Stinger Report - 01/03/2021

TSR Newsletter | March 1, 2021

Silver Advertiser

-- The Stinger Report: Service Message --

The Global Digital Out-Of-Home Entertainment (DOE) Sector covered in The Stinger Report .

Wishing all our subscribers, famlies, loved ones, (and those serving) stay safe and well.

Kevin Williams

Publisher, The Stinger Report (TSR)

Virtual Amusement Business

Part 2 | # 1059

Report Skinny

In The Stinger Report #1059 – This issue covers in detail:

1. In this second part of our extensive ShowUp report, we look at the other major developments revealed by the show, including the development of Mid-Scale attractions for FEC from developers such as Creative Works, Extreme Engineering and Amusement Products.

2. The launch of new immersive attraction projects was also reflected, both on and off the virtual show floor, with a presentation by ex-VOID team of the ‘JUMP’ (LimitlessFlight) hyper-reality concept. Meanwhile, major investment is placed in a new shipping container concept with ‘UNCONTAINED’ (Immersive Tech).

3. Moving to the Asian amusement and attraction shows, and The Stinger Report is one of the few trade media to cover the first of the Chinese virtual conventions to be held, with a report from the ASEAN Virtual Exhibition and new VR releases from LEKE VR and Movie Power.

4. Looking at the importance of brands in the entertainment landscape, and we have coverage from the Toy Fair 2021. We look at the importance of amusement IP factors, along with the anniversary of major aspects of the industry, including marking the birth of video gaming with Mario (Nintendo) and Sonic’s (SEGA) anniversaries, and the need to take back control.

….and much, much more!

To read the full Stinger Report, register for your subscription here.

- The Stinger Report, published by KWP and its director, Kevin Williams, as the leading interactive Out-of-Home Entertainment news-and-views resource, covering the immersive frontier and beyond.

Main Report

The report now concludes our coverage of the successful ShowUP virtual trade convention and looks at the other trade related “Virtual Conferences” that have been taking place as we rush headlong into the beginning of the 2021.

- First of Year Amusement Virtual Gatherings – Part 2

Returning to the ShowUp trade floor and, of those 80 exhibitors, a number represented the larger aspects of amusement and FEC deployment. There is a need for unique attractions such as laser tag, bowling and go-karts, and immersive attractions were now taking their place in these lineups.

Show supporters include Creative works – the company has seen a major uptake in interest in its iconic attraction systems for FEC developers. This includes ‘Lucky Putt’ – a platform that offers 3D props and playing field, along with supporting the latest ball tracking so the player can personalize their experience, keep score, and the operator can customize the playing space as a dedicated attraction. The Stinger Report has been carrying out an extensive review of the explosion in interest that Crazy Golf style hospitality projects have been receiving in the market, and will be reporting in a special feature soon.

Another aspect of the Creative Works lineup was also looking at strong interest from the first of a new generation of attractions, with their autonomous re-setting Escape Room systems, such as their ‘Infinite Escape’ range. The inclusion of an Escape Room into FEC business has become a growing trend, and the use of a system that requires minimal resetting and is simple to operate, and clean, has become an ever-growing element of consideration for operators looking to expand their offerings. Creative Works also represents the HOLOGATE VR ‘Arena’ and ‘Blitz’ range, while continuing their extensive work in theming for laser tag arenas.

The future of escape room operation [Creative Works]

Though not exhibiting at the virtual event, another important FEC component provider is Extreme Engineering – the primary supplier in family coasters, engineering design and adventure rides, had some announcements to make of its own. The company revealed the launch of ‘Skytag’ – a fully immersive suspended laser tag attraction. The system, riding the ceiling of the location, allows two guests per coaster, blasting at targets as they traverse the track – offering a high-capacity attraction able to accommodate available space in FECs, and in retail mall environments needing to add an entertainment element to their mix. The company has worked with Creative Works, with the interactive blaster element provided by LaserBlast, enabling a blasting gallery in the sky. This the latest example of the addition of an immersive interactive element to an existing proven attraction format.

