Average Arcade Revenue and Budget (2024)

In this blog post, you'll discover the cost and ROI of installing or upgrading an arcade at your family entertainment center. Read on to learn more!

Are you a FEC owner or operator looking for more information about the average revenue an arcade generates, and the budget needed to add or upgrade an arcade in your family entertainment center?

Well, you've come to the right place!

In this article, we outline the average arcade game cost, average space allocation per game, and potential revenue figures. We also go over some other factors that'll contribute to the overall success of your arcade.

Average Per Game Revenue: $200-$485 Per Week

Average arcade game revenues range between $200 to $485 per game per week on an annualized basis. However, these numbers really depend on the type of facility you operate and how you present or market your attraction-mix to your target demographic.

Ask yourself:

  • How many games do you have or want to have? What is or will be your game-mix? (Redemption, direct pay, video, VR.)
    • How new are your games? Are they relevant in today's market?
    • Are the games in premier working order? Are any down or broken?
    • Are the bonuses in the games attainable?
  • Does or will the game room have a card reader system?
    • Are the games priced correctly? (Many price them too high or some too low for the market.)
    • Are the games putting out the right percentage of tickets per play? (Typically, a 25% to 35% output on the dollar.)
    • What is the ticket value? (Usually .01 a ticket.)
  • Are there or will there be other attractions apart from the arcade or is it a stand-alone arcade?
  • How is the game room positioned or how will the game room be positioned? For instance, is it in a boxed room with all games turned up way too loud? Or, is the game room in a carpeted area with only one in 4 games set in “attract mode” with music playing overhead?
  • How impactful is or will be the redemption area? Is it or will it be staffed?
    • Where is the redemption center located in your facility? Where is the arcade located?
    • Are the redemption prizes priced correctly? (200% markup, generally.)
    • Do the redemption prizes appeal to your target audience?
    • Do the direct pay games have great prizes?
  • Is or will the arcade be a part of your birthday party packages?
    • Is the arcade included in your food/game package price?
    • Are game packages sold to corporate and social events?

Gaining the maximum amount of revenue from each game depends on the relevance of the games added to the room, the structure of your game room, flow, and so much more. A great game room, at peak hours, has the potential to generate up to $1000 per game per week!

If not presented or marketed correctly to the right target audience, a game room will not yield the return you're looking for.

Average Cost Per Game: $10,000-$12,000

The average cost per game can be anywhere from $10K - 12K. Top-of-the-line games can cost you as much as $50-75K, but on the lower end of the spectrum, crane games cost around $1600-$2400.

Keep in mind that tax, freight, installation, your redemption center, and a card reader system are all additional costs to consider.

There do exist options to lease equipment but be sure to consult with an arcade expert first.

Average Per Game Space Allocation: 75 Square Feet

You can expect to use an average of 75 square feet per game.

Extreme games are more common now than ever, increasing the average square footage for arcades while sometimes decreasing the average game count in the game room.

Arcade Game Types

The right game mix is another factor that determines the success of your arcade. It’s important to understand the different categories (and subcategories) of arcade games and think about what’ll best appeal to your target demographic.

According to Betson, the 3 most common categories of arcade games are video, redemption, and merchandiser.

Video games are played by customers for fun and to compete and reach high scores. These are usually driving, fighting, pinball, or air hockey games.

Redemption games reward players for their skill and high score. Each player has a chance to win a prize from the facility’s redemption center after playing the game. These are usually coin pusher, video redemption, whacking games and/or others.

Lastly, merchandiser or direct pay games allow customers to win a prize directly from the game machine. For instance, cranes or claw machines, photo booth machines, and/or others.

Each game category or game type has its specific purpose. For instance, air hockey games are designed to be immersive. People are so focused on achieving their high score, they completely tune out the rest of the world. Arcade boxing games are designed to be encourage friend groups to get a little competitive, test their strength and determine who’s the strongest. Crane or claw machines also bring out that competitive side in your customers!

As a facility owner, you need to determine what game mix makes the most sense for your target demographic and which games will keep customers at your facility for longer.

PCS Arcade Revenue Calculator

In order to make your arcade planning easier, we put together a simple calculator tool you can use to determine the cost, revenue, square footage, and ROI projections for your new arcade.

Download and try for free!

