Game Shop

What do you guys think? I'm thinking about setting up a game shop where people can come and play games. I'm just trying to find out what to offer, what to charge and things like that. Anyone do this before? Anything I should watch out for? I plan on having about 10-16 PCs setup where people can come in and play games. I'll supply the games, PCs, and Internet access.

A watched store never defrags.

Legal issues - Can you do that?

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I take it you have looking into the financial side:

10*AMD64
10*7800GT/GTX
10*1/2Gig of RAM
etc etc

electricity
Internet would need to be around 5Mb down, 1Mb up I'd guess

10*Game + Licensing

______

You sure you can turn a profit. Don't get me wrong, sounds like a good idea but ^^^.

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I'm assuming intial investment will be between 20~30k. I figured I could also have an area setup for people to bring in PCs to network with their friends. I could also set up a repair shop as well. Sell food and drinks at a hefty margin, and say no outside food or drinks. I'd like to also serve alcohol, but with the required permits and insurance, it may be to much. I'll probably have to wait till i'm off the ground before I attempt something like that. I figured if this works out well enough I can have straight internet machines set up as well. Say BC1000 blades with terminals. I can find those for about $400~600 a piece. I'd like to use those as the game machines, but I don't know anything about the video on those systems. I'm just guessing, but I'd say video on those systems is sub par for games. Oh and RC love the idea about tournaments!

A watched store never defrags.

I priced something like this out last year to support up to 500 users.

My total investment would be around 80k, 100k if I wanted to operate at a loss for a couple months.

You're looking at 2-4 servers at about 5k a piece. 10k minimum for 2. Plus you have to get your network together meaning you'll need some network switches, cabling run. 20k there, covering your hardware and cable drops.

You're at 30k right now.

Plus you have to think about renovating your location, setting up tables, booths, structures. You have to get your permits, meet fire and safety regulations, etc. Another 20-30k there to get your building ready to support it.

You're at around 60k-70k. Now I had figured in to add in a few projectors that you could watch individuals on a big screen via projectors.. say a tourny is going on and you just scan through player's views or scenic areas to watch over a fight. I was looking at about 3-5k projectors, having around 4-6 projectors.

Then I was looking at buying 20 computers or so to rent out for gaming that people could come in and rent.

I was trying to find a business partner in doing this. The location I had in mind was a closed down theater with stadium seating in my area. Would have been nice since I could use projectors on the screen just for people to watch the games.

I was figuring for events, the pricing would be around 40-50 dollars, but then you could like 8 dollars an hour, 20 dollars for a half a day, 30 dollars for a full day (8 hours).. but having a computer repair shop, snack bar, etc.

Then having weekend or monthly LAN parties with big sponsors coming in giving away prizes.. operating costs would kill most profits, but I was looking at doing it as a side thin for fun, not to make money on it.

Edit:
Turns out it happened to be one of my first posts, if not, my true first post:

<A HREF="http://forumz.tomshardware.com/games/modules.php?name=Forums&file=viewtopic&p=456#456" target="_new">game center</A><P ID="edit"><FONT SIZE=-1><EM>Edited by riser on 10/10/05 04:42 PM.</EM></FONT></P>

It really depends.. Arcades have failed because of home gaming..

Do I think I could pull 20 people at 20 dollars a day for the 3 days I'd have it open? 12 days a month, 50 people, on average spending 20 dollars: $4,800 a month at that rate. Considering the place would cost around 1500 a month to rent out, plus bills, plus paying off debt incurred.

My biggest concern would be getting the people to come in on a consistent and large enough basis.. maintaining 20-40 people at all times. I mean, I could register game servers and have people from the internet play, but that's not different than sitting at home playing.

Would I be able to pull in operating costs, plus pay off debt, PLUS make enough to upgrade in 2 years? That's tough.. I haven't done enough money and there really aren't any businesses that I'm aware of that have done it to this scale.

It would either be really successful or I'd have some really nice computer equipment and a hell of a lot of debt.

