How profitable is an arcade?
PROFITABILITY OF ARCADES On average, an arcade can rake in between $1,100 and $2,000 per week in profits. However, the exact figures depend on factors like location, operational costs, and the ability to attract repeat customers. In many locations, arcades contribute 30 to 50 percent of total revenue. Even small setups can deliver between $1,500 and $2,000 per week in profit with the right game mix and layout. Profit margins typically range between 15 and 25 percent and often outperform food service, concessions, or merchandise sales.Arcade Business Plan The total average monthly operating cost required to run the arcade sustainably in 2026 is projected to be $43,350. Fixed costs, dominated by $8,000 in monthly rent and $19,917 in fixed salaries, represent the largest recurring financial burden.In many locations, arcades contribute 30 to 50 percent of total revenue. Even small setups can deliver between $1,500 and $2,000 per week in profit with the right game mix and layout. Profit margins typically range between 15 and 25 percent and often outperform food service, concessions, or merchandise sales.Owning a modern arcade is worth it because the business model generates high gross margins (often 80%+ on game play) and can achieve full capital payback on individual machines in 12-24 months.
Why do arcades go out of business?
The arcade video game business started to decline in the mid-1990s when home consoles such as the PlayStation and Saturn began to accurately reproduce the coin-op experience at home. Even so, the future of coin-op gaming and its accompanying culture looks to be on the up-and-up. While individual gaming experiences aren’t going away anytime soon, the novelty that only arcade joints can provide is treasured now more than ever.Many modern arcades blend classic machines with newer games, ensuring there’s something for everyone. Thus, arcade machines remain a significant part of gaming culture.