Average Arcade Revenue and Budget (2)

Comment Below

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Family Entertainment Center Business Tips

Average Arcade Revenue and Budget (2024)

FAQs

What is the average revenue of an arcade? ›

On average, an arcade can rake in between $1,100 and $2,000 per week in profits. However, the exact figures depend on factors like location, operational costs, and the ability to attract repeat customers.

How much money do you need to make an arcade? ›

Regular Urban Arcade with Variety of Games
CategoryBudget Allocation
Equipment (New and Diverse)$25,000 - $40,000
Lease and Renovation$10,000 - $20,000
Permits and Licenses$2,000 - $4,000
Marketing and Branding$3,000 - $6,000
1 more row
Jan 9, 2024

Is it profitable to run an arcade? ›

However, if you have a successful business anchor or high traffic location, an arcade can be a highly profitable business.

What is the profit margin on an arcade? ›

Arcade game rooms generally have an average gross margin in the range of 25% to 45%.

How much does the arcade make daily? ›

The Arcade is a property you can own and use as a hub for various activities and missions in GTA Online. You can earn up to GTA$ 5,000 per in-game day if you fill all the slots in the property.

What arcade games made the most money? ›

In 1982, Space Invaders was considered the highest-grossing entertainment product of its time, with comparisons made to the then highest-grossing film Star Wars, which had grossed $486 million, while Pac-Man is today considered the highest-grossing arcade game of all time.

What is the average size of an arcade? ›

The typical “standard” arcade ranges anywhere from 1,500 to 10,000 sq. ft., with a complete turnkey budget for a 2,500 – 5,000 sq. ft. facility generally running from about $250,000 to $500,000 + USD, while Family Entertainment Centers start at 10,000 sq.

How much do arcade machines go for? ›

The price range of Retro Games Arcades can vary based on the size, quality, and different features within. Estimated price of such arcades will typically start from as low as $2,000, up to $5,000 for a fully featured model with additional controls and light guns.

How to finance an arcade? ›

Here are some sources of funding you can tap for your arcade game room idea:
  1. Traditional funders. Banks loan money to qualified investment opportunities that will drive them profitable returns. ...
  2. Venture capital firms and angel investors. ...
  3. Personal network. ...
  4. Lease options. ...
  5. Small Business Administration.

Are arcade games a good investment? ›

One major advantage of investing in arcade games is their high-profit potential. Arcade machines appeal to people of all ages, making it simple for owners to rake in significant revenues from quarters dropping through coin slots.

Is the arcade passive income? ›

If gamers want a more active moneymaker with this property, they can always try The Diamond Casino Heist. Otherwise, the Arcade's passive money is decent enough, especially since one doesn't need unique Arcade Machines to fill every slot.

How much does a small arcade make a year? ›

Small, local arcades may earn anywhere from $25,000 to $100,000 a year, while larger establishments in prime locations with additional services can generate upwards of $500,000 to $1 million or more annually.

How much does it cost to start an arcade business? ›

On average, you may need anywhere between $50,000 to $150,000 to get started, including lease expenses, game purchases, interior design, licensing, and marketing.

What is profit margin in gaming industry? ›

In the previous year, growth of 12.5% had been achieved, and in the pandemic year 2020, sales had even soared by almost 28%. Profitability has also suffered: After still achieving an average margin of 24.9% in 2020 and 23.5% in 2021, the margin shrank to just 18.1% in 2022 - below the pre-pandemic level of 19.7%.

How much revenue do AAA games make? ›

What are the typical earnings/profit of a AAA game? - Quora. There isn't a typical earnings unfortunately. It's a high risk business and earnings decrease exponentially as you go down the charts table. Earnings for AAA games vary greatly, from under $1M for a miss, to over $1B for a mega hit.

What is the highest revenue game? ›

What are the top-grossing video games right now?
Game titlePublisher
1.FortniteEpic Games
2.EA Sports FC 24Electronic Arts
3.Call of Duty: Modern Warfare II/III/Warzone 2.0Activision Publishing
4.NBA 2K242K
16 more rows

Is the arcade industry growing? ›

Arcade Gaming Market Insights

Global Arcade Gaming Market size was valued at USD 3.79 billion in 2022 and is poised to grow from USD 3.98 billion in 2023 to USD 5.95 billion by 2031, growing at a CAGR of 5.14% during the forecast period (2024-2031).

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