Starting a VR Arcade? Here's How You Do It!

However, you might have noticed that starting a business comes with a lot of prerequisites. In this blog, we are happy to explain the key points that a VR Arcade needs to meet.

When defining your objectives, ask yourself: 'why?'. Why do you want to start a VR Arcade? Are you doing this because you enjoy it, because you like to undertake things, or because you want to make money?

Your objectives determine the core values of your business. These core values are then translated into the identity of your business. This identity is what makes you unique: so make sure you know your unique points. These unique points (Unique Selling Points: USP) make your business strong!

The location of your VR arcade is crucial for the future of your arcade. For example, do you specifically choose to be in the center of town, or would you rather be a little outside? A VR arcade in the center has the advantage of having a lot of foot traffic. After all, a lot of people come to the center, and you can also enjoy the so-called 'day-trippers'. However, renting a building in the center of a city is much more expensive than renting a building outside the center. So if you choose to set up a large arcade, it might be smarter to place yourself outside the center. In general, you can speak of three types of locations:

• Own building (stand-alone location): the advantage of having your own building is that you can decide your opening hours. For example, Monday and Tuesday are less busy than Friday and Saturday. Some arcades therefore choose to open only a few days (or evenings) a week, because there is little foot traffic on weekdays. When you have your own building, you must ensure that people can find you. So marketing is a very important tool to use;
• Public location: a public space, for example in a shopping center, has the advantage of having a lot of foot traffic at your arcade, without having to promote it too much. However, you must bear in mind that many people come to watch, and relatively few actually play. So in a public space, make sure you are truly unique;
• Mobile location: you can also choose to start your VR arcade at a mobile location, for example in a trailer. This allows you to offer VR at different locations, and you are not tied to a city or village. The advantage of this is that you are unique: you can go to the people, instead of the people coming to you. However, the downside is that you have to deal with a smaller location, so you have to make good use of your surroundings.

You start your VR arcade with a certain identity, but you also develop this identity over time. Determine in advance what your identity is: are you a cozy VR bar where you can enjoy coffee? Or do you choose to set up a very dark room with LED lighting to truly appeal to gamers? Your identity also has to do with your vision and objectives, so it is important to keep this in mind. Some factors that influence your identity are:

• The logo: your logo is the first thing people see. This is essentially the first business card that people see from you, not only in the arcade, but also in the marketing outside. Make sure your logo stands out and that the colors of your logo are reflected in your corporate identity;
• The website: the website of your VR arcade provides the necessary information for someone who is looking up information about you. The website must therefore be clear and orderly, but also provide sufficient information. Let the corporate identity be reflected again on the website, and make sure you integrate a good ticket system into your website;
• Social media: nowadays, social media is one of the most accessible marketing tools. You can use it immediately and reach a very large part of your target group. Do not underestimate the use of paid promotions on social media; you have an enormous reach with this!

In addition to all the ideas you have, you also have to comply with a number of legal obligations. For example, you need a catering license if you want to sell food and drink, and you need to remember that you need game licenses to play a VR game in a commercial environment. Information about game licenses can be found in another article of ours, so here we mainly focus on the legal obligations. Some obligations you have to comply with are:

• Business form: register with the Chamber of Commerce and determine your business form;
• Start from the beginning with keeping track of your VAT. An accountant can help you with this;
• Make sure you take out the right insurance. Think of liability insurance, employee insurance, and theft insurance;
• Keep your employees' payroll in good order;
• The license costs of games can add up per VR station. Keep this in mind as well. 

When it comes to marketing, the saying 'data is king' applies. The more you find out about your target group, the more specific you can set up your marketing. Use as many channels as possible for your marketing (facebook, instagram, twitter, the local customer, collaborations with other parties). Especially in the beginning it is important to make your arcade known to the world. Once you have some recognition, you can focus more specifically on the target group you have in mind. Some things to think about when working on the marketing strategy are:

• Which communication channels best match your customers?
• Which content is most effective for your marketing purposes?
• How regularly will you post on social media?
• Are there (local) news media interested in highlighting your VR Arcade?

Tip: Marketing creates awareness which makes people interested, and that in turn ensures that customers will return.

An arcade always has a certain corporate identity. Include this corporate identity in your setup! When you start thinking about setting up your VR arcade, you first need to determine which VR devices you are going to offer. A basic VR setup (HTC Vive Pro) can best be offered in the form of a 'cubicle', while the Virtuix Omni treadmills are best placed next to each other. Most VR arcades generally use a basic setup with the HTC Vive Pro headset. With this setup, you can use three methods:

• Cubicle: the cubicle is the most common setup. Here you create a square space of about 3 x 3 m, and put a VR headset in it. The advantage of the cubicle is that the base stations always work well (they only see each other), and the player in the VR space has enough room to move freely. The chance that the player will touch someone else, or the wall, is therefore minimal;
• Room-scale: a room-scale space is actually the same as a cubicle, but without a separate space. Room-scale is often used by VR users who game at home in their living room, because they have no risk of touching someone else. For a VR arcade, this is less suitable, but you could, for example, put 2 players in a larger space;
• Free-roam: the free-roam is the latest way of playing. This makes the VR headset wireless, so the player no longer feels a cable hanging above them. This gives a very unique experience.A wireless free-roam setup can be created in a 6x6m space, accommodating up to 3 headsets simultaneously. However, the latest technology allows players to use a backpack computer, connected to the headset with a small cable. This technology allows for a 10x10m space to be filled with 4 players (each with their own backpack PC).

