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Would you go to a simulation arcade?

Discussion in 'New users start here - FAQ' started by narthur157, Mar 8, 2015.

?

Is this a good idea - would you pay to go?

  1. Yes

    4 vote(s)
    80.0%
  2. No

    1 vote(s)
    20.0%
  1. narthur157

    narthur157 Member

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    Ello, I'm a junior computer science student and I'm working with a couple of people who think the following things:
    1. High quality virtual reality experiences are going to be either too expensive or too difficult for the average consumer to experience on their own.
    2. Virtual reality is really awesome - Being able to trick the user into thinking they were touching/feeling forces from the virtual world would bring it to an entirely different level
    To this effect, we want to start an "arcade" of sorts. Eventually we want to have team games, motion simulators, maybe 3d movie showings, or whatever it is that people want to experience the most.

    I came to this forum because a.) We might make one of the simulators here and b.) I wanted to get feedback before diving headlong into this.

    So, what do you think?
  2. noorbeast

    noorbeast VR Tassie Devil Staff Member Moderator Race Director

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    My Motion Simulator:
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    The same idea is currently being floated in Indiegogo, to be located in Melbourne Australia: https://www.indiegogo.com/projects/australia-s-first-dedicated-virtual-reality-arcade

    I don't think consumer VR gear is going to be more expensive than say high quality controls like the Warthog and Clubsport gear. It certainly not going to be in the price range of motion simulators. What is likely to be expensive in the short term is powerful PCs and high end graphics cards. That will fall in time but will be an initial barrier.

    Is there a place for VR arcades, well yes if it compliments other existing or intended business activities, like Infinity Amusements plans with its Indiegogo campaign. I would think that when setting up a stand alone VR arcade from scratch it would be the up front capital costs for computer gear and premises that would be the real killer. Don't forget there are significant licensing issues.

    Do you have a serious business model/plan yet or are you kicking around ideas?
  3. narthur157

    narthur157 Member

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    Thanks for that link, I'm going to reach out to them.

    We are in the process of developing a business model. We're figuring out what is viable and what is not, so we certainly don't expect to guess everything correctly right off the bat.

    The licensing issues are something I'm concerned about because I know little of them. That's why I'm not the only person working on this though.

    Store fronts where I am are actually quite cheap. Right now we're looking into proof of concepts and working towards a business plan competition. We're looking into having some kind of VR experience set up on our campus that people could pay for.
  4. SeatTime

    SeatTime Well-Known Member

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    Also investigate the business liability/WH&S obligations, when designing anything for the general public to use.
    • Agree Agree x 1
  5. bsft

    bsft

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    yep, consider a lot of thing and include considering what market you want to chase.
    I only go to smaller car shows and parties with mine.
  6. noorbeast

    noorbeast VR Tassie Devil Staff Member Moderator Race Director

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    Business Plan 101, just fill in the blanks...nothing to it really :grin




