TSR Newsletter | June 7, 2021
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-- The Stinger Report: Service Message --
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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)
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Entertainment's Shifting Paradigm
Part 1 # 1073
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In The Stinger Report #1073 – This issue covers in detail:
1. [BREAKING NEWS] Chicago PAC-MAN Entertainment venue is rebranded by new owner, GENDAR, as developments are revealed in the selling off of the amusement facility business; while SEGA reveals eSports aspirations for ‘Virtua Fighter’
2. [TRENDING NEWS] Serious investment is made into eSports business and the new structure of the post-COVID market starts to solidify, while partnerships, mergers and acquisitions take hold.
3. [BREAKING NEWS] Looking to unitize IP assets seems to be the order of the day, with classic arcade titles making a reappearance, as SEGA and BANDAI NAMCO reveal efforts to leverage their back catalogues, along with others.
4. [TRENDING NEWS] This issue includes a far-reaching look at the developments in the eSports scene, seeing companies such as ImSim and Synthesis VR partner on a new platform, as well as the new investment from other corporations.
….and much, much more!
- The Stinger Report, published by KWP and its director, Kevin Williams, is the leading interactive Out-of-Home Entertainment news-and-views resource, covering the immersive frontier and beyond.
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The current trends in the LBE sector have warranted the need to start an occasional series that looks at the trends and developments in the market that are emerging beyond the traditional approaches to business. Borrowing the term “Go Big or Go Home”, this reflects the needs of the industry moving forward to be a vector of large innovative projects, rather than reflecting the dangerous attitude from some to return to the status quo.
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- Competition Grows in eSports
The Stinger Report has covered the SimRacing scene in detail before, the crossover from the consumer home race-seat scene, along with the explosion in eSports competition, and the location-based entertainment (Race Room) sector. On numerous occasions, we have reported from the trade conventions on some of the manufacturers of the racing seat (Racing Rigs) systems and, when mentioning such, we have covered manufacturers such as ImSim and their unique designs (most notably their appearance at the IAAPA Europe 2019 event). In April, it was announced that the company had partnered with SynthesisVR, becoming the US and Canada representatives of the racing simulators. As we reported recently, SynthesisVR has broadened its reach in the sector, supporting its VR content licensing, and smart management for VR locations (comprising a large library of games and educational content); and including a variety of Free Roaming (Arena Scale) platforms within the offering. Now SimRacing solutions are included too (through ImSim), positioning the company to offer a one-stop solution for operators in this territory.
The VR scene continues to rebound after the enforced hibernation, and eSports plays its part in this. One of those embracing the trend is SPREE Interactive, with the company announcing its latest free roaming VR experience, ‘Cops Vs. Robbers’. Supporting from six-up-to-ten players simultaneously and using the Pico Standalone headset, the game is also configured with a strong eSports element. Published by Reality on Demand Studios and developed by Knuckleheads Studios, the version of the game that SPREE will be fielding is described as a “Immersive eSports Experience” and will incorporate a dedicated prize tournament and facility-based competition component. The in-game functionality will allow locations to operate real-time leader boards.
The ability to offer an eSports capability to a proven formula is gaining momentum, especially with the more exotic game platforms. Valo Motion, known for its amazing MR climbing wall (‘ValoClimb’) and trampoline experiences (‘ValoJump’), has been redefining its approach, announcing (in May) the launch of the first ever Active eSports League, in support of the company’s platforms. The new ‘ValoLeague’ combines the digital experience with the physicality of the game and competition. It is also supported by a connected app (‘ValoApp’), that will allow players and spectators to chart the competitions taking place on the system at various facilities. The web and mobile app will include a leader-board on stats, and streamed video from the systems, along with notifications on important competition stats. Valo Motion is covering initial cash prizes, ranging from €100 to €300 on the platform, and has started promoting events across the existing 700 install-base.
