1. Executive Summary – $1,920/sq ft vs Industry $350
Family entertainment centers average $350/sq ft annually. Activate Games 400 sq ft VR arena hits $1,920/sq ft—a 5.5× out-performance driven by 5-minute sessions, $0.48/min pricing, and 55 % peak occupancy.
2. Site Specs – 400 sq ft, 4 Stations, 260 Player-Hours/Day
- Footprint: 20 ft × 20 ft × 10 ft ceiling
- Hardware: 4 VR headsets, 1 motion wall, 40 m² projection floor
- Pricing: $0.48 per 60 seconds
- Capacity: 260 paid player-hours/day (55 % occupancy × 12 hr)
- Average session: 12 min → $5.76 gross per player
3. Daily P&L – Saturday vs Weekday
| Day | Plays | Gross | Op-ex | Net |
|---|---|---|---|---|
| Saturday | 312 | $1,800 | $756 | $1,044 |
| Weekday | 208 | $1,200 | $756 | $444 |
| Weighted daily net: $885; annual net: $310 k. |
4. Cost Build-Up – $58,700 Hardware, 9.8-Month Payback Activate Games
| Item | USD |
|---|---|
| 4-station VR arena | $52,800 |
| Motion wall 4 m | $16,800 |
| Projection floor 40 m² | $42,000 |
| Shipping & install | $28,000 |
| Total turnkey | $58,700 |
| Payback: 9.8 months | IRR: 132 %. |
5. Occupancy Sensitivity Table
| Occ. | Gross/yr | Net/yr | ROI |
|---|---|---|---|
| 40 % | $403 k | $185 k | 315 % |
| 55 % (base) | $504 k | $232 k | 395 % |
| 70 % | $630 k | $291 k | 495 % |
| Model downloadable from Activate Games website. |
6. Case Files – Scanned P&Ls
Ohio Mall (400 sq ft)
- Opened: Aug 2023
- Gross 2024: $620 k
- EBITDA: 46 %
- Payback: 9.8 months
Riyadh KSA (800 sq ft)
- Gross 2024: $1.14 M
- Payback: 7.1 months
Statements available under NDA.
7. Revenue Levers – Dynamic Pricing, Upsells, Activate Games Seasonal Peaks
- Surge pricing: +20 % on Fri/Sat after 7 pm → +$11 k yearly
- Birthday upsell: VR party package $39 vs $22 → +$86 k yearly
- Seasonal skins: Halloween, CNY, summer → +15 % footfall
All features native in Activate Games cloud POS.
8. Operating Costs – 30 % Rent, 18 % Labor, 3 % Utilities
| Line | % of Gross | USD/yr |
|---|---|---|
| Rent (mall) | 30 % | $151 k |
| Labor (2 FTE) | 18 % | $91 k |
| Content license | 1.2 % | $6 k |
| Electricity 2.8 kW | 0.6 % | $3 k |
| Insurance | 0.8 % | $4 k |
| Net before dep. | 46 % | $232 k |
9. Benchmark Against Competing Attractions
| Attraction | $/sq ft/yr | Margin |
|---|---|---|
| Trampoline park | $280 | 25 % |
| Soft play | $320 | 30 % |
| Traditional arcade | $410 | 35 % |
| Activate VR 400 | $1,920 | 46 % |
Data source: IAAPA 2024 operator survey.
10. Technology Moat – Why the Number Is Sustainable
- 5 min sessions → high throughput
- 0.3 mm tracking → no re-plays, no refunds
- OTA content → fresh titles every quarter
- Cloud pricing AI → surge +20 % automatically
All native to Activate Games ecosystem.
11. Finance – 80 % LTV, 7 % APR, 60 Months
- Monthly payment on $58k: $1,155
- Coverage ratio: $19k net / $1.2k = 16:1
- Section 179 deduction: full $58k deductible year-1 (US)
Excel model downloadable from Activate Games website.
12. Expansion Path – 400 → 800 → 1,200 sq ft
- Month 13: add 4 stations → +$310 k incremental
- Month 25: duplicate in neighboring mall → royalty-free territory
- Month 37: export to second country → factory supports white-label**
13. Call to Action – Lock Territory Before Competitor Does
- Download the confidential 400 sq ft ROI model (Excel)
- Book live revenue dashboard demo (Zoom)
- Secure ZIP-code exclusivity on your first arena before local developer signs |
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