Video Game Center Spotlight: NetFragz – Fontana, CA

NetFragz Video Game Center

NetFragz Video Game Center - Fontana, CA

Each Friday I am going to spotlight a Video Game Center here in the United States.  To kick off the series I contacted Jon Simmons from Netfragz in Fontana, California.  For those of us who are geographically challenged this is about 45 minutes east of Los Angeles.

Netfragz is a great center to use as the guinea pig for this column because they are arguably the most successful center here in the United States.  Some centers are bigger or have been around longer but there are none that I can think of which runs a more financially profitable operation.  Surely profit is the best measure of success? 🙂

Netfragz is open 24/7/365 so they can easily answer the question, “What are your hours?”, with a quick “We never close!”  Other centers that benchmark Jon have tried this unsuccessfully in other areas but NetFragz never falters.  Like most center the weekends are the busiest times, but one thing that makes Netfragz unique is that they are constant throughout the week also.

Jon is extremely active inside of the forums at iGames.org.  iGames is a international organization of Video Game Centers (Sometimes called LAN Centers) that has thousands of members in over 20 countries.  Jon has over 6000 posts in the forums and is daily giving advice and suggestions to both new and existing centers.

Here is an inteview with owner Jon Simmons asking some basic and fun questions about NetFragz:

NetFragz Video Game Center

NetFragz is open 24/7/365 and has over 60 systems

In one “tweet” describe your center (140 characters or less).
“A 24/7/365 SoCal gaming center focused primarily on PC’s.”

Why did you get into the video game center business?
“I love gaming, computers, and business… so it was the perfect answer for a life profession.  I first heard about the concept from an old coworker.  I initially doubted its viability due to people playing from home (or at work like we did).  But when he took me to a place called NetGames back in the day, I realized the social interaction and playing with friends made it a huge success, and was something seldom available in most home settings.  As my employer started to go under and I was out of a computer programming job, I finally made my move.”

What is one of the sweetest events you have had at your center?
“The funnest event for me was an all nighter where everyone, including our previous pro CS team, played the BF1942 beta.  Another nice event was NetFragz being part of the XFX Challenge Tour, and seeing our employee, Mikeytux, win a spot on the bus.”

NetFragz Video Game Center

Having fun playing CS at NetFragz!

Any example of a tough situation you have been able to overcome?
“One of the more difficult things about owning your own business is that “the buck stops here”, and when problems arise (and MANY do), you need to find a solution one way or another.  Roof leaks, some moron actually firebombing a competitor, servers going down, some very nasty viruses, theft and robberies, vandalism and tagging, a couple fights over the years, tons of hardware and software problems… there is always something to contend with!  LOL.  So I’ll just say I’m happy I’ve overcome all the problems so far.  =)”

Name some other game centers you steal ideas from.
“Most of my “stolen” ideas are in the console arena since I’m not a console gamer myself.  I added consoles after seeing some success at a place in Canada (name escapes me ATM), and I also had a great idea from Crazy Penguins Gaming when it came to placing the wider GamePod chairs in pairs so it doesn’t use up TOO much space and people can still move in and out.  On the PC side I tend to do things like I would want them done as a gamer myself, but I’ve often exchanged ideas with Euphnet over the years.  I get some good game license management input from Martin at Xtreme Gaming CyberCafe as well as from others.”

What is a guilty pleasure game that you play?
“Well I’m really enjoying Battlefield Bad Company 2 beta right now after a few months of not playing anything.  Loved COD4, but the lack of dedicated servers in CODMW2 killed it for me.”

Some quick facts on Netfragz:
Owner: Jon Simmons
Age: 40
Center Website: http://www.netfragz.com
Center Facebook: http://www.facebook.com/NetFragz
City/State: Fontana, CA (45 mins east of Los Angeles)
Store Hours: 24/7/365
Date Opened: June 2002
Area Population (County): 2,060,950

Cost to Play: $3/hr, 4 hrs for $10, 10 hrs for $20
Top 5 games played at your center: COD Modern Warfare 2, World of Warcraft, Left4Dead 2, Heroes of Newerth, DotA
What type of music do you play at your center: Electronica (trance, drum n bass)

Internet Feed: 50/20mbps FIOS
PCs: 47
Xbox 360: 13
PS3: 0
Wii: 1

New Tech Review: Xbox 360 Ready Up Servers

ReadyUpServers.com

Ready Up Servers provides console game hosting.

Sometimes an idea comes along that makes you both happy and sad at the same time.  Happy that someone is finally taking initiative and creating a solution to a problem and sad that you didn’t think of the idea first!  This happened to me yesterday when I came across a new company called Ready Up Servers.

