Navigating Change
Adapting to the Future of the Amusement Industry
Howard McAuliffe
by Howard McAuliffe, Partner, Pinnacle Entertainment Group
If there’s one thing we’ve all learned in this industry, it’s that change is constant. Whether it’s the shift from mechanical to digital, the rise of redemption games or the growth of virtual reality, every decade brings new challenges and opportunities. The key to surviving — and thriving — is being adaptable while keeping the core of what makes this business special: fun.
As we look to the future, the pace of change is only speeding up. But instead of worrying about disruption, we should be focused on embracing innovation and evolving our operations to meet the needs of today’s customers.
Customer Expectations
In the past, the arcade was a simple, straightforward entertainment option. People came for the games — pure and simple. But today’s players are looking for something more because they have great games at home for less cost. They want experiences, not just interactions with machines. They expect high-quality service, engaging environments and a social connection.
Typically, an arcade is not enough. The arcade usually should be attached to an anchor like a movie theater, bowling center or tourist attraction, and increasingly this also includes restaurant quality food. You need to think about everything that surrounds those games: the layout, the atmosphere and the ways players engage with each other. Integrating family entertainment center elements, including food and beverage is essential to success.
Consider your guest’s journey from the moment they walk in the door. How easy is it to navigate the space? How does the lighting make them feel? Are they encouraged to play longer and explore different attractions? How are you testing and measuring the results of all of the above?
Tech is Changing the Game (Again)
One of the most exciting developments in our industry is the ongoing revolution in technology. Cashless payment systems have been a game-changer, but that’s just the beginning. The rise of big data, AI and smart systems will reshape how we do business. Operators now have unprecedented access to data on player behavior, machine performance and revenue trends in their facilities. Learning how to use new technology will increase the ability to analyze and use this data.
But here’s the thing: Most operators aren’t even using the data they already have, much less looking for ways to use it better. Most operators sit on a goldmine of information but are not using it to its full potential. We should be leveraging our card system data to fine-tune our game mix, personalize promotions and optimize machine placements for maximum engagement. In today’s world, the ability to make data-driven decisions is what will separate the winners from the rest of the pack.
What’s Next?
As we move forward, the future of the amusement industry will likely be driven by a mix of technology, innovation and customer-centric experiences. The ability to adapt and evolve will determine who thrives and who falls behind. In my 20+ years in this business, I’ve seen countless changes, but the one constant is that the operators who embrace change, prioritize the guest experience and use data-based testing to make decisions, are the ones who come out ahead.
We’re at a moment in history where the traditional arcade has morphed into something much larger and more dynamic. Those who recognize the shifts and move with them will be the leaders of tomorrow’s entertainment landscape. The rest? Well, they’ll be left behind.
So, my advice to you is to stay curious, keep learning and always be ready for what’s next. The future is bright for those who are willing to evolve with it. Let’s keep the fun going.
Howard McAuliffe loves to imagine and implement new products, business models, and ideas, and is a partner in Pinnacle Entertainment Group Inc. He’s an industry veteran who got his start in the business when he was just 16 and has 20 years of expertise in product development, as well as FEC and route operations. Howard’s wife Reem and young son Sami are the center of life outside of work. When he’s not working, Howard can be found enjoying the outdoors, hiking, fishing and mountaineering. Traveling anywhere new or to old favorites like the American West is a passion. Readers can visit www.grouppinnacle.com for more information or contact Howard at [email protected], he welcomes positive as well as constructive feedback and counterpoints.
