Starting and Running a Video Game Center Lounge: Do I need Cafe Software and How Do I get Tournaments Going?

From today’s show we covered the following topics:

  1. Introduction to the weekly Twitch-cast
  2. LAN Center start-up “Question of the Week”
    1. “How important is software for a LAN Center?”
    2. How important is software in other businesses?  Stock Control?  Sales projections?  Employee management?
    3. Software is crucial for controlling PC access, but also for saving $$$ in game purchases
    4. Even as a timer, software helps track time balances as well as cash balances
    5. Credit on store accounts is CRUCIAL
    6. Useful data such as games reaching license limit, times of the day/week when it is slowest, etc.
    7. Using the right software, eBash has set-up a 100+ network of systems in two days, had 5,000+ gamers create accounts and play by the hour and tracked stats and given away random prizes, sent out a follow-up email to the group
  3. LAN Center growth “Idea of the Week”
    1. “How do I get tournaments going at my center?”
    2. Tournament Negatives:
      1. Nothing worse than spending tons of time, money, energy promoting an event to only have a couple people show up
      2. Displaces regular customers during busiest times
      3. Extra Work, Extra Cost, Extra Systems
    3. Tournament Positives:
      1. Great way to reach new players
      2. Gives your center the sense of importance, coolness
      3. Always want to have something going on, events
    4. Types of Tournaments:
      1. Big Cash Money
      2. Random/Scrambled
      3. Money vs. Prizes vs. Fame (Call of Duty players asked about trophies)
      4. Not always PvP, sometimes PvE
      5. Find a way to create rivalries with schools, clans, etc.
    5. Promotion = success
      1. “Impromptu” tournaments have a place, but not a good idea for long term
      2. Start it a month away or more
      3. Fliers:  Colleges, High Schools, Local Game Stores
    6. Results
      1. Ladders, leaderboards, presetige
      2. Photos and social media
  4. ggCircuit PULSE:
    1. Halo API notes
    2. Skin Release Schedule
    3. Tournament system Updates
      1. Brackets can be for just Players  now, not just teams
      2. Admin can automatically add players
      3. Types:  PC, Xbox One, Playstation 4, Wii U
    4. Extra Life
    5. WANdemonium
  5. ggCircuit “Tip of the Week”
    1. Winter Season Details
  6. ggCircuit Center Spotlight – Escape Gaming
  7. Welcome to new ggCircuit centers
    1. FunFirst Gaming – Czech
  8. Ending – ggCircuit now over 70,000 gamers

Starting and Running a Video Game LAN Center Lounge: What Other Products Can we Offer and the Importance of Keeping it Fresh

Here is the latest video from our weekly Twitchcast.  This week we cover:

– Besides consoles and PCs, what other entertainment products can a center offer?
– The importance of keeping things new and fresh in existing centers.
– The core of ggCircuit, together we are greater than the sum of our parts.
– Linking game accounts in ggCircuit
– Center Spotlight:  OverZone Extreme LAN House from Brazil, South America
– ggCircuit Fall 2015 season recap
– Grand Prize drawing winner!

Video Game LAN Center Video Including How to Manage Consoles like Xbox and Playstation and more….

This week’s video includes the following highlights:

  1. LAN Center start-up Question of the Week – “How do you manage consoles and console games (Xbox One, PS4, Wii U) in a center?”
  2. LAN Center growth Idea of the Week – “Bring in new customers and support the community with fundraisers.”
  3. ggCircuit PULSE:
    1. Center subscriptions
    2. Fall Season Recap
    3. Winter Season Preview, November 30th – February 8th
    4. ggCircuit Leagues
  4. ggCircuit “Tip of the Week” – Local Prize Vaults
  5. ggCircuit Player Spotlight – Derrick_Shaver
  6. Welcome to new ggCircuit centers – Monkey Gaming Center – Arequipa, Peru
  7. ggCircuit Fall Season week 5 winners

Week 5
Total: 306,379
Razer Chroma Keyboard – Raven (Galaxy Gaming) – 820
Razer Kraken Headset – lemboplanb (Elite Sevilla) – 289

Video Game LAN Center Video Including: How much space do I need and what is a good layout for my store?

Here is this week’s video for new and existing LAN centers.  The topics of discussion this week include:

  1. Introduction to the weekly Twitch-cast
  2. LAN Center start-up Question of the Week – “How much space do I need and what is a good layout for my store?”
  3. LAN Center growth Idea of the Week – “Why do players come to your center?”
  4. ggCircuit PULSE:
    1. Sneak peak of the skin (mockup)
      1. Logged out view
      2. Logged in view
    2. New Auto-Create online accounts for Centers, both batch process and auto-process for new users
    3. Bronze, Silver, Gold levels
    4. Weekly Tournaments
  5. ggCircuit “Tip of the Week”
  6. Welcome to new ggCircuit centers
    1. FastNet Lima, Peru
    2. Rails Billiards – Dubai, UAE
  7. ggCircuit Fall Season week 4 winners

Week 4
Total Entries: 273278
Razer Chroma Keyboard – The Gamerz Funk, Jormy (562 entries)
Razer Kraken Headset – GUF Werribee, LukeCan (415 entries)


How much money does it take to start a Video Game LAN Center or Cyber Cafe?

Hopefully this is the first of weekly show we plan on doing each week that will help me help you.  What I mean by that is the number of questions I am getting each week is really increasing and this is a way for me to spend an hour to hopefully help many of you at one time.

