Commentary

Competitive socializing and the need to stay relevant

Amidst a backdrop of various market pressures, out-of-home entertainment venues explore new hardware, décor and even full pivots of brand to better embrace the changing audience tastes.

Image provided by iStock.

October 3, 2022 by Kevin Williams

One of the biggest awakenings reshaping out-of-home entertainment sector is that of "competitive socializing," a trend that has not slowed during the global health crisis.

Ranging from crazy golf to football simulators, and augmented darts — all supported by an extensive cocktail and dining offerings — these new entertainment venues seem to be speaking directly to a pent-up hunger within the young adult clientele.

Behind the scenes, there is a major power play towards establishing international footholds for the leading brands, supported by multi-million dollar investments.

Competitive socializing joins e-sports

A crossover between competitive socializing and e-sports has even emerged: Kindred Concepts has planned Formula 1 sim-racing center, with a London Q4 2022 opening. Vesaro and D-Box will be partnering to make the race-sims that will be used in the venue, with some 60 simulators planned to be installed at the first site.

These units will be running a specially modified version of rFactor 2 racing software. The Vesaro simulators will be equipped with the new generation D-Box G5 haptic systems.

Kindred Concepts plans to roll out 30 of these F1 centers in the next five years that will incorporate social entertainment and e-sports competition.

This is a trend that could quite easily supersede more traditional amusement offerings, many of which are still reeling from the privations of COVID conditions.

All these developments have been unfolding against a backdrop of international tension — first with the concerns of further variants of the original pathogen, then with the stress of impacted workforce and supply chains, and now with the unfolding European conflict in the Ukraine, with the ramifications against oil prices and wider implications of a rise in the general cost of living.

New VR alliances emerge

Against this multi-faceted backdrop, new VR alliances are emerging.

Genda, the amusement facility operator in Japan, has formed a business alliance with two other corporations towards increasing development of amusement locations — including new XR-based attractions and entertainment.

The two companies are Hashilus — which created several VR-based attractions and installations, and Dynamo Amusement — which has also operated VR attractions and worked with leading IP to create temporary installations based on the technology.

Hashilus will be best remembered for its work with Taito and Sony on its VR concept projects, and for the development and installation of many VR attractions in numerous locations, including the Sky Circus venue and VR Park chain of stores.

Dynamo Amusement, a division of the Dynamo Picture group, has developed and sold products and content for VR amusement installations, such as working with Capcom on the "Biohazard Valiant Raid" VR free-roam installation and working with MediaMation and Var Live.

Genda has started an extensive rollout of facilities, following the full acclimation of the Sega JP amusement facility operation, rebranded as GiGo, with its own business to comprise some 220 stores in Japan, China and America.

Bandai Namco Amusement, meanwhile, is incorporating hardware previously developed by the Project I Can team for deployment in its new VS Park chain.

The Bandai Namco stores opened to date have focused more on physical activity and digital engagement, but it was announced, with the opening of its VS Park LaLaport Expocity Store in July, it will include VR with previously-seen white-water game "VR Rapid River," peddle game "Extreme Chest Test" and "Ski Rodeo."

E-sports highs and lows

The e-sports scene, for its part, has proven a complicated market to follow, with incredible highs and massive lows. A road paved with gold seems also to be populated with its fair share of potholes. Recent developments seem to illustrate the trends of mergers and acquisitions, as well as a need for the market to prove the high expectations promised by the high investment seen.

X7 Esports has acquired London Esports following acquisitions of Absolved and Bulldog Esports.

Meanwhile, Savvy Gaming Group paid $1 billion for a stake in Embracer Group — with the Saudi fund becoming the second largest shareholder in the game licensing and e-sports organization.

All this said, there are highs, and there are lows.

Allied Esports Entertainment, one of the poster e-sports boys, revealed that during the first quarter of 2022 it incurred a net loss of $3.8 million. The organization is best known for the e-sports venue operated within the Luxor Resort in Las Vegas, as well as several competitions and live events it organizes internationally — during this period running 92 events and all supported by the new AE Studios producing live streamed productions of the events.

Guide Esports saw a $6.1 million loss. The organization, co-owned by football celebrity David Beckham, had been established to field professional e-sports teams and compete in competitions internationally.

Enthusiast Gaming revealed a $8.6 million loss during a similar period.

These growing pains were expected to be the beginning of a period of restructuring in the sector, following an investment frenzy, marking the ending of the obvious honeymoon period for the sector. Now investors will be expecting to see serious returns to prove the e-sports market's true worth.

The bottom line for all parties is the need to stay relevant, with major chains looking at investment in new hardware, décor and even full pivots of brand to better embrace the changing audience tastes.

(Editor's note: Extracts from this blog are from recent coverage in The Stinger Report, published by Spider Entertainment and its director, Kevin Williams, the leading interactive out-of-home entertainment news service covering the immersive frontier and beyond.)

Music & Games

About Kevin Williams

Along with advisory positions with other entrants into the market he is founder and publisher of the Stinger Report, “a-must-read” e-zine for those working or investing in the amusement, attractions and entertainment industry. He is a prolific writer and provides regular news columns for main trade publications. He also travels the globe as a keynote speaker, moderator and panelist at numerous industry conferences and events. Author of “The Out-of-Home Immersive Entertainment Frontier: Expanding Interactive Boundaries in Leisure Facilities,” the only book on this aspect of the market, with the second edition scheduled for a 2023 release.

Connect with Kevin: