The arcade and FEC industry are set to level up in 2025. As we navigate 2025, FECs and arcade operators are focusing on immersive experiences, sustainable practices, and innovative business models to attract, delight, and retain guests.
Here’s a closer look at what’s ahead, supported by industry insights, growth trends, and exciting innovations shaping the future of family entertainment in 2025 and beyond.
In This Blog:
- Arcade Games Drive Success: With the global arcade gaming market projected to reach USD 16.36 billion by 2029, games like claw machines, pushers, and air hockey remain the cornerstone of Family Entertainment Centers (FECs).
- Revenue-Sharing Models Transform Operations: Partnerships like those with Player One Amusement Group (P1AG) provide FECs access to cutting-edge games and expert support, reducing operational burdens and boosting profitability.
- Movie Releases Boost Arcade Play: The 2025 lineup movie releases are expected to drive increased arcade attendance as families combine movie nights with visits to FECs.
- Sustainability Shapes the Future: Eco-conscious initiatives like energy-efficient games and waste reduction are gaining traction, aligning with consumer values.
- Community Engagement Is Key: North America accounted for 40% of the global FEC market in 2024, emphasizing the importance of community-focused operations to build loyalty and boost attendance.
Arcades are the Backbone of Family Entertainment Centers (FECs)
Arcade games (like racing, shooters, VR, fighting, etc.), claw machines, prize drops, pinball, air hockey, and more remain the backbone of successful Family Entertainment Centers (FECs), driving guest satisfaction and repeat visits. According to market reports, the global arcade gaming market is projected to expand from USD 13.61 billion in 2024 to USD 13.73 billion in 2025, with continued growth expected to reach USD 16.36 billion by 2029 (source: The Business Research Company). This is a big chunk of the total 110-billion-dollar FEC market expected by 2030 (up from 52.35 billion in 2024) (source: Research and Markets). In 2025, operators are doubling down on curating a mix of timeless favorites and cutting-edge titles to keep guests coming back and revenues strong.
Immersive Experiences in FECs: The Next Level of Entertainment
While games are essential, FECs are also investing heavily in multi-sensory attractions. From augmented reality (AR) games to escape rooms and virtual reality (VR) arenas, the emphasis is on providing experiences that enhance the traditional arcade offering. Think less "game night" and more "wow, did that just happen?" - Instagram shareworthy moments.
Guests want more than just entertainment—they’re looking for fully immersive, unforgettable moments. This shift aligns with evolving consumer expectations for entertainment that combines technology, storytelling, and social interaction.
Sustainable Practices in Arcade and Family Entertainment Centers
As eco-consciousness becomes mainstream, FECs are embracing sustainability in operations. Think LED lighting, energy-efficient games that can cut energy usage by up to 50%, and waste reduction programs that lower environmental impact without sacrificing fun. Many operators are also partnering with local communities to promote green initiatives. Because who says saving the planet can’t be part of the fun?
Sustainability isn’t just a trend—it’s a business imperative. Sustainability has been a central theme at IAAPA, reflecting its growing importance in the industry. We believe customers increasingly recognize and support businesses that align with their own values, including a commitment to sustainability.
Revenue-Sharing Models: A Game-Changer for FEC and Arcade Profitability
Revenue-sharing models are gaining traction as operators explore ways to mitigate risk and maximize returns. By partnering with companies like P1AG, FECs can access the latest games and operational expertise without the upfront costs of traditional ownership.
Revenue-sharing lets operators stay competitive while minimizing financial strain. It’s a win-win! At P1AG, we take care of everything from machine maintenance and game rotation to prize fulfillment and operational strategy. This allows operators to focus on delivering a fantastic guest experience.
