What works in Middle Eastern family entertainment centres? The popular concept is by no means now universally applicable, it would seem. Paramount among the issues is whether the video game is, like the dinosaur, fading into oblivion..
The universal acceptance is that the row of big, dedicated, interactive shooting/driving games is the ‘attract mode’ of the FEC, but in fairness few ever seem to be actually occupied while the rides, attractions and redemption certainly are… Is this a sign of the changing times in our business? Will the rest of the world follow suit?
The debate is led by Prakash Vivekanand, general manager at Amusement Services International and the principal distributor of all forms of games to the Middle East market. “It is sad that we are seeing a sharp decline in the video games business to a large extent. Many orders from locations opening with 100-plus games have fewer than 15 video games on their list. In effect the video segment is still exists in their shopping list, but in a much smaller percentage. We have seen this decline over the last three years".
Vivekanand reckons that the revenue split within a typical FEC location today is 60 per cent on games that involve some kind of payout, such as redemption, merchandisers and novelty, carnival, midway, etc; 15 per cent on soft play, kiddie rides and other games for small children; 20 per cent for attractions and the rides sector, leaving five per cent or less on video games. The Middle East market has always been a mature redemption market, but the figures seem to indicate that games with payout dominates the cash box.
He is also quick to add that video games are necessary for the success of any FEC even though they do not yield high revenues per square foot as they cater to a certain age group of clients who may not be redemption inclined plus, they serve to increase dwell times in an FEC just as attractions do.
The space usually occupied by video games seems to have now been taken over by network gaming concepts that use Xbox and Playstation games in an exclusive teenager environment offering better value to the player. Two key Magic Planet locations in the UAE have created an exclusive network game area called Power League Gaming and this has now become an important addition to their business, with massive fan following via social media such as Twitter and Facebook. Players can keep themselves entertained at such PLG locations for about US$10 per hour. High definition screens, ‘funky’ headphones, high speed internet connections and most importantly, the ability to co-operate or compete with other players in the same location or in other parts of the world seems to be the prime factors that draw players to such concepts. From an operator perspective, the infrastructure into a network concept is a one-time investment and beyond that investment, the operator only needs to invest on game software
“I don’t blame operators for not going into dedicated video games. They want better return of investment per square foot. This apart, any video game today has to compete in the smart era with home consoles, smart phones, android and apple tablets, etc. Unless the entertainment value we offer via such dedicated video games are significant, players are not going to be drawn to the same."
Surely present day trends seem to be different from the times one would see players queueing outside arcades in Japan to play newly-released games? Not any more.
“Operators are not abandoning the video game, but they are being very, very choosy. They want games that give an experience that the players cannot get at home. We have really not seen a standout dedicated video game since Out Run Special from SEGA. Operators often ask us for a video game that they cannot refuse to buy. We have seen some good revenue earners in Super Bikes 2, Razing Storm, Time Crisis 4 and Operation Ghost in the recent times. But these are filler pieces at best and not standout games that will encourage a player to go to an FEC and play. Players want an enhanced gaming experience in the present times. Unless manufactures start addressing this aspect, we may not see an increased participation in such dedicated video games. Better graphics, thrilling game play and content, competitive streaks, ability to connect and compete with other players are key features that will need to be presented within a cabinet that stands out bay way of design and presence. We need to keep our player hooked to game and allow operators to be able to run tournaments on them.
“These days top sales for a new video game is perhaps $60-80 per day; the days of the really big numbers have gone. However, video games are still important because the redemption and novelty games bring in the cashbox but don’t necessarily offer the desired ‘dwell time’. Several operators offer bonus cash incentives to clients who purchase an entry package. Such bonus cash is often redeemable on video games, attractions and elements that do not involve a payout, thus increasing the time spent at an FEC.
There is a way to video revival, but in another format. Smart app-based and TV-based video games have been taken by coin-op manufacturers and turned into games for arcades involving payout. Coastal's Temple Run, Adrenaline's Fruit Ninja and ICE's Doodle Jump are some great adaptations of successful apps for the arcade and that too with redemption payout. "I think we will be seeing more app based content being adapted in the coming months. Maybe, this is the way forward for the video game revival."
"The future, as I see it, would be to establish a link between app-based games and arcade games. It may be a great idea for players to be able to create custom cars and/or avtars, etc. on their home or handheld device and then be able to transfer such cars and/or avtars to a similar dedicated machine at an arcade and enjoy a much more and enhanced play experience. This will bring players to an arcade for an experience they can't get at home on their handheld. Why play with your fingers when you can have a superior experience of the same game with a steering wheel, seat vibration, forced feedback, sound, larger screen, etc. that will be available in a cool arcade cabinet. This is very much possible today due to available technologies such as the Cloud, Bluetooth, near field communication, etc. and manufacturers will need to look at such ideas sooner than later as the app, console and PC-based gaming concepts are here to stay. We can only benefit by doing one better. Unless we do the outrageous, we are not going to win over our modern day player who is characterised by limited attention span.”
The theme is taken up by one of the Middle East’s biggest operators, Silvio Liedtke, COO of Landmark Leisure, which operates 42 FECs in the region under the Fun City brand and which is now branching out into a crop of new brands.
“Yes, I certainly think that the video game has ‘lost its mojo,’ as they say… The reasons I think are that the developers cannot compete any more with other forms of gaming in the home or in mobile devices. Their focus appears to be on units rather than software and that results in video games at home being a better visual experience.
“There aren’t enough new video games coming on to the market and I believe that Prakash’s estimate of five per cent of FEC income from video games is about right – and I also doubt that it will ever climb above that figure again.
“The video game has changed its character from being the main driver of games in an FEC to a filler, an ‘also-ran’ and it will never change unless the producers come up with better and more defined options for this category.”
Mohammad Attia, director of procurement and business development for FECs at Saudi Arabia’s Al Othaim operating company, said shortly: “I totally agree – the percentage of income from video games for the typical location is no more than four to five per cent.”
A general agreement came from Nabil Kassim of Warehouse of Games, another notable distributor in the Middle East, who said: “It has certainly been reduced. But I think that in the main this is because of the low quality of the games coming into the market previously. But with the introduction of games such as the Raw Thrills’ SnoCross and Namco’s Dark Escape I think things will turn around a little. I believe that incomes generated from video games in FECs in the Middle East are more like 10 per cent of the total now. There may have been a trend in the past three years to under-perform, but I also believe that better product is now coming through.”
Maria Carmen Villarroya, international sales manager for Sega Amusements in London, feels strongly that things are about to change. “In the Middle East the Outrun was very good, but I accept that was some time ago. But the big games with movement and interactive play are still doing well in the Middle East. We have not come up with games of that type until quite recently. We are now working with new technology and new features and you will find in the short-term that incomes will rise significantly.”
