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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