VR Games Expert Interview

Over the previous couple of years, we have seen a plethora of news articles about how virtual reality was about to conserve the timeless arcade. The theory goes that the VR gear is too expensive for home users, so it creates an chance for operators to pony up the big bucks to purchase it and then make their money back by charging per match to play it.
"While many high-end headsets were released last year that can bring virtual-reality adventures to your living space, adoption of this technology remains in its first days for a lot of reasons--it's still bulky, pricey, and there isn't all that far to do as soon as you've got it on your face. More than two million cans were sent globally in 2016, according to an estimate from market researcher Canalys, yet this figure pales in comparison to the prevalence of, say, video game consoles (sales of the top one, Sony's PS4, topped six million during the 2016 holiday season alone). Consumer virtual reality will probably catch on as prices come down and cans improve. Meanwhile, though, a variety of businesses are betting that consumers could possibly be pleased to cover a much smaller amount to try out the technology with their buddies at, say, an arcade, theme park, or bowling alley"
It is tempting to dive into this snare, but in the operator's standpoint VR is a terrible deal. Other than purchasing a brand new car and driving it a mile, I can not think of a way you could eliminate money quicker between what you pay and what you'll have the ability to get down the street.
Another limitation for operators is that while you may be able to provide a room for VR people to roam around in today, as new VR technology is introduced, we are going to find the stage expanded from 100 square feet to the entire world. Rather than viewing just the matches from your headset, you'll see the true world with sport play overlayed. Children can go to the park and relive the knights of the round table or parking garages to take aliens. As the technology allows more real world areas to be researched, it is going to earn a cramped arcade look pretty lame in comparison.
VR is already heading for mass market acceptance, however it's demand isn't being pushed by players who wish to pay big buck to play video games, but like the BETAMAX that came before it, by individuals who want to watch pornography in their houses.
Even when an operator can create just a bit of money for the next few years, after VR achieves critical mass, then it is going to crush whatever revenue stream that operators are dreaming of. Don't believe me? Just check out what is happening in China.
Last year, an eye popping 35,000 virtual reality arcades opened up in China. A year after 22,000 of them have closed.
That is an incredible failure rate over this brief time period and one that should function as a sharp warning to anyone considering investing in the VR games. Perhaps Dave and Busters is able to take losses on the games longer than Chinese startup arcades, however I doubt that most North American operators are going to fare far better with the technology in their match rooms and will just end up in debt in the end of the day.
The issue essentially boils down to customers not being prepared to pay a premium for the encounter. Tech In Asia, clarifies the problem perfectly in their own article, on 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 for a VR experience. 1 VR arcade owner told iHeima he saw excited queues when charging US$1.50 to get a 30-minute session, but everybody disappeared when it rose to US$5. From that kind of revenue it's not possible to pay the rent."
Even if the match was sold out all day, at $1.50 per half hour they're just earning $30 per day. With retail rents in North America running $1 -- $2 a square foot, indoor playground equipment there's no way to make the math work, even in the event that you suppose that Americans will spend more to play with the matches.
The real world information streaming in from China must function as a canary in the quarter plantations of North America. Operators who spend considerable amounts of money on fancy VR setups will probably find their small VR rooms being substituted by the whole world as a stage. As the setups get more expensive, smaller and more portable, the virtual arcades will look more expensive, bulky and restricted.