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Sales of
coin-operated games are booming. Sales of jukeboxes are booming.
Pinballs? Can’t keep ‘em in stock. Sales of table games and sports
games are booming, too. However, the people buying all this equipment
are not mainly operators. The biggest sales of many of these products
are now to the home market. This is the dirty little secret of the
amusements industry today.
This trend has gone
far beyond the occasional sale of an overpriced vending machine
through Sam’s Club or the offering of overpriced video arcade games in
upscale merchandise catalogs. From top to bottom, our own industry is
an enthusiastic exponent of the trend – although most keep it very
low-profile.
One of
America’s
biggest distributors has two full-time employees who do nothing but
sell coin-operated games to consumers. Not old, used games – the
distributor sells brand-new games for people to install in their rec
rooms. In the past decade, a growing number of leading operators have
opened showrooms to sell equipment to the public as well. Again, this
is not just an outlet for old, used equipment; new machines are the
biggest sellers. Just ask Jack Guarnieri of pinballsales.com; he sells
a ton of new stuff to homeowners every week.
How about
manufacturers; are they in on the act? Absolutely. It’s gone way
beyond Rock-Ola’s sister company, Antique Apparatus, selling high-end
replicas of 1940s jukeboxes. Valley-Dynamo, Shelti, Great American,
Championship Shuffleboard and many other table game companies have
full consumer lines that do at least as well as their coin-op lines,
if not better.
Now the trend is
spreading in a big way to coin-op video. Companies like Merit have
rolled out home versions of their touchscreen products. Those
remaining manufacturers who haven’t yet jumped into the consumer
market in a big way, are thinking about it very hard. This month comes
a new wrinkle in the arcade-to-home trend. A Korean company called Big
Electronic Games is offering arcade-style video cabinets for your home
at under $500. Featured are old Midway titles like “Defender” and
“Joust,” but a home version of Incredible Technologies’ “Golden Tee”
will be available in 2006, according to a recent announcement.
Some trade members
argue – with a straight face – that the growing proliferation of
coin-op style equipment in the home is educating the next generation
of players and making the amusements industry seem “respectable.”
Maybe, but somehow that argument didn’t carry much water in this
industry for the first century of its existence. Home versions of our
products were always viewed as “the enemy.” Cheap home versions of our
machines caused our market to crash several times – such as when the
RCA Victrola killed the jukebox industry in 1907. It happened again
when Sony-Microsoft-Nintendo shifted some $8 billion in
(inflation-adjusted) dollars from coin-op video to consumer video. As
Lenin once said: “When the time comes to hang the capitalists, they
will sell you the rope.”
Still, it’s hard to
blame manufacturers, distributors and operators for “going where the
money is.” One leading operator recently confirmed to VT something
that operators are not supposed to say. “My fellow operators are just
not buying,” he admitted. “Many operators are getting near retirement,
and they don’t have a son or daughter in the wings to take over the
business. So instead of investing to maintain the business, they are
taking money out of the business.”
“You know,” I told
this operator, “if you guys don’t start buying new equipment in
serious numbers, in a few years there may not be many companies left
to make them.” His reply: “Yes, that is a concern for the real pros in
the arcades and the street routes. But I regret to say that some
operators wouldn’t miss the manufacturers if they did go away. Right
or wrong, these operators seem to believe they can just coast along on
what they have.”
The better
operators, of course, have a name for competitors like that: “My next
purchase.” |