross and
began selling Little Casino. a counter-
top video card game. The amusement-
only game was aimed at operators
who wanted to profit from the video
card-game craze but didn't want to
operate pay-out machines or credit
PLAY METER. July 15. 1986
pokers.
More than 20.000 Little Casino
games were sold in its original edition.
a color version. and a conversion kit
for the company's Countercade
system.
When sales of the game began to
fall. Digital turned to other equip-
ment-a digital-readout adding game
called Tactician . an upright game
called Lode Runner. and the upright
Ghosts 'N Goblins licensed from
Capcom. The company also tried to
diversify into videodisc training hard-
ware and software for the retail com-
puter industry. but Digital's entry into
that market coincided with a slump in
the retail computer business.
While the general decline of the
coin-op industry after 1982 and
Digital's inability to gain the support of
major distributors hurt the company,
the knockout punch may have come
when sales of Ghosts 'N Goblins were
cut into by the wide availability of
counterfeit versions.
"Almost as soon as we signed the
agreement to manufacture and
market the game. pirated games
started appearing in lcoations around
the country," said the Digital source.
who asked not to be identified. "We
even had trouble with parallel
boards." The company had hoped the
game would enable it to show a profit
for 1986.
Attending opening festivities of 50th State Coin-Op are, standing from left,
Brian Duke, Greg Rice. and Kane Fernandez. Seated are Cindy Duke, left.
and Linda Fernandez.
7

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