I have been in gaming for many years and had the opportunity to be an Xbox LIVE beta tester 7 years ago.  I started out on the LIVE network 2 months before it was released to the public and was able to play some games that were never even released.  At the time PCs dominated the online world and Xbox was bashed pretty hard for wanting to start a service that would cost users money to play online.  I wonder if those critics feel good about themselves when they read articles like this one about the 20+ million Xbox LIVE users time spent online: 17 Billion Hours Spent on Xbox LIVE

When LIVE was created the standard for gaming online was that developers needed to create servers for the players to join to be able to play against other players.  Keep in mind that gamers back then had a REALLY hard time getting decent broadband connections at their homes.  The standard connection was between 128kbps and high end connections were 512kbps if you had the cash.  The server business for gaming was pretty juicy at the time but was an extra burden for game developers to create an maintain these systems.

After consoles started into the market broadband was picking up steam and capacity was increasing at an amazing rate.  DSL and Cable access showed up and started giving consumers cheap options for true broadband.  Xbox LIVE took advantage of this and had their systems use one of the player’s home systems as the actual server for the matches.  8 player matches would then have 1 player as the host station and the other 7 stations would connect to them to send and receive data for the game.

As you can imagine this was pretty revolutionary at the time and saved companies tons of money in server development and maintenance.  The players themselves were the server admins and most of the time they don’t even know it.  The console itself creates the server and manages the connections behind the scenes.

With this development a big problem started developing among the competitive gaming community.  The player who had the host console was able to see and do things in real time.  Their own console was accepting the controller inputs and displaying the results on screen instantly while the other 7 players around the world had to send their inputs over the Internet and receive results to display on their screens back.  Little did I know I would come to hate “host advantage” so much over the next 7 years listening to players whine during our tournaments.

From a competitive standpoint obviously this isn’t fair to the other 7 guys playing the game.  It isn’t a big deal to the developers because by my estimate only about 2% of the market plays these games competitively versus the other 98%  who are couch warriors and just play for recreation.  However for the competitive market this has been a problem that we have tried to overcome unsuccessfully for years through special rules and sharing “host” during tournaments.

A few games have been developed that will allow you to turn your Xbox into a dedicated server.  I remember playing Unreal Championship in the early Xbox LIVE days when I also ran an ISP.   I had 4 original Xbox systems, 4 extra copies of the game plugged into my head router right on our T3 connection.  If I tried to get into the server but it was full I would simply log into our router, close the port to one of the Xbox consoles which would kick everyone out of the game, then open the port back up and quickly connect.

Ready Up Servers is taking this concept to the next level.  It doesn’t make sense to have network admins on staff shutting of ports and re-opening them.  Not to mention there would need to be someone at the hosting facility to change the game settings.  They have created a solution which is simple on paper but more complex under the hood.

Ready Up Servers Set-up

This is taken from one of their developers forum avatars and seems to be a typical set-up for Ready Up Servers in their hosting facilities in Dallas.

Ready Up Servers is currently in a free trial mode while they continue to develop the technology and finish setting up their company and policies.  You can reserve a dedicated server by creating an account on their homepage and filling out the request form.  When your time comes you are able to login to a web interface that gives you control over the Xbox system acting as the server.

There are a ton of “work arounds” that happen with this solution.  Xbox 360s are closed for development and not supported for integrating software with the unit itself (legally).  I believe that what the smart folks at Ready Up Servers have done is simply automate the input system by simulating an Xbox 360 controller from the controlling servers (see picture to the left).

From reading the feedback of players that have used the service it seems you select an action on the web interface and then you just watch the server simulate those commands to the Xbox.  For example when you invite players to the match the server simulates pushing the Xbox Guide button, selecting the friends menu, adding the new user as a friend and then inviting them to the match.

So what exactly is the end result?  The players from all over the world have a dedicated connection to a NEUTRAL host Xbox 360 giving everyone a fair connection.  No single player has instant input/output from their own Xbox host any longer.  Also because the Ready Up Server systems are located in a massive data center in Dallas, TX they have fast response times to everywhere in the US and even worldwide.

Of course it isn’t time to crack out the champagne and hope that Ready Up Servers sells you some stock before their IPO.  The system really only works with games that have the ability to act as a host in the game itself.  Call of Duty Modern Warfare 2 is the only game currently supported on their system.  They list Halo 3 as something they can also support but I seriously doubt how this would work since the game itself does not have an option to host a game without spawning the host Xbox into the match itself.

