Quoted from pookycade:So agree with you on this point. Most people don’t realize your cost is driven primarily by a) volume and b) labor. The actual parts not so much (well except that volume thing)
That said this recent price jump is (single data point as it may be) an aberration from their previous delta. Yeah yeah I know COVID this, part shortages that, dash of inflation there, etc. But really it seems more testing the waters of “How much will people pay before my total quarterly earnings levels off (or worse … declines)”.
I will say it is pushing operators immensely, as the economics of all this have never been particularly favorable to us. If I can put out a $400 Ms Pac-Man versus a $7K Godzilla, other than personal interest the Ms Pac wins every time.
I am BTW getting the Godzilla to go in my arcade so they haven’t lost me yet. But I’ll be honest the mental pause I have each time I do this is becoming longer and longer.
It would be interesting to see what the customer demography. breakdown really looks like and how much it has and continues to shift from operators to collectors (men with money). I suspect operators are diminishing. And then it really becomes a question of how much revenue is driven to stern by people playing games on location.
If the Stern Connect is to be believed they are sort of shooting themselves in the foot here. Less games on location, less stern connect subscription fees, more flogging of their new business model.
Yeah always wondered how the route owners still justify this bumps. 7-9k for a game, liability, insurance, rent, damage, etc, etc just seems like a tough labor of love. How far beyond dollar per game will consumers go? Likely not far. Owning a route or gaming establishment has to be a tough pull these days.