Tough competition: Home consoles and online gaming will result in slow revenue growth

Increasing competition from substitutes, such as home consoles and online and mobile gaming systems, has led to slow growth for the Arcade, Food and Entertainment Complexes industry. To combat the slow growth and rising competition, industry operators will adopt the strategies of successful restaurant-arcades and focus on food and beverage sales...read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 12-17
0.7%
Forecast Growth 17-22
Profit
Employment
42,848
Businesses
6,314
What Our Customers Say

Industry Threats & Opportunities

  • Traditional arcades have adopted the strategies of successful restaurant-arcades
  • Demographic changes and the steady economic recovery have benefited the industry
  • The growing sophistication of home game consoles will limit arcade revenue growth
  • Industry Report - Industry Key Buyers Chapter

    Market share concentration within the Arcade, Food and Entertainment Complexes industry is high, with the top four operators accounting for an estimated 72.3% of total industry revenue in 2017. Moreover, the level of concentration has increased further in recent years, as the industry has increasingly been divided into two types of enterprises: those that offer a range of services and food options and those that do not.A few large companies dominate the industry, while 81.5% of employer enterprises rely on less than 20 employees and cater largely to local markets. While major players CEC Entertainment and Dave & Buster's have largely focused on renovating existing establishments over the five-year period, their store numbers are still expected to increase from 2012 to 2017. Con...purchase to read more.

    Additional Insights for the Arcade, Food & Entertainment Complexes Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Arcade, Food & Entertainment Complexes Industry are

  • Ability to expand and curtail operations rapidly in line with market demand
  • Easy access for clients
  • Economies of scale
  • IBISWorld analysts also discuss how external factors such as External competition for the Arcade, Food and Entertainment Complexes industry and Per capita disposable income in the Arcade, Food & Entertainment Complexes industry impact industry performance..

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    What is the Arcade, Food & Entertainment Complexes Industry?

    This industry includes businesses that primarily operate video game arcades and game-focused family entertainment centers, which typically sell food and beverages. Industry operators rent or purchase debit card- or coin-operated arcade games that customers play for a fee. Establishments that primarily focus on gambling games, billiards, miniature golf and other larger-scale or outdoor amusements are not included in this industry.

    Industry Products
  • Debit-card and coin-operated games and rides
  • Food and beverages
  • Admissions
  • Corporate and party event services
  • Industry Activities
  • Operating debit-card and coin-operated games and rides
  • Selling food and beverages, including alcoholic beverages
  • Providing corporate and party event services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • External competition for the Arcade, Food and Entertainment Complexes industry
  • Per capita disposable income
  • Number of adolescents aged 10 to 19
  • Time spent on leisure and sports

  • Current Performance
  • Falling demand and demographic shifts
  • Industry makeover
  • The console revolution
  • Chart: Revenue Growth

  • Industry Outlook
  • Consoles continue to dominate, but a new approach emerges
  • Structural change
  • Table: Arcade, Food & Entertainment Complexes Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Arcade, Food & Entertainment Complexes Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Confectionery Wholesaling
  • Grocery Wholesaling
  • Janitorial Equipment Supply Wholesaling
  • Vending Machine Operators

  • Products & Services
  • Debit-card and coin-operated games and rides
  • Food and beverages
  • Admissions
  • Corporate and party event services
  • Other
  • Chart: Arcade, Food & Entertainment Complexes Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers aged 36 and older
  • Consumers aged 17 and younger
  • Consumers aged 18 to 35
  • Chart: Major Market Segmentation for the Arcade, Food & Entertainment Complexes Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesRent and utilitiesDepreciationOther
  • Chart: Cost Structure Benchmarking – Sector vs Arcade, Food & Entertainment Complexes

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Arcade, Food & Entertainment Complexes Industry

  • Industry Globalization
    Dave & Buster's Entertainment Inc.CEC Entertainment Inc.
  • Table: Dave & Buster's Entertainment Inc. - financial performance
  • Table: CEC Entertainment Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Arcade, Food & Entertainment Complexes Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Arcade, Food & Entertainment Complexes Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Per Capita Disposable Income (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Force Feedback Controls
  • Technology that interfaces to the user via the sense of touch by applying forces, vibrations and motions to the user.
  • Redemption Machines
  • Arcade games of skill that reward the player in the form of tickets that can be redeemed for prizes.
  • Skill Games
  • Arcade games in which the user must use mechanical controls or rely on physical skill to win, such as pinball or free throw basketball games.
  • Why buy this report?

    The Arcade, Food & Entertainment Complexes Industry Research Report measures market size, analyses current and future trends, and provides an indication of market share for the industry’s largest companies. IBISWorld’s collection of industry market research reports gives you insightful, up-to-date information on the supply chains, economic drivers, and key buyers and markets for hundreds of industries.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Arcade, Food & Entertainment Complexes:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Arcade, Food & Entertainment Complexes market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Arcade, Food & Entertainment Complexes, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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