Play Meter

FROM THE EDITOR Are we really in deep doo-doo? w Valerie Cognevich Editor PLAY METER e are not in a recession, we're in a full fledged depression, an operator told me over the phone the other day. Equipment costs too much, there's not anything new and innovative, the players have moved on to other activities, price per play is still 25 cents, and the manufacturers are trying to run the little guys out of business. These were just a few comments this operator had to say. It's obvious he's frustrated about the industry he's called his own for two decades. He's aggressive, a go-getter as he describes himself, and can't figure out what is going on in the industry. In fact , when I asked him what he thought was right around the corner, his straightforward answer was, "I have given up trying to figure out what's going to happen. There are too many factors influencing our futures and not much we really can do about any of them. " While he was quick to point out that he wasn't speaking for operators all over the country, in his area things were just plain horrible. "You magazine people will say something like 'the market is sluggish.' Sluggish? No, it's much more than that. We must use much stronger words to describe the business." We know that the industry has its ups and downs. However this operator describes a situation where the down is much lower and the up is even more elusive . "I've never seen expressions on distributors faces like I saw at AMOA, " he exclaimed. "They were positively ashen! They are as shocked as the operators are about prices and lack of choice. " These are some strong, heartfelt words spoken by someone who has been in the coin machine business 20 years. It's a little scary because this operator is part of the foundation on which a successful industry has been built. Even more frightening words came from an outsider, who has done some management articles for us: 8 "After studying some information I've accumulated on the coin-op industry, I'd say you were in deep doo-doo!" Can things really be that bad? Or put another way, can they really be good considering the market? What's happening right now reminds me of the title of a movie "Something's Got to Give ." I didn't see the movie, but it's the title that is so intriguing. It describes what we've been saying about the industry. Two shows at the end of 1994 shocked us into reality. The 50-yearold AMOA, the industry show for many years, was dismal. Street operators were out in the cold as far as equipment, while manufacturers proudly showed their mega-priced video games designed without street operators in mind. Then a week later Fun Expo exceeded even cautious expectations. Crowds of attendees filled the aisles, and they were smiling. Even video game manufacturers were pleased, as one explained: "For those spending big bucks opening a family entertainment center, the price of our games is not out of range. " But comparing these two shows is perhaps comparing apples to oranges. Sure there's crossover; you see familiar faces at Fun Expo but in reality it's two different audiences. But it's sobering to see so many newcomers willing to spend the mega bucks it takes to open a family entertainment center. Sure the industry has seen newcomers before, but it was in smaller quantities and certainly they weren't investing what's required now. During the early 'sos you could officially become an operator with the purchase of one game and a few feet of space to place it! Well, something's got to give . There's lots of turmoil within the industry right now. High-tech, information superhighway, FECs, and a few other buzz words are replacing some more familiar ones, and we 'd all better know what is out there. We are in the process of tabulating our State of the Industry results we've received from our loyal readers. Stay tuned in mid-January when the inevitable comparisons to previous years will come to your door. Pay special attention to the comments at the end from the operators who participated. It's always an eye-opening experience . .A JANUARY 1995