Arcade Business

Q: How much does it cost to start a arcade business?

Depending on size, equipment, and location, you can expect startup costs to range from $50,000 to $500,000 or more.

Q: How much does an arcade make annually?

Most arcades earn anywhere from $100,000 to over $1 million per year in gross revenue, depending on location and services.

So, you’ve been thinking about starting an arcade business. Maybe it’s the nostalgia of joystick battles and neon-lit game rooms. Or maybe you’ve noticed the resurgence of retro gaming bars and VR lounges. Then, you started wondering, are arcades profitable even today? Either way, you’re not alone. The arcade industry has quietly made a comeback. It’s no longer just about vintage games from the ’80s, but now includes immersive, modern entertainment experiences. Whether you’re looking to open a small neighborhood game room or a multi-attraction entertainment center, Blue Apple Marketing, LLC can help guide your journey. In this article, we’ll walk you through how to start an arcade business, explore its profit potential, and share tips on how to do it the right way.

The Modern Arcade Business Is Evolving

Let’s start by busting an outdated myth: arcades aren’t dead. In fact, they’re having a moment.

Today’s arcade business is more than just coin-op machines and teenage hangouts. You’ve got barcades, VRs giving people a shot at fighting zombies in 360°, and retro lounges packed on weekends with birthday parties and esports fans. The secret? These modern arcades don’t just sell gameplay—they sell a full experience.

And if you’ll ask, do arcades make money? The answer is yes—but only if you’re creative about how you earn that money.

How Much Does It Cost to Open an Arcade?

Here’s where things get real. The answer to how much it costs to start an arcade varies a lot. A startup arcade with used equipment and a smaller space might cost around $50,000. A more ambitious entertainment center with new machines, a kitchen, and high-end décor? That could easily cross $500,000 or more.

Your costs will include buying machines, which could range from $500 to $10,000 each. Then, there are costs for renting or buying a space, remodeling, and setting up swipe card systems. Also, consider training staff and securing insurance and permits. And don’t forget working capital for your first year—you’ll need to keep the lights on long before you start seeing a profit.

So the real answer to how much to open an arcade depends on how big you want to go. But no matter your budget, a smart business plan can help you build something profitable from day one.

Are Arcades Profitable in 2025?

Let’s get to the heart of it: is an arcade profitable today? The answer is yes, but not by accident. A well-run arcade business can keep about 20% to 40% of what it earns after expenses, especially when it’s built around a solid location and multiple income streams. According to IBISWorld’s Arcade, Food & Entertainment Complexes in the US – Market Research Report (2015-2030), the arcade industry has grown and is expected to continue doing so in the coming years. But it’s not always easy and not a quick win. You’ll need smart marketing, repeat customers, well-maintained machines, and a compelling reason to make people come back. If you’re curious how profitable are arcades, rest assured that it’s absolutely doable with the right setup. More importantly, if you want to know how much money do arcades make, remember this: small-to-midsize arcades often generate $100,000 to $300,000 annually. Meanwhile, large-scale operations can exceed $1 million in revenue.

So, How Do You Actually Start an Arcade Business?

Starting an arcade isn’t something you can do overnight. You need the right steps, in order to build something incredible. The first thing you need to do is decide what kind of arcade you want to build. Are you going for a retro theme with Pac-Man and Donkey Kong? Or something sleek and modern with VR pods? Your decision on this will affect everything—from your location and equipment down to your branding and pricing. Next, build a solid arcade business plan. This should include projected costs, pricing strategy, and marketing plans. You also need to think of your target audience and how you plan to make your money back. Investors love to see these details, especially if you’re not funding the business on your own. From there, you’ll need to secure a space, obtain local permits, get insurance, and start buying equipment. Look for reliable arcade machines, high-traffic favorites. Then, set up your POS system and swipe card solution. This is key for tracking spending and rewarding loyal players. Lastly, you’ll need to hire and train your staff, run soft openings, and launch your full marketing push. Community nights, giveaways, influencer events—these are some tricks you can consider. Whatever it takes to create buzz and bring people in. Need help crafting your arcade’s marketing campaign? Learn more about our influencer marketing plan and get real, measurable results!

The Big Picture: Is This All Worth It?

When it’s done right, running an arcade can be one of the most fun and fulfilling businesses out there. Every beep, every win, every smiling customer—it all adds up. But of course, it takes hustle.

And if you’re still asking how to start an arcade game business or how much does an arcade make, remember that you now have all the answers. You just have to maximize your opportunities.

Whether you’re building a cozy neighborhood gaming lounge or a next-gen entertainment hub, remember you’re not just starting a business. You’re creating a space where people come to play and relive a little bit of magic. That’s something worth investing in.

FAQs

How much does it cost to start a arcade business?

The cost depends on size, equipment, and location. You can expect startup costs to range from $50,000 to $500,000 or higher.

How much does an arcade make annually?

Most arcades can earn an estimate of $100,000 to over $1 million per year in gross revenue, but it depends on location and services.

Is arcade business profit achievable in 2025?

Absolutely. With nostalgic gaming, social events, and new tech like VR, arcades are making a strong comeback.

How can I start an arcade on a budget?

Start small with used machines, lease your space, and focus on a tight, high-performing game mix. Expand once revenue grows.

Ready to Launch Your Arcade?

Opening an arcade is no small task, but with the right partners and a strong plan, it’s one of the most rewarding businesses you can build. If you’re dreaming big or starting small, we’re here to help either way. Contact us today to schedule your free consultation and turn your vision into a profitable, unforgettable entertainment experience.