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Da_Shroom_King

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#1 Da_Shroom_King
Member since 2012 • 25 Posts
Info: I was playing around with the idea of opening up a 'modern video game arcade'. In short, it's a place where gamers can go to play games on modern consoles(PS3, XBOX 360, NINTENDO WII, ETC) with modern games(CoD, Skyrim, Wow, Battlefield, Portal, Madden etc) against or with each other, or alone if they choose to do so. I was also thinking to have a nostalgia corner of the arcade, but I'm getting ahead of myself. If you know what you'd like to see in a business like this, let me know! Comfy chairs? A bar/cafe combination? Blue lights?! By opening this arcade, would it really help the appeal of video games in our society? What else can I do if I do opt to open this business to help combat america's reception of video game arcades? Speaking for yourself as a gamer, what would attract you to go to such a place? I realize now that the reasons I listed only apply to me and my friends, so let me know what you would want, as a gamer. What do you guys think of it's viability? Would you go? Why or why not? How much would you pay? Any suggestions/input/concerns you'd like to give? Also, feel free to be my devil's advocate, poke holes in my idea as well! I would love to know everything that can go wrong. Thank you all in advanced! Reasons(Assumed) why I think it's a viable business: - With new titles being released all the time, not everyone has the capital to buy EVERY game. - There are a lot of exclusive games that not everyone has access to, so it'd be cheaper than buying a console. - If people have a bad PC/Internet Connection, it'd be great to go someplace that not only has one, but one that's already installed with games! - Great place to meet new people/Have a hang out place! - Big television screens; bigger is better. - Local Tournaments for fame and prizes -When playing games with records, it'd be a great place to practice and hone your skills without the consequences. Suggestions/Criticism given by others: 1. "Make it part-bar and only allow 21+, no adult gamer wants to hang out with kids." 2. "Sell Games & accessories in addition to the arcade." 3. "Sell snacks and drinks, gamers love junk food!" 4. "Add classic arcades alongside the arcade. You can't beat the classics!" 5. "Include Memberships and discounts." Counter Suggestions/Criticsm given by yours truley: 1. While that is true, by doing so I would be restricting a large portion of the gamer community, which could hurt business an incredible amount. The gamer community(at least in my head) ranges mostly from 13-25 year old, mostly males, and cutting off everyone between 13-20 is a HUGE loss of income. But then again, not all may have the financial capital to come by daily or even weekly, as opposed to adults. 2. I'm not sure if it would be a good idea, simply because places like GameStop offer discounts for members, and game trading of course. I'd have to find a way to compete with that, so maybe. 3. If I did sell snacks, people could grease up controllers which would not only potentially brake them, but nobody wants to play on a cheetos dusted, stick controller. If I did decide to add snacks, I'd have to have an employee or myself wipe down the controllers after every use. I would probably sell sodas and drinks though...maybe. 4. Can't seem to find anything wrong with that, so maybe. 5. Of course! Genius! I personally go to Hot Topic constantly just to get a card stamped out! I'm losing a butt-load of money but I don't care! Hurhurhur....I am such a sheep.
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XaosII

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#2 XaosII
Member since 2003 • 16705 Posts

You do realize arcades are completely dead except for Japan, Korean (and they are more internet cafe "baangs" than actual arcades), and parts of china? Not one of your reasons actually change why arcades died and why they'll go to yours.

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Da_Shroom_King

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#3 Da_Shroom_King
Member since 2012 • 25 Posts

You do realize arcades are completely dead except for Japan, Korean (and they are more internet cafe "baangs" than actual arcades), and parts of china? Not one of your reasons actually change why arcades died and why they'll go to yours.