    <LOGO>


    Proprietor/s
    Business Address
    Office phone
    Mobile
    Email
    Web




    Private and Confidential

    1 Executive Summary
    1.1 Description of the Business


    1.2 Vision, Goals and Objectives


    1.3 Opportunity and Strategy


    1.4 Industry Size and Trends


    1.5 Target Customers


    1.6 Qualifications and Skills


    1.7 Financial Assistance


    1.8 Financial Summary


    2 Management and Legal Plan
    2.1 Business and Industry


    2.2 Customer Details


    2.3 Products and Services


    2.4 Product/Service Development


    2.5 Business Location


    2.6 Legal Structure


    2.6A Advantages


    2.6B Disadvantages


    2.7 Trading Name


    2.8 Business Licences and Restrictions


    2.9 S.W.O.T. Analysis


    2.10 Factors for Success


    2.11 Benefits and Pitfalls


    2.12 Taxation Requirements


    2.13 Australian Business Number (A.B.N.)


    2.14 Goods and Services Tax


    2.15 Depreciation of Assets


    3 Marketing Plan
    3.1 Market Size and Trends


    3.2 Market Research, Activities and Results


    3.3 Market Segmentation


    3.4 Target Customers


    3.5 Clients Buying Criteria


    3.6 Competitive Advantage


    3.7 Competitor Analysis


    3.8 Positioning Statement


    3.9 Products and Services


    3.10 Pricing


    3.11 Features and Benefits


    3.12 Promotion and Advertising


    3.13 Place - Distribution Strategy


    3.14 Client Relationships


    3.15 Customer Service Policy


    3.16 Marketing Objective


    3.17 Marketing Action Plan and Budget


    3.18 Monitoring Promotional Performance


    4 Operational Plan
    4.1 Federal Government Requirements


    4.1A State Government Requirements


    4.1B Local Government Requirements


    4.2 Business Regulations, Licences and Permits


    4.3 Business Insurance


    4.4 Business Contracts


    4.5 Workplace Health and Safety (WHS)


    4.6 Risk Management Policy


    4.7 Plant, Equipment and Technology


    4.8 Maintenance Plan


    4.9 Production Process


    4.10 Resource Management


    4.10A Environmentally sustainable business practice


    4.11 Quality Control and Assurance


    4.12 Terms of Trade and Credit Policy


    4.13 E-Commerce Policy


    4.14 Key Roles and Responsibilities


    4.15 Administration Systems


    4.16 Business Records


    4.17 Monitoring Business Performance


    4.18 Intellectual Property


    4.19 Strategic Alliances


    4.20 Business Advisors/Specialist Services


    5 Financial Plan
    5.1 Establishment Costs


    5.2 Sales/Income Projection


    5.3 Cost of Goods Sold


    5.4 Business Expenses


    5.5 Cash Flow Forecasts


    5.6 Income Statement


    5.7 Balance Sheet


    5.8 Break-even Point


    5.9 Taxation Obligations


    5.10 Profit Distribution


    5.11 Bank or External Loans


    5.12 Managing Financial Performance


    6 Action Plan
    6.1 Start up issues


    6.2 Quarterly Reviews


    7 Appendices
    7.1 Appendices
    • Like Like x 1
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  7. bsft

    bsft

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    WTF?????
  8. SeatTime

    SeatTime Well-Known Member

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    My Motion Simulator:
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    Business Plan: All the questions that you should be asking yourself before you throw money into a business. They can save allot of time, money and effort.
    • Agree Agree x 5
  9. bsft

    bsft

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    Yes ,I know that, I was being facetious
  10. bsft

    bsft

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    If you set up shop, like a simulator arcade, you need to try to put in in a good area where lots of people may pass by. Theres one here in Sydney city centre that all the tourists walk past constantly. He does do a lot of advertising and runs promo contests all the time. But it is not his prime income, he has backing to keep the shop open as I suspect it runs at a loss.
    http://www.racecentre.com/
    nice shop, I paid my $30 for 15 mins ages ago, plus $15 for parking allowed 1 hr drive or train one way travel, etc. but sorry, my sims move better
  11. shannonb1

    shannonb1 Well-Known Member

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    Its always the guy with less then 5 posts that brings this in here.

    I would just go to my sim room. Your basically just building an arcade. I want to play when I want and can. 2 in the morning...not the same time all the other shlubs are showing up.
  12. SeatTime

    SeatTime Well-Known Member

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    While people can dream, it won't be the last :).
    • Like Like x 1
  13. bsft

    bsft

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    Hang on minute @shannonb1 , he has asked a proper question, he has outlined what he would like to do and he has asked for help. Its nothing to do with a 5 post thing.
    This guy has been talking extensively to me via personal email after seeing my motion racer facebook page and is also talking to Rob as well.
    He is in his rights to ask to get some form of feedback.
    He has told us what he would like to do and people are advising him. Its up to him what further investigation he needs to look at.
    granted we are all DIY here and not all of us dont bother going to arcades, but he has to test the waters.
    I do pay to play on commercial rides from time to time, even though I have 3 sims, of which 2 are for hire.
    I constantly check the market and see whats out there and see what people like.
    I have been doing this for over a year now with one portable sim, now I have 2.
    I know what people want and I know what market I am chasing.
    We have outlined what any new guy looking at a potential business has asked about.
    if he wants shlubs coming into his shop, he can. Or is he takes them on the road like I do, he can.
    Go back to your sim room then.
    @narthur157 and I will go back to making a few extra quid and still go into our sim rooms at the end of the day.
    • Like Like x 2
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  14. shannonb1

    shannonb1 Well-Known Member

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    Thanks for the direct feedback @bsft but he asked the group a question. I gave my answer.
  15. narthur157

    narthur157 Member

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    Appreciate the feedback - not sure why the negativity, though. I can understand that plenty of people come through here with misguided expectations. I'm not sure why you would expect anything else, though.

    I think the point that may have been missed is that simulators are not the focus of the arcade. Rather, the focus is on the combination of virtual reality with "peripherals" (simulators) which bring VR to the next level.

    We think that there is a lot of potential for the combination of motion flight sims with VR. We might be wrong, or the right applications might not currently be out there. If the applications aren't there, we can make our own proof of concept application given that we have 4 competent developers on our team in addition to 2 electrical engineers and connections to a local simulation company (sarnicola)

    With the help of @bsft, @eaorobbie and the knowledge base that this website is, I think we'll be able to pull something off is, at the very least, interesting and fun to use.
  16. shannonb1

    shannonb1 Well-Known Member

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    My Motion Simulator:
    2DOF, AC motor, Arduino, JRK, 4DOF
    So I have 4 vr hmds now. When you can get a similar experience at home for a decent cost, I think that the route folks will go. I have seen arcades fall because technolgy now allows that same experience in the comfort of your own home. You really have to do something different. It reminds me of lazer tag arenas. We have 3 of them near me, all closed now. Its somewhat of a fad and if you invest heavily in the technology to do it right you stand to have a heavy upfront investment.

