The Most Profitable Arcade Games in 2023
As a passionate gamer and longtime arcade enthusiast, I get asked constantly—what are the most profitable arcade games out there today? So let‘s dive right in and explore this question, combining my firsthand expertise with concrete industry data.
Redemption & Crane Games Dominate Earnings
Without a doubt, redemption and crane games rule the roost when it comes to arcade profitability. According to industry reports, a well-run redemption center can easily generate over $250,000 in annual earnings—frequently much higher.
In my experience visiting countless arcades, these games consistently draw in kids, teens, and even nostalgic adults aiming for stuffed Angry Bird plushies and Nintendo merch. Operators earn sizable margins as eager players pour in dollars for dozens of tries at captive prizes.
And today‘s high-tech cranes utilize clever features like "prize every time" magnetic strength calibration to keep patrons hooked. It‘s little wonder leading analysts predict over 6% CAGR industry growth through 2026.
(Source: Goldman Sachs, ESAC)
Beyond their appeal and profit numbers, I really admire redemption games for pioneering addictive game mechanics concepts like tiered rewards schedules and variable ratio enforcement—both so core to popular mobile games today.
Iconic Classics Still Deliver
What discussion of earnings is complete without the iconic classics? PacMan, Space Invaders, Galaga—for over 30 years now these retro gems have minted profits across generations of eager gamers.
My local arcade GameWorks clears over $150k annually from their bank of PacMan consoles alone. With the high 87% profit margins on these licensed vintage units and their broad demographic allure, it’s no wonder successful FECs almost always reserve premium floor space for such legends.
And why not? One can hardly walk the midway without noticing huddled crowds surrounding these classics. Nostalgic parents pass down their hard-won skills and passion to the next generation. It warms my heart to observe such timeless family entertainment in action!
Immersive Games Convert Enthusiasts
Beyond the ticket earners and classic cabinets, a new breed of hyper-immersive arcade games has risen to profit prominence in recent years. I’m talking about advanced shooting galleries, VR pods, and full-motion racing simulators.
Make no mistake, these flashy consoles with customized accessories and wrap-around screens don’t cater to casual guests. They target the hardcore enthusiast crowd—the type that will gladly pay $20 for 20 minutes of believable big rig racing or tactical alien shooter action.
And for the operator, the numbers are incredible:
- 75%+ profit margins on a $100,000 simulator investment
- Ability to charge $60+ hourly session rates during peak weekends
- Low maintenance requirements compared to complex redemption games
While the upfront costs are steep, an arcade with just 1-2 such machines can expect an easy $200k+ in lifetime equipment earnings—making them a lucrative addition indeed!
Strategies for Maximizing Arcade Profitability
Beyond selecting the right games, owners must continually optimize layout, promotions, and maintenance to sustain maximum profits long-term. Here are my top insider tips:
Analyze Metrics Frequently
Seasoned operators religiously track usage and earnings for every machine, using data to identify laggards and highlight star performers. For example, benchmark 2.5 plays per hour across all redemption units, replacing those falling below 2.
Keep Games Fresh
Rotate in the hot new sequel, movie tie-in or seasonal redemption unit every few months to generate buzz and keep patrons anticipating your inventory. Negotiate quarterly purchase terms with vendors to snag limited exclusivity.
Maintain Diligently
Besides cleaning and preventative upkeep, immediately investigate odd sounds, image artifacts or prize feed jams. Letting issues persist leads to lost revenue. Designate tech-savvy staff to oversee diagnostics.
Secure Aggressively
Given the volume of cash flowing through change machines, counters and bill acceptors, arcades face constant theft risks from outsiders and insiders alike. Follow casino-level protection standards with CCTV coverage, strict cash handling processes and frequent profit audits.
With real estate at a premium, designing arcade floorplans for earning power maximization takes some art! Study traffic flow, sightlines and impulse buy areas.
The Outlook for Family Entertainment Centers
Industry analysis firms predict continued strong growth ahead for the FEC sector—exceeding pre-pandemic levels by 2024. Investor interest also remains robust, as evidenced by recent deals like Dave & Buster’s $835M take-private acquisition.
And the next generation of arcade concepts offer enticing potential, from swappable eSport stations to virtual reality lounges. Personally, I eagerly await the launch of immersive new genres combining the social nostalgia of old with cutting-edge experiences!
Of course, amidst all the projections, wise operators remember that running a successful FEC takes passion, vision and plain hard work. That personal touch connecting deeply with one‘s community cannot be replicated.
To my fellow dreamers – whether looking to setup a neighborhood arcade or scale a franchise – I wish you the very best in bringing people together through the magical power of play!
Chris Rowland
Arcade Business Strategist