XaosII
Yes, I understand that arcades are practically dead in the United States. However, I do not plan to revive classic arcades. As I understand it, the home console is the thing that destroyed classic arcades. But I would appreciate if you elaborate on why you think it wouldn't work. Or give me any suggestions or input what I could do better.
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XaosII

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#4 XaosII
Member since 2003 • 16705 Posts

Home consoles didn't kill arcades. That wouldn't explain why Japan, Korea, and China arcades are still popular. Its an issue of culture not of technological displacement (home consoles > arcades) or even economics (its cheaper at arcades vs buying the latest games).

Korea is a very high-tech country. The youth has embraced technology at a scale like no other. Internet cafe's are where young people hang out. Its the afterschool activity to do - hang with your friends at a local internet cafe. In the US, none of the "cool kids" would ever be seen at one. Many people in Korea go to them, not even to play, but just to be with their friends. Its even very common for couples to go together and not necessarily play the same games coop or competitively.

Japan's arcades never died out because of dense populations and lack of livng space. In places like Tokyo, a typical family of two parents and a child live in a space not much bigger than a typical US living room. There is simply no space for a basement recreational room that can be found in alot of american houses. The need for younger people to not feel crowded and to get a bit of personal space can come from arcades. You are much more likely to meet and hang out with friends in an arcade instead of inviting them to your cramped apartment house.

In 2000, China made it illegal to sell consoles to "prevent youths from wasting their time." You can still find and buy them, but they are fairly rare. There are several made-for-china electronic gaming devices but they are all of extremely poor quality. Its also very, very expensive to own the typical electronic devices found in most US homes like large TV's, stero system, etc. Most have little option than to use arcades or internet cafes to fulfill their gaming needs. Even so, The typical chinese market is rather different with MMO's making the bulk of games since games are almost always billed as a service than a product (mostly to prevent rampant piracy in China). World of Warcraft is something like 6 US cents an hour to play in China.

But im rambling; Basically, the problem is that the US culture, as a whole, does not lend itself well to arcades. If you want a succesful arcade, you're going to have to fight a massive uphill battle to change US culture and reception of arcades. And even then, with gaming so cheap, its gonna hard even after you do so. You *might* be able to by having that "no-one under 21" thing and making arcades as a more adult/mature oriented "heres something to do thats different than just going to a bar" kind of thing....but thats gonna be a tough sell.

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Da_Shroom_King

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#5 Da_Shroom_King
Member since 2012 • 25 Posts
Thank you for your input XaosII! Very informative post. You bring up a good point, it would make a business more viable if the culture supported it. I know from my personal experience that people who have Ninteno 3Ds or PSPs don't bother playing them in public because of our culture declared that 'adults shouldn't be wasting their time playing video games'. Unlike in places like Japan, where a grown man could be reading a comic book in the subway and no one would bat an eyelash because it is accepted in their society. One of my goals that influenced my coming up of the idea of opening a video game arcade was to help change the culture of America and their perception of video games by introducing a more modern arcade. My reasoning behind this was that by making it more accessible to someone who doesn't have the inertia to buy or invest money into a console. I also believe that should it actually succeed, people would begin to see that gaming is something you can do publicly and change the image of the average 'gamer' from someone who lurks in their parent's basement to a fun hobby like watching movies or listening to music. I wouldn't say gaming is exactly cheap, but I could be mistaken. I know me and my gamer friends usually only manage to scrape enough money to buy one or two games a month. We miss out on a lot of great titles, especially since we end up buying the multiplayer games like CoD to play with each other. Feel free to disagree with me, I don't have anything else I can use to make an argument . So now my next few questions are; by opening this arcade, would it really help the appeal of video games in our society? What else can I do if I do opt to open this business to help combat america's reception of video game arcades? Speaking for yourself as a gamer, what would attract you to go to such a place? I realize now that the reasons I listed only apply to me and my friends, so let me know what you would want, as a gamer.
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El_Zo1212o