But renting it out for Conference centers for local companies.. that was what I was hoping to make for a mainstay..the money maker right there.. do it cheaper than a hotel, plus provide the technology for them.

With the advent of home gaming and broadband these things are becoming harder and harder to keep profitable.

I think that in order to turn a decent profit you need something besides computers. Like a good cafe atmosphere.

Vainglory be my wicked guide.

The town only has about 10k people in it currently. It's one of the biggest in the area. The larger cities are about 70~130 miles away. There is absolutely nothing to do in that town except for go to the movies or walmart... and that's it. I don't expect this to be a huge money making venture. It's something I'd enjoy, and I think that you could make some decent money. That's why i mentioned having the PC repair shop as well. There's not any reputable shops in town that repair computers. The ones that do are most commerical and educational. I think it could be a big hit. Arcades aren't dead, just look at Dave and Buster's. Have the area setup for FPS tournaments, have an area set aside for the MMORPG people, have a classic area setup. Maybe hook up a nintendo to a projector. People love to play classic games. I could also have a pinball machine and an arcade game like MS. Pacman set up also. Stay open 3-10 M-Th and then stay open F-Su or something like that. I havne't worked out all of the details. I have a building picked out already, it's about 60k. 40,000 Sq. Ft. 3 story building with a basement. It's already in good shape, I could probably turn the second or third floor into rental properties either commercial rental or loft apartments. As I come up with more details or ideas I'll post them here. I need some pricing info also, like how much to charge per hour. Most of the games I'd have setup are P2P anyways, don't really need a massive server. I can pick up server's really cheap if I need. Blade Infrastructure's are pretty cheap to come by and are easily upgradeable. I like the input though. I need to know what to watch out for, any catches, hidden costs and things like that.

A watched store never defrags.

Another thing, and I think Snorky hit it on the head, is going to be the hidden cost of keeping the place trendy and attractive for people to hang out in.

Think lighting, music, furniture, paintings, etc.

Any place with a lounge, good music, food, and chicks is going to be a success. I don't think alcohol would benefit you much since it would limit you to 21 and up which isn't in your best interest unless you want to make money as a bar.

<font color=red><b>Long live Dhanity and the minions scouring the depths of Wingdingium!</b>

XxxxX
(='.'=)
(" )_(" ) Bow down before King Bunny

Keeping employee costs to a minimum shouldn't be a problem. I'm not going to hire a staff, I have one guy in mind currently. Friend of mine from school, I could trust him with my life. I guess I like to have my cake and eat it to. I currently have a job in KC, which is about 2 hrs away from this town. I make pretty decent money, and as long as I can keep my job and get this one off the ground at the same time it should be ok. If all goes well with the business and it takes off, I can expand it and quit my job in KC. Once I quit my job in KC that will give me more time to work on my renovation project as well. I'm currently renovating an old 1878 hotel. It's a huge job, it's been quoted as a 2 million dollar renovation. Currently my father, brother and my self are working on it. It's very slow going as we all have jobs, and can only work on the hotel in our spare time. Scamy can tell you how good of shape the building is in. We've already replaced an exterior wall and the roof. It's a historical renovation so we can't just tear it down and rebuild. I've probably already invested 30k+ into this building, but with out the proper time to spend on it, I doubt i will ever realize any gains. I love my job as a Sys Admin. I love working on computers in a corporate environment and playing with the latest equipment. There are times however when i get bored with all of that and want to do physical labor. I grew up on a farm and miss it. I know that being a farmer is a great way to lose money and spend life in poverty. However fun that may sound, I chose to become a computer tech. I guess what I'm trying to say is, that if I can make something work in this town it would mean more to me than my current career. I feel like I'm in a rut. I'm only 24 years old and it's to soon to be in a rut. Why not take some risks while i'm young. enough blabbering. Please keep the good ideas coming. thanks for the atmosphere idea. It's a small hick town, but it's getting ready to explode. Big things are in the works, and I feel I should get a foothold in before others do.

A watched store never defrags.

I'd love to get out and see the world more. So far I've been all over the US, almost every major city. And I've been to Australia and New Zealand. Had an opportunity to go to Nigeria once, but that got shot down. The town could definately use some more culture. For the game list what do you think. Here is what I Have so far.

