LBX Collective
The LBX Collective aims to inform and educate, create opportunities to connect with industry peers, and to spur collaboration, discourse, and cross-pollination of ideas in the location-based entertainment and experience industry.
Join our online community at LBXGalaxy.com!
Proudly sponsored by Intercard!
LBX Collective
Entertainment Social Arena #8 - Retro Arcades’ Social Revolution – Part 2
This second report highlights the rapid growth of retro social entertainment venues globally, including new "BarCades" and arcades across North America, Europe, and Australia. Key trends include a surge in diverse operators, the challenge of sourcing vintage hardware, and legal issues surrounding IP and emulation. Hospitality venues are integrating retro gaming with food and beverage offerings, boosting profitability. The market is driven by nostalgia, but sustainability depends on effective business models—preferably pay-to-play—to ensure repeat patronage. Investors should monitor market consolidation, hardware sourcing challenges, and evolving legal landscapes, as the retro arcade sector shows significant growth potential but faces operational hurdles.
This is the Entertainment Social Arena, issue Number 8, retro Arcades Social Revolution Part 2, by Kevin Williams, concluding this look at the development of new social entertainment venues, best described as barcades or retro arcades. With this final part we look at the new entrants and those issues that defining and drive or hinder their future business success. That defining and drive or hinder their future business success. New retro entrants. The market is littered with new hopefuls into the crowded waters of retro social entertainment, a maelstrom of different passion projects and serious entrepreneurs. These scrapping individual projects are erupting like mushrooms and are difficult to chart, forcing us to only be able to report on a handful, all with aspirations to grow in the rich medium of social entertainment. Not to be confused with the previous coverage of Continue Arcades in the UK, this time in the American market, continue's Arcade opened in Alexandria, virginia. The facility comprises 50 amusement pieces along with F&B machines running on tokens. Tilt Beachcade opened in Statesville, north Carolina, with a beach-themed arcade bar comprising pinball, crane games and skee-ball. The owners promoting a laid-back beach vibes meets retro arcade nostalgia. Also not to be confused with the previous reporting, the Game on Chain, with two venues in the New York area embracing game retailer and an amusement hangout Clustering in Oregon. We have three new retro arcade venues. First, with uniquely named the Fixin' 2, opened in Portland, oregon, the 2,000-square-foot facility comprising retro amusement machines and pinball tables, along with a cocktail bar Branding itself as a respectable dive bar, pivoting hard on the zeitgeist of retro nostalgia. While fellow Oregon operation, called Back to the Nineties, opened in Corvallis the facility comprising retro and modern amusement machines, rolling out its installation in two phases, the second of which will see the pinball machine deployment. While the third entrant into these crowded waters is the Vault Entertainment Center, installation in two phases, the second of which will see the pinball machine deployment. While the third entrant into these crowded waters is the Vault Entertainment Center opening in Myrtle Creek. This new 80s and 90s themed arcade operates on a $12 wristband admission, branded as the ultimate blast from the past arcade.
Speaker 1:It will be interesting to follow the progression of these Oregon sites, while we see other states clustering venues, such as in California, texas and Florida, for example in the Golden State of California, and we see new retro venue, mission Arcade, reopened in San Francisco, the facility comprising 20 classic video games and amusement pieces, along with a bar currently operated as a private event. Space for hire, though, is moving towards a public model. Also in the city has opened the uniquely named Next Door, a new arcade bar and entertainment venue offers guests a range of cocktails and beers to enjoy while playing a selection of arcade games. This feeling less than a retro throwback, but offering amusement in a hospitality mix. And then we have I Got. Next. Opened in Long Beach, the centre offers guests a chance to play, buy repaired and restored retro games while also offering sales, trade-ins and repairs for collectors. Not a retro arcade with hospitality currently, but more a hub for the collectors and players to gather.
Speaker 1:And the North American list continues with new sites like the Circuit Arcade Bar, holding their grand opening in Jacksonville, florida. The entertainment space comprising some 30 retro and new games are included in the 2,600-square-foot space which used to be a music venue. The arcade is run as a quarters-to-play operation. Pickers Retro Games and Gear opened in Benton, arkansas, offering console gaming, pinball and amusement games, the operation running an admission, free-play model at a $15 price point. Rift Arcade opened in Biddeford, maine, a facility holding 40 classic arcade pieces along with modern amusement and redemption. The operation has a menu that includes elevated versions of true 90s kids' staples such as mac and cheese and the like. We also have Shy Guy's Coffee Arcade opening in Royersford, pennsylvania, with a retro arcade mixed with a cafe presenting over 25 retro amusement machines, a unique coffee and handcrafted cocktail lounge approach to the retro bar with shareable menu. And there is Silverball Social Club opened in Vancouver, washington, the facility comprising over 35 pinball tables focused on the pintable experience wrapping their guests within a unique lounge environment filled with vintage tables, along with a live DJ.
