Is the Arcade on its way back?

Is the Arcade on its way back?

Advertisements

Before consoles were a household item, gamers used to go to arcades to play games. However, since consoles have become common, arcades are on their way out. Video games have steadily improved since the 1980s. Therefore, it is not shocking that the business model died. 

However, just because games have improved, that does not mean that they cannot be in existence. For example, as part of a recent update, GTA 5 introduced an Arcade as a new business. It went along with the Diamond Casino heist. The game allows players to install a dozen different arcade games. The games range from classics like racing games (in cars and bikes), western shooters, and even a claw machine. The carpet in the arcade has a wavy, dark design on it, along with poor lighting. The GTA 5 arcade gives players the virtual experience of what an arcade once was.

Advertisements

In recent years, companies like Dave and Busters (NASDAQ: PLAY), have found success in morphing an arcade into a bar. This creates a more party-like experience rather than an experience for kids. After all, the people who can drink now, played games in arcades when they were kids. Dave and Busters found a successful business model. However, due to the unforeseen circumstances of the COVID-19 pandemic, their stock price has taken a major hit in 2020. 

On February 21st, 2020, Dave and Busters (PLAY), was trading at $46.60, less than one month later, on March 20th, 2020, it bottomed at $7.76. In October, the stock has rebounded to $16.90 per share, but it has not experience the same bounce back as other gaming companies. 

Advertisements

Dave and Busters Arcade stock in 2020

Dave and Busters stock chart in 2020

Similar to Dave and Busters is Chuck-E-Cheese, the arcade for kids. The company could not stand the hit that virus had blown to their business and recently filed for bankruptcy, due to over a 21% sales drop since the virus started shutting down. 

Advertisements

Looking forward, the only hope for Dave and Busters to see a future for the arcade is that the Coronavirus pandemic comes to a halt, and they can become fully operational again. While many critics say that the stock will not bounce back, it is up to fate to see if D&B ever open their doors again.

Connect With Disclosed Gamer on Social Media!

Subscribe to Disclosedgamer.com’s weekly newsletter with exclusive articles about all things gaming.

Processing…
Success! You're on the list.

You may also like...

Leave a Reply

%d bloggers like this: