Arcade gaming is without a doubt the foundation of the modern video game industry.
However, arcades have seen a significant decline in customers over the past couple of decades and have consequently needed to either shut their doors or embrace change to survive.
The future is VR
Virtual reality (VR) seemed to be the next obvious step for many arcades.
Starting in 2016, VR arcades began to pop up everywhere in the US to profit from the emerging VR gaming market.
Considering that VR gaming was still in its infancy, the costs associated with providing the VR gaming experience to customers were (and still are) exorbitant.
At the time, it was a solid business idea to provide customers with expensive VR equipment and consequently profit by charging them for the amount of time they played.
However, the reality of the costs associated with starting and running a VR arcade is harsh.
Reality is harsh
As with any new technology, it can take time before costs fall to a reasonable level for the average consumer.
A VR gaming setup has a lot of factors that need to be involved for it to be a success, including the VR kit, the system to run it on, and any supporting peripherals.
A PS VR kit requires a PS4/5 and peripherals to use.
To play the most popular VR games, you need a VR kit, like PlayStation VR, any of the various VR kits from either Oculus or HTC Vive.
That’s not all, though, since you need a system compatible with the VR kit. For the PS VR, you need either a PS4 or a PS5, and for the HTC Vive and Oculus kits, you need a powerful PC.
The prices for the newest versions of the kits are:
| VR Kits | |
|---|---|
| Platform | Price |
| PS VR | R2,500 |
| Oculus Quest 2 | R6,500 – R11,000 |
| HTC Vive Pro | R25,000 – R33,000 |
Considering all this, it is no surprise that the arrival of the pandemic crippled an already struggling industry, with several VR arcades in the US forced to close up shop.
Although there are VR arcades in South Africa, it is hard to imagine that we will see an increase in their numbers any time soon.
The harsh reality is that VR arcades will struggle to be viable in developing countries like South Africa.
That hasn’t stopped some South African businesses from trying, though, like The Magic Company’s introduction of Beat Saber Centers to a select number of their arcades.
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