How to Start a VR Arcade
But it certainly won’t have escaped your notice that there are numerous prerequisites involved in starting a business. In this blog, we are keen to outline the key points that a VR Arcade must meet.
Vision, Objectives & Unique Selling Points (USP)
When defining your objectives, you ask yourself the question: 'Why?'. Why do you want to start an VR-Arcade? Are you doing it because you enjoy it, because you like to undertake things, or because you want to make money from it?
The objectives determine the core values of your company. These core values translate into the identity of your company. This identity is what makes you unique: so make sure you know your unique points. These unique points (Unique Selling Points: USP) make your company strong!
Tip!We have written several different blogs with useful tips on starting a VR Arcade. Below you will find the links to the various blogs.Guide to Starting a Virtual Reality ArcadeVR Arcade Game Licences
Choice of location
The location of your VR-arcade is crucial for the future of your arcade. For example, do you choose to be situated right in the city centre, or would you prefer to be slightly outside? An VR-arcade in the city centre has the advantage of attracting a lot of footfall. After all, many people visit the city centre, and you can benefit from the so-called 'dagjes-mensen'. However, renting a property in the city centre is considerably more expensive than renting one outside the centre. Therefore, if you opt to set up a large arcade, it might be wiser to position yourself outside the city centre. Generally, there are three types of locations you can consider:
- Own premises (stand-alone location): the advantage of having your own premises is that you can determine your opening hours. For instance, Mondays and Tuesdays are less busy days compared to Fridays and Saturdays. Some arcades therefore choose to open only a few days (or evenings) a week, as there is little foot traffic on weekdays. When you have your own premises, you need to ensure that people can find you easily. Marketing is therefore a very important tool to utilise;
- Public location: a public space, for example in a shopping centre, has the advantage that your arcade receives a lot of foot traffic without you needing to do much promotion. However, you should bear in mind that many people will come to look, but relatively few will actually decide to play. Therefore, ensure that you are truly unique in a public space;
- Mobile location: you could also choose to set up your VR-arcade in a mobile location, for example, in a trailer. This allows you to offer VR at various locations, and you are not restricted to a particular town or village. The advantage of this is that you are unique: you can go to the people instead of them coming to you. However, the drawback is that you will have to deal with a smaller space, so you must make efficient use of your environment.
The identity of the VR Arcade
You start your VR-arcade with a certain identity, but you will also develop this identity over time. Determine beforehand what your identity is: are you a cosy VR-bar where customers can enjoy a nice cup of coffee? Or do you opt for setting up a very dark room with LED-verlichting to really appeal to gamers? Your identity is also related to your vision and objectives, so it is important to keep this in mind. A number of factors that influence your identity are:
- The logo: your logo is the first thing that people see. This is essentially the first business card that people see from you, not only in the arcade but also in marketing beyond it. Make sure that your logo stands out and that the colours of your logo are reflected in your brand identity;
- The website: the website of your VR-arcade provides the necessary information for someone looking up information about you. Therefore, the website must be clear and easy to navigate while also providing sufficient information. Ensure that the corporate identity is reflected on the website and ensure that you integrate a good ticketing system into your website.
- Social mediaCurrently, social media is one of the most accessible marketing tools. You can use it directly to reach a large part of your target audience. Do not underestimate the use of paid promotions on social media; they offer an enormous reach!
Tip!The visual identity (or house style) must be consistent everywhere. Ensure that the colours in your logo match the colours on your website. When people see these colours, they will immediately think of your arcade!
Legal obligations
Alongside all the ideas you have, you must also comply with several legal obligations. For example, you need a horeca-vergunning when you want to sell food and drink, and you must remember that you need a game-licenties to play a VR-game in a commercial environment. You can find information about game-licenties in another article of ours, so we will focus primarily on the legal obligations here. Some of the obligations you must meet include:
- Business form: register with the Chamber of Commerce and determine your business form;
- Start off on the right foot by keeping track of your VAT. An accountant can assist you with this.
- Ensure you take out the right insurances. Consider, among others, liability insurance, employee insurance, and theft insurance;
- Keep your employees' payroll well organised.
- The licensing costs of games can increase per VR-station. Keep this in mind as well.