- Michael Williams, Director of Marketing at Player One Amusement Group (P1AG)
Movies and Arcades: The Perfect Entertainment Duo
2025 promises an exciting lineup of movie releases that are expected to boost arcade foot traffic and gameplay, including:
- Paddington in Peru (January 17, 2025)
- Wolf Man (January 17, 2025)
- Dog Man (January 31, 2025)
- Captain America: Brave New World (February 14, 2025)
- Disney's Snow White (March 21, 2025)
- The Electric State (March 14, 2025)
- Mickey 17 (March 7, 2025)
- A Minecraft Movie (April 4, 2025)
- Deadpool 3 (May 2, 2025)
- Marvel's Avengers: The Kang Dynasty (May 1, 2025)
- Lilo & Stitch (May 23, 2025)
- Elio (June 13, 2025)
- M3GAN 2.0 (June 27, 2025)
- How to Train Your Dragon (June 13, 2025)
- F1 (June 6, 2025)
- Superman: Legacy (July 11, 2025)
- Jurassic World Rebirth (July 2, 2025)
- The Fantastic Four: First Steps (July 25, 2025)
- The Bad Guys 2 (August 1, 2025)
- Freakier Friday (August 8, 2025)
- TRON: Ares (October 2025)
- Mortal Kombat 2 (October 3, 2025)
- The Conjuring: Last Rites (September 5, 2025)
- The Bride! (September 26, 2025)
- Mission: Impossible – The Final Reckoning (November 7, 2025)
- Predator: Badlands (November 7, 2025)
- Zootopia 2 (November 28, 2025)
- Wicked: For Good (November 21, 2025)
- Five Nights at Freddy's 2 (December 5, 2025)
- The Smurfs Movie (December 19, 2025)
- Avatar: Fire and Ash (December 19, 2025)
- Sonic the Hedgehog 3 (December 20, 2025)
- The SpongeBob Movie: Search for SquarePants (December 26, 2025)
- Anaconda (December 25, 2025)
These movies are expected to drive increased arcade gameplay as families embrace "movies and games" nights out. It’s the ultimate double feature: popcorn and games. Urbanization continues to drive demand for leisure activities, giving FECs a unique chance to create all-in-one entertainment experiences. By aligning promotions, themed events, and game offerings with blockbuster releases, FEC operators can tap into this synergy to attract both new and repeat visitors.
Community-Focused FECs: Building Local Engagement
The FEC of the future is a hub for local communities, emphasizing community-focused operations and local engagement in Family Entertainment Centers to foster deeper connections. Operators are leaning into this by hosting events like gaming tournaments, offering educational programs for kids, and creating spaces that encourage social bonding. It’s about turning FECs into vibrant hubs for connection and celebration. Think of it as the modern-day town square—but with more claw machines. North America alone accounted for over 40% of the global family entertainment center market revenue in 2024, emphasizing the importance of community engagement in driving FEC success (source: Cognitive Market Research).
Key Challenges and Solutions for FEC Operators in 2025
While the outlook is bright, challenges remain. Rising operational costs and labor shortages are ongoing concerns. Operators are tackling these issues with automation, cross-training staff, and leveraging data to optimize every aspect of their business.
Additionally, operators can address these challenges by leveraging revenue-sharing models through P1AG, a strategy that not only ensures access to the latest games but also helps operators stay ahead in a competitive market. Because let’s face it, less time fixing machines means more time high-fiving happy guests. With P1AG’s route operations team, much of the workload—like machine maintenance, game rotation, prize fulfillment, and more—is handled seamlessly, allowing operators to focus on enhancing guest experiences.
"The Family Entertainment Center industry is heading into an exciting future. It’s encouraging to see so many operators preparing for 2025 with confidence and ambition. The industry is evolving quickly, and we’re proud to work alongside our partners to navigate these changes and thrive. With innovative games and dedicated support, there’s so much potential ahead. P1AG is focused on helping our partners achieve their goals and make 2025 a standout year."
- John Kolliniatis, CEO at Player One Amusement Group (P1AG)
The FEC industry is evolving fast, with innovation and adaptability at the heart of its growth in 2025. Whether it’s creating immersive experiences, adopting sustainable practices, or offering a world-class selection of games, the focus is on delivering value to guests and communities alike.
Let’s build something unforgettable together. Connect with Player One Amusement Group to explore how we can help you make 2025 your best year yet.
