Introducing VR Games

Over the last few years, we have seen an array of news posts about how virtual reality was going to save the classic arcade. The theory goes that the VR equipment is too expensive for home users, therefore it creates an opportunity for operators to pony up the big dollars to purchase it and then make their money back by charging per match to play it. Much Nolan Bushnell, the inventor of Pong, is attempting to hype the technology as the industry's savior.
"While several high-end headsets were released last year which can bring virtual-reality adventures to your living room, adoption of the technology remains in its first days for a bunch of reasons--it's still bulky, pricey, and there isn't all that much to do once you've got it on your face. More than two million headsets were shipped worldwide in 2016, according to a quote from market researcher Canalys, but this figure pales compared to the popularity of, say, video game consoles (earnings of the leading one, Sony's PS4, topped six million during the 2016 holiday season ). Consumer virtual reality will likely catch on as costs come down and headsets improve. Meanwhile, though, a number of businesses are betting that consumers may be happy to cover a much smaller amount to try out the tech with their buddies at, say, an arcade, theme park, or even bowling alley."
It's tempting to fall into this trap, but from an operator's perspective VR is a terrible deal. Operators are being asked to pay top dollar for tech that is all but guaranteed to plummet in value over the very short term. Other than purchasing a brand-new car and driving it a mile, I can't think of a way that you could lose money quicker between what you pay and what you will have the ability to get down the street.
Another limitation for operators is that while you may have the ability to provide a room for VR individuals to roam around in today, as new VR technology is unveiled, we're going to see the point expanded from 100 square feet into the whole world. Instead of viewing just the games in your headset, you'll realize the true world with sport play overlayed. As the technology allows more actual world areas to be researched, it is going to earn a cramped arcade seem pretty feeble in comparison.
VR is heading for mass market acceptance, but it is demand isn't being driven by gamers who want to pay big buck to play video games, but like the BETAMAX that came before it, by people who wish to watch pornography in their houses.
Even if an operator can make just a little bit of money for the upcoming few decades, once VR achieves critical mass, then it will crush whatever revenue flow that operators are dreaming of. Don't believe me? Just check out what is happening in China.
A year later 22,000 of these have closed.
This is an unbelievable failure rate over such a brief period of time and one that should function as a sharp warning to anyone considering investing in the vr game games. Perhaps Dave and Busters is able to take losses on the matches longer than Chinese startup arcades, however I doubt most North American operators will fare much better using the technology in their game rooms and will just end up in debt at the close of the day.
The problem basically boils down to customers not being willing to pay a premium for the experience. Tech In Asia, clarifies the problem perfectly in their article, on that the Chinese VR boom and bust.

"Enterprising shop owners jumped into VR are finding it impossible to charge fees akin to cinemas or bowling alleys to get a VR experience. One VR arcade owner told iHeima that he saw eager queues when charging US$1.50 to get a 30-minute session, but everybody disappeared when it rose to US$5. By that kind of revenue it is not possible to cover the rent."
Even if the game was sold out all day, at $1.50 a half hour they are just earning $30 a day. With retail rents in North America running $1 -- $2 a square foot, there's no way to make the math work, even in the event that you suppose that Americans will pay more to play with the games.
The actual world information flowing in from China must serve as a canary in the quarter plantations of North America. Operators who spend considerable amounts of money on elaborate VR setups will probably find their little VR rooms being replaced by the entire world as a stage. As the installations get cheaper, smaller and more mobile, the virtual arcades will look more expensive, bulky and restricted. I would love to be proven wrong on this one, but I feel that the arcade VR trend is more hype than hope.