Throughout the last few years, we have seen a plethora of news posts about the way virtual reality was going to conserve the timeless arcade. The idea goes that the VR indoor playground equipment is too expensive for home users, therefore it creates an opportunity for operators to pony up the big bucks to buy it and make their money back by charging per game to play with it.
"While many high-end headsets were released last year which may bring virtual-reality adventures to your living space, adoption of this technology remains in its first days for a bunch of reasons--it is still bulky, expensive, and there is not all that far to do as soon as you've got it on your face. Over two million headsets were shipped globally in 2016, according to an estimate from market researcher Canalys, but this figure pales compared to the prevalence of, say, video game consoles (sales of the leading one, Sony's PS4, topped six million during the 2016 holiday season ). Consumer virtual reality will probably catch on as costs come down and headsets improve. Meanwhile, though, a number of companies are betting that consumers may be pleased to cover a much smaller amount to try out the technology with their friends at, say, an arcade, theme park, or even bowling alley"
It's tempting to dive into this snare, but in the operator's standpoint VR is a terrible deal. Operators are being requested to pay top dollar for tech that is all but guaranteed to plummet in value within the very short term. Aside from buying a brand new vehicle and driving it a time, I can't think of a way that you could eliminate money quicker between what you pay and what you will have the ability to get down the street.
Another limit for most operators is that while you might be able to supply a room for VR people to wander around in now, as new VR technology is introduced, we're going to see the point expanded from 100 square feet to the whole world. Instead of viewing just the matches from your headset, you'll realize the true world with sport play overlayed. Kids can visit the park and relive the knights of the round table or parking garages to take aliens. As the tech allows more real world areas to be explored, it is going to earn a cramped arcade look pretty lame in comparison.
VR is already heading for mass market acceptance, but it's demand isn't being pushed by players who want to pay big buck to play video games, but like the BETAMAX that came before it, by individuals who wish to watch porn in their homes.
Even when an operator can make a bit of money for the upcoming few decades, once VR achieves critical mass, it is going to crush whatever earnings flow that operators're dreaming of. Do not believe me? Just check out what's happening in China.
This past year, an eye popping 35,000 virtual reality arcades opened in China. A year after 22,000 of these have closed.
That is an incredible failure rate over this brief time period and one that should function as a sharp warning to anyone contemplating investing in the VR games. Perhaps Dave and Busters can afford to take losses over the games longer than Chinese startup arcades, however I doubt most North American operators will fare much better using the technology in their match rooms and will only wind up in debt at the end of the day.
The problem essentially boils down to customers not being willing to pay a premium to the encounter. Tech In Asia, describes the problem perfectly in their own article, on the Chinese VR boom and bust.

"Enterprising shop owners jumped into VR are finding it impossible to charge fees akin to cinemas or bowling alleys to get a VR experience. One VR arcade owner told iHeima he saw excited queues when charging US$1.50 to get a 30-minute session, but everybody vanished as it climbed to US$5. By that kind of revenue it is not possible to pay the rent."
Even if the match was sold out daily, at $1.50 per half hour they're only earning $30 a day.
The actual world information streaming in from China should serve as a canary in the quarter plantations of North America. Operators who invest large amounts of money on elaborate VR setups will probably find their little VR rooms being substituted by the entire world for a stage. As the installations get cheaper, smaller and more portable, the digital arcades will look more expensive, bulky and restricted. I'd like to be proven wrong on this one, but I think the arcade VR fad is more hype than hope.