    Where are you getting your financial backing? How much do you plan to invest year one for opening?
  17. narthur157

    narthur157 Member

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    Let me start out by saying this community is not at all the demographic we are looking at. We're looking at people who have any of the following three characteristics:
    1.) They do not have the confidence or money to pay for VR
    2.) They do not have the space for certain VR experiences
    3.) They do not have the time to get everything set up

    This is about having things "just work" so that consumers can experience VR without being technically inclined.

    As far as having something different, I certainly agree with you. This goes back to those first 2 characteristics.

    You might think, oh it would be sweet to have a virtuix omni with sixsense and an oculus, but then again you have no idea if that's even worth it (I certainly don't). But, let's assume you go for it anyways. Well, you might have the omni, but you probably don't also have a motion flight simulator, or vice versa.

    Or, maybe you have a VR app that makes awesome use of the full 15'x15' space provided by HTC's VIVE. How many people have a 15'x15' space? Maybe you do, but I don't and the only people that I know who do definitely wouldn't use it for VR.

    In general, I really think that a place that exists for the sole purpose of providing an amazing virtual reality experience has a lot to offer beyond what you'll be able to experience at your home.

    As far as financial backing - it's a bit of a moonshot. We have to win our backing, essentially. We're going to be going to hackathons, doing business plan competitions, and applying for a grant from Unreal Engine. No, we haven't figured out how much we need yet. We're still at the market validation stage. We're finding out what people want the most, what they'll pay, and that is what will dictate most everything else. The only trick is, most people don't know what the options are. Building the flight sim is a way of showing what we could provide beyond what the average person will have access to.
  18. bsft

    bsft

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    @narthur157 , you are on the right track for sure. With the market evaluation stage, I did that for over a year with one simulator to various parties and school fundraisers. It gave me enough info to eventually proceed with the two simulators I have now.
    As you said, you are in market evaluation, so you will be researching to see what market you are looking for and as you said, how much they are willing to pay.
    You are right in saying people do not know what the options are.
    With my 2 rides, maybe 1 out of 100 people whom play it have seen , played on or own at least a static simulator, let alone motion.
    Racing simulators, even static have been around for a zillion years and still very little people know of them or go to the expense of setting one up in their own home. Even though it actually doesnt cost much to do.
    Unless people actually know what to look for or even actually go to a website to read more info, its not likely that the average person will just see a simulator, static or motion and maybe a VR headset and jump into it.
    On VR, there was a news report last night on TV about a guy here in Australia being provided a VR headset and video feed so he could see his next child being born across the country.
    Interestingly enough it was obvious that SamSung developed the headset and also paid the family to be in a short tv show to advertise the product.
    http://www.prnewswire.com/news-rele...ty-birth-using-samsung-gear-vr-300050207.html
    This is obviously a paid add for TV. Its a good idea and certainly a good marketing tool to do so.
    Actually how many people will go ahead with getting a VR headset is another thing. So Id say @narthur157 you are safe to so what you are up to.
    Sana Nolan of Infinity Amusement in Melbourne are just beginning, and should make good progress.
    One thing I will mention, take heed and note of what spectators and players say and use it. If they like a particular game, run it. Even if you dont think its suitable. These people will be paying to use the equipment so take note.
    I still listen to what people say. In fact, before a player jumps on, first question I ask is what games, if any do they play. Then I fire up a game suitable to their driving/enjoyment skill. Player 100% happy.
    with your setup @narthur157 , I recall you are looking at getting a shop set up. I did suggest if you can take it on the road first and take it to the people, it will be of benefit .
    There are 2 motion simulator places in Sydney, one directly in city centre, one in a go kart place. I know they dont get that much business even though they are in the right place. But the shops have other money backing them, not the income from the shop apart from the go kart place.
    You can advertise all you like, but most people will not travel to a venue unless they are keen as or have plenty of time.
    Also, expect a good rush of people for a while once that happens, then it will wear off, unless you can get a way of people continually coming back.
  19. shannonb1

    shannonb1 Well-Known Member

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    If this community "is not at all the demographic we are looking at," what was your logic in asking this question here? lol. Im just giving you my honest answer. I wouldn't go and I wouldn't invest.

    Have you identified your possible gross profit opportunity? Would you being trying to make money or just think it would neat because you have a passion?

    Check this out
    http://www.bmigaming.com/commercialarcades.htm

    "with a complete turnkey budget for FEC's
    starting about $1,000,000 and smaller traditional arcades starting about $250,000"

    I would agree that with a modern day arcade you are looking at a start up cost of somewhere between 1/4 Mil to a Mil.
  20. bsft

    bsft

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    we didnt ask you to invest , however, we appreciate your reply and opinion.
    @narthur157 has been getting info from people already in the game and we have advised him of his possible competition in the area.
    He is aware of what the outlay of costs are and its up to him to source that money, and then make a suitable market or to go find a suitable market.
    Traditional arcades cost a crap load, yes for sure. Just have a look at the price of equipment. Motion stuff especially is 5-10 times what it would cost you to build, to go and buy.
    The Sydney Australia market is small, but I know what I outlayed is way lower than the commercial guys. They may not look 100% impressive, but are sturdy and strong.
    I really dont know what the market would be like, but I guess a country with 10 times the population of Australia may just have a better chance.