As previously reported, the Sports Betting scene has migrated towards riding the popularity of eSports, as well as migrating into the entertainment scene. This continued with the news that NASDAQ-traded corporation, Esports Technologies, was now applying its wagering platform towards accepting bets on popular eSports game titles, including Counter Strike, League of Legends, Dota 2, FIFA, StarCraft 2, Warcraft 3, King of Glory, Rainbow Six and others. The company will be using its consumer platform Gogawi.com to support the wagering made on the outcomes of these popular eSports games. The company is enhancing the deposit and withdrawal options on the service, which also supports traditional Sports Betting across more than 40 sports.
The continued growth of eSports construction reached a new height, with the announcement of the largest eSports stadium opening in China. In a strategic partnership between Sunac Culture & Tourism and the QG E-sports Club, Shapingba has become the home of the newly-opened ‘Chongqing QG Sunac E-sports Center’. The venue comprises retail mall, theme park and hotel components – all in support of the eSport stages and 20,00-seat arena. The venue is playing host to several regular championship events, and hosts local eSport teams (such as the Chongqing QGhappy).
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The vast stage of the new eSports arena [Chongqing QG]
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And just as we went to the wire with this latest Stinger Report, the Japanese amusement trade revealed major news of their doubling down on eSports. SEGA Corporation revealed the deployment of its legacy IP in a brand-new platform. Called ‘Virtua Fighter eSports’, it is the latest outing for the brawler (since its 1993 launch), with a new eSports competitive tournament. Launching in June for the Japanese market, the amusement version will have the conventional tournament league features through the VF.Net facility tournament system.
But, in a first for the Japanese scene, the game will also feature cross-platform competition. Players on console versions of the new release will be able to take part in competition with amusement gamers, with an end-of-year grand championship tournament scheduled. The amusement version is released on the ALL.Net P-ras Multi online distribution platform. News is expected on specially streamed events, and more detail on the cross-platform support. This marks a continued pivot towards migrating tournament play amusement into full-blown eSports, as seen by CAPCOM, TAITO and KONAMI – this is a move which is gaining momentum.
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- Expanding Facility Development
Facility business continues to develop as the market remerges – only a matter of months previously, and many observers held serious concerns for the future of the entertainment restaurant chain Chuck E. Cheese. Well, as has been covered in previous reports, the market has reversed many of the concerns about the chain and is observing its moves towards maximizing its position. It was revealed, at the beginning of May, that parent company CEC Entertainment was in the process of opening some 100 new outlets internationally, beyond its existing 612 North American venues. It was revealed that some 25 of these new sites are planned to be opened in Saudi Arabia. This will be part of a drive to establish some 50 stores in the Middle East region over at least the next five years. It is expected that Saudi is hoping to account for more than half of this total (currently operating only 21 outlets).
Regarding the recent coverage of BANDAI NAMCO Holding Japan’s divestment of its US facility business (NAMCO USA – comprising 760 revenue shared and 34 directly managed stores), and following the Stinger reveal on the first acquirer (NEN) of the mall-based part of the facility business, we can now break the news that the remainder of the business has been acquired by GENDA Inc. This is the same Japanese corporation that we reported acquiring the SEGA Entertainment 193 Japanese amusement center business. Itis now revealed that GENDA has established a US presence that has acquired the remaining 41,000-sq.ft. ‘PAC-MAN Entertainment’ large Chicago flagship operation. For the third time in its history, the Chicago facility will see its name changed to ‘ENTERRIUM’.
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Third time’s a charm for the Chicago flagship location
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This will be the third occasion in which the branding and name has changed at the Woodfield Mall, Schaumburg, IL location. Opened in 20015 and originally controversially named ‘LEVEL257’ (after the famous “crash-screen” in PAC-MAN), the venue was designed with minimal amusement, focusing on an eclectic bar, restaurant, and bowling mix – the flagship store of NAMCO USA. However, a poor reaction forced restructuring and replacement of management, and the venue rebranded to ‘PAC-MAN Entertainment’, heavily embracing the company mascot and pivoting to a strong Urban Entertainment facility aesthetic. Now, under the ownership of GENDA, in partnership with Kiddleton Inc., (operator of ‘Kids Park’ and Joint Venture with Round One), the newly-renamed ‘ENTERRIUM’ looks to retain much of the original design, although this may change in time. This move will make GENDA a new force in international facility operation, in another example of the total upheaval of the amusement facility landscape (more details will follow).