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#6 El_Zo1212o
Member since 2009 • 6057 Posts
I used to hang out at a similar establishment up in Oregon. Of course, that was before I got hold of my own 360, so the big draw was being able to play shiny new games on ridiculously fine TVs. So if you've got the capital, wait for the launch of the next gen for best results. Also, nix the snacks. Doritos/frenchfries/chicken wings+gamepads will kill your business- it'll ruin your controllers and who's gonna pay to play on a controller with sticky sticks? Comfy chairs! PC arcades were cool because very few people had the cash to buy their own gaming PCs and getting good internet was a hassle. People were willing to forego comfort to play. Times have changed. Start up a used games business(and give better value and price than Gamestop), and staff it with people who know and love games. As far as arcade machines, pick shooters and fighters(and real classics like Pacman, Donkey Kong and Galaga). Gun games like Time Crisis, Silent Hill(which had awesome metal guns) and Virtua Cop(shut up, VC2 is my favorite gun game of all time) are better in the arcade, as are fighters because people love a joystick. Also, maintain,maintain, MAINTAIN your cabinets. Nothing kills a fighter cabinet like not being able to move to the left. Where are you planning on opening this businessof yours? If you're in Sunshiny SoCal, sign me up.
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XaosII

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#7 XaosII
Member since 2003 • 16705 Posts

Gaming, taken the level of the average person on this forum, is about as expensive as any other hobby. For all the people whining and complaining about $60 games and DLC, its really not that expensive. Safety equipment for Football run around $400, helmets at $100, good cleats at $80. This is stuff, when taken to roughly the same level as the gamer here, will probably need to be replaced every year from wear, tear, and sweat. An artist? Not a huge upfront cost, but good quality art supplies are pretty expensive... You'll pay a fortune every year in consumbles if you draw every day, much like we play nearly ever day. Music? A starting guitar will run you cheap, but you'll eventually want that $800 one. And a nice amp to follow. And a few peddles. And more good strings to replace the ones you keep breaking. And a different guitar.

I do archery as a second hobby, and it was $600 for an adult starter's bow. I have to replace strings, targets, and arrows all the time. Hobbies, in general, are expensive. And im sure you'll find people at forums dedicated to their own hobby complaining how its so expensive!

This might seem tangential, but it'll make sense: Think of an MMO with good graphics? maybe Tera. Now think of an non-MMO with better graphics? A bunch. Well, that was easy. OK, think of an MMO with a good story? ehm... SWTOR. Now think of an non-mmo with a better story? A million. That was easy too. Think of an MMO with good combat? lets just say Guild Wars 2. Non-MMO with better combat? A ton.

So why do these MMO's keep getting played? Because their friends play it. Why do so many MMO's keep failing even when they keep adding new thing? Because their friends don't play it.

I dont smoke, but i go to hookah lounges a few times a year. You will never, ever see me at a hookah lounge by myself. I go, and partake in a bit of hookah because im there with my friends.

Its also part of the same reason why arcades still work in Korea and Japan. Its how you'll likely get a successful arcade. Now that begs the question - How do you get people to come with their friends? Unfortunately, i've not a clue. But that's how you'll get *me* to come.

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El_Zo1212o

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#8 El_Zo1212o
Member since 2009 • 6057 Posts
[QUOTE="Da_Shroom_King"]So now my next few questions are; by opening this arcade, would it really help the appeal of video games in our society? What else can I do if I do opt to open this business to help combat america's reception of video game arcades? Speaking for yourself as a gamer, what would attract you to go to such a place? I realize now that the reasons I listed only apply to me and my friends, so let me know what you would want, as a gamer.

