Arcade Action: 1984 Arcade

Seven friends wanted to fund their collecting and share their collection of arcade games with the world. It sounds more like a hobby than a business plan, but it worked.

For brothers Devin and Jason Durham, their wives Amy and Tammy Durham, and friends Chris Stuart, Lincoln Whistler and John Macdonnell, it has been surprisingly easy.

When the downtown arcade opened in July 2005, there were no market trends suggesting success. According to Kevin Williams, a London-based industry journalist and consultant, the market for traditional coin-operated arcades was in steep decline.

“The available numbers suggest that U.S. coin-op machine sales moved from 800,000 in 1994 to 300,000 in 2004,” Williams says. “Revenue from the games dropped from $2.3 billion to $866 million in that period.”

Even the crew at 1984, which has formed under Downtown Retrovision Entertainment LLC, was skeptical. Chris Stuart cites faith in the idea as the biggest hurdle they overcame to get open. Initially, the team did not believe 1984 would meet operating expenses.

“We all sat around and said, ‘Well, how much can you commit per month to keep this open?’” Stuart recalls. “Now, we almost feel guilty that this went so well.”

Dual roles

Jason Durham says they were surprised when they met expenses in the first month. 1984 has grown steadily ever since and already expanded its party space and games inventory, which includes Asteroids, Frogger and Pole Position.

“We all thought we would have to (invest) in this thing for a year or (more) to get it going,” says Durham, who owns Information Architects Web hosting services and acts as 1984’s CEO.

Having no employees helps the bottom line. Each 1984 crewmember brings the skills of his day job into the arcade. Taken in total, they cast a broad net over the Springfield business landscape.

Amy Durham is a Kraft Foods research and development coordinator handling 1984’s retail operations. Jason Durham is an independent video producer dealing with the arcade’s audio/visual needs. Tammy Durham is a retail marketer and 1984 CFO. Chris Stuart is the arcade’s chief designer, doing freelance Web and print design at Imaginaut.net. Lincoln Whistler handles advertising and marketing for the Reliable auto dealerships by day and does the same for 1984 by night, and John Macdonnell is manager of the Macdonnell Ranch in Marshfield while handling artwork and retail duties at 1984.

Each owner works a shift at 1984, taking on tasks from bookkeeping to pinball repair.

Food and games

Mike Rudowicz, president of the American Amusement Machine Association, is pleased to hear of 1984, and he is unsurprised by its success.

“In the Arcade market, what’s growing are the FECs or Family Entertainment Centers,” Rudowicz says. “They have arcades, but like 1984, they also have food and party rooms.”

According to Rudowicz, FECs are popular startups because they are inexpensive, easy to open and easy to grow.

Williams agrees, adding that the key to making a successful gaming venue is in offering something “unachievable at home.” It is also a market not captured and largely unaccounted for in industry numbers.

“The current revenue numbers miss a lot,” Williams says. “The reality is that the arcade-style venue has been superseded.”

Williams cites “eater-tainment” venues as successful models. Chains such as Dave & Busters take the dining experience far beyond snacks.

The 1984 crew said they’ve watched groups leave their arcade in search of meals. That’s revenue Williams thinks 1984’s owners should capture.

According to Stuart, though they opted out of full-service food, 1984’s pricing plan was modeled on Dave & Busters flat-fee nights.

Both Rudowicz and Williams see the same threat in 1984’s future – boredom.

“It all depends on their customer base and if they are getting a lot of new customers,” Rudowicz says. “If it’s more or less local people, you’re not getting a good turnover, and you have to give them a different challenge.”

1984’s Stuart says the plan going forward is to start advertising and eventually expand, possibly to Branson or as a franchise.

“We need to grow this location so it can support another one,” Stuart says.

1984 Arcade

Owners: Devin Durham, Amy Durham, Jason Durham, Tammy Durham,

Chris Stuart, Lincoln Whistler, John Macdonnell

Founded: July 2005

Address: 400 E. Walnut, Ste. 108, Springfield, MO 65806

Phone: (417) 831-3665

Web site: www.1984arcade.com

E-mail: devin@1984arcade.com

Products: 1980s style arcade with private parties options

Employees: None, it’s completely owner operated

High Traffic

In addition to tournaments and events, these machines consistently draw crowds and stay busy at 1984:

1. Galaga

2. Ms. Pac-Man

3. Pinball machines

4. Pong

5. Gauntlet

High Cost

A machine breaks every day at 1984. Aside from the pinball machines, these are the most troublesome and expensive to maintain:

1. Star Trek

2. Pole Position

3. Vindicators

4. Battlezone