International Arcade Museum Library

***** DEVELOPMENT & TESTING SITE (development) *****

Marketplace

Issue: 1976 April - Page 10

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MARKETPLACE
NEWSLETTER
PAGE 10, APRIL, 1976
THE
STILL HERE
.Don't, fo~ eve~ th? flash of a fifth of a second, think the industry's broke. This
business, believe it, is far, far from busted - even tho operators act like Santa Claus
a~d pay locations 50% rent for each machine they operate. That, by the way, is the very
highest rent paid by any service industry in the world.
What is happening is that operators have put a Strangler Lewis headlock on every
buck they've been able to corral. And they're not letting go - unless what they see is
so attractive they'll actually take a chance and try a "sample". Remember this - a
"sample'' - just one machine - costs what 3 machines used to cost just a few years ago.
'When they set up that "sample" on location and, after a few weeks, learn it's a very
terrific moneymaker, they'll order more. Provided, of course, that by that time the man-
ufacturer is till turning out that same machine and hasn't given up on it in complete
disgust.
You can't blame operators, they say, for proceeding with such super-cautious caution.
These aren't the old time, happy, gutsy, venturesome days. The
days when operators, if
they liked what they saw, ordered in real quantity and quickly covered their areas -
stymying competitors. Operators don't take such chances anymore. Don't venture forth to
blast open new angles, new ideas.
They've still got the money - but
keep it
No boom, boom, boom. The machine they like - they
rest they bypass. That closes up one distributing
know, many a distributing office has already been
very, very still - the money, that is.
order - and keep on ordering. The
office after the other. And, as all
closed.
The big boom of game rooms and mini-arcades since the Spring of '74, gives some idea
of the course the industry has taken. There are many reasons for the game room boom.
Like aggravation with locations to arrange for an equitable division of the take. Like
constant demands for loans and gifts. Like just plain orneriness. Like having to pay 50%
rent per machine to individual locations, regardless of 2-Bits play. A game room setup
costs less than half that much. And when the operator builds up the game room, it's
his business, his cash, all the cash, his better future.
The money's still there - but it's very, very still - until the manufacturers of
music, especially, come up with the new idea - the big idea - to show operators how to
make a real buck with music - one more time.
The game manufacturer who may not click this time - will probably click ~i:h.his
next game. All he wants to know: "Is the money still here?" It sure as shootin is
still here. Just come up with a clickeroo hit game and you'll be but very pleasantly
amazed at how much money's still around to buy what's good.

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