Don't try to change the landscape, you'll lose your shirt. The word 'arcade' carries it's own stigma, so I'd bill it as a 'Game Lounge' or a 'Gamer Collective' or some such neat spin. As a gamer, I like games. Playing games, buying games and especially talking about games. Get people who know and love games to work there. See about partnering up with an indie game journalism site that is run near your location for tourneys and podcasts and such. And by the bye, I've never payed more than $3/hour to play at such a place, so I'd start there. Maybe run promotions where for a certain week if you bring in a copy of a certain game you get an hour or two free(maybe on game anniversaries or something). Deal in cash, credit, straight trades or game time. Be creative. Be different.
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#9 Da_Shroom_King
Member since 2012 • 25 Posts
Thank you both, XaosII and El_Zo1212o! You have both given me a great deal of new information to think about. I was thinking about what you said earlier Xaosll, about what killed the arcade industry, and I've concluded that society's culture certainly did play a big part in the industry's death, but it wasn't the only reason. With Korea, I agree that it was probably the culture that kept the industry afloat. However, in the case of Japan and China they were more or less forced to embrace the arcade industry because they didn't have any other means of accessibility to home consoles. Unlike in America, where we had the accessibility and legal right and the space in our comfortable homes for our consoles. So I don't think I can market on accessibility for my arcade. I have to offer something else. I continued to think about it and I found myself asking the most fundamental question: Why does anyone go anywhere if they have the accessibility to it from the comfort of their homes? Especially if it's cheaper. Take movies for example; I can order a movie from home at half the price of a movie ticket and invite as many friends as I can fit inside my living room and the junk food would be cheaper. But then I figured it out; the theater's aren't selling just the movie or their overpriced junk food, they're selling an experience and atmosphere. I could just do as I stated earlier and just order a movie, but I don't. I go and invite my friends or my girlfriend to the movies because of the atmosphere. The surround sound, comfy seats and big screen doesn't hurt either. In fact I think if any one of those things were taken out of the equation, it'd ruin the experience. If you've ever ordered a movie from home, you know you can't compare that experience to actually going to the movies. So I think the two main reasons why you start hanging out anywhere is because: 1. You can't get it anywhere else. Such was the case in the Arcade's golden age, where there was no such thing as the home console yet. Or the reason why you go to the same burger joint every week because nobody makes burgers like them. 2. The experience & atmosphere. Your friends add to both of these, I actually believe that it doesn't matter where you go because friends can make anything fun, but the reason you go their in their first place is because of the atmosphere. Now I'm sure that the classic arcades had a good atmosphere and offered a great experienced, but when the home console came out, the people who could afford them stopped going to arcades and took the experience and atmosphere with them. At least that's what I think. Please, tell me what you guys think of my reasoning. Is any of this not true? I'm sure there is something else I'm missing, or something that I'm wrong about. But in any case, tell me what YOU would like to see in an arcade like this. Or rather a "Gaming Lounge" as El_Zo1212o is now convincing me to label it as. I'm taking serious consideration of your suggestions, you seem to know what you would want from a business like this, let me know if you think of something else! Thanks~!
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El_Zo1212o

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#10 El_Zo1212o
Member since 2009 • 6057 Posts
You can bank on accessibility- but it'll cost you. People who are willing to part with major dough are the ones who get new consoles at release. The rank and file wait a couple of years for price drops or huge deals. If you open up a place in a well populated area(we're not talking small towns or backwaters here, but also not places like downtown Los Angeles or NYC where your business could be crowded out or lost in the shuffle) right on the cutting edge of the next console generation- say within 3 months of PS4/Nextbox's launch- people will go there in droves just to get their hands on it. If you want a huge attraction, though, you could try building one of these...
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Yusuke420

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#11 Yusuke420
Member since 2012 • 2770 Posts

Sounds like a solid idea that I would be more then happy to go to and support on the regular. I'd also add that you should carry sports programming and PPV's with a cover charge. Free Wifi is a must and if you can ditch the snacks for stuff like carrots and greek yogurt.

