stormblast
Forerunner
salluks said:
that is when you are buying the place outright. he is talking about rent so this scenario doesnt take place.
Business Case for a PS3 Cafe
- Thread starter spaulose
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that is when you are buying the place outright. he is talking about rent so this scenario doesnt take place.
1. 32 inch tv's got to go. 19-24 inch is the option.
2. Rent in a place filled with 10-15 ps3/tv will cost close to 1 lac. Don't forget the tax which you will be giving. It will be substantial.
3. Cheap membership of 500/1000 rs will do you damage. It will amount to nothing in the end.
4. Study the ways/business model of Reliance Webworld etc. Devote a few weeks to study the business models of gaming cafes. I read somewhere that their break even period was a 5 years as they opened a large no. of cafes(can't confirm). So, expect to break even after 1-2 years.
5. You should have a stable and good primary income. No two things about it. Only after 4-8 years or even more can you expect this to become a primary source of income.
6. You probably need upwards of 20-30 lacs.
7. XBOX 360's warranty is not valid if used in a commercial environment like a cafe. The same can hold for PS3 (but u confirm this as i don't know). So, if the PS3 goes kaput within the warranty then you may not get free replacement.
8. A tie up with Sony will help tremendously. I don't know if they do this or not.
Best of luck.
2. Rent in a place filled with 10-15 ps3/tv will cost close to 1 lac. Don't forget the tax which you will be giving. It will be substantial.
3. Cheap membership of 500/1000 rs will do you damage. It will amount to nothing in the end.
4. Study the ways/business model of Reliance Webworld etc. Devote a few weeks to study the business models of gaming cafes. I read somewhere that their break even period was a 5 years as they opened a large no. of cafes(can't confirm). So, expect to break even after 1-2 years.
5. You should have a stable and good primary income. No two things about it. Only after 4-8 years or even more can you expect this to become a primary source of income.
6. You probably need upwards of 20-30 lacs.
7. XBOX 360's warranty is not valid if used in a commercial environment like a cafe. The same can hold for PS3 (but u confirm this as i don't know). So, if the PS3 goes kaput within the warranty then you may not get free replacement.
8. A tie up with Sony will help tremendously. I don't know if they do this or not.
Best of luck.
choudharyankur
Apprentice
Don't have much input but i saw something similar came up in Hyderabad recently. They had gaming on one floor (PS3, XBOX, Wii and LAN via PC) and had food court on other floors.
I felt this model can sustain 'se food court brings in crowd which are casual gamers. You should contact various food retails and look for a floor in their building etc.
And get some Wii's too... casual gamers and kids digg it.
I felt this model can sustain 'se food court brings in crowd which are casual gamers. You should contact various food retails and look for a floor in their building etc.
And get some Wii's too... casual gamers and kids digg it.
I personally dont think that you will be able to get the desired returns from a plain-jane gaming cafe.
If you must go ahead with the idea, try to incorporate a small self-help snack section. It will be an added attraction for both serious and casual gamers and will also keep the earnest gamers logged in for longer. The add-in revenue from snacks and drinks should help too.
If you must go ahead with the idea, try to incorporate a small self-help snack section. It will be an added attraction for both serious and casual gamers and will also keep the earnest gamers logged in for longer. The add-in revenue from snacks and drinks should help too.
Bit confused with this query. Do you mean a PC based DVD to be played on a PS3? If yes, then it won't work. Each game is developed for it's own platform. So you won't be able to play a PC game in a PS3.spaulose said:
Here is my suggestion for your cafe.
These are the FACTS which i am stating after observing a gaming CAFE from past 4 years in my native.
1. Four years back, this guy started of with 10PCs with 5 PCs for internet and 5 for games.
2. He got the average/moderate AMD config for that time and all the accessories he got are of el cheapos.
i.e all the mouse, KB and headphones were from TECH COM & without any GPU.
3. In the gaming PCs he installed multiplayer games like CS and TF2 and others. People started coming to the cafe
and soon got addicted to the multiplayer games. He used to charge 15/- per hour.
4. Within 6 months, he started selling th pirated games for 100/-!!!, he also started printing document busines.
5. AFter an year, he bought 20 more computers with the GPU this time, the card was freakin 8400GS.
6. After another 6 months, he increased the facilities with cold water and snacks near the cafe.
7. After 2 years, he started pirated PS2 games with more computers.
8. Now he totally had 60 computers which covered an entire floor. He started installing all new games in all pCs.
9. Last year, he bought another 100 computers and an entire floor with full power backup from Deisel Generators.
10.At present, he has around 180 computers, with 150 for GAMING and 30 for internet surf.The computers have 9600 GPUs
with AMD setup with CRTs.
11.Almost all 150 gaming computers will be FULL during weekdays and during weekends you have to wait min half n hour to
get the system.Now he charges 10/- per hour.
12.He has also started selling GAMING stuff like games, mouse, KB etc.
What i like abt him is,
(+) Very good way of business expansion.
(+) Takes really good care of customers & also educates the noobs.
(+) Taken care abt the cooling of the system and power backup.
Not like abt him is,
(-) Charges insane prices for pirated games/other stuff like prints.
It is Ok to price that high coz there is nobody to compete. Imagine 2rupee for B/W print out and 15/- for colour print.