Another company supporting ShowUp, with a diverse portfolio for operators, is Amusement Products. The company is well known for its Electric Go-Karts and Bumper Cars. But the operation has been growing its immersive entertainment offer to keep relevant with the audience and operator needs. As we have covered previously, the company rolled out its ‘Power Up’ karting game system. The system offers a game element to the karting experience, using tracked cars, onboard information, and track based power-ups. Drivers are now in a life size game of “Mario Kart”, with boosts, shields and power-ups, accumulating a score, and so driving repeat business. A retro fit to existing circuits (supporting their ‘ThunderVolt Electric Operating System’), offers a new level of “Gamification” to a traditional entertainment – a factor we will see more of.

Along with these products, Amusement Products includes their extremely popular ‘Laser Fury 360’ game system, offering a fully rotating laser shooting vehicle game system, in combat with other players, which mixes a game element with a highly physical experience. The company also designs and builds miniature golf courses and batting cages. In 2019, the operation became the exclusive North American distributor of Inowize's ‘Arkadia VR Arena’ platform. The four-and-six-player VR tethered arenas offer a flexible VR experience to clients. More conventional amusement representation included Apple Industries and their range of Face Place photobooth and digital souvenir systems – the comic book creator ‘Marvel Adventure Lab’, with the combination of a major IP and a unique platform for social engagement, within venues looking for new hooks to capturing the fun.

The ‘Power Up’ karting game system in action [Amusement Products]

Operator and developer Two-Bit Circus was a key speaker at the event, as well as exhibiting on the floor, and promoted its ‘Play-From-Home’ game-show product – now fielded as a “Virtual-event” remote entertainment arm, pivoting away from the shuttered LBE facility, and with the company about to announce several partnerships using a white label version of the platform (in Amazon Cloud). The operation also presented in a thought-provoking panel session with Australian entertainment facility operation FunLab – revealing how the New Zealand and Australian divisions have reopened its venues. It was also revealed that FunLab had created its own Zoom-event (gameshow) at-home location-based virtual experience, building on their social experience (retraining staff). But, proving that there is light at the end of the tunnel, the operator is now seeing a return to popularity, as the audiences return to their venues to have fun. The panel session raised the point that this looks to be a “Golden Era” for Out-of-Home Entertainment business going forward, as investors look at the opportunity, and the industry breaks free of the “80/20 Rule” regarding weekly utilization.

Virtual Events are gaining traction across several previous corporate hire and live events companies. What previously would have been done in person at “Team Building” events, has now migrated into Zoom-events (what has been called “team building for a new era”). Companies such as Interactive Entertainment Group have amassed a large portfolio of activities for groups though video conferences, ranging from ‘Virtual Bingo’, ‘Virtual Gameshow’, and even holding a ‘Virtual Olympics’. The operation has trained moderators and presenters to make these virtual gatherings entertaining.

As recently seen with the sale of SPACES and their VR video conferencing product to Apple last year, the development of audience streamed experiences is a growth sector. Companies such as UK-based Animalive have promoted their ‘AnimaChat’ real-time character animation system for park mascot’s interaction with guests, and many are now considering this approach direct to guests at home, via streamed virtual events, with platforms such as ‘Animalive Video Studio’, a live broadcasting version of ‘AnimaChat’. These aspects of virtual conferencing are a growth market, and will see continued investment going forward.

Moving on to larger VR attraction releases, with a dedicated VR attraction which is another development covered in previous Stinger Reports. Comprising the creative team who were instrumental in The VOID free-roam VR experience, the new endeavour, called ‘JUMP,’ from the team is part of the new operation LimitlessFlight, proposing to create a dedicated experience. Accommodating up-to-four players at a time, they put on VR headsets and specially developed wingsuit attire and, using a special wind and suspension system, the players experience both the virtual representation and physical effects in this first-person flight simulator. The company is looking at incorporating physical effects alongside the VR helmet, such as olfactory, into the enclosure so that the strapped-in flyer is fully immersed in the experience. During a stage presentation during ShowUp, the team revealed their hopes with the concept, which is about to reveal its key investors and plans for the first location they intend to open, with interest in retail units and dedicated entertainment venues under discussion.

Speaking of past The VOID association, and at the same time as ShowUp, we saw an appearance of another brand new platform in the VR attraction sphere that was about to be rolled out. Called ‘UNCONTAINED’, it is described as a COVID-safe hyper-immersive six-player VR attraction, built within 40-foot shipping containers. It is being developed by Immersive Tech, pioneers in manufacturing interactive Escape Rooms for FECs and brand event activations. The new division is backed by Victory Square Technologies, a start-up investment firm, launching the unique multi-player VR attraction that is housed in mobile shipping containers. This is seen to give the company an incredibly flexible, mobile, plug-n-play model. It is an immersive entertainment experience, able to be accommodated in parking lots, or available space in FECs, entertainment destinations, and mall locations.

