Seven Ways to Guard Against VR Games

Over the last couple of years, we've seen an array of news articles about the way virtual reality was about to conserve the timeless arcade. The idea goes that the VR gear is too expensive for home users, therefore it creates an chance for operators to pony up the big dollars to purchase it and make their money back by charging per game to play with it.
"While several high-end cans were released annually that may bring virtual-reality adventures to your living room, adoption of the technology is still in its first days for a lot of reasons--it's still bulky, pricey, and there isn't all that far to do once you've got it on your face. More than two million cans were sent globally in 2016, according to a quote from market researcher Canalys, yet this figure pales compared to the prevalence of, say, video game consoles (earnings of the top one, Sony's PS4, topped six million during the 2016 holiday season alone). Consumer virtual reality will likely catch on as costs come down and headsets improve. Meanwhile, though, a variety of companies are betting that customers could possibly be happy to pay a much smaller sum to try the technology with their friends at, say, an arcade, theme park, or even bowling alley."
It is tempting to dive into this snare, but in the operator's standpoint VR is a terrible deal. Operators are being requested to pay top dollar for tech that is all but guaranteed to plummet in value over the very short term. Other than buying a brand-new vehicle and driving it a time, I can't think about a way you could lose money faster between what you pay and what you will be able to get down the road.
Another limit for operators is that while you may be able to supply a room for VR people to roam around in now, as new VR tech is introduced, we're going to find the stage expanded from 100 square feet into the entire world. Rather than viewing just the matches from your headset, you will see the true world with sport play overlayed. Children can go to the park and relive the knights of the round table or parking garages to take aliens. Since the tech allows more real world areas to be researched, it is going to make a cramped arcade seem fairly lame in comparison.
VR is heading for mass market acceptance, but it's demand kids indoor playground is not being pushed by gamers who want to pay big buck to play with video games, but like the BETAMAX that came before it, by individuals who want to watch pornography in their houses.
Even when an operator can create a bit of money to the upcoming few years, once VR achieves critical mass, then it is going to crush whatever revenue stream that operators are dreaming of. Do not believe me? Just check out what is happening in China.
This past year, an eye popping 35,000 virtual reality arcades opened in China. A year after 22,000 of them have closed.
This is an incredible failure rate over this brief time period and one which should serve as a sharp warning to anyone contemplating investing in the VR games. Perhaps Dave and Busters is able to take losses on the games more than Chinese startup arcades, but I doubt most North American operators are going to fare much better using the technology in their match rooms and will only wind up in debt at the end of the day.
The problem basically boils down to customers not being prepared to pay a premium for the encounter. Tech In Asia, clarifies the issue perfectly in their article, on that the Chinese VR boom and bust.

"Enterprising shop owners leaping into VR are finding it impossible to bill fees comparable to cinemas or bowling alleys for a VR experience. One VR arcade proprietor told iHeima he saw eager queues when charging US$1.50 for a 30-minute session, but everyone vanished as it climbed to US$5. From that kind of revenue it's impossible to cover the rent."
Even if the game was sold out daily, at $1.50 a half hour they are only earning $30 a day.
The actual world information streaming in from China must serve as a canary in the quarter plantations of North America. Operators who invest large amounts of money on elaborate VR setups will probably find their little VR rooms being replaced by the entire world for a stage. Since the setups get more expensive, smaller and more mobile, the virtual arcades will seem more costly, bulky and limited. I'd love to be proven wrong on this one, but I think that the arcade VR fad is more hype than hope.