Laser-tag is a popular activity among groups of friends and families. Jenni Shuttleworth speaks to several manufacturers and operators about how much the game has advanced, while analysing its role within the amusement sector

The laser-tag sector has changed considerably since its earliest commercial inception in the late 1980s. Operators rode the crest of a very successful wave in the first half of the 1990s, but the sector was given a shock in the later half of that decade as the market became flooded with operators and the novelty of the game itself wore off.

The only laser-tag operators to survive were those who foresaw this change coming and adapted quickly to the emerging needs and wants of the customer base.

The next significant period for the market was during the past decade when there was an emergence of outdoor gaming - such as paint balling - and smaller lightweight systems for children’s softplay.

"This is a very cyclical sector," said Jason Bock from Lasertron, based in NY, US. "Laser-tag began and everyone thought it was a fad. It hasn’t been. It is now a well-developed, consistent attraction."

Improvements in technology over the years as well as an increase in locations worldwide have meant that the game’s appeal has spread among a wider audience, with laser-tag now even being a popular choice for corporate team building events.

"Children are not the biggest group of players," said Terrence Horman from the marketing department at LaserMaxx, based in the Netherlands. They are not the biggest spenders either. The operator should target 12-50 year-olds."

Talking about the benefits of having a laser-tag game in an FEC, Horman said: "Operators can attract more customers into their entertainment centres. Laser-tag is for all ages and genders, so you can reach a larger group of people. For the operator, the biggest advantage is that one person can easily control a group of 20 players."

Generally, there is a good relationship between laser-tag games and amusement machines as most of the laser-tag centres also have coin-op games, which help to generate extra revenue for laser-tag centre operators among customers who are passing through or waiting in the centre.

Len Kelly from Laserforce, based in Australia, believes that coin-op machines and laser-tag games complement each other in an FEC. Kelly told InterGame: "Coin-operated amusement machines are often a part of laser-tag centres as a form of supplementary entertainment. People come to Laserforce to experience the thrill and the fun where they can also, in between games, enjoy our extensive arcade.

"Including a Laserforce attraction site in your FEC can increase your overall revenue stream by introducing various package deals. Laser-tag by its nature is a major draw to any FEC. By having a Laserforce system in your FEC you increase your entertainment mix. This makes it easy to attract a large number of people to play," continued Kelly.

According to the president of Laser Star Amusements based in the US, Dr David Peretz, the most successful laser-tag operations are those that are part of a larger complex of games and entertainment. "It is very difficult to open a laser-tag business simply as a laser-tag business," he said.

"The usual mix of attractions would be a bowling centre, a go-kart track, miniature golf, games room, etc. Laser-tag is most often the core activity for a party even though other activities may be included. It is often the drawcard that brings groups to the centre in the first place. They then utilise other activities while there."

Feedback from laser-tag manufacturer and operator Veqtor, based in the UK, shows that over the years laser gaming continues to appeal to a wide range of ages, be affordable to run, bring in repeat business, be easy to operate with a minimum of staff and be used either at a fixed or a mobile site.

Veqtor MD Jonathan Plache told InterGame: "Laser-tag is a solid cash cow when combined with other good attractions in the one location. It is a staple product like bowling, go-karts, skating and miniature golf. The game will always be popular as every game changes depending upon the player group and mix. It has both the visual dynamism that draws players in, as well as the addictive element that makes players want to keep coming back so they can do better next time."

For Laserforce, a 30-suit system running at five games per hour makes an average of AUS$900 an hour. "The appeal of owning and operating a Laserforce site or installing one into your FEC is the return on investment and added profit to your business," said Kelly. During its 22 years in the industry, Laserforce has seen laser gaming advance in a number of ways.

"Most significant has been reliability of equipment and the use of full colour LED lighting," said Kelly. Laserforce’s technology includes suits that have a full spectrum of eight LED colours, individual hit zones, two hand phasor detect and three strike vandalism detection systems. "The most significant moment of our company has been the release of Laserforce Gen6," he continued.