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LJChronx

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#12 LJChronx
Member since 2003 • 954 Posts

Well Im 32 now and have been a gamer my whole life. I hang out in bars alot and love when bars and videogames cross paths. Im in San Diego, CA and they have a place called Dave and Busters (It has locations in major cities throughout the US) and there is competitor up in LA called Gameworks or something like that. The idea behind them is a arcade for adults with alcoholic beverages. They use traditional arcade machines, mostly the highend expensive ones, and dont have any TVs hooked up to consoles. The prices are very expensive (except they have a happy hour that makes the games and drinks reasonable). Beside those they have a few places like you want to open up. They are usually small and are sometimes attached to a videogame store. They have TV's hooked up to consoles and really dont offer any extra ammenities.

So I guess I want a cross between those. You could have all the TV's and consoles, maybe a few nostalgic arcade machines, a pool table/ping pong table, heck maybe even a card table people could sit around and play poker on. Of course I would want alcohol, which I know complicates things with trying to have both under 21ers and over 21ers. But if you could work out the details and check ideas and/or have a security gaurd it would interest me. Also, in SoCal you could have a "green room" for the medicinal patients, as I dont play games without taking my medicine, which is perfectly legal in SoCal. I know you probably wouldnt do this, but I wouldnt have to go out to my car all the time. :P

Anyways those are just my thoughts. It might be a hard balance with alcohol, but its what I would be interested in. I just want to come to a place that is cool and fun to hang out in and not a full geek convention.

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El_Zo1212o

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#13 El_Zo1212o
Member since 2009 • 6057 Posts
heck maybe even a card table people could sit around and play poker on. LJChronx
I wonder if wagering store credit would count as gambling under the law...
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#14 LJChronx
Member since 2003 • 954 Posts

[QUOTE="LJChronx"]heck maybe even a card table people could sit around and play poker on. El_Zo1212o
I wonder if wagering store credit would count as gambling under the law...

Well you can have poker tournaments in most states if the buyin goes to the business and the winner gets paid with a gift certificate to that business.

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El_Zo1212o

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#15 El_Zo1212o
Member since 2009 • 6057 Posts

[QUOTE="El_Zo1212o"][QUOTE="LJChronx"]heck maybe even a card table people could sit around and play poker on. LJChronx

I wonder if wagering store credit would count as gambling under the law...

Well you can have poker tournaments in most states if the buyin goes to the business and the winner gets paid with a gift certificate to that business.

@OP:^^ hope you're taking notes.
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#16 markop2003
Member since 2005 • 29917 Posts

Why does anyone go anywhere if they have the accessibility to it from the comfort of their homes?Da_Shroom_King

Take a look at Starbucks, they have truely perfected the art of making a cafe where you just want to be. Apple does the same thing with their stores and Waterstones have started doing it too. To compete with the internet the location itself and the experiance of being there has to be part of the attraction.

They have an arcade at my uni attached to the SU bar, i know there's one in San Diego and i think Yahzee co-owns a similar place in Melbourne.

The trick is to make the games a side show not the main attraction otherwise you get a convention sausage fest with people arguing over which version of CoD is better. You need to make the place a nice place to hangout with a few games as a bonus however I'ld concentrate on old machines or retro titles so you don't directly compete with the home market; this ensures games are short and easy for newbies to jump in on, allows you to play the nostalgia card and gives you much better inspiration when doing the interior design.

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#17 Da_Shroom_King
Member since 2012 • 25 Posts
Thank you for the responses everybody! And yes El_Zo1212o I am taking notes, but I don't think I could afford that simulator as an attraction, at least not until my money making machine is complete. Some very interesting ideas so far, and I'll be glad to comment on them when I get home and plug my laptop into a socket. Before I go though, I've used the lovely search bar here in the forums and found this thread: http://www.gamespot.com/forums/topic/27464759/gaming-cafe--gaming-lounge-would-one-actually-go I'm wondering now if anyone has any information on what happened to Zavvi, Omega Games, RapidFire or any of the other companies mentioned in the thread. I've been trying to google them but I'm not getting anything specific on why they closed down or even how their business was ran. According to the other forumers in the thread, they were quite popular but still went out of business. I'm currently trying to get some more accurate estimates on just how much it would cost to run this lounge and how much profit can actually be made, thanks for your continued feedback guys, I really appreciate it. I'm also leaning towards converting this into a bar and gaming lounge, it seems more viable to me but we'll see after I run a few numbers.
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#18 LJChronx
Member since 2003 • 954 Posts