The foundation of your arcade, of course, is the hardware you use. You can choose to offer only VR headsets, or you can expand this offering by providing extras. Consider the Virtuix Omni treadmill or the Hypersuit flight simulator. Both devices utilize the VR headset, making them excellent additions to the 'standard' offering. Try to differentiate yourself from other arcades! The hardware you'll need to start a VR arcade includes:

• VR-ready PC (recommended GPU: RTX2070 or higher);
• VR headset (for example, the HTC Vive Pro or HP Reverb);
• Hygiene accessories (disposable masks, protective covers);
• Large screen for viewing (recommended size: 50 inches);
• Fast (wired) internet connection;

You naturally want your arcade to look nice and tidy. Hanging cables can sometimes disturb this image. It's therefore important to manage your cables as well as possible, not only for aesthetics but also for the safety of your players. The cables of VR headsets can be run through the ceiling using a cable management system. This way, the cables hang above the player and run neatly to the computer. The player is then no longer bothered by the cable and cannot trip over it, while it still looks tidy and neat. Also, try to neatly conceal the cables from the computer to the screen. When you measure the distance between your computer and the screen and purchase a cable of the right length, you can easily hide this.

Nothing looks as sloppy as hardware lying around on the floor when not in use. Make sure you have a storage space where you can place the items. This space can be near the playing field (like a cabinet) or in a separate room. For controllers and headsets, handy stations are available where you can directly charge the controller. This looks much neater and ensures your controllers are always charged.

If you want to completely hide the cables, consider using your virtual reality headset wirelessly. This can be done, for example, with the HTC Vive Pro or the HTC Vive Cosmos (Elite) headsets. You can replace the cables of these VR glasses with a wireless adapter that you place on the headset. This eliminates the annoyance of cables tangling around the feet and gives you complete freedom in a space.

The success of a VR arcade depends heavily on the people who work there. This is really important, so don't skimp on hiring skilled and friendly staff! The number of employees depends on how often you're open and how busy it is, but generally, you can manage with 1 or 2 full-time employees during the week, and you'll need 3 or 4 employees for the weekend. To get off to a good start with your VR arcade, it's advisable to familiarize your employees with the VR systems. Let them play often, as it's easier to explain something if you have experience with it yourself.

It's highly recommended to hire someone who understands computers and technology. There's always the possibility that something goes wrong with the VR hardware during play (think of a screen that won't turn on, a game that won't start, or a controller that's shooting in all directions). Often these kinds of problems involve a software update or a loose cable, but you need someone who can figure this out and fix it quickly.

Setting a price, especially during the startup period of your arcade, is tricky. You don't want to start too high because people might be scared off by your prices, but on the other hand, you don't want to start too low because you do want to make an initial profit. Generally, when starting a VR arcade, you won't make any significant profit for the first few months. Don't worry, this is the case with most successful arcades. The first few months are about gaining recognition. You do this by starting with a low entry price. As your arcade grows and becomes more well-known, you can adjust the price accordingly. Also, extras that your arcade offers (like the Virtuix Omni) can generate more income. These unique extras make your arcade more special, allowing you to charge a higher rate. After all, you're one of the few who can offer this!

Tip: also look at the prices of other VR Arcades in the area. This gives you an idea of the market prices, and you can adjust your arcade accordingly.

Starting an arcade, and therefore purchasing VR hardware, is a large investment. You can apply for a loan from the bank for such an investment, however, banks are often wary of businesses involving electronics. VR is very new and is therefore still seen by banks as 'experimental'. But because there are more and more VR startups, there are now banks that specialize in VR and computer hardware. Due to their experience with starting arcades, they are more willing to finance a starting VR arcade. After assessing your business history and financial investment, they can determine whether or not they want to work with you. To get in touch with one of our financiers, you can contact us.

There's no such thing as a 'perfect arcade', but by thinking carefully about the above steps, you can get close. Especially in the beginning, make sure you know a lot about VR hardware and software, so you won't be faced with big surprises when starting your arcade. A few tips we want to give you:

• Outsource some tasks. Starting and running a VR arcade is too much work to do all by yourself. Hire good people, and work together to achieve the result;
• Take advantage of the experiences of other arcades. After all, every arcade goes through the same startup process. Talk to arcade owners and see how they run their arcade;
• Always go for the best and newest equipment. Don't skimp on VR hardware, because that's the experience your customers are paying for;
• Ask others for feedback. When you're very involved with your arcade, you start to overlook the simplest things. Ask someone for their opinion about your arcade, and you might gain interesting insights.
• 'Just do it'. At some point, you just have to start with the arcade. Once the arcade is open, you will naturally encounter new problems. These problems can always be solved, and you can learn from them for next time.

As you can read, there's a lot to consider when starting a VR arcade. At Unbound XR, we have a lot of experience with starting arcades, and we'd love to give you the best advice. You can make an appointment with us to schedule a consultation. In this consultation, we'll discuss the options and look at what we can do for your VR arcade.

It's even possible to outsource part of your startup to us. With our 'full-service', we come to your location to survey the space and compile a list of necessary VR hardware. After this, you'll receive a custom quote from us. If we can advise on the setup, we'd love to do that. Through our experience, we've developed a good eye for setting up VR arcades, so there's a great opportunity here. If we go a step further, we can even help you with the physical setup of your VR arcade.We prefer to leave all things electronics, outlets, and other jobs to the electrician, but we're more than happy to tackle anything related to VR (think installing the base stations, setting up the cable management systems, and positioning and setting up the computers).

For possibilities, feel free to contact reach out to us. We'd be delighted to invite you for a consultation at our location in Nijmegen. This is also a great opportunity to get to know us and test our virtual reality hardware.