EQ, EQ2, WOW, Puzzle Pirates,Half-life 2, Doom 3, CS, Warcraft 3, Starcraft, Command and Conquer, SIMs.

Seems like a decent mix for starters. What else could i add to the list?

A watched store never defrags.

Oh poodles! You get that furcking business started!

Nothing better than waking up knowing you're going to work WHEN YOU WANT TO! Aaahhhh.... yes, that is a good feeling, not to mention you do what you want when you want! The joys of owning your own business totally rule having to go off of a schedule someone made for you or that arshole you have to put up with. You know what it feels like.

All that talk about losing money when you first start a business is BS dood. You only lose money if you go into a business expecting to lose money. True, the beginning is a bit hard, but it’s well worth being your own boss. Hell, I didn't feel like going to work today because it snowed -you can guess what I did. Yop, took meh car out and treated meself to lunch and dinner. You can do it bro. You got ze talent and the power to. Go into it like a furking goat, a mountain goat... or maybe something with more ballz... but I think mountain goatz have big ballz? Or do ox have bigger ballz?.... hmmmm what haz bigger ballz than an ox? An elephant? I have never seen elephant ballz though... hmmm.... actually now I really want to know what earthly creature possesses the biggest ballz?!!! Time to go googling!!


</font color=red><b><font color=orange>I believe in my penis, it has the power to create life.

dood, can you help me find out what creature has the biggest ballz? i found some stuff on bats and mice... and somethig on bulls, but thats not what i'm looking for. i want to know what creature has the biggest balls on earth. oh yeah and i read some weird sea creature has the biggers eyes...

</font color=red><b><font color=orange>I believe in my penis, it has the power to create life.

for eyes or balls?

</font color=red><b><font color=orange>I believe in my penis, it has the power to create life.

balls.

<font color=red><b>Long live Dhanity and the minions scouring the depths of Wingdingium!</b>

XxxxX
(='.'=)
(" )_(" ) Bow down before King Bunny

*jaw drops* holy furking schit!!! I’m so jealous!!

Imagine me walking down the street with a pair of those!!! Would my feet even touch the ground? Would I be able to wear pants? I don't care, not when I could impregnate all the women with one squirt!


</font color=red><b><font color=orange>I believe in my penis, it has the power to create life.

*shakes penis*
*squirts all over the floor*
*dh slips*
you alright bro?

</font color=red><b><font color=orange>I believe in my penis, it has the power to create life.

not funny

</font color=red><b><font color=orange>I believe in my penis, it has the power to create life.

Blessed are they that are very good at their passion, and can make a living out of it.

So what is your passion, DH?

Mine: family life, (world) travelling, playing bridge (the card game), computer gaming, not necessarily in this particular order.


BigMac

<font color=green>(\__/)
(='.'=)This is Bunny. Copy and paste bunny into
(" )_(" )your signature to help him gain world domination.</font color=green>

Any chance you could develop some team-building exercises for corporate clients using gaming? The benefit here is much bigger ticket fees, especially if the premises are suitable. Just an idea. You'll find most 'professionals' really like the idea.

(\__/)
(='.'=)
(" )ô(" ) Be kind to my deformed bunny

You need to find the competitive games at first. Get the people in to compete, but then you need to have a group of people to compete.
You'll need something to attact the gamers, but if you attract the hard core gamers, you'll drive away the casual gamer. Attract the casual gamer, you'll attract other 'normal' people in. If you get too hard core, no one else will want to come in.

Servers going down, lose power, ISP going down, bandwidth problems are all major concerns. Getting the right amount of power into the place. Safety for people's equipment and stuff could easily be fixed by tagging everything that comes in and checking it before it leaves. Tedious, but that'll be that extra sense of security.
You'll want to make your network secure, plus probably go Wireless for other people.
Setting up the Console games would definately be a plus.. but expect people to break the stuff too on accident. Getting mad and tossing the controller etc.

