Sega closes 50% of GameWorks arcades
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.
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:3 years ago