As the home market continues to saturate, there are some hidden signs that software producers are looking at the arcade industry to regenerate incomes and give their products and concepts a much longer shelf life.
With the increased cooperation between Microsoft and Sega in the past months, there is a possibility that next generation games will be played on an arcade version of "X-Box" with the portal for software developers created by the Microsoft software platform. Microsoft currently has a department within the XBox development team looking at different industries including arcade. It should be noted that Konami, Namco, and Midway have also agreed to release games on the home system
(previous story).
To our knowledge, there is also another 3 different companies currently working on converting consumer games into arcade products - some of the software is the most popular available in the home market. Whilst previous attempts may have failed for a number of reasons, there is very good commercial sense for developers to look at arcade.
The Home Market
It is much easier for software developers to design, create and market games for the home market - allowing an overwhelming variety of games and products to choose from. With arcades on the other hand, a software developer will never look to release their product to the arcade because of the hurdles. Here is my example - we attended a software developers conference last year where designers and game creators had workshops, talks and exhibitions. We saw Microsoft, Sony, and EA Sports to name a few, who were snapping up all the talent at the show. We did not see anyone from the arcade industry.
Home play, no matter how much you spend on equipment and accessories, can never give the same feel and atmosphere that a well run arcade offers. The thrill of seeing a wide range of games and competing with different players was what brings people to arcades. As the home consumer market saturates and with technology advances coming into play the old days of full arcades may become a possibility.
Possible Scenario
The idea is this - a software developer who currently has a "knockout game" in the home market, develops the next episode as an arcade game which is ported through an easy to use and configure hardware system. A player, who is a fan of this game can go to the arcade and play this game saving their details either on their mobile phone or "play card". In effect, they build up their character in the arcades. Once the game is released in the home market they download their saved files and use their "special" character to play at home or network. To get the people to the arcades, the developer creates power items (maybe weapons, magic items, etc) and also prizes that can be won if they finish the arcade version - these features only available for arcade players. Combined with merchanising through redemption machines and the feel of a real arcade is back.
Again, the drawcard to arcades is variety and the competitive atmosphere created. If you compare the number of games that were being released into arcades in the 80's & 90's and compare this with the range of games found in the current arcade and we can see where some of the problems can be found. The other problem is many of the games found on a sampler disk (included for free when buying a home game consumer magazine for about $5) have better graphics and sound than games in the arcades.
Proof in the Market
I would like to finish with the example of the Sega Dreamcast and the wide range of convertor boards which are being offered to the arcade market. The dreamcast is an excellent product with a wide range of truly excellent games - bad marketing or management has seen this product destroyed. However, ask an amusement machine operator who has bought the convertor system for their comments. Nearly all have said they are still in the business because of the variety of games the system gives and costs associated with buying the kits.
Whilst highly illegal, people are still buying the convertor boards which allows a standard dreamcast to be added to any arcade cabinet. Some people are saying that games on this system earn more money than the original arcade games since the dreamcast version has many more features.
We are not endorsing this product or telling you to go out and buy the product. But the example we are trying to show is that many high profile companies are using this product to regenerate their arcades. A quick walk last week along George Street in Sydney Australia (some of the highest earning centres in Australia) sees all the arcades operating dreamcast machines.
There is a real market for the software developer to release to arcade, and in the next 6 to 12 months it will be very interesting to see how it all unfolds. We are hoping for the better.