The cool thing  moving forward is getting this revolutionary concept accepted by developers.  Then perhaps they will consider making more dedicated server options inside of the games.  Past titles like Rainbow Six Vegas 2 were developed with an actual dedicated server option in the game.  If more games will do this then the Ready Up Server system will really see some great value.

Hats off to the guys at Ready Up Servers on working to solve a problem and I sure hope that you will be rewarded someday for your forward thinking and actions.

Compassion vs. Profit: When to Turn Away Business

One of the biggest challenges I have faced in business is deciding when it is actually good to turn away business.  Everyone loves to read business books and listen to experts talk about the 80/20 (sometimes 90/10) rule.  This applies for things like 20% of your customers provide 80% of your revenue but then also gets flipped around to show that 20% of your customers cause 80% of your problems also.

When I started in the ISP business back in 1998 there was some truth to some kind of percentage rule pertaining to problem customers.  Back then I would say that 5% of our customers caused 95% of our problems.  We had almost 14,000 customers at our largest point and we would receive customer service calls from < 10% of them each month and out of that group half of them were quick and easy fixes for courteous customers.  The other half were royal PITA types of people that expected us as an ISP to help them with their other computer problems, fix their printers, make their coffee and basically anything they could drag out of us.

But those customers really didn’t affect the other customers at all except for maybe holding up a CS rep for longer than necessary causing longer wait times in the queue.  When the problems from certain customers start affecting other customers directly is when it is time to step in and make that decision to “break the wrist and walk away”.

With my current company, eBash, we have seen quite a few characters over the past 6 years walk through our door.   As many of you in this industry can probably confirm this business is a sort of melting pot of people from different backgrounds and lifestyles.  Any given day you might see a lineman from the ISU football team, a 60 year old phone book salesman, the son of the county sheriff and a homeless person sitting all together as a team playing Halo, Call of Duty or World of Warcraft.

Although I was being extreme using those examples those are actual people who game or have gamed at our store in the past.  Our current situation has a real unique group of people in our store on a regular basis that I am torn between the decision of compassion for individuals and comfort for other customers.

Around 6 months ago we started seeing a group of homeless folks start showing up at the center.  I use the word homeless based on their own claims but I have no evidence one way or another to confirm.  However the situation as I am going to describe is pretty bizarre as I think about typing it all out.

This group hangs out about 1/2 mile from our store at the intersection of I-70 and US 41.  They use this intersection as their daily job by standing all around the on and off ramps for the interstate with cardboard signs that generally read something like this:

HOMEless & OuT
of WoRK
PLeASE HElP

You can imagine my surprise the first time I saw one of these people standing there and recognized them as one of the group that comes to the center to play.

We have quite a few customers that have bathing problems and we have a strict policy on “Show up clean or go home and shower” so these guys didn’t stand out just because they smelled a little funky more than the 14 year old kid that sweats all of the time.  However after the employees and I were aware that these guys were doing this we started paying more attention to things like their clothing and how they paid.  This group wore the exact same clothes every single day.  Either they really did have nothing else to wear or they are really good at their con game.

Our prices are pretty cheap to become a member and play all day, especially during the week when it is only $7.50 for a day pass.  They would sometimes pay with a crisp $20 bill and sometimes with a ziploc bag of pennies, nickles, dimes and quarters.  I remember one time my employees put a ziploc bag under the drawer and did not roll the coins which irritates me when I cash the drawer out to go to the bank.  I counted the bag and it came out to an odd number of $5.41 and we were $0.09 short that day.  I ripped the employee up and told them to count more carefully.  They were going to get the customer to pay the $0.09 missing but then we saw that person standing by the Interstate begging for money.  We let the $0.09 slide.

The situation rose to another level one day when a customer came to the store dropping off their middle school age kids and recognized one of the guys.  Right in the lobby of the store the customer shared their disappointment (loudly) with them begging for money and then using the money to come to eBash to play video games.

The smart business decision that most people would have made would be to not allow them back when we first were aware of how they were getting their money.  There could be much discussion about the moral and ethical decision of the people who GIVE beggars money but there is another side of the coin for businesses who knowingly TAKE money from someone who has “begged” for it.

Of course they could be using their “hard earned” money and buying drugs, alcohol and who knows what else so having them spend the money at eBash to play games and eat snacks doesn’t seem too bad right?  These people don’t just hang out at the store but they actually play games.  They come to lock-ins and tournaments and seem to genuinely enjoy gaming.  We do not allow any loitering at the store so the ones that tried to just hang out with the gamers were asked to leave.