Marketing strategy
When it comes to marketing, the saying 'data is king' applies. The more you learn about your target audience, the more specifically you can tailor your marketing efforts. Utilise as many channels as possible for your marketing (Facebook, Instagram, Twitter, local customers, partnerships with other entities). Especially in the beginning, it is important to make your arcade known to the world. Once you have gained some recognition, you can start focusing more specifically on your intended target audience. A few things to consider when planning your marketing strategy are:
- Which communication channels best suit your customers?
- What content is most effective for your marketing purposes?
- How frequently will you post on social media?
- Are there any (local) news media interested in bringing your VR-Arcade to the spotlight?
Tip: Marketing creates awareness that sparks interest, which in turn ensures customers will return.
Setting Up the VR Arcade
An arcade always has a certain house style. Incorporate this house style into your setup! When you start thinking about setting up your VR-arcade, you must first determine which VR-apparaten you will offer. A basic VR-setup (HTC Vive Pro) is best offered in the form of a 'cubicle', while the Virtuix Omni-loopbanden is best placed side by side. Generally, most VR-arcades use a basic set-up with the HTC Vive Pro headset. You can use three methods with this setup:
- Cubicle: the cubicle is the most common setup. You create a square area of approximately 3 x 3 metres, and place an VR-headset in it. The advantage of the cubicle is that the base stations always function properly (since they only need to detect each other), and the player in the VR-ruimte has enough space to move around freely. The chance of the player thus touching someone else or the wall is minimal;
- Since the term "Room-scale" does not provide context and does not seem to require translation, here's how it would appear in en_GB: Room-scale: an room-scale space is essentially the same as a cubicle, but without an isolated area. Room-scale is widely used by VR-gebruikers who game at home in their living rooms, as they don't run the risk of touching someone else there. For a VR-arcade, this is less suitable, but you can, for example, place 2 players in a larger area;
- Since you provided the placeholder "Free-roam" without any specific text to translate, I'll wait for the actual text you'd like translated. Please provide the words, phrases, or sentences that you need translated into en_GB, and I will ensure they are accurately translated, culturally appropriate, and SEO-optimised for your target audience.: The free-roam is the latest way to play. It makes the VR-headset wireless, so the player no longer feels a cable hanging above. This provides a very unique experience. A wireless free-roam setup can be created in a space of 6x6m, accommodating up to 3 headsets together. However, the latest technology allows players to use a backpack computer. This involves a small cable running to the headset. With this technique, a 10x10m space can be filled with 4 players (each with their own backpack PC).
The necessary virtual reality hardware
The foundation of your arcade is, of course, the hardware you use. You can choose to offer only VR-headsets, but you can also expand this offering by including extras. Consider the Virtuix Omni treadmill or the Hypersuit flight simulator. Both devices utilise VR-headset, making them a very good addition to the 'standard' offering. So, try to set yourself apart from other arcades in this area! The hardware you definitely need when starting an VR-arcade are:
- VR-ready PC (recommended GPU: RTX2070 or higher);
- VR-headset (such as the HTC Vive Pro or HP Reverb);
- Hygienic accessories (disposable masks, protective covers);
- Large display for viewing (recommended size: 50 inches);
- Fast (wired) internet connection;
Tidying up all loose cables
You naturally want your arcade to look attractive and well-maintained. Dangling cables can disrupt this image. Therefore, it is important to manage your cables as efficiently as possible, not only because it looks tidy, but also because it is safer for your players. The cables of VR-headsets can be routed through the ceiling using a cable management system. This way, the cables are positioned above the player and neatly run to the computer. The player is no longer bothered by the cables and cannot trip over them, while everything looks neat and orderly. You should also try to neatly manage the cables running from the computer to the monitor. By measuring the distance between your computer and the monitor and purchasing a cable of the appropriate length, this can be quite easily accomplished.
Nothing looks quite as untidy as hardware lying around when not in use. So, make sure you have an opruim-plek where you can place your gear. This space can be near the play area (such as a cabinet) or in a separate room. For the controllers and headsets, there are convenient stations available where you can charge the controllers directly. This not only looks much neater but also ensures your controllers are always charged.
If you want to completely eliminate the cables, you can consider using your virtual reality headset wirelessly. This is possible with the HTC Vive Pro or the HTC Vive Cosmos (Elite) headsets. You can replace the cables of these headsets with a wireless adapter that you attach to the headset. This way, you no longer have to deal with cables getting tangled around your feet, and you have complete freedom of movement.
