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

The Arcade, Food and Entertainment Complexes industry's evolution has continued over the five years to 2018. Rapid technological change and shifting preferences have triggered a structural shift within the industry since its heyday in the 1980s. As the home console rose in prominence, coin-operated games fell in popularity. Substitute products, including game consoles, offer convenience and long-term cost savings, while online and mobile games can largely be played at a nominal cost or for free. While trends in per capita disposable income and leisure time represent drivers for revenue, competition from substitutes has impacted the industry for more than a decade. Over the five years to 2023, these trends are expected to continue...purchase to read more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Competition from substitutes has impacted the industry for more than a decade
  • Demographic changes and 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 low, with the top four companies accounting for less than 10.0% of industry revenue combined. Moreover, the level of concentration has stagnated 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.Smaller companies dominate the industry, while 81.5% of employer enterprises rely on less than 20 employees and cater largely to local markets. The industry has a large concentration of nonemployers as well, which are operators with no employees. Whi...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 Number of adolescents aged 10 to 19 and Per capita disposable income in the Arcade, Food & Entertainment Complexes industry impact industry performance..

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    What's in this report

    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
  • Number of adolescents aged 10 to 19
  • Per capita disposable income
  • External competition for the Arcade, Food and Entertainment Complexes industry
  • Time spent on leisure and sports

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

  • Industry Outlook
  • 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
  • Admissions
  • Other
  • Food and beverages
  • Corporate and party event services
  • 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
    There are no major players in this industry. This report includes analysis of other companies.
    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
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Per Capita Disposable Income (2009-2023)

  • 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.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Arcade, Food & Entertainment Complexes can be used to help you understand the industry’s market size, growth potential and major companies. Five-year forecasts provide insight into the industry’s prospects, so you can make decisions with confidence. This information is perfectly suited to informing your business plans, pitch books, benchmarking and SWOT analysis.

    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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