The only places where I think they can get away with the 50cents a play is where the bar owns the games, doesnt split the revenue and makes a killing on their drinks/food etc.

if you are splitting the quarters you are gonna not like your pricing for long.

I play a ton of location pin, and 50 cents/game is great, but if you set it higher and do the 3 for $2 bucks, I have no problem playing that 3 times, and chances are I'll win a free game in 3 tries. If its 75 cents/1 or 3 for $2, or $1 for 1, 3 for $2 im gonna put the 2 bucks in.

OP, it seems the biggest peice of the puzzle is if you are splitting the quarters or not.

I love this as a consumer as well, but the OP is splitting the coin drop 50/50. 1up/2up own the games and get all the coin drop and are making significant money on the drinks/food. This is how they can only charge 50 cents and still make money. the OP is not getting any revenue from the venue and only half the coin drop, so .25 cents a game is gonna suck once stuff starts breaking and parts need to be ordered, etc.