This week’s outline:

  1. Introduction to the weekly Twitch-cast
  2. LAN Center start-up “Question of the Week” – “How much money does it take to start a LAN center?”
  3. LAN Center growth “Idea of the Week” – “We had a slow month in September, now we are just waiting for things to pick back up.”
  4. ggCircuit PULSE:
    1. Gold Memberships / Prizes
    2. Smartlaunch ggCircuit skin
    3. CS GO
    4. NVIDIA events
    5. Halo 5 API announced
    6. Sneak peek of new website mock-up?
  5. ggCircuit “Tip of the Week” – ggCircuit Stages of a Center – 85 centers in the system
    1. Registration, Email Sent to Create Password – 72
    2. Download and install ggCircuit Client – 62
    3. Earned Coins – 62
    4. Start Slider – 23
    5. Set-up Kiosk – 4
    6. Facebook Tab – 4
    7. Website Widget – 5
    8. Add Local Prizes – 30
    9. Redeem Local Prizes (min just 1 per week) – 14
  6. Welcome to new ggCircuit centers
    1. Hajwala Games, Abu Dhabi, UAE
    2. Game City, Malmo Sweden
    3. The Grid, Chino Hills, CA
    4. Game On LAN, Buffalo, NY
    5. Section 9 Cyber Cafe, Fargo, ND
  7. ggCircuit Fall Season first half winners

Starting a Video Game LAN Center – How many and what type of systems should you offer?

A variety of systems is good, but only having a couple will make them not as attractive for group gaming or team events.

A variety of systems is good, but only having a couple will make them not as attractive for group gaming or team events.

I am going to try and post a few quick blogs each week answering some of the repeated questions that I get from potential new LAN center owners.  I really try to not be rude, but I am sometimes blunt when giving advice to people that I can tell are not anywhere close to being ready to open a store.  However answering the same questions many times over-and-over becomes a bit tiring.

Here are the things I have observed over the years at our stores and watching other centers open-and-close around the world.   I attribute these stores closing to poor decisions in many areas, but one of the biggest mistakes is choosing the wrong number of systems and wrong set-up around those systems.

Recently I was contacted by someone wanting to open a store with 6 PC, 6 Xbox and 6 Playstation systems.  This is very wrong on many different levels:

– Any kind of event you want to run usually consists of two teams playing each other.  Standard teams for PC games are usually 5 players.  Standard teams for most console games are 4 players.
– LAN Centers are like movie theaters, we do 90% of our business on the weekend.  You have to be able to hold enough paying customers on the weekend to pay your expenses for the month.  That means if your expenses are $10k per month you need to make $2500 each weekend, or $1k on Friday, $1k on Saturday and $500 on Sunday.  Can you make $1k on a Friday with only 20 systems in your store?  Most of us charge around $20-$25 for a day pass.  20 customers paying $20 each for a day pass fills up a store with 20 systems and is only $400 in revenue.
– First time players usually come in groups and want to play the same thing.  If you have 4 Xbox One stations and there is a couple guys playing what happens when 4 friends walk in and want to play Call of Duty together on the Xbox One?  They probably leave and maybe will not come back because they know your place is too small.
– Many games are the same on different systems, you don’t want to buy 2-3 full game libraries for all of the systems.  In the past at our stores we focus on the Xbox for console games and have a small amount of Playstation systems for their exclusive titles only.  Now we are looking at doing mostly Playstation 4 at a new location because Call of Duty eSports will be on PS4 in 2016.

Number of Systems Guidelines
Here are the guidelines I share when someone asks me for my advice on the type and number of systems:
– No matter how big your city/town is, you need to try to start with at least 40 stations.  That way on busy weekends you can break that $1k/day goal in sales
– If you cannot purchase at least 16 of the same console (Xbox or PS4) then just pick one of them and only get a couple of the other for exclusive games.
– Set-up systems in multiples of team sizes for events.  That means 20, 30 or 40 PCs (4 teams, 6 teams or 8 teams of 5 players each).  For consoles shoot for 16, 24 or 32 systems (same number of teams, just 4 players each team)

Equipment Specs and Space
– At our stores we shoot for 36 inches of counter space per player.  That is 4 players per twelve feet.
– Purchase 24″ monitors with built-in sound for ALL stations.  This means PC and console.  No, no, no, no you do not need 200 inch screens for console players.  They are not coming to your store to play on a BIG screen, they are coming to play as close as they can to their friend’s screen.  If every station in the store has the same monitors then moving things around for events is much easier.  Also it makes it easy to have 1-2 spares available (we use the same monitors at our admin stations as well.  *****(Exception)**** The exception for the screens is the Wii U.  We usually have 2-4 stations for Wii U that are on larger screens like 55″ or so and couches.  We also sometimes put a couple of the other consoles on those for unique single player games and for streaming.
– Mount the systems above the players on a shelf, this saves a lot of counter space and floor space.

Here is a mock-up of our Terre Haute store drawing showing how we fit so many stations into 4000 square feet.  We sometimes have 100-125 gamers at our building for special events.

2303 Building Drawing 1-14-2013-page-001

eBash’s 4000 square foot Terre Haute location.

One thing to keep in mind is that I do not recall ever hearing a LAN center say that they wish their store wasn’t so big.  They ALWAYS wish they had more space or more systems.  When you cannot hold enough people on the weekend and you watch those $20 bills walk right back out the door you will find out the hard way.

That being said my biggest advice is to not open a center if you cannot build it big enough to start.   It is false to think that you can add more systems later as it grows.  It will never “grow” if it doesn’t have room to grow.  You will just throw away your money.  If you want to be in this business do it right from the beginning.  Don’t just “test” the market out by starting small.  It will never work.