Location-based entertainment (LBE) is a growing sector. According to IBIS World “Over the past five years, the Arcade, Food & Entertainment Complexes in the US industry has grown by 3.3% to reach revenue of $2B in 2018. In the same timeframe, the number of businesses has declined by -0.1% and the number of employees has grown by 2.6%.”
This is a great time to be an owner of a bowling alley, amusement park, theme park, water park, or arcade because consumers are looking for new experiences outside of the home. But it’s important to diversify and offer an array of things for customers to do. One trend that’s beginning to take hold is virtual reality games.
In recent years, millions of people from across the globe have become enamored with the world of virtual reality. Through the magic of their cell phones or personal VR systems, they have been transported into new cities, games, and environments.
Of course, this first dip into the virtual reality industry has left many wanting more, location based entertainment is the answer.
The term location-based entertainment (LBE) is most generally used to describe any form of entertainment which takes place in a specific location outside of the user’s home – often in a Family Entertainment Center. The LBE experience usually involves creating a physical space equipped with all the props, tools, and equipment needed to create a truly immersive environment. There is an initial investment from the business to build out an experience that captures people’s attention and makes them want to come back. With a variety of experiences like bowling, arcade games, rides, and VR, the possibilities are essentially limitless so it’s important to work with a partner who can suggest the best activities for your location.
However, location-based entertainment is not a one-player experience. In fact, many set-ups are designed for as many as six players to enjoy at any one time. VR experiences such as Mario Kart VR and Alien Zoo let a family or group of friends experience identical sights, sounds, and feelings together as a group. That’s an important key to the out-of-the-home experience, sharing the feelings with a group.
Given that location-based VR has so much to offer to both consumers and operators, it is perhaps no surprise to see the interest and growing offerings in the marketplace. Some estimates place its current market share at around $1 billion – approximately seven percent of the entire virtual reality industry. Indeed, projections by Greenlight Insights suggest that LBE could become a $12 billion market as soon as 2023.
Contact us today if you would like to help your customers explore the world of game rooms and enjoy your slice of the growing location-based entertainment market. Our friendly team will be happy to help you find a solution that is perfect for your facility.
Betson works with vendors and manufacturers in many spaces so we can offer our customers the best equipment for their specific needs. Whether you’re looking at adding a game room, some vending equipment, monitors, or kiosks, or ready to make a jump to VR, we can help. We’ll work with you to tailor both equipment and financing needs to make the investment work. After the sale, we are there for you with training programs, parts & services, and keeping you up to date on the latest industry trends.