Speaker 1:While not an exhaustive list, while focusing on the hospitality entertainment approach, special Mention needs to go to venues such as headquarters in Chicago, with some 70 vintage games and strong beercade aesthetic, or Ohio's Level 1 Bar plus Arcade, with over 30 retro arcade machines, celebrating having started back in 2015. Along with the rebranded Enterium in Schaumburg, illinois, the 42,000-square-foot Social Gaming Lounge has established an old-school classics arcade zone within their vast facility, offering a retro arcade bar to the elevated dining and play venue. Previously, the Pac-Man Entertainment and Level 257 operations, acquired in 2021 by Gender Entertainment North America and has been made over the YesterCades operation comprises four venues across New Jersey. Represents a temple to nostalgic video gaming from the coin El Templo locations in California, vintage arcade machines with food and beverage service. The European market is also awash with new hopefuls and we have El Templo del Arcade, the Temple of the Arcade, opened in Madrid, spain, the relocated facility comprising a collection of classic amusement and pinball machines and a bar.
Speaker 1:While the UK is seeing its own cluster of new entrants of its own, this has included Totten Arcade, opened in Southampton. The facility comprises 35 retro amusements along with pinball machines, and promotes itself as a low-cost gaming venue, charging a single session fee of £8 for an hour, while Retro Realm opened in Middlebury, vermont, usa, old School Video Arcade comprising 45 video amusement and pinball tables and F&B with their own single-session fee business. Not to be confused with the Retro Realm in Walsall, west Midlands, offering a vast eclectic mix of arcade and console gaming with a £9 session fee supported by food and drink, opened in 2024. And that leaves recently Highest Score Arcade, reopened in Salisbury, another free-play amusement venue at £8 a session with a selection of classic games, redemption, pinball and pool table, and now offering significant discounting for private parties. Even as far as Field.
Speaker 1:As Australia sees its gathering of retro hopefuls, one of the latest including Bay Arcade 2536, opened in Batemans, new South Wales, australia. The facility comprises several classic retro amusement machines branded as the ultimate gaming experience but also includes an extensive kids' component, with redemption bordering the entertainment mix. Now focusing many new openings, we also need to mention Pixel Bar and Cafe in Victoria, australia, that offers a dedicated classic console gaming environment with cocktails, hospitality, retro interest. We are experiencing hospitality venues including an amusement component to their mix, as seen with the FEC chains looking to add the retro boom to their balance sheet. The restaurant and hospitality scene has also witnessed that a social entertainment element flavoured by retro gaming is a profitable opportunity. The proven business model of the sports bar, given the arcade treatment.
Speaker 1:Japan has a continued investment in the more traditional video amusement arcade centre model, but has also seen the appearance of nostalgic style venues including hospitality with retro. Fidi Diner and Arcade opened their latest store in Tokyo, japan, the facility comprising a selection of arcade machines and offering a retro 1950s American-style diner experience, operated by Aeon Fantasy, a veteran amusement facility operator in the sector, planning a second store in this chain. This concept is focused heavily on the diner food feedie element first, with the entertainment arcade element second. Other Japanese amusement operators have looked at a retro social entertainment component to their entertainment spaces. Recently we saw Bandai Namco Experience roll out their upscaled Namco Tokyo site, including a Neo-Lite-themed retro arcade and bar play lounge component to their site. Another veteran Japanese amusement manufacturer and operator, taito, has rolled out their retro inspired drink, food and entertainment concept with Megaradge, a hospitality space with amusement and social gaming. The corporation has also started to roll out the third in its EXBAR chain that also embraces a highly laid-back craft beer and gaming social environment, employing 20-tap self-service beer model with a snack food menu supported by a selection of curated amusement pieces. In the Western hospitality market we have witnessed the Lodge of Antioch Restaurant in Antioch Illinois with the facility opening a new retro arcade room including classic games, pinball and darts, supported by its own bar. Including classic games, pinball and darts supported by its own bar. We can expect further hospitality chains to jump on offering a retro arcade aesthetic to their dining mix. Attract and prove an entertainment, as we have seen with the embracing of sportainment See our previous report on the growth in sports entertainment in social.
Speaker 1:Where do these machines come from? Where a bar must have certain beer and spirit brands available? A retro arcade seems to also have to have mainstay cabinets. A Space Invaders, pac-man Defender and more modern Mortal Kombat cab will be a requisite. But that leads up to the situation of realizing that placing near 50-year-old antiques in a high-throughput amusement-slash-hospitality space is a maintenance nightmare and, away from the upkeep, the reality of sourcing hardware with so many now-turning-to-opening retro arcades bars is becoming near impossible.
