1/11/06

“Big Winnings for Las Vegas AMOA! – Part 2.” (#515)

Stinger REPORT Skinny!

(29/09/06) In this SECOND part of The Stinger Reports coverage of the Amusement and Music Operators Association (AMOA); this feature turns the spotlight onto the technology on show presenting the movements in technological applications ranging from Pay-to-Play, Touchscreen, and Jukeboxes, while the impact to the Pinball scene and current releases by recent world news was charted; this months feature ending with trade Association questioning receiving major scrutiny from members looking at the future of the market.

Main REPORT:

In this second feature on the makers and shakers at the exhibition – one of these developments we have charted an unusual aspect of the amusement scene on show at AMOA’06 with terminal or stand-alone Internet Pay-to-Play gaming kiosks. Looking at both amusement but retail and hospitality deployment; a number of these systems seen gathered at AMOA for the first time.

ZOOX – Another of the new bright-eyed start-ups on the show floor, the company showed ‘ZAZOOX Station’ (PC Hardware), a pay-to-use turnkey system that offers a Multiple-Player Online games. The company proposes to tap into the $500million online game market for PC content. Already establishing 300 stations in circulation, the ZOOX Station is a wholly-owned subsidiary of KIOSK Information Services.

From their 2004 ASI appearance, much development has gone on and Coincepts presented their new ‘TimeCade’ (PC Hardware) system. Based on the company’s extensive home gaming cabinet business, they showed their home games and LAN games platform for the pay-for-play market. Launched at AMOA the system offered a means for operators to look at cashing in on the LAN and MMOG sector as has been attempted before – the system also supporting Xbox and Xbox 360 platforms.

Another new developer was the Canadian XGAMES360. The company showed a system that resembled the terminal style of the touchscreen market, but with dual LCD displays for four-player action. The ‘XGAMES360 EED’ (Xbox360) using the Microsoft software and hardware environment to create a compelling pay-to-play. The system was still in an early form of production, but offered an interesting alternative to the upright platforms from ZOOX and Coincepts.

The Stinger has asked a number of questions of these companies on the obtaining of a license from the home game content providers and platform manufacturers for permission to use their games in public space - and we await confirmation of these licenses. One source revealed that the TimeCade’s delayed launch was influences by pressure from one such party. With some of these systems claiming 100's of console titles available, it would seem doubtful that all consent has been acquired.

Indeed, one XGAMES360 spokesman at their booth stated that no licenses were needed! This spokesman claimed that the company was using the same revenue model as video stores that rent software for people to play at home. If that is indeed the company’s position, it is not the first (and will not be the last) blatant refusal to acknowledge (or understand) the difference between personal use and public performance for copyright purposes. At any rate, XGAMES360 personnel also stated they only have a couple of prototypes and will not enter production until sufficient orders (and deposits or down payments) are in hand to finance actual building of machines.

Jukeboxes, Touchscreens and others….

The need