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This is not a project of mine, but a friend's who is sounding very committed to this and wants input. It is not a Minnesota based idea either (I'm not trying to stir him, right now hes from Ohio and he's thinking West Coast). He wants to start a business that is a multi-gaming site. Convenient for people who can't play at home, small groups, or even larger planned events like tournaments or game launches. Depending on location he's not sure of the crowd he would draw on. We hashed some ideas out but here's what he sent me over facebook:
It would have about six sections to it. The first three sections would be xBox360, PlayStation3, and Nintendo Wii. Each with about 12 to 21 32" TVs, gamer chairs, and then the console gaming systems. The fourth section would be a PC gaming area with around 20 PC gaming systems. The fifth section be a more retro gaming area a few classic arcade games, super mario, duck hunt, etc. The last section would be a few Party Suites for 4-6 players gaming groups and 3D Movies.
The front of the all this would be a nerd store. Comics, video games, card games, snacks, etc. I am still working thru if there should be an area for board games or fantasy games like dungeons and games. I have the design theme in my head (mural art of the walls, color themes for each area that match the game console, movie posters, etc.).
A majority of sales would be services based (hourly/daily fee) and some sames product/retail based. It would be key to hold eSport, tournaments, and video game launch events. Another key would be location, partnerships, and then target market. I see really three options for target marker and not sure what the best to go for is.
The front nerd-store half was potentially a phase-2 plan (not launch). Food/Beverage also are a non-issue depending on location. The focus is console and PC convenience, 'everything else' is actually one of the questions below. I asked before he had to go to give me three questions, so if you can read them and give a simple gut-reaction response that would be awesome.
- What would make you want to go and play at a gaming center rather then at home?
- What would you want to do/play besides current consoles?
- What baseline would you be willing to pay?
Of course any other feedback be it small or large-scale planning that would be great.
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I personally think that board games or D&D would be great thing to branch into as well, or at least after some time branch into getting an arcade as well.
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The Fallout Shelter Arcade answers those questions for me. It's not something I can get at home, which is why I'm willing to go there. And since it's not something I can get myself, their pay scheme works for me on a once every other week basis.
I would not go to an arcade just to play console games that many people can get, even if I myself can't afford the consoles. It's no fun constantly losing to strangers.
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*puts on his business top hat and monocle*
What I would need to figure out is why I person would go out and pay money for something they could easily do in their home or any one of their friend's homes? To me that part of the business sounds like a money pit. Even if you got a couple dozen people to come in every now and then, your friend might cover some of the rent but there definitely would not be enough to cover employees as well. There's just no profit in it. If people are going to spend money to game, there has to be a gimmick to it… Something special the customers can't come by at their house or their friends. Hopefully your friend will have good insurance as well because that's a lot of stuff that could break, be stolen, or need fixing or replacing at some point.
The second part sounds a little like The Source, which is a very successful comics and board games shop in the Roseville area. This is a part of the business that could work depending on location. But even then, specialty retail is risky business and correct me if I am wrong, but the profit margin on comics and games does not seem that high. Your friend will need a lot of foot traffic and a lot of word of mouth to ensure the business survives.
I wouldn't invest my own money in it. Ditch the gimmickless video gaming division and I think you have a shot. The opperating costs, particularly rent for the space your friend is leasing and payroll will go down and if the place becomes successful, there's nothing saying you can't expand the business later when it becomes less risky.
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