Music & Games

Game machine operators upbeat about future, plan changes

The LAI Games State of the Industry report finds most game machine operators planning big changes in their businesses as they reopen.

June 15, 2020 by Elliot Maras — Editor, Kiosk Marketplace & Vending Times

As challenging as the current operating environment is, the majority of amusement machine operators are either optimistic or highly optimistic as they reopen following the COVID-19 closures. That was one of the findings of the LAI Games State of the Industry report, which is now available free for download. More than 200 respondents participated in the online survey.

While slightly less than half are currently generating any revenue, about 44% said they are optimistic and around 17% said they are highly optimistic.

Not surprisingly, the majority (85%) plan to change the way they operate.

"Knowing what owners and operators are dealing with right now, along with their plans upon reopening, allows for more productive conversations and opportunities for us to provide support," Tabor Carlton, LAI Games marketing director, said in a prepared statement. "We've already started implementing support measures from information gathered directly from the survey and will continue to do so in efforts to help the industry get back on its feet." 

Changes planned

Social distancing and setting up sanitizer stations were the leading changes planned, followed by additional cleaning measures and requiring staff to wear gloves and masks. Other changes included going all cashless, reducing operating hours, setting reduced capacity limits, reducing seating in the dining area, requiring guests to wear gloves and masks, making gloves and masks available, checking staff temperatures regularly and checking guests' temperatures on arrival.

The survey found that while many already use a debit card system, many, but not most, of those who don't use such as system are considering it.

A minority of respondents plan to sell some of their current games because of COVID-19, the most common reason being to remove games that aren't generating revenue.

The majority also said they are planning to buy new games in the foreseeable future.

Top concern: revenue

Raising revenue was the top concern about reopening, cited by nearly half (48%) of respondents. 

Less than a quarter (22%) were concerned about critical public perception, followed by keeping guests and staff safe (17%) and possible second wave closures (10%). Only 3% reported having no concerns about reopening.

65% said they had to lay off employees on account of COVID-19.

The majority (59%) said they are presently not generating any revenue, while 40% said they are generating a "small amount" of revenue and 2% said a "moderate" amount.

For those who are generating revenue, about a third said they are pre-selling play packages and the same amount said they are providing food delivery and pickup.

A quarter said they are making money by renting equipment, and about 21% said they are operating with some restrictions. 

About 12% said they are selling redemption items online, while 7% said they are selling equipment, 6% are operating ATMs, 4% are offering birthday parties and/or party packages, 3% are operating jukeboxes, 3% are repairing equipment or helping other operators, and 2% operate laundromats.

Word of mouth was cited as the single most successful form of advertising.

Close to half the respondents (44%) operate family entertainment centers while a quarter operated a single location arcade.

13% classified themselves as "other," such as virtual reality arced, museum, etc., while 11% operated bowling centers and 8% said they are route operators.

The report also provides a range of resources including articles, links to industry news outlets and opportunities from industry partners.  

The company will conduct another survey in about three months.

Download the report for free at https://insider.laigames.com/state-of-the-amusement-industry-report-june-2020

Images courtesy of LAI Games.

About Elliot Maras

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Elliot Maras is the editor of Kiosk Marketplace and Vending Times. He brings three decades covering unattended retail and commercial foodservice.