Thank you for the responses everybody! And yes El_Zo1212o I am taking notes, but I don't think I could afford that simulator as an attraction, at least not until my money making machine is complete. Some very interesting ideas so far, and I'll be glad to comment on them when I get home and plug my laptop into a socket. Before I go though, I've used the lovely search bar here in the forums and found this thread: http://www.gamespot.com/forums/topic/27464759/gaming-cafe--gaming-lounge-would-one-actually-go I'm wondering now if anyone has any information on what happened to Zavvi, Omega Games, RapidFire or any of the other companies mentioned in the thread. I've been trying to google them but I'm not getting anything specific on why they closed down or even how their business was ran. According to the other forumers in the thread, they were quite popular but still went out of business. I'm currently trying to get some more accurate estimates on just how much it would cost to run this lounge and how much profit can actually be made, thanks for your continued feedback guys, I really appreciate it. I'm also leaning towards converting this into a bar and gaming lounge, it seems more viable to me but we'll see after I run a few numbers.Da_Shroom_King

Well profit is ultimately the key. The problem with the gaming lounge is that you selling gaming time in and of itself is not profitable. I believe one poster above said that he would not pay more than $3 an hour to play games. Well, you are not going to make sh*t on that. People have to purchase other things from you to make money (such as software, food, beverages, membership fees, or some other creative service). Obviously the most profitable of them will be alcoholic beverages. But that may not fit the demographic you are going for. If you can make it geared towards a demographic that appreciates games and alcohol then you will probably have a profitable senario, as those two groups have alot of dispensable income. Most are not married and do not have the demands of kids, house payments, ect.

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cprmauldin

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#19 cprmauldin
Member since 2009 • 1567 Posts

You're not the first one to have thought of this. I have seen quite a few "Gaming Cafe" type places in my time.

Personally, I love the idea of a place to go to get out of the house and spend some solid time getting lost in the world of gaming. The issue comes, however, in trying to turn a profit. The one place I can remember in the most detail was very cool. It had about 15 Xbox 360 setups, 10 Wii Setups, 10-12 PS3 setups, and 10-12 Gaming PC setups. They also served snacks, coffee drinks, and other popular gamer fuel.

If I remember correctly, they charged $5 an hour to use the systems. The drinks were priced just below that of a Starbucks. I believe the business owner believed that he would make the majority of his profit from selling food and drinks (very high profit industry).

Despite constant business, it shut down after only being open for 5-6 months, obviously due to lack of revenue.

I believe that the problem arose when the owner wasn't selling as much food and drink as he expected. $5 an hour even with all of the available systems being used wasn't enough to cover the business overhead. He expected the gamers to spend money on food and drink when in reality, they were far too lost in their game-worlds to get up and get something to drink or eat. This was the downfall.

All in all, I love your idea, but feel that you would need to find a way to secure profit.



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#20 apgomez85
Member since 2009 • 25 Posts

I want to bring up this old topic because I'm going to do the same thing in san diego, ca.  Only it's going to be like the mana bar in australia.  i believe in order to make it work you need a place with a lot of foot traffic, hence why i'm aiming for the gaslamp district.  The place also needs to be accessible to the general public and not off putting, ie a "nerd" hangout.  The mana bar got it right by making it a house party atmosphere.  Like if you had friends over at a party and there is a system hooked up with rock band or smash brothers.  Sell drinks, have daily events, and on going tournaments.  Make it look classy. 

I am nearly finished with the business plan and i'm just waiting for my friend to graduate in business management at the end of this year and we are diving in.  A similar place just opening up in Kansas called Headshots this month.  It will be interesting to see how it goes.