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Average Arcade Revenue and Budget
In this blog post, you'll discover the cost and ROI of installing or upgrading an arcade at your family entertainment center. Read on to learn more!
Are you a FEC owner or operator looking for more information about the average revenue an arcade generates, and the budget needed to add or upgrade an arcade in your family entertainment center?
Well, you've come to the right place!
In this article, we outline the average arcade game cost, average space allocation per game, and potential revenue figures. We also go over some other factors that'll contribute to the overall success of your arcade.
Average Arcade Revenue and Budget
The following information was provided to us by Turfway Entertainment Management Group, experts in designing profitable entertainment centers.
Average Per Game Revenue: $200-$485 Per Week
Average arcade game revenues range between $200 to $485 per game per week on an annualized basis. However, these numbers really depend on the type of facility you operate and how you present or market your attraction-mix to your target demographic.
- How many games do you have or want to have? What is or will be your game-mix? (Redemption, direct pay, video, VR.)
- How new are your games? Are they relevant in today's market?
- Are the games in premier working order? Are any down or broken?
- Are the bonuses in the games attainable?
- Does or will the game room have a card reader system?
- Are the games priced correctly? (Many price them too high or some too low for the market.)
- Are the games putting out the right percentage of tickets per play? (Typically, a 25% to 35% output on the dollar.)
- What is the ticket value? (Usually .01 a ticket.)
- Are there or will there be other attractions apart from the arcade or is it a stand-alone arcade?
- How is the game room positioned or how will the game room be positioned? For instance, is it in a boxed room with all games turned up way too loud? Or, is the game room in a carpeted area with only one in 4 games set in “attract mode” with music playing overhead?
- How impactful is or will be the redemption area? Is it or will it be staffed?
- Where is the redemption center located in your facility? Where is the arcade located?
- Are the redemption prizes priced correctly? (200% markup, generally.)
- Do the redemption prizes appeal to your target audience?
- Do the direct pay games have great prizes?
- Is or will the arcade be a part of your birthday party packages?
- Is the arcade included in your food/game package price?
- Are game packages sold to corporate and social events?
Gaining the maximum amount of revenue from each game depends on the relevance of the games added to the room, the structure of your game room, flow, and so much more. A great game room, at peak hours, has the potential to generate up to $1000 per game per week!
If not presented or marketed correctly to the right target audience, a game room will not yield the return you're looking for.
Average Cost Per Game: $10,000-$12,000
The average cost per game can be anywhere from $10K - 12K. Top-of-the-line games can cost you as much as $50-75K, but on the lower end of the spectrum, crane games cost around $1600-$2400.
Keep in mind that tax, freight, installation, your redemption center, and a card reader system are all additional costs to consider.
There do exist options to lease equipment but be sure to consult with an arcade expert first.
Average Per Game Space Allocation: 75 Square Feet
You can expect to use an average of 75 square feet per game.
Extreme games are more common now than ever, increasing the average square footage for arcades while sometimes decreasing the average game count in the game room.
Arcade Game Types
The right game mix is another factor that determines the success of your arcade. It’s important to understand the different categories (and subcategories) of arcade games and think about what’ll best appeal to your target demographic.
According to Betson, the 3 most common categories of arcade games are video, redemption, and merchandiser.
Video games are played by customers for fun and to compete and reach high scores. These are usually driving, fighting, pinball, or air hockey games.
Redemption games reward players for their skill and high score. Each player has a chance to win a prize from the facility’s redemption center after playing the game. These are usually coin pusher, video redemption, whacking games and/or others.
Lastly, merchandiser or direct pay games allow customers to win a prize directly from the game machine. For instance, cranes or claw machines, photo booth machines, and/or others.
Each game category or game type has its specific purpose. For instance, air hockey games are designed to be immersive. People are so focused on achieving their high score, they completely tune out the rest of the world. Arcade boxing games are designed to be encourage friend groups to get a little competitive, test their strength and determine who’s the strongest. Crane or claw machines also bring out that competitive side in your customers!
As a facility owner, you need to determine what game mix makes the most sense for your target demographic and which games will keep customers at your facility for longer.
PCS Arcade Revenue Calculator
In order to make your arcade planning easier, we put together a simple calculator tool you can use to determine the cost, revenue, square footage, and ROI projections for your new arcade.
Were the tips in this article helpful? Please comment below! We'd love to hear your thoughts.