Getting The Most Out of Your Arcade

If you have been privileged to be “in the room” at one of the Three Amigos' celebrated F2FEC conferences, you will know that one of the most-anticipated moments is Amigo George Smith's presentation of his latest lists of top arcade games. More than 60% of FECs operate game rooms, according to the 2020 IAAPA Family Entertainment Center Benchmark Report, and arcade games are a significant revenue generator for many proprietors. With that in mind, we checked in with George Smith to get his advice on getting the most out of a game room. He has also graciously provided his latest lists of top games, which you will find at the end of this story.

Smith, founder, and president of Family Entertainment Group has been in the games end of the amusement industry for more than 30 years. He learned the ropes during successful tenures at arcade operators Dream Machine and Namco before striking out on his own.

Smith founded FEG in 2003 and currently owns or operates more than 50 game rooms in more than 22 states, running from a few thousand square feet to 10 acres in size. These range from installations for Great Wolf Lodge and other water parks to his own Going Bonkers and In the Game centers. Smith knows his games, and if he says a game is worth having, he's not playing around.

Games Are a Retail Business

Smith's most valuable piece of advice may be his prescription to act like a retailer when operating a game room. That means starting with a commitment to make games a major part of your business. If games are going to take a back seat to bowling, parties, and food and beverage, then operating a game room may not be for you.

Like anything else, it's work, says Smith. It is constant reinvestment, and that's where I think most people go wrong. They think I bought the games once, and this can last for five-plus years. But it's like a movie theater; you have to change and upgrade probably 20% to 30% a year.

Smith advises getting the best games you can afford. “We're not talking about [a few] games on the concourse anymore. Customers are sophisticated. If you think you can take secondary games and just throw them in there, customers are going to be unhappy,” he says. To increase the amount of time customers spend playing games, the game room itself should be well-lit, comfortable, and carpeted. Ceiling height should be a minimum of 10 or 11 feet, because a lot of today's hot games are tall. The popular VR attraction Virtual Rabbids, made by LAI Games, for example, is over 10 feet tall.

Games don't play themselves, you need to attractively display alluring prizes to win players. Smith gives the example of the perennially-popular crane games, where players use a mechanical claw to try and pick up a prize from the game case. It's not enough to just throw some stuffed animals onto the playing floor; they have to be “fluffed” (laid out in an attractive way) says Smith. “You have to make sure the eyes are visible to the customers,” says Smith. “If you just dump them in there so the rear ends of toys are showing, you're not going to make very much money.”

The same goes for redemption games that allow customers to win points that they can redeem for prizes, because redemption can be the most profitable element of the game room. While there are automated redemption machines available, a redemption room or counter staffed by people will allow a bigger and broader mix of merchandise and will ultimately be more profitable.

Smith acknowledges that the pandemic has interrupted the manufacture and delivery of redemption merchandise, much of which is made overseas. He doesn't expect the supply chain to be back to 2019 levels until 2023, but he says that doesn't have to deter an operator from opening a game room. Operators should be able to get suitable prizes if they are creative and source merchandise from multiple vendors, including those outside the industry's traditional suppliers.

Supply chain problems and manufacturers' production backlogs have also led to shortages of new games. Smith says an increase in the availability of used games makes them a good option now. They are available from a variety of sources including distributors, such as Betson, auction houses, and individual proprietors.

The game mix is very important and should offer something for everyone among your customers. Smith recommends a core combination of instant win, late model video games, and driving games, especially motorcycles. Arcade-style virtual reality rides are also worth considering; while expensive, they can be high earners. “The new virtual reality games like King Kong of Skull Island by Raw Thrills or Virtual Rabbids are wonderful,” says Smith. “If there's enough traffic, [consider] air hockey and basketball because [bowlers] probably will play sports games.”

Smith's cheat sheet of recommended games is an IBI exclusive. The list is divided into sections for those on a budget and those with deeper pockets, and within those categories are lists for game rooms with a “full set” of 40 or more pieces as well as smaller rooms with 15 pieces or less. Where Smith recommends more than one unit of a game, the optimal number of units is noted in (brackets.)

Game on!

Unlimited Budget Full Set

Limited Budget Full Set

Unlimited Budget 10-15 Games (No Redemption)

Limited Budget 10-15 Games No Redemption

Game Distributors To Contact For New Or Used Games, And Possible Financing Deals

• Betson Distributing
• Shaffer Distributing
• Primetime Amusements
• AVS Companies