The team members
The success of the VR-arcade relies heavily on the people involved. This is extremely important, so make sure not to skimp on hiring good, knowledgeable, and friendly staff! The number of employees needed depends on how often you are open and how busy it gets, but generally, you can manage with 1 or 2 full-time employees during weekdays, and you may need 3 or 4 employees during weekends. To kickstart your VR-arcade effectively, it’s advisable to ensure your staff are well-versed with the VR-systemen. Encourage them to play frequently, as first-hand experience makes it easier to convey information.
It is highly recommended to hire someone who has knowledge of computers and technology. There is always the possibility that something may go wrong with the VR-hardware during gameplay (consider a screen that no longer turns on, a game that won’t start, or a controller that becomes unresponsive). Often, such issues are due to a software-update or a loose cable, but you need to have someone who can identify and quickly resolve them.
Pricing and Rates for Your VR Arcade
Pricing is particularly challenging during the startup phase of your arcade. You don’t want to start too high, as you may deter potential customers with your prices. On the other hand, you also don't want to start too low because you need to generate your initial profits. Generally, when starting up an VR-arcade, you may not make (significant) profits in the first few months. Don't be alarmed, as this is typical for most successful arcades. The initial months are essentially for building awareness. You achieve this by beginning with a low entry price. As your arcade grows and becomes more well-known, you can adjust the price accordingly. Additionally, extras that your arcade offers (like the Virtuix Omni) can generate more revenue. These unique features make your arcade more special, allowing you to charge a higher rate. After all, you are one of the few who can offer this!
Tip: also take a look at the prices of other VR Arcades in the area. This will give you an idea of the market prices, and you can adjust your arcade's pricing accordingly.
All finances and investments
Starting an arcade, and thereby purchasing VR-hardware, is a significant investment. For such an investment, you can apply for an advance from the bank, however, banks tend to be hesitant about businesses dealing with electronics. VR is extremely new and is therefore still considered 'experimental' by banks. But as there are increasingly more VR-startups, there are now also banks that specialise in VR- and computer hardware. Thanks to their experience with start-up arcades, they are more willing to finance a new VR-arcade. After assessing your business history and financial investment, they can decide whether or not to partner with you. To get in contact with one of our financiers, you can reach out to us.
Additional tips & tricks for starting a VR Arcade
A 'perfect arcade' doesn't exist, but by carefully considering the steps above, you can get close. Make sure to thoroughly read up on VR-hardware and -software at the beginning, so you won't face any major surprises when setting up your arcade. Here are a few tips we'd like to provide:
- Outsource certain tasks. Starting up and running an VR-arcade is too much work to do entirely on your own. Hire good people and work together to achieve the result.
- Leverage the experiences of other arcades. After all, every arcade goes through the same challenges. Have a conversation with arcade owners and see how they run their arcade;
- Always opt for the best and newest equipment. Do not skimp on VR-hardware, as this is the experience your customers are paying for.
- Ask others for feedback. When you spend a lot of time working on your arcade, you may overlook the simplest things. Ask someone for their opinion about your arcade, and who knows, you might gain some valuable insights.
- 'Just do it.' At a certain point, you simply have to start with the arcade. Once the arcade is open, you will naturally encounter new problems. These problems can always be resolved, and you'll learn from them for next time.
Need help? Unbound XR is happy to assist you!
As you have read, there is a lot involved in setting up an VR-arcade. At Unbound XR, we have extensive experience with start-up arcades, and we are eager to provide you with the best advice on this matter. You can schedule an appointment with us for a consultation. During this consultation, we will discuss the options and explore the possibilities that we can offer for your VR-arcade.
It is even possible to outsource part of your setup to us. With our 'full-service', we will visit your location to conduct a site survey and compile a list of required VR-hardware. Following this, you will receive a tailored quotation from us. If we can offer advice on the layout, we are more than happy to do so. Thanks to our experience, we have developed a keen eye for setting up VR-arcades, which can already make a significant impact. If we take it a step further, we can even assist with the physical setup of your VR-arcade. We leave all the electrical work, sockets, and other tasks to the electrician, but everything related to VR is something we are keen to handle (think of placing the base stations, installing the cable management systems, and setting up and installing the computers).
Here are the translations adjusted for the en_GB market: For the possibilities, you cancontactPlease get in touch with us. We would be delighted to invite you for a consultation at our location in Nijmegen. This is also a perfect opportunity to get to know us and try out our virtual reality hardware.