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New Business Model for Arcades?

Posted May 11, 2009 by Snow in News.

Arcades in many countries not named Japan have seen better days. Now you’re lucky to see a real arcade within an hour of you that’s not just Dance Dance Revolution machines. It’s sort of hard to look cool when the place is filled with eleven year old girls.

Part of the problem is the expense of arcade machines. A full Street Fighter IV setup, which requires two Vewlix Cabinets can easily top $20,000! This makes many operators wary of buying a new game for their arcade because it could never make back the money it cost to get it.

Cave, a japanese developer, has announced of a new business model that may help get more games out to arcades. The plan calls for revune sharing. The arcade gets the arcade game for free and profits made from the machine are split between the arcade operator and the developer. Arcades then do not have to fear taking a chance on a new game.

The first game to receive this treatment is Cave’s DeathSmiles II. Which may be the most emo name of all time.

This comes along with news that Cave will be bringing the original DeathSmiles getting a port to Xbox 360.

Source: Versus City

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Comments (3)

  1. Wow – this is news to me – and I work in the Japanese amusement business. I went over to the Versus City source and could not find the quote you mentioned.

    Revenue sharing has been done before (GunDam PODS) but giving free arcade cabs is a departure – can you confirm this other than from a fan site?

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    editor (May 11th, 2009)

  2. You can also find the information here:
    http://news.dengeki.com/elem/000/000/156/156456/

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    Snow (May 11th, 2009)

  3. http://www.versuscity.net/2009/05/07/deathsmiles-ii-to-be-released-for-free/

    and

    http://www.kotaku.com.au/2009/05/bullet-hell-developer-offers-arcades-its-games-for-free/

    Though you are correct in that it is only the arcade board, and not the unit itself, which I will clarify when I get the chance.

    or Register to reply.

    Snow (May 11th, 2009)

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