How to Start an Arcade Machine Business: A Step-by-Step Guide for 2025

1. Conduct Market Research

Before investing in any machines or locations, conduct in-depth market research to understand:

• Target audience: Are you targeting kids, teenagers, families, or adults?

• Popular machine types: Racing simulators, redemption machines, VR games, claw machines, etc.

• Competitor analysis: What type of arcades exist in your area? What are their pricing and features?

Understanding your local market demand will help you select the right games and avoid unnecessary costs.

2. Choose the Right Business Model

You can choose one of the following models:

• Self-Owned Arcade Center: Requires higher upfront investment but offers better profit control.

• Revenue Sharing with Locations: Place machines in malls, supermarkets, or cinemas and share profits with location owners.

• Franchise Partnership: Partner with existing arcade chains to reduce startup risks.

Each model has its pros and cons depending on your budget and experience.

3. Select a Strategic Location

The success of your arcade machine business is heavily dependent on location. Ideal places include:

• Shopping malls

• Supermarkets

• Family entertainment centers

• Airports or railway stations

• Near schools or residential communities

High foot traffic and family-friendly environments increase your chance of success.

4. Purchase High-Quality Arcade Machines

Invest in reliable, attractive, and profitable machines. Look for features like:

• Multiplayer or family play options

• Easy maintenance and after-sales support

• High return on investment (ROI)

Popular types include:

• Racing games (e.g., Happy Racing)

• Redemption games (tickets and prizes)

• Kiddie rides (small carousels, mini trains)

• Simulation games (3D driving, VR)

Tip: Choose suppliers with global export experience, warranty policies, and strong technical support—like Guangzhou Dinibao Animation Technology Co., Ltd.

5. Calculate Costs and Set a Budget

Key startup costs include:

• Arcade machine purchase or lease

• Rent or profit-sharing fees for the location

• Decoration and branding

• Maintenance and electricity

• Business license and insurance

Always plan your ROI and break-even point in advance.

6. Handle Legal and Licensing Requirements

Depending on your country or region, you may need:

• Business registration or license

• Game content approval (for certain games)

• Fire and safety compliance

• VAT or local tax filings

Consult with a local lawyer or business consultant to ensure you're compliant.

7. Focus on Branding and Marketing

Make your arcade visible and attractive:

• Use bright signage and interactive displays

• Offer grand opening promotions

• Create social media pages (Facebook, TikTok, Instagram)

• Collaborate with local influencers or family groups

Loyalty programs, coupons, or holiday events can also boost repeat business.

8. Provide Excellent Customer Service

Your business success will heavily rely on the user experience. Ensure:

• Machines are always functional

• Clean and safe environment

• Friendly and responsive staff (if you have an arcade center)

Good word-of-mouth and reviews can drive continuous traffic.

9. Monitor, Optimize, and Expand

After launching, constantly analyze your business performance:

• Which machines earn the most?

• What is the customer flow during weekdays vs weekends?

• Should you add more machines or change the location?

Use performance data to optimize and expand your business gradually.