This seems a time in the leisure entertainment industry for the announcement of new projects and the culmination of major investment plans. The long-lamented holiday seaside area of Blackpool in the UK revealed its intentions to reinvent and grow its business opportunity post-Brexit. The authority revealed the first phase of a £300m new visitor destination called ‘Blackpool Central’. The new visitor destination will comprise a new public square for live events, and numerous new restaurants, bars, and new hotels. It also plans see the deployment of new attractions such as one of the first UK flying theaters, and what was described as a “next generation VR experience” – all in support of a new indoor theme park. The project is planned to attract some 600,000 additional visitors, and will take ten years to complete, with more detail of the attractions revealed in stages.
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Artist’s interpretation of the new visitor destination [Gensler]
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Regarding the deployment of new immersive entertainment within mall locations, it was revealed that the ex-founders of the VOID’s new project would see its first location, sited in the New Jersey, 3,000,000-sq.ft. American Dream, retail and entertainment complex. As previously reported on, certain of the founders behind the original hyper-reality offering have formed a new operation, under the name JUMP. This new company is continuing its interest in hyper-reality, but is this time swapping directed-walking for full body flight simulation. Under the brand, the operation offers groups of up-to-six the chance to experience a virtual wingsuit interactive experience, with the visuals supplied via a VR helmet, and a special trapeze-system simulating the experience of flight. This proof-of-concept facility at American Dream is part of the operation’s latest investment raising round, having secured $1m in seed capital from investor Bryan Wright in 2020.
Looking at larger theme park projects, and one of the biggest names from the movie sector has seen two of its projects impacted by delays. Paramount Pictures’ theme park operation has been instrumental in the development of two prominent park projects. First in Korea, the operation has been working with Mohegan Gaming & Entertainment towards the launch of a theme park resort as part of the Inspire Korea project in Incheon. It was revealed, by Inside Asian Gaming, that the plans for this project had been impacted by the Global Health Crisis and the operation was reassessing the scale of the development. The start of construction had been pushed back, missing the originally scheduled 2025 opening. There are further considerations about considerable scaling back on the proposed 40 attractions and rides, based on licensed IP, as well as the retail and dining elements. Investors await further details on the eventual reassessment of the theme park component.
At the same time, it was announced that Paramount Pictures’ other high profile theme park project, in partnership with London Resort Group, was seeing additional delays on its intended commencement. The much-delayed project, that had been previously scheduled for a 2019 opening, was in the news again. As reported by Kent Online, it was revealed that the multi-billion Dollar theme park project had requested a four-month delay in governmental review of its submitted proposal, to be able to address issues raised. This follows the awarding of the site considered for the project, to then be designated a ‘Site of Special Scientific Interest’ (SSSI) by Natural England. This news came as a surprise in March and could deem the location unavailable for consideration to build upon. It is unknown what the London Resort Group will be able to achieve regarding the overturning of this designation, or if they will be able to propose an alternative approach.
The impact of these delays on previously scheduled projects, that should have started to have entered a construction phase, comes as a major impact to projected revenue from theme park business for Paramount, who has had a tempestuous relationship with developing park properties based on its IP. These latest impacts come just as the corporation’s parent, ViacomCBS, saw its share price decimated by financial upheavals. This situation has led to many observers speculating on the need for serious cost-cutting measures, possible asset sell-offs, and removal from projects that have not started. This would place the company’s involvement in the Korean and London projects in serious jeopardy, though this may also see ViacomCBS consolidate its park interests under a new division lead.
