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Boxoffice-November.1997

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I<br />

November. 1997 61<br />

height of 40 feet, depending on the skill of the<br />

players. The chairs are quickly lowered to the<br />

floor when players run out of ammunition or<br />

are caught in a fatal crossfire.<br />

Like Vertical Reality, Game Arc is for those<br />

who like to test their reflexes, shooting at<br />

simulated villains while sitting in a small car<br />

mounted to a moving platform. Moving images<br />

are projected on a large screen while high<br />

fidelity sound creates the aura of battle in an<br />

undeiground world inhabited by dangerous<br />

quickly, Wilhoyte says the Smart Cards have<br />

been found to increase per patron spending.<br />

While Wilhoyte says there's no "average"<br />

per-game price at GameWorks sites, the<br />

money spent on higher-end games is fairly<br />

steep. Motion simulated games like "Alpine<br />

Racer" and "Hang Pilot" cost $1.25 and $1.50<br />

per two-to-three minute game. "The Lost<br />

World" costs $2 per player, but to play the<br />

entire course from beginning to end might take<br />

six or eight tries, and might therefore be costly.<br />

SMART MOVE: A GameWorks patron uses a Smart Card debit card to go for anothier play.<br />

aliens. With Game Arc, price is dependent on<br />

how long one chooses to continue.<br />

This<br />

whole concept is very, very hot<br />

today," states David Stroud,<br />

GameWorks' director of new business<br />

development. "We think there's a lot of opportunities<br />

today with the investments the major<br />

chains are making and the fabulous properties<br />

they're creating." David Wilhoyte, director of<br />

Sega City and Game Operations adds,<br />

"GameWorks works well in places with a<br />

broad entertainment mix including theatres,<br />

retail stores and restaurants. The theatre chains<br />

are an important part of that mix, creating more<br />

of a total entertainment destination for consumers."<br />

Some opponents of location-based entertainment<br />

centers feel they create competition<br />

for exhibition by eating up a share ofthe money<br />

consumers bring to each location. Stroud says<br />

that's not been the case. "At other entertainment<br />

venues, where these components don't<br />

exist, business has not increased as much as at<br />

our larger locations. The more you offer people,<br />

the more they're going to get out and enjoy<br />

themselves and spend money. It's truly creating<br />

a destination that is more than one stop in<br />

an evening's activities."<br />

At GameWorks facilities, all games are set<br />

up to take "Smart Cards"—debit cards which<br />

are purchased in advance. In addition to moving<br />

patrons through the entertainment center<br />

"Game Arc" costs $2 per play, while "Vertical<br />

one of GameWorks" "premium"<br />

Reality,"<br />

amusements, runs $4 per game.<br />

Besides the pinbaU, video and motion-simulator<br />

games, GameWorks offers access to the<br />

'Net via the "Internet Lounge." Patrons are<br />

provided with comfortable chairs and laptop<br />

computers where they can access an abundance<br />

of different sites, chat rooms, or information<br />

resources through specially-designed<br />

web pages. At $2 for every 10 minutes, this is<br />

a resource for those who are looking to send<br />

an e-mail or do a little browsing. To make sure<br />

those using the simpUfied system don't get<br />

lost, an Internet consultant is stationed in the<br />

room to answer any questions that arise.<br />

S'<br />

'<br />

GW has ambitious development plans,<br />

with a goal of opening 100 GameWorks<br />

sites worldwide by the year 2,002. The<br />

next GameWorks facility will be opening in<br />

Grapevine, Texas this fall followed by Tempe,<br />

Ariz, and other locations, including Rio De<br />

Janeiro. While the more elaborate<br />

GameWorks sites are being planned in high<br />

traffic locations near large exhibitors, SGW<br />

also is trying to establish partnerships with<br />

smaller exhibitors through its Sega Cities division.<br />

Stroud is in charge of setting up those<br />

joint ventures within theatre complexes, which<br />

range from installing a few amusement devices<br />

to areas wholly designated for games.<br />

"We examine and measure the proposed area<br />

for the games, checking out the traffic flow,"<br />

says Stroud. "After that, we provides assistance<br />

in design and theming for the games, as<br />

well as installation and maintenance."<br />

While he's eager to increase business for the<br />

company, Stroud acknowledges that not all<br />

theatres are right for hosting Sega Cities. "If<br />

we don't feel that the theatre has the right<br />

design or is the right venue for our games, then<br />

putting a lot of games in is iieally not a good<br />

idea. When we visit the theatres, we try to<br />

explain to [exhibitors] that<br />

the games are a very important<br />

component of their business.<br />

We also like to make<br />

sure they have the newest<br />

and latest games and make<br />

sure they are kept absolutely<br />

clean, like everything else in<br />

the theatres."<br />

Stroud says revenues are<br />

up at many of their joint vennires.<br />

"We've really started<br />

to dress them up and make<br />

them a destination in themselves.<br />

As a result, in some of<br />

the districts we've gone into,<br />

we've actually increased<br />

game revenues 150 percent<br />

district-wide." Wilhoyte<br />

adds, "We've been successful<br />

at improving the performance<br />

of games in theatres<br />

that historically may not<br />

have been performers,<br />

through careftilly selected<br />

games and superior service.<br />

We want to ensure that when<br />

we do commit to a partnership with a theatre<br />

or any other game operation venue, that we can<br />

meet our mutual expectations for game earnings<br />

and our ability to service their needs."<br />

In keeping with their expansion plans, SGW<br />

has just completed a new design concept for<br />

Sega Cities. Wilhoyte says the size of the<br />

facilities will remain roughly 6,000 to 8,000<br />

square feet, but the theming will be more<br />

decorative. "[The new concept] is colorful,<br />

eclectic, dynamic. It's a theatrical, whimsical<br />

environment, very different from the current<br />

Sega Cities look, but very inviting. Again, it's<br />

a combination of having a theatre and a highquality<br />

game room with a lot of traffic."<br />

Describing the strides SGW has taken in just<br />

18 months, Stroud points to the three<br />

GameWorks facilities that are up and running:<br />

'To go ftx)m concept to design to installation<br />

to opening was just a tremendous feat!" He<br />

attributes that achievement to chairman Skip<br />

Paul. "He's put together an unbelievable team.<br />

I've never seen a team as smart, creative and<br />

effective at realizing their goals, so I'm really<br />

excited to be a part of this."<br />

While he's guarded about revealing too<br />

much about the company's future plans,<br />

Stroud says, "We're looking at and involved<br />

with a lot of different countries and are talking<br />

to several exhibitors at this time. But no doubt<br />

about it—there will probably be a Sega City or<br />

GameWorics coming to a neighborhood near<br />

you soon

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