Speaker 1:The classic and vintage video amusement fad of the 1990s has been quelled somewhat by the popularity of man-cave-scale amusement collectibles such as seen from one up-arcade. But a hunger for original classic arcade pieces has exploded. Conventional amusement distributors have emptied their warehouses and classic machine suppliers have increased their prices exponentially. Most of the venues discussed comprise a lineup of between 40 and 50 machines where it has become in many cases near uneconomic to consider purchasing vintage hardware. A vacuum has been created in the facility operation business. Those conventional amusement venues wanting to ensure supply of proven classic arcade hardware alongside the market pull of the fad in opening retro arcade bar venues, not to mention the considerations of making those available machines more accessible for deployment. Already conversion kits are hoisted on operators to remove the antique and temperamental cathode ray tube, crt displays for LED alternatives. The growth in repair and trading in classic video amusement is reflected, as we reported earlier about new businesses such as I Got Next opened in Long Beach, california.
Speaker 1:One of the most challenging aspects is brand and intellectual property, ip ownership and usage. Retro arcade gaming has been a ticklish subject in the traditional amusement trade with the appearance of arcade machines offering accessible classic game titles to operate in new cabinets, these machines mostly employing ripped ROM images of the original classic games and receiving legal sanction from the lawful owners of these games, blocking all counterfeiting. Bandai Namco Amusement, one of the few that offers legal, modern interpretations of their classic library of games Pac-Man, pixel Bash Highly policed against copies. How supply will keep up with demand for new classic game titles legally will be a challenging aspect of this market if it is to continue to grow Using video game consoles in commercial entertainment. To grow Using video game consoles in commercial entertainment, as with all new fashions, the boundaries are pushed, if not completely crossed.
Speaker 1:As we previously stated, the deployment of classic video game consoles and their titles into the new mix of retro arcade has gained momentum, as the nostalgia and popularity of these systems vives with the popularity of video arcade gaming Venues, creating gaming bays where groups of patrons can play on large screen-selected consoles and their titles, either from actual vintage hardware and cartridges or from MAME Multi-Arcade Machine Emulator based PC gaming terminals. Such is the power of the MAME community that vast libraries of popular and obscure video game titles are now accessible. As we report, most retro arcade facilities listed all-use authentic video amusement hardware not emulating the experience. But regarding the console gaming scene, there is a split between actual machines and actual cartridges and discs scene. There is a split between actual machines and actual cartridges and discs, and those venues that favor avoiding the hassle of hooking up a, in some cases, 40-year-old, temperamental game console to the latest flat-screen display revert to employing emulation. The consumer and amusement manufacturing trade have clearly disapproved of MAME as a free and open-source application has sailed close to the wind.
Speaker 1:The Association of Supporters have arguably salvaged millions of games from Oblivion curation, abandoned by their developers and publishers who only now see the value in vintage game history. As more retro arcades employ console gaming within their commercial business, they will now fall under the watchful eye of some of the largest and most litigious video game corporations, One of the most popular libraries of vintage video gaming being that of Nintendo. And already the behemoth Japanese corporation has started to flex at the use of its brand and IP by third parties without permission in marketing and promotion Retro arcades, including images of characters from games in menus and marketing. Seeing the video game giant push back, it is expected, as this market gains momentum and popularity, that further pushback and even legal action will be seen against those using unapproved game libraries and those promoting certain IP retro-critical mass. This finally leads us to the inevitable observation Can all these new venues survive in a crowded and complicated social entertainment landscape?
Speaker 1:As we proposed previously, these venues fall into two categories of labor of love or hard-nosed business development. In some cases the operators are more focused on what they want to create than how they will fund it. This brings us to the best business model the offering of a pay-to-play coin or token model or the admission free-play approach For those that work in amusement, especially maintaining vintage hardware. The rigors of free-play, determinate equipment and many of the classic video games' playability is not suited to a free-play model. The feeding of credits to clear levels better engenders play than an infinite number of play attempts. This fact is missed by many entrepreneurs when favoring a free-play model with classic arcade machines and can result in a drop-off in player interest to keep returning.
Speaker 1:The social entertainment element is one factor in generating repeat visitation to retro venues, but the failing of the entertainment mix requires continuous rotation of machines that can be laborious and some operations neglect.
Speaker 1:A single entry fee model with machines turned to free play may work in the short term but could be a road for disaster concerning longevity in patron support.
Speaker 1:Likewise, the maintenance of hardware, be they in free play or coin usage, could also make profitability prohibitive unless operated across a large chain of stores. Currently, the cocktails drive the gaming in the revenue model, but a profitable mix in business will have to be found if this trend is to continue. Finally, we see a sector of the social entertainment market that is growing exponentially, with strong popularity from a diverse market, a true definition of social engagement and feeding off the zeitgeist for classic video games, japanese culture and retro revival. One issue to this growth now being if we are about to be inundated with individual retro arcades or will a clear market leader take control of the market? Can a business model address the needs of revenue and enjoyment? Where are the games coming from to feed this hunger, and will they be able to skirt the branding legality needed? This looks to be a very interesting market to keep on our radar and be assured we will be returning to developments.
