Revenue-Sharing vs. Game Ownership: Which Model is Right for You?

Revenue-Sharing vs. Game Ownership: Which Model is Right for You?

Player One Amusement Group |

When adding arcade games to your Family Entertainment Center (FEC) / Arcade, one of the biggest decisions is whether to own the games outright or partner with a revenue-sharing provider like Player One Amusement Group (P1AG). Both models have their advantages, but the right choice depends on your business goals, financial position, and long-term vision.

At P1AG, we offer both models, but we want to provide more context on how each works so you can make an informed decision based on data-driven insights rather than guesswork. After all, running an arcade shouldn't feel like rolling the dice in Vegas.

P1AG’s Revenue-Sharing & Arcade Game Ownership Approach

At P1AG, we don’t believe in a one-size-fits-all approach. That’s why we always start with a discovery process and business plan, working closely with our partners to ensure an arcade setup is mutually beneficial under a revenue-sharing agreement.

And here's something to consider—revenue sharing isn’t just for FECs / Arcades. If you have underutilized space in a high-traffic area, adding arcade games could be an easy, low-risk revenue generator. Maybe you don’t want to become an arcade expert, but you recognize an opportunity when you see one. That’s where P1AG comes in. We handle the games, service, and strategy, while you focus on your core business and enjoy a new stream of revenue.

Arcade Game Ownership: Pros, Risks, & Financial Considerations

If you purchase your arcade games outright, you gain full control over pricing, game rotation, and maintenance.

Advantages of Arcade Game Ownership for FECs / Arcades:
  • 💰 Long-Term Profit Potential – All arcade revenue generated goes directly to you.
  • 🎮 Complete Control – You decide on game selection, pricing, and placement, but this often relies on gut instinct rather than data-driven strategies.
  • 🚫 No Revenue Split – You keep 100% of the earnings once you’ve covered the initial investment, cost of borrowing, maintenance, and servicing.
  • 🎁 Prize Counter Control – Full oversight of redemption prize selection and inventory management.
Challenges of Owning Arcade Games in Your FEC / Arcade:
  • 💸 High Upfront Investment – Purchasing arcade games requires your own capital (or arcade financing) in what is essentially an experiment.
  • 🛠️ Ongoing Maintenance – Repairs and game upkeep are solely your responsibility.
  • 🔄 Game Longevity & Rotation Arcade market trends change, requiring continuous reinvestment.
  • 📉 Operational Distraction – Managing arcade operations, maintenance, and the redemption counter takes time and resources.
  • 🎯 Sourcing Prizing – Owners must source prizes for redemption counters and prize-based games, adding costs and logistics.

While outright arcade ownership gives you full control, it comes with added responsibility, financial risk, and ongoing investment to maintain a competitive arcade experience.

Why Revenue-Sharing with P1AG is a Smart Arcade Investment

With a revenue-sharing model, P1AG provides the games, handles maintenance, and works with you to maximize arcade revenue. Instead of an upfront purchase, you share a percentage of the earnings—but our expertise, data-driven game selection, and ongoing optimization often lead to a higher bottom line. 

Benefits of Revenue-Sharing for FECs / Arcade Operators:
  • 🚫 No Upfront Costs – Partner with P1AG and execute a tested, data-backed revenue model.
  • 🎮 Expert Game Selection & Rotation – We analyze arcade market trends and performance data to keep the best game mix in your FEC / Arcade.
  • 🛠️ Maintenance & Support Included – We handle service, repairs, and game updates with 24/7 support.
  • 🔄 Risk Reduction – No need to worry about depreciation or stale games—we swap out underperforming titles.
  • 🎁 One-Stop Shop for Prizing P1AG provides redemption counter and prize game merchandise, available through our website. No need to source prizes yourself!
  • 📈 Maximized Earnings with Expert Insights – While revenue is shared, our strategic game placement and ongoing optimization often lead to a stronger bottom line.
  • 🔄 Ongoing Game Reinvestment – We continuously upgrade and rotate games to keep your arcade competitive and engaging.
  • 🎯 Focus on Core Business – Instead of managing arcade operations, you can focus on guest experience, food and beverage sales, and growing your overall business.
Revenue-Sharing with P1AG: What You Need to Know:
  • 💲 Revenue is Shared, But Value is Maximized – Our expertise drives more traffic, repeat visits, and higher engagement, leading to a more profitable arcade overall.
  • 🤝 Collaborative Decision-Making – While you still have input, game selection and strategy are based on data-driven insights for maximum performance.

Revenue-Sharing vs. Arcade Ownership: Find the Best Model for You

At P1AG, we don’t just place games and walk away. We work together with FEC / Arcade owners and businesses to analyze traffic patterns, customer demographics, and revenue potential before deciding on the best arcade acquisition model for your business.

Whether you're considering arcade game ownership, revenue-sharing, or a mix of both, we’ll guide you through a free discovery process and help create a custom business plan that aligns with your revenue goals. 

📩 Get in touch today to explore the best arcade financing and game strategy for your FEC / Arcade!

 

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About P1AG

Player One Amusement Group is the leader in arcade gaming equipment sales, service, and rentals across North America. P1AG is your one stop shop for all the advice and equipment you need to make your business or home arcade thrive.

Our industry leading Revenue Share Partnership helps family entertainment centers, bars, restaurants, hotels and other facilities turn empty or under utilized spaces into revenue and smile generating machines with little to no capital required.