The container construction of experience [Immersive Tech]

In conclusion, our observations of this first event were that the skill, professionalism, and passion on display in organizing ShowUp was amazing – our congratulations go to the organizers and the team behind running and supporting, and also to the sponsors who allowed this groundbreaking event. It goes without saying that we all have done a lot of Virtual Conferences over the last 12-months, but ShowUp was, for our industry, the new high-bar that all events will have to be measured by. We look forward to the next event after the team has recharged their batteries. From an operation standpoint, The Stinger Report recorded, on the first day, on average 290 attendees, and on the second 280, and finally 240 (not an exact count but just a snapshot taken). With some 80 presenters, some 40 exhibitors and some 600 registered attendees, the organizers were going as far as to offer a “pay what you can” ticketing policy to help the industry.

This will be interesting to see if the following virtual trade events will be able to beat both the passion and presentation. And more importantly, be prepared to share with the community, the discussions concerning the hard facts of life that the Post-COVID industry must face.

- The Asian Perspective to Virtual Events

Continuing with the virtual trade conferences that took place at the beginning of the year, we look to the Chinese ASEAN Virtual Exhibition on Vending, Retail, Games, Amusement, Toys and Preschool Education. Organized by the Guangzhou Zhihui cloud Technology Development Co., (Zhihui Cloud), the event took place during the end of January and beginning of February. This was the first real adoption of a virtual conference format by a Chinese event, seeing some 95 exhibitors support the five-day event. While missed by many in the trade outside of China, this still proved a valuable event to get up to speed on the 2021 new release roster and trends from the key Chinese providers.

Regarding trends spotted in VR development from the Chinese territories, the main push was to continue to roll out proven platforms. New developments include those seen from LEKE VR ‘Flash Racing’, with an update kit to their already released ‘VR Racing’ system, featuring new courses and operator features. But one of the big trends that had been seen in 2020 and is now gaining full adoption, is that of the self-service upright VR kiosk – LEKE VR has their ‘VR Arcade Machine’, claiming a library of some 100 titles. The upright kiosk concept was on display from other manufacturers, such as Movie Power with their ‘VR Agent” immersive arcade game, offering the self-service tethered headset, in a kiosk configuration.

The ‘VR Agent’ platform in operation [Movie Power]

Expanding upon the concept, Movie Power also showed their two-person ‘VR Shooting Experience’. Concerning all these self-service VR kiosks, the manufacturers have incorporated frictionless payment capability with QR codes and swipe cards. Longcheng Electronic (VART) had their selection of VR platforms, ranging from ‘VR 6 Seat Cinema’ to their ‘VR Flying Simulator’. One new addition was the ‘VR Skiing’ platform, with the players using special controls that simulated the ability to pull on their ski poles. Another new development was trailed by Owatch, with their ‘VR WOW’ ride system.

The ‘VR WOW’ platform in operation [Owatch]

Regarding amusement, some innovation was on display. The impact of the Global Health Crisis has been seen on vending and prize machines, and the growth in popularity of “capsule” (hygienic) vended prize machines has been charted. Several new capsule prize machines were presented from manufacturers such as Jiuyou Animation Technology (‘Crazy Capsule Toy’). Along with a line of vending, and playground (inflatables and activity systems), the ASEAN’21 “virtual show” was an interesting first glimpse into the Chinese market trying to embrace the online approach, to ensure commerce under the current conditions.

Staying in Asia, the Japanese amusement trade had already cancelled its yearly trade event, but held a ‘JAEPO2021 Online Business Meeting’ in February, for the purpose of having business talks with executives in the industry. Sadly, this was an invite only event by the ten exhibitors who took place, reflecting the closed-door nature of the Japanese amusement trade. That said, well-placed sources collected information from each session which we will supply to our readers in coming reports.