While I am trying to decide between right-and-wrong, doing the right thing for these individuals, my business and our customers the sheriff shows up at our store one day.  They have a mug shot of a guy from this group and leave a phone number to call them when he comes back to the store. (Side Note: My wife pointed out that these guys are at the busiest street corner in the city every single day begging for money so it wasn’t like they were hard to find) A day later we see that he was arrested and in jail.  Ugh, now I might have a PR problem on my hands.

Luckily for us we run a very tight store and have a zero tolerance policy for drugs, fighting and even control foul language in the family areas of our store.   With cameras in every nook-and-cranny and viewable through our website everyone knows that our store is a safe place to play.

There are just a couple of them left that hang out at the store now and I am torn what to do.  Because one of them was arrested should the entire group not be allowed to come back to the store?  One of them came in this past weekend and I don’t think I have smelled anything quite so bad in my entire life.  There is only so many times you can tell a “homeless” person to take a shower and wash their clothes.

I would love to hear some suggestions if anyone has ideas?  What should we do?

Goodbye discs….

When I originally saw the announcement that Wal-Mart and Best Buy were going to try the used game market I knew it wouldn’t work.  Of course saying this now doesn’t mean much since they both announced yesterday the termination of their used game program.  Toys-R-Us is still promoting that you can trade-in games with them but knowing some of the workers at our local store tells me they won’t be doing it much longer either.

With the news that the big boys were not going to continue to try and jump into that market against GameStop I have been reading many posts from “experts” about sweet GameStop is because they have a corner on the used market.  I can’t help but laugh because I sure as hell am glad we didn’t go full force into disc retail last year like we planned.

@eBash we wanted to basically fill up our stores to the brim with games, used and new, and use our influence and location to sell tons of retail.  After visiting Coy Christmas at his awesome store, Brag Game Rights in Duluth, MN, we wanted to start relying heavily on retail to continue to grow our business.  We thought retail could double our monthly sales easily and help us grow our stores to $1 million a year in sales.

However like everything else today our plans were drastically effected by the economic downturn in 2009 and we had to use our cash to keep our stores going and only did about 15% of our inventory that we originally planned.  Our sales are complimentary to our main business but the retail disc market has TERRIBLE margins.  For example Gamestop pays about $47 for a new Xbox 360 or PS3 game that retails for $59.99.  At our small quantities we can get them for about $50 wholesale on average for the same games.

So now as I look to the future I still believe that retail will play a HUGE part in our game center industry but it will not be with the discs themselves.  I am not sure why the console experts think their community is different than PC… just ask PC folks how the disc market is today compared to download sales?  Xbox 360 already is pushing the crap out of their downloadable full games that are a few years old.  Want another example?  How about the new PSP Go?  100% download only.

You don’t believe that downloading games on the console is closer than the “experts” like to think?  Take a look at the DLC (Down Load Content) coming out for games like GTA IV, CoD W@W and other big titles like Gears 2 and Halo 3.  Game publishers know that they can drop a $20 DLC pack and make a much bigger return on their costs than producing an entire game that is distributed on discs.  Last year Microsoft admitted to basically blowing it by making Halo 3: ODST a full disc game instead of a DLC pack.

It makes me sad to think about the change because my brother works at Sony DADC here in town which produces all of the PS3 discs for the US.  I even worked at the same plant as an engineering intern for 3 years putting myself through college.   That will be a huge blow to our local economy here because thousands of people with great paying jobs will be out of work.

My prediction?  All games will be download only by the end of the year 2012, not 2015 like the “experts” are predicting.

Turning 36…..

The past few weeks I have determined that starting a daily blog will be one way of organizing my thoughts and actions throughout each day.  I have been looking forward to today, February 1st, on my 36th birthday to get started.  I am no where near familiar with WordPress enough yet to make this look good, but I will move forward daily and make adjustments as I go.

Last night we completed the 21 day gamerscore challenge to benefit Get Well Gamers.  My team, CFL, consisting of my long-time eBash friends Dustin Dudley, Kyle McCormick and Mark Repollet gathered over 50,000 achievement points on the Xbox 360 console.  A tournament like this seems to be the most interesting and is one of the goals I have for revolutionizing competitive gaming.  Getting the publishers behind competitions will only happen if the competitions themselves promote new games.  Gone are the days of wishful thinking that you can play Halo 3 or CS 1.6 for the rest of your life as a “professional gamer”.

Tomorrow is the pre-season start to our first ggCircuit week night league.  Modern Warfare 2 should draw in 20-30 teams from around the US and over the next 6 weeks I hope to fine-tune the program.  Halo 3: ODST league starts in 2 weeks and it should also draw plenty of teams.  I just hope there isn’t a pathetic amount of crying and whining from the teams about how everyone is cheating and there is too much lag.  There is nothing more I hate than complainers.