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Sega closes 50% of GameWorks arcades

Thu 15 Apr 2010 8:38am GMT / 4:38am EDT / 1:38am PDT
Business

More than half of US arcades set to close as part of significant "restructuring"

Sega is set to close seven of its 15 GameWorks arcade locations as the organisation undergoes significant restructuring.

Locations in Long Beach, Columbus, Detroit, Minneapolis, Indianapolis, Tampa and Miami will all close, although some will be rented out in the hope of reopening at a later date.

GameWorks was launched in 1997 as a joint venture between Universal Studios, DreamWorks and Sega Entertainment USA. Up to 150 different locations were initially planned at a cost of up to $10 million each.

However, the initial locations proved less popular than anticipated and both Universal Studios and DreamWorks subsequently sold their share of the company to Sega.

"This challenging economic environment has forced us to make these tough financial decisions," said Cory Haynes, president and COO of Sega Entertainment USA. "The changes were necessary for us to move into the future as a robust, exciting, and viable entertainment company."

"We are committed to meeting the changing needs of our consumers, and to delighting them with a GameWorks experience that is fresh and exciting. We have complete confidence that our leadership team and valued employees will continue to deliver an outstanding experience to our guests with each visit," he added.

2 Comments

Jason Sartor
Copy editor/Videographer

105 33 0.3
That is a shame
I have often wondered if arcades like this are better off in locations with larger populations (think major suburban areas with massive Wal-Marts and Target Super Centers) but not major cities with other attractions.
As it is, Gameworks in Tampa was at Ybor City Tough entertainment sell in that location with everything else so close.
I also think it is tough for arcades to survive in places with NHL, major league baseball, NFL and NBA franchises (Detroit, Indianapolis, Minneapolis/St. Paul, Miami - Tampa has all but an NBA team) that also offer concerts and other night life attractions that are found in cities.
Also, here in Florida, with the beaches, day cruises, year-round fishing, golf, scuba diving and the weather we get, spending that much time inside is a tough sell.

Edited 2 times. Last edit by Jason Sartor on 15th April 2010 9:00pm

Posted:4 years ago

#1
This is another example of the problems the consumer games media has in reporting the public-space entertainment market. It is difficult and complicated, and they are far out of their depth having to cut and paste others reporting!

Just to correct this poorly constructed report - ONLY seven of the 15 GW sites are being closed - basic maths tells you that this is not 50% guys! Also the two Florida GW sites have been sold and will now reopen under a new owner, retaining the GameWorks name for the next 6 months.

The retained locations at Seattle, WA; Ontario, CA; Las Vegas, NV; Ft. Lauderdale, FL; Tempe, AZ; Schaumburg, IL; Cincinnati, OH; and Dallas, TX - will also be updated, and SEGA are looking to re-invest in the brand. Oh and please dont start this news are a means to write off amusement business, Check E Cheese runs over 500 sites, Dave & Busters over 50 and Petes Pizza runs around 200, Namco CyberTainment also over 200 sites.

If you really want to report amusement news please just ask in future.

Posted:4 years ago

#2

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