- Amusement’s Brand Zeitgeist

The importance of video amusement and its iconic characters can never be underestimated. Those who attempted to write off the importance and influence of this genre, are forced to eat their words. The Stinger Report owners, KWP, penned a feature for service friend ArcadeHeroes on the explosion of retro arcade cabinet systems released in the buildup to Christmas 2020. And, rather than cooling after the holidays, the importance of arcade IP continues as the first toy trade event (in virtual format) took place with Toy Fair 2021. The 17th annual trade event, previously seeing some 270 corporations on the floor, was forced to cancel the physical show and host a website for those exhibitors.

On the virtual show floor, several developers reflected on what we had reported on during our Toy Fair 2020 coverage, of using amusement IP. Exhibitors such as John Adam Leisure, a veteran toy and game developer and marketer, included a ‘Pac-Man The Card Game’ in their range, offering a family-friendly card game based on the iconic mascot. Also, at Toy Fair 2021, Toynamics released their nanoblock range including a 150 piece ‘Sonic The Hedgehog’, in their micro-sized building blocks. The selection of Sonic and PACMAN in the branding for some products on display reflected not just movie popularity, but also the anniversary/memorabilia elements of these brands.

2021 marks an important milestone in the video amusement industry’s history, with the 50th anniversary of video arcade games – marked by the 1971 launch of the Nutting Associates ‘Computer Space’. Though deemed at the time a failure, the game would inspire the development of the technology and would, in time, see the launch of the phenomenal success of ‘PONG’. While the video games industry has exploded into the popular culture of our lives, there are some other important anniversaries to mark that also show the changing landscape of amusement in general. We all have many things on our plate now, but it is important to take some time to recognize the birth of an industry that shapes all our businesses.

The innovation that created an industry

Two of the gaming industry’s leading mascots mark important birthdays this year, with Nintendo’s Mario seeing his 40th anniversary, with the launch of ‘Donkey Kong’ in 1981. At the time referred to only as “Jumpman”, the character would go on to be given his own title, and even introduce a sibling. Making is 30th anniversary, SEGA’s Sonic the Hedgehog saw his first appearance in ‘Rad Mobile’ in 1991. The fortune of these two icons and corporate mascots has changed over the years. Most recently Sonic has been mixed, with the success of the movie based on the character only seen after a last minute save. Such was the popularity, that it was announced that a new animated series (‘Sonic Prime’), staring the titular character, would be appearing on Netflix in 2022. Meanwhile, LEGO announced a set also based on the mascot, all underlying his continued bankability. But it is Mario that has become a global megastar, so much so that he now has his own theme park, with the launch of ‘Super Nintendo World’ also marking the icon’s birthday.

Returning to Toy Fair 2021, and an interesting dichotomy between the 2020 event and this year was reflected in the ways the COVID business shutdown had impacted not just the need to hold the trade event as a virtual conference, but on what brands were being promoted. One noticeable element for those regular attendees of this and the other influential toy trade exhibition, will be the grip that the movie industry has on what is shown. Licensed film IP, based on new releases, is an essential for the toy factories – but Toy Fair 2021 illustrated how far the toy trade had regressed as the movie/cinema sector was shuttered, with new releases either on the shelves, or appearing through VOD services with their unique market penetration.

The streaming of major blockbusters, along with the impact on revenue, the loss of advertising and cinema revenue, also means an uncontrollable market penetration, so that toy brands and advertisers must totally restructure their promotion and IP affiliations. This year’s toy trade events were the first ones to reflect this situation, and the first to try and make sense of the situation, giving those observers following the event a unique perspective on the new post-COVID landscape for IP and brands.

It is a sad testament that, while the movie and toy industries are just two elements of the entertainment industry that still depend heavily on association with the brand that is amusement, the actual amusement trade finds it so difficult to leverage this audience recognition into growing its own business. Seeing these industries “Vampiring” off the body of amusement seems a fundamental lost opportunity. A question for the amusement trade, as it exists in such a harsh suspension in international business, is the need to gain recognition of the service now becoming available once again. This is the perfect time for the industry to build on the audience nostalgia and recognition of the amusement brand, and drive to use it to attract the guests back to our own business, rather than let others totally milk it for their own good.

Finally, in other convention news, it was announced that the International Casino Expo (ICE), that had previously rescheduled to a 2022 date, has released that date. The show will now take place on February 1 to 4, 2022, and marks the first cancellation of an annual gathering of the casino and gaming industry in its recent history, after breaking away from amusement trade event to be run by Clarion Events.