According to Kelly, the main improvements that the laser-tag sector has seen have been focused on reliability and repeat play. "Additional technologies have been developed by our company for additional interactive game features such as Warbots with programmed personalities. A big revolution is coin-operated laser-tag stations for use by spectators from the observation deck, called Phasor Obs Deck Station," he said.

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Technology in laser-tag gaming has advanced greatly over the years, making the product more affordable and giving operators more choice, enabling them to cater specifically to customers’ demands.

"The most significant technological change to come about in recent years has been the introduction of RF (wireless radio communication systems)," said Veqtor’s Plache. "These have allowed easier operation for larger centres, more player specific features, real-time scoring and feedback to players and with Veqtor full wireless body armour (body targets) and blasters (gun element), eliminating the cable that historically has attached the blaster to the body targets."

Despite its technological advances, as with any attraction, there are matters that operators should take into consideration before introducing laser-tag into a location. According to Plache, there are three main points that the potential operator must focus on: cost of space; footfall; good staff.

"Paying too much for your space means you will never make the profit you should; If your centre is not in an area with good footfall, you will be fighting an uphill (although not impossible) battle to get them in the door; Running a centre with demotivated, unprofessional staff will cost you both new customers and repeat business," said Plache.

Zone Laser Tag Group is part of the Zone Empire Group headquartered in Australia. Talking about finances, MD Kate Holmes spoke to InterGame about how the laser-tag sector has faired in the recession: "Most operators I speak to have seen only a minor downturn in business during the recession and in some cases no appreciable downturn at all. It seems that people are still booking parties and still looking for entertainment in spite of the gloomy economic news. After overheads, laser-tag is not overly expensive for an operator to run, since power to charge batteries and maintenance on equipment are the only direct costs of the game itself."

Zone Laser Tag isn’t alone. Kelly from Laserforce told InterGame that the recession has had no real impact on its revenue stream. "The largest cost to any laser-tag site is wages and rent if you do not own your own premises. We recommend that a site has one suit for every 10m2 of playing arena space," said Kelly.

According to Plache from Veqtor: "The ROI for laser-tag is excellent, especially more so in recent years. New operators often comment on how expensive it seems, but there is no reason whatsoever why a new operator shouldn’t be able to both recoup their initial investment and make the same in profit and more in the first year."

Horman from LaserMaxx agrees, stating: "ROI with a LaserMaxx centre is 10 months; if this isn’t good, what is?"

It seems that overall, operators of laser-tag games have survived the recession well. People will always look for low-cost activities, especially during a recession, as a form of escapism. When the laser-tag facility is part of a larger centre with a combination of attractions, operators can offer a day out that most families can still afford to treat themselves with.

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With more people opting to stay at home and save money, however, the laser-tag industry has had to compete with the home console market, a sector that is continuously growing and developing.

Holmes from Zone Laser Tag Group feels that laser gaming competes well with the home console market though: "Laser-tag is an active and social group game. A home console can’t give you the action or the social interaction with your friends in the same way. It competes well with other active entertainment options because ability doesn’t matter."

Home consoles might not be able to compete with the opportunity to physically interface with peers like laser-tag gaming can offer, but the industry’s real challenge is finding ways to meet the needs of customers. "Because the home console market is changing every day, we have to adapt as well," said Horman from LaserMaxx.

"Therefore we have a special research and development department changing our system with gadgets as seen in video games and movies."

Other current trends in the industry include using laser-tag as part of a mobile mix, and laser interactive attractions that utilise components of laser-tag are becoming more prevalent. Dark ride hitting and receiving systems for amusement parks and smaller fixed based laser and receiving games are now found under different titles, rather then just laser-tag.

According to Kelly from Laserforce, economies of scope have been the major trend of the industry, where operators have begun establishing FECs and likewise, existing FECs have begun adapting laser-tag to their business. Now the focus has been on operating a location that involves a variety of entertainment in addition to laser-tag itself.

The public increasingly wants interactive products that are simple to use but also present a challenge to play. As long as laser-tag manufacturers and operators can offer a versatile and up-to-date range of products that not only work well with each other but can also complement other offerings in a location, customers will continue to turn to laser-tag for a fun, high-adrenalin activity that doesn’t break the bank.

 

First published January, 2010