It was revealed that ViacomCBS still has major interests in investing in the leisure entertainment sector. ChinaNews broke the story that ViacomCBS would be partnering with Jinhengde Group, towards spending some 50 billion Yuan ($7.75b) constructing a tourist resort in South China (Hainan province). It was revealed in the news report that the location will also include movie studios and development facilities for animation, television, and music production. There are suggestions of some form of theme park elements with animated attractions and rides, although details on this vast investment are still limited. As one of the largest media conglomerates in the US, the corporation has many interests towards re-establishing its market presence, with much of this depending on the streaming service (Paramount+) to help bolster the flagging business outlook (while further far-reaching developments in the “Streaming War” were emerging).
The constant and confusing evolution of social media was marked in May, with the news that once online giants, AOL and Yahoo, had been sold on by their current owner Verizon. Originally, the definitive online media platforms dominated the market, they were overtaken by the likes of Facebook and Google. Verizon had purchased the two in 2015 for the sum of $9b, but has decided to divest all but 10-percent interest, selling to Apollo Global Management (a private equity firm) for the reduced sum of $5b, in a deal that will be completed by the end of the year. The fall from grace of these once-dominant platforms is a sobering example of the churn and movement in social media. It was reported that Verizon has been shedding previous assets to restructure, seeing the media operations Engadget and TechCrunch, as well as Yahoo Finance, and Yahoo Mail, all sold off.
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- Going Home: Arcade Retro Revenue Revival
The popularity in the common zeitgeist for classic video arcade game properties seemed to be at a zenith over the last few months, with announcement after announcement that saw the consumer games scene feeding off the enduring popularity (and profitability) of the classics. Any of the examples announced internationally saw Japanese amusement factories benefiting from their extensive back catalogues, or saw others licensing from this extensive treasure trove.
Japanese powerhouse CAPCOM announced a console and PC release of its ‘Capcom Arcade Stadium’. It received an early access launch across Microsoft Xbox One, Sony Playstation 4 and Steam. The release offers 32 lovingly re-created arcade classics and, marking the heyday of the Japanese amusement companies out-put, the releases include a reworking of one of these classics with ‘Ghosts ‘n Goblins Resurrection’, which will be released on these platforms as well as a Nintendo Switch outing.
Moving into the field of consumer virtual reality, and Facebook-owned Oculus held a ‘Oculus Gaming Showcase’. This was an attempt to launch to the market a series of new games targeting their standalone VR Quest-2 hardware and establish market dominance, as they prepare for competition from Samsung, Pico, Sony and HTC in the coming months. This event, however, missed out the announcement that waw made at the same time in Japan, that saw past and present arcade IP given the VR treatment. These included TAITO releasing ‘Puzzle Bobble VR: Vacation Odyssey’, developed by Survios and based on the 1986 ‘Bubble Bobble’ property. Meanwhile, KONAMI Digital Entertainment division announced the launch of ‘BEAT ARENA’ – a music rhythm game in VR, based on the BEMANI property (hoping to launch a ‘Beat Saber’ competitor for Japan and Asia).
There was at least one example of Retro nostalgia being turned for amusement application. It was announced that game manufacturer exA-Arcadia was in the process of releasing a re-interpretation of the classic “Bullet Hell” title from JALECO. Developed by their internal studio ‘TEAM exA-AM2’, the title ‘P-47 ACE Mk. II’ is a remake of the original ’P-47 ACES’, launched in Japanese arcades back in 1995. This game will be a unique four-player simultaneous shoot-‘em-up, and we look forward to seeing the release gain international recognition. Thanks to Stinger friends Arcade Heroes for breaking the news of the immanent release of this game on the exA-Arcadia platform. Western operators should be able to get their first look at the system during its appearance at Amusement Expo later in the month, we will bring reports of the response from the show.
