Throughout the last few years, we have seen an array of news articles about the way virtual reality was going to conserve the classic arcade. The theory goes that the VR gear is too expensive for home users, so it creates an opportunity for operators to pony up the big dollars to buy it and make their money back by charging a match to play it. Even Nolan Bushnell, the inventor of Pong, is attempting to hype the technology since the industry's savior.
"While many high-end headsets were released annually which may bring virtual-reality adventures to your living room, adoption of the technology is still in its first days for a lot of reasons--it is still bulky, pricey, and there isn't all that far to do as soon as you've got it on your face. More than two million headsets were sent globally in 2016, according to a quote from market researcher Canalys, but this figure pales in comparison to the popularity of, say, video game consoles (sales of the top one, Sony's PS4, topped six million throughout the 2016 holiday season alone). Consumer virtual reality will likely catch on as costs come down and headsets improve. Meanwhile, however, a number of companies are betting that consumers may be happy to cover a much smaller amount to try out the technology with their buddies at, say, an arcade, theme park, or even bowling alley"
It's tempting to dive into this snare, but from an operator's standpoint VR is a terrible thing. Operators are being asked to pay top dollar for technology that is all but guaranteed to plummet in value over the very short term. Aside from buying a brand-new car and driving it a time, I can not think about a way you could lose money faster between what you pay and what you will be able to get down the road.
Another limit for operators is that while you might be able to supply a space for VR people to roam around in today, as fresh VR tech is introduced, we are going to see the point expanded from 100 square feet into the whole world. Rather than viewing just the matches in your headset, you'll see the true world with sport play overlayed. Since the technology allows more actual world places to be explored, it's going to earn a cramped arcade look fairly feeble in comparison.
VR is already heading for mass market acceptance, however it is demand isn't being driven by gamers who wish to pay big buck to play with video games, but like the BETAMAX that came before it, by individuals who want to watch pornography in their houses.
Even when an operator can make just a bit of money to the upcoming few years, www.kidsplaycenters.com after VR achieves critical mass, it is going to crush whatever revenue stream that operators're dreaming of. Don't believe me? Just check out what's going on in China.
This past year, an eye popping 35,000 virtual reality arcades opened in China. A year later 22,000 of them have closed.
That is an unbelievable failure rate over such a short time period and one that should function as a sharp warning to anyone considering investing in the VR games. Maybe Dave and Busters can afford to take losses on the matches more than Chinese startup arcades, however I doubt that most North American operators will fare much better using the technology in their game rooms and will only end up in debt at the end of the day.
The issue essentially boils down to consumers not being prepared to pay a premium for the experience. Tech In Asia, clarifies the issue perfectly in their article, on the Chinese VR boom and bust.

"Enterprising shop owners leaping into VR are finding it impossible to charge fees comparable to cinemas or bowling alleys to get a VR experience. 1 VR arcade proprietor told iHeima he saw excited queues when charging US$1.50 for a 30-minute session, but everyone vanished as it climbed to US$5. From that sort of revenue it's not possible to cover the lease."
Even if the game was sold out all day, at $1.50 a half hour they're only earning $30 a day. Together with retail rents in North America running $1 -- $2 a square foot, there's no way to make the math work, even if you suppose that Americans will spend more to play the games.
The real world data flowing in from China must serve as a canary in the quarter mines of North America. Operators who spend large amounts of money on elaborate VR setups will probably find their small VR rooms being replaced by the whole world as a stage. Since the setups get more expensive, smaller and more mobile, the digital arcades will look more expensive, bulky and limited.