Restaurant/arcade operator GameWorks is revamping its seven locations with an emphasis on eSports and licensed game machines, CEO Philip Kaplan told us this week at the IAPPA Attractions Expo in Orlando. The 22-year-old chain, which peaked with 28 U.S. locations and ownership that included Sega and DreamWorks, has installed 2,000-sq. ft. eSports lounges at locations in Denver, Seattle and Las Vegas, where it has been conducting about 100 tournaments a month, says Kaplan, who joined the company last summer.

The sections, created by reconfiguring GameWorks stores that average 25,000 square feet, include 30 seats and PCs and videogame consoles. GameWorks plans to add the eSports areas to its other stores during the next few months, says Kaplan.

An emphasis on eSports, along with a renewed focus on licensed game machines featuring licensed properties are elements of the revival plan of new owner ExWorks. GameWorks had lagged under a series of ownerships, including most recently Atari Founder Nolan Bushnell’s Oomba, says Kaplan, who was a member of the Oomba board. Oomba purchased GameWorks in August 2017, with ExWorks as a minority investor. A year later, ExWorks bought out Oomba’s interest.

“Intellectual property is what drives this industry with the continued refresh of branded games and these brand properties have the benefit of consumer recognition,” says Kaplan, who added licenses account for the majority of GameWorks’ installed base, which average about 150 machines at each location.

Despite the infusion of funding from new owners, GameWorks has no immediate plans to expand, though Kaplan acknowledges the availability of lots of vacant mall real estate. Games account for about 60% of the chain’s annual revenue; food brings in the remainder.

GameWorks has no immediate plans to deploy virtual reality (VR) technology in its stores, despite rival Dave & Busters’ having added a “Jurassic World VR Expedition” game to its locations.

“Call me a VR skeptic, but we will only go there when our guests are truly adopting it,” says Kaplan. “Until then, we won’t be doing it because I don’t think it is there yet.”

Contact:

GameWorks, Philip Kaplan, CEO, 949-279-3014, pkaplan@gameworks.com