Yes, arcades do make money. On average, an arcade game will make around $200 to $485 per week per game, on a yearly basis.
If arcades didn’t make money, then it wouldn’t make sense to be in business would it. In the remainder of the article we’ll go over how arcades make their money, potential revenue figures, and average space allocation per game.
Average arcade budget and revenue
Average arcade game revenue is usually between 200 and 485 dollars per game per week on a yearly basis. The numbers above, though, depend on the type of facility the game is operated in and how you market or present the attraction-mix to your target market.
The following questions should be asked
- Will there be or are there other attractions aside from the arcade or will it be a standalone arcade?
- Will or does the game room have a card reader system?
- What will be the ticket value (typically around .01 per ticket)
- Will the games send out the accurate percentage of tickets per game play (usually around 25 to 35 percent on the dollar)
- Will the games be priced accurately (some price them too high or low for their market)
- Will or is the arcade a part of the birthday party packages you offer?
- Are the game’s packages sold to social or corporate events?
- Will the arcade be included in the game/food package price?
- How impactful will it be or is the redemption area? Will it or is it staffed?
- Will the direct pay games have good prizes?
- Are the redemption prizes accurately priced?
- Where is the arcade located? Where exactly is the redemption area in the arcade?
- Will the redemption prizes appeal to the audience you’re targeting?
- How will or is the game room positioned?
- Will the game room be in a boxed area with all the games turned all the way up? (too loud). Or will the game room be in a carpeted are with 1 in 4 games in attract mode with music playing gently above.
- How many games do you want to or will you have? What will or is your game mix?
- Are the games in your premier in working order? Are any broken or down?
- Are the game bonuses attainable?
- How new are your games? Are they relevant in the market today?
Achieving max revenue from every game you own will depend on how relevant the games added to the room will be, flow, the structure of the game room, and much more. A good game room, during peak hours, could potentially earn close to $1000 per game each week.
If not marketed or presented correctly to an accurate target audience, the game room won’t yield the return you’d like.
Average cost per game
The average cost per game is $10,000 to $12,000. High end games could cost anywhere from 50 to 75K while on the lower ended of the spectrum, crane games could cost near $1600 to $2400.
Also consider the freight, tac, redemption center, and card reader system and the additional costs that come with them.
Also, understand that there are options to lease equipment, but one should consult with an arcade expert before they do so.
Average game space allocation
One should expect to use an average 75 sq. ft per game. More extreme games are more common nowadays than they have ever been, and they increase the average square footage for arcades while also decreasing the average game count in a room.
Game types for arcades
It’s imperative to have the right game mix, so your arcade can be as successful as possible. It’s also important to know the different subcategories and categories or arcade games there are and also think about what will most appeal to your target demographic.
The 3 most common arcade games are redemption, merchandiser, and video.
Customers play video games to have fun and be competitive, while also reaching high scores. The games customers usually play are air hockey, pinball, fighting, and driving games.
In redemption games players are rewarded for their high score and skill. Every player can win a prize from the arcade after playing their game. Redemption games are whacking, video redemption, coin pusher et el (and others).
Then there are direct pay or merchandiser games that allow players to get prizes from the machine directly. Examples of these would be claw or crane machine, photo booths et al.
Every game type of game category has a certain purpose. Air hockey, for example is designed to be an immersive game. Arcades want people to be so focused on getting a high score that they completely shut out the rest of the world. In arcade boxing games, they’re designed to encourage competitiveness amongst friend groups. Claw or crane machines are designed to bring out a level of competitiveness amongst customers.
Profitability of arcade machine in large and standard arcade examples.
Large arcades can make upwards of $400 per game per week while smaller or midsize arcades will average around $250 per week.