Over the previous few years, we have seen an array of news articles about the way virtual reality was about to save the timeless arcade. The theory goes that the VR equipment is too expensive for home users, so it creates an chance for operators to pony up the big bucks to buy it and then make their money back by charging a game to play it. Even Nolan Bushnell, https://www.amusement-park.org the inventor of Pong, is attempting to hype the technology as the industry's savior. From the MIT Technology Review.
"While many high-end headsets were released last year which may bring virtual-reality adventures to your living space, adoption of this technology is still in its first days to get a lot of reasons--it's still bulky, pricey, and there is not all that far to do once you've got it on your face. Over two million headsets were shipped worldwide in 2016, according to a quote from market researcher Canalys, yet this figure pales in comparison to the prevalence of, say, video game consoles (earnings of their top one, Sony's PS4, topped six million during the 2016 holiday season ). Consumer virtual reality will probably catch on as prices come down and cans improve. Meanwhile, however, a number of companies are betting that customers may be pleased to cover a much smaller sum to try the technology with their buddies at, say, an arcade, theme park, or bowling alley."
It's tempting to dive into this snare, but from an operator's standpoint VR is a terrible deal. Operators are being requested to pay top dollar for technology that is all but guaranteed to plummet in value within the very short term. Other than buying a brand new car and driving it a mile, I can not think about a way you could lose money quicker between what you pay and what you'll be able to get for it down the road.
Another limit for most operators is that while you might be able to supply a room for VR individuals to wander around in now, as new VR technology is introduced, we are going to see the point expanded from 100 square feet into the entire world. Rather than viewing just the matches from your headset, you will see the real world with game play overlayed. Since the tech allows more actual world places to be explored, it is going to earn a cramped arcade seem fairly feeble in comparison.
VR is heading for mass market acceptance, but it's demand is not being pushed by gamers who wish to pay big buck to play with video games, but such as the BETAMAX that came before it, by individuals who wish to watch porn in their homes.
Even when an operator can create just a bit of money for the upcoming few decades, once VR achieves critical mass, then it will crush whatever earnings flow that operators are dreaming of. Do not believe me? Just check out what's going on in China.
A year after 22,000 of these have closed.
That is an incredible failure rate over such a short time period and one which should function as a sharp warning to anyone considering investing in the VR games. Maybe Dave and Busters can afford to take losses on the matches longer than Chinese startup arcades, but I doubt that most North American operators are going to fare much better with the technology in their game rooms and will only wind up in debt at the close of the day.
The problem essentially boils down to consumers not being prepared to pay a premium to the encounter. Tech In Asia, clarifies the problem perfectly in their article, on the Chinese VR boom and bust.

"Enterprising shop owners jumped into VR are finding it impossible to bill fees comparable to cinemas or bowling alleys for a VR experience. 1 VR arcade proprietor told iHeima that he saw excited queues when charging US$1.50 to get a 30-minute session, but everyone disappeared when it rose to US$5. By that kind of revenue it's not possible to pay the lease."
Even if the game was sold out daily, at $1.50 a half hour they're only earning $30 a day.
The real world information streaming in from China should function as a canary in the quarter plantations of North America. Operators who spend considerable amounts of money on elaborate VR setups will probably find their little VR rooms being substituted by the entire world for a stage. As the installations get cheaper, smaller and more mobile, the virtual arcades will look more expensive, bulky and restricted. I'd like to be proven wrong on this one, but I feel the arcade VR trend is more hype than hope.