This investment in popular classic amusement IP continued as certain Japanese factories daw their back catalogue of arcade classics as a valuable treasure trove in trying conditions. Regularly in the news, SEGA Sammy revealed (in a recent financial presentation) that they were carefully examining raiding their library of classic IP towards re-launching previously dormant brands. Titles under consideration included, ‘Altered Beast’, ‘Virtua Fighter’, ‘House of the Dead’, and ‘Crazy Taxi’ to name a few suggestions. In the presentation, the terms “Remake”, “Remaster” and “Reboot” were used regarding what could happen to these properties, as SEGA looks at “Utilization of IP Assets” for a 2024 timeframe. That SEGA is working so hard on how best it can leverage its existing assets, soon after flipping its Western amusement and game facility businesses, underlines the questions being raised on the operation’s long-term solvency going forward.
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A snapshot of the valuable IP assets being examined [SEGA Sammy]
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Around the same time, BANDAI NAMCO started a process to monetize the use of classic arcade titles from its history for use as mini-games on websites, and established policy regarding the live stream of game play. But at the same time, the corporation revealed a brand new representation of its company mascot, as PAC-MAN was given a major facelift and received an official merchandising webstore. The site was also promoting the term “PAC-TIVE”, describing the use of the brand in sports, active and music wear. BANDAI NAMCO had attempted to inject the PAC-MAN property into its US amusement facility operation with the rebranded PAC-MAN Entertainment, but that operation had also recently been flipped, emulating SEGA. It would seem, at a time of serious difficulty for the Japanese factories, running to their back catalogues is seen as a valuable safety net.
The Western amusement trade has been feeding from its own nostalgia, with previous releases from Raw Thrills/Play Mechanix including ‘Bust-A-Move: Frenzy’, ‘Space Invaders Frenzy’ (licensed from TAITO), ‘World’s Largest PAC-MAN’ (licensed from BANDAI NAMCO) and, most recently, ‘Centipede Chaos’ (developed for ICE Games and licensed from ATARI); as well as the other ATARI licensing with UNIS Technologies’ ‘PONG’. The Stinger Report has previously covered the Retro-Inspired trend that swept the 2019 Amusement Expo, but it still feels that the Western amusement trade is allowing others to profit from the industry’s legacy. Hopefully, a new injection of leadership can help regain the momentum.
Speaking of a new momentum, LAI Games seemed to lead the way once again regarding innovative thinking, in launching a new amusement crossover. The company has developed a new in-home consumer VR game app called ‘Arcade Legend’. This VR game allows players to equip and play within a virtual arcade they will run, placing a selection of re-created LAI Games ticket redemption games within a virtual space, and including virtual re-creations of games ‘Let’s Bounce’, ‘HYPERshoot’, ‘Speed of Light’, and ‘Stacker’. LAI proposes to release more games to support this experience, and is in early talks with other amusement manufacturers to include virtual representations of their machines (this is reminiscent of the previous VR title ‘Oculus Arcade’, see below). The game supports a multi-player feature to allow up-to-four players to take part at the same time, along with the ability to compete on global leader-boards, while the virtual arcade the player creates will be populated by Non-Player Characters (NPC), with numbers attending based on its effective layout and "reputation", a metric of achievements in managing the arcade. The game is about to make its debut as a demo at Steam Next Fest in June and will be released on SteamVR in the coming months.
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An arcade created virtually [LAI Games]
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LAI’s ‘Arcade Legend’ is not the first time that a VR arcade building experience has been fielded for the consumer VR platforms. Back in 2015 the Samsung Gear VR had the game ‘Oculus Arcade’, that allowed players to place and then play on virtual recreations of classic video arcade machines. Although at the time popular, it was hampered by the crude nature of the Samsung/Oculus-developed VR hardware, as well as a few licensing issues that plagued its run. It was finally abandoned after the separation of the two corporations. Other VR games have attempted to capture classic arcade experiences, and many of the virtual rooms created by VR users will include retro game art and machine recreations.
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The second part of this feature will look at more of the impact from the VR hardware scene, and the announcements of a swarth of competitors in the Standalone VR headset landscape. We thank all our subscribers and advertisers for their support, and the next report will follow shortly.
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