Btw, I know exactly how you feel. 24, sys admin, getting in a rut. I'm there myself. Which brought up starting up my own gaming center. haha. I want the physical labor here and there too. The city I live in has a prime location for a LAN center.. since within 2 hours I have Detroit, Cleveland, Columbus, 4 hours is Chicago. People would easily drive that for a big Nvidia, Intel, AMD, ATI, LAN party give away type thing.

There are a lot of hidden costs, the problem is can the business sustain itself long enough to make a profit?

Team up with a local trendy and popular sports bar. See if they'll put in a small kitchen to bring in people, you might even need to front some money there.

Let people game drunk.. that'll bring them in.. drink a beer and play BF2, awesome.

There are a lot of things you could do, but if you could get a joint venture with a sports bar or drinking establishment with good wings/ribs/food, that would cover you and bring people in to play some games.

Good food, beer, games, come on! You could charge people $5.. 4-10pm, if they eat there.. $10-15 if they don't eat. That way, the other place makes money and can cover you since they'll be making more of a profit than you will.. use another company as the leader and let some money roll your way..

Which is why I was thinking you bring in a restaurant.. Have that sectioned off for the adults. That would bring people in, or see if you could get them to come in next door. Try getting a little area of shops or something to come in to attract business to your area.

It's a thought. I know a local place around here that would do it if they saw money in it for them, which wouldn't be hard to do at all considering their business.

The problem is targeting the hard core games and the casual gamers. If you get too hard core, you'll drive your main customer mass away. If you go with the crowd, you might not get the hard core gamers, but you'll get the casual.

But will the casual stick around constantly? Will the hard core gamer stick around?

It's really hard to say how to do it.. but bringing in some kind of food place might not be bad.. alcohol might not be the best thing, but it will bring people in. Leave the licenses up to the food business, not yourself.

2 seperate businesses working together for a profit.. you need some kind of cafe, or coffee shop. It's all about who you want to target..

Market it as a general LAN cafe, that way when the gamers are out the general crowd will be in looking at their email and all that jazz - not everyone has broadband, and offer decent rates and you can get in quite a crowd.

LAN cafes and gaming centres are not a new idea, so look into models which have worked in the past - see what they've done right, and what they've done wrong.

Internet and gaming systems would be seperate. As for people screwing up my systems, i'll just create a RIS image and reimage the systems every day ( or at least the ones that where used). I was also thinking about setting up a kids center as well, with educational games. That way if parents want to bring their kids in for educational games they could do that as well. Keep the ideas going guys. This is all good stuff. As far as partnering with another food chain, I'll have to wait on that. I'm expecting it to be fairly small at first. If it grows larger that would be great. I can expand rather easily. I found a building for 57 -65k. Haven't nailed the price down yet. 30k sq feet. 3 floors, I can rent out one of the floors for about 6-8$ per sq. ft. per year. That should cover the cost of the building, that would only leave employee, equipment, and operational costs. I'd like to do market research and find out what works, average prices and what not. I haven't found any of these shops in KC yet, or the surrounding areas. So if any of you guys know of a shop please do some research for me. Thanks!

A watched store never defrags.

Also, you probably shouldn't let any New Zealanders in. You're going to need to check passports.

<font color=red><b>Long live Dhanity and the minions scouring the depths of Wingdingium!</b>

XxxxX
(='.'=)
(" )_(" ) Bow down before King Bunny

dunno about where you are.

but here we have so many "internet cafes" (all do gaming also) that they are closing down ALL THE TIME. i.e. shop pops up, 2 months later its gone.

when computers were not so commonplace it was more done, but these days less so.

if you can make it different from the rest, i.e. get a liqour license also then you might do better LOL.

also we had a place here go bankrupt because all their game keys were nolonger usable (so nobody could play their games online) this was because people went and cheated/ used mods on their computers thus getting their keys banned. (expensive as hell if you consider you could be losing a key or more per day)

a place here called "Lan place" is doing well though, with a weekly lan, and while not being a lan it offers a DC HUB under its name. (that has servers and screens, some computers i think)

Alltaken

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