***The Hardships of Out-of-Home Entertainment - Points to Ponder
by John Latta
In the last several years we have seen a dramatic shift in out-of-home
interactive entertainment. LBE was to be the beachhead where this new
entertainment technology arrived using either VR or 3D experiences for the
masses, circa 1993. These early concepts have largely flopped or have
topped out in sales. Now in 1997 we have coming on strong Gameworks and we
expect to see Disney and Sony initiatives by the end of 1998. Is there
something these companies know that the earlier ones did not?
If Gameworks is any indication we suspect not. The discussion at the ICSC
conference supports the role of multiple entertainment venues to sustain
each one independently. Here the debate was about multiplex theaters,
however, we believe that the issue is much broader than having 12 or more
movie screens as an anchor. At the core of the entertainment experience is
its social context and key questions include: who were you with, what was
the mutual experience, and what are the lasting impressions of that
experience (including the personal residue vs. the amount spent). At the
same time entertainment has many different meanings. To some it can be
shopping, others eating and in many cases it can be passive such as
watching a football game in a bar. In Las Vegas gaming is entertainment for
many and the emphasis on arcades and theme parks is a complement or even
uninteresting to what gamers go for. Yet, just because Las Vegas brings in
28M+ visitors a year does not mean that any LBE will be successful. Our
most recent experience in assessing the entertainment venues, as outlined
here, leads us back to the same fundamentals which are at the core of out-
of-home the entertainment experience: social experience, venue, uniqueness
and well focused demographics. We are not seeing these components in the
LBE sites and Las Vegas is no exception. Be it Las Vegas or not, LBE as a
stand-alone venue is headed for hard times. A key reason is that it cannot
address all the fundamentals above. One then asks the question will the
close proximity of MGM, the Coke store and restaurant be sufficient to
carry Gameworks. We have our doubts.
The comment by Ira Mitchell that there needs to be content refreshment on a
regular basis, i.e., 6 weeks, is at the heart of uniqueness criteria
mentioned above. One factor long touted by LBE advocates is that the
imaginary digital backlot used to create content allows for greater
flexibility and more rapid changeovers. Yet, this has not happened. Coin-op
machines are fixed with the content they come with (other than upgrade
kits), sequels take too long to create and many of the LBE sites are using
the same games/content they started with. This poses an interesting
question: Are players going through content faster than it can be
generated? In many respects this is true. Only when the content is on an
extensible platform such as Quake with multiple levels is it possible for
developers to attempt keep up with the players. There is a close parallel
with game content and its role in out-of-home play and movie releases.
Microsoft, in its coin-op Windows standard initiative, has made a point
about a theatrical release model applying to coin-op games before they come
to the home. Having a high play location as the first release opportunity
changes the market dynamics. Under these conditions a Gameworks has the
potential of being the interactive entertainment theater of the future.
Yet, today it is no more than a container of that which already exists in
arcades all over the world. Hardly unique.
As we look forward to sustainable out-of-home entertainment concepts they
must go well beyond what we have seen so far. It seems that the more things
change the less different they are from the experiences and failures of the
past.
Wave Issue 9712 5/21/97 Article 11-01