Friggin 200/- for pirated games which have 2 DVDs!! He doesn't do much there, just downloads the game, burns it in cheap
DVDs and take one colour print for the cover of the game sells it for 200/-.
His main source of income is from PCs & selling the games.
So, here is my suggestion for you.
1. Instead of making exclusive PS3 cafe, make it PC & PS3 cafe, may be 5 each.Don't bother XBox coz of RROD.
2. Get 22" LCDs with moderate/avg PC configs.Take care of cooling & power backup.
3. Get more of multiplayer/co-op games and you can also start selling the games or game library.
4. Take care of snacks & other stuff like furniture.
Hope that helped.
These are the FACTS which i am stating after observing a gaming CAFE from past 4 years in my native.
1. Four years back, this guy started of with 10PCs with 5 PCs for internet and 5 for games.
2. He got the average/moderate AMD config for that time and all the accessories he got are of el cheapos.
i.e all the mouse, KB and headphones were from TECH COM & without any GPU.
3. In the gaming PCs he installed multiplayer games like CS and TF2 and others. People started coming to the cafe
and soon got addicted to the multiplayer games. He used to charge 15/- per hour.
4. Within 6 months, he started selling th pirated games for 100/-!!!, he also started printing document busines.
5. AFter an year, he bought 20 more computers with the GPU this time, the card was freakin 8400GS.
6. After another 6 months, he increased the facilities with cold water and snacks near the cafe.
7. After 2 years, he started pirated PS2 games with more computers.
8. Now he totally had 60 computers which covered an entire floor. He started installing all new games in all pCs.
9. Last year, he bought another 100 computers and an entire floor with full power backup from Deisel Generators.
10.At present, he has around 180 computers, with 150 for GAMING and 30 for internet surf.The computers have 9600 GPUs
with AMD setup with CRTs.
11.Almost all 150 gaming computers will be FULL during weekdays and during weekends you have to wait min half n hour to
get the system.Now he charges 10/- per hour.
12.He has also started selling GAMING stuff like games, mouse, KB etc.
What i like abt him is,
(+) Very good way of business expansion.
(+) Takes really good care of customers & also educates the noobs.
(+) Taken care abt the cooling of the system and power backup.
Not like abt him is,
(-) Charges insane prices for pirated games/other stuff like prints.
It is Ok to price that high coz there is nobody to compete. Imagine 2rupee for B/W print out and 15/- for colour print.
Friggin 200/- for pirated games which have 2 DVDs!! He doesn't do much there, just downloads the game, burns it in cheap
DVDs and take one colour print for the cover of the game sells it for 200/-.
His main source of income is from PCs & selling the games.
So, here is my suggestion for you.
1. Instead of making exclusive PS3 cafe, make it PC & PS3 cafe, may be 5 each.Don't bother XBox coz of RROD.
2. Get 22" LCDs with moderate/avg PC configs.Take care of cooling & power backup.
3. Get more of multiplayer/co-op games and you can also start selling the games or game library.
4. Take care of snacks & other stuff like furniture.
Hope that helped.
If yu do get a decent location for a reasonable rent, you will get the revenues to make decent profit. However, be aware of the following expenses that makes the business worth a re-think.
Some of the expenses missed out are:
1. Insurance -- having all these expensive equipment it will be better to get some insurance. Anyone working in the insurance sector, who can provide the approz monthly premium for this?
2. Game Licenses -- Games available from shop are not for commercial use. I don't think EA or microsoft will come after you in the initial period. However, if it gets successful and you earn a lot of profit, you may be required to get commercial license for the games, which will cost you a lot. Anyone has any idea of commericial license for games from publishers??
Thanks.
Some of the expenses missed out are:
1. Insurance -- having all these expensive equipment it will be better to get some insurance. Anyone working in the insurance sector, who can provide the approz monthly premium for this?
2. Game Licenses -- Games available from shop are not for commercial use. I don't think EA or microsoft will come after you in the initial period. However, if it gets successful and you earn a lot of profit, you may be required to get commercial license for the games, which will cost you a lot. Anyone has any idea of commericial license for games from publishers??
Thanks.
Gannu said:
Unless it's an extremely huge cafe that he is planning on opening, he should be fine. We have cafe's out here with 4-5 Xbox 360's and couple of PS2's all running nothing but pirated stuff. Most of them either shut down (due to low profits) or relocate (due to space constraints). Not that I'm promoting the idea, but the cost would surely run high if he goes the legit way for each console. It depends on what kind of audience you're catering to and what amount they are ready to cough up. Not every location would have discreet/elite audience who comes to play only on next-generation consoles. Some just come for a casual gaming session and for them, a console like PS2 would also do the job.
satyanjoy
Explorer
internet cafe+gaming+snack bar will be a safer way to start the business instead of going solo with ps3 and only gaming.take a place nearby any good residential area or school or college and start with 5 pc and 2-3 ps3 and a litle snack bar with cold drinks,espresso coffe/tea,muffin etc.you can increase the number depending on how market responses.you can get legit used ps3 games at a cheap rates. I think being legit will be a safe practice - you just need to do the maths-spend-expand as per the result you are getting.
or else
you can try to tie up some other vendors (fast food center) which will further reduce the initial complexity and investment
or else
you can try to tie up some other vendors (fast food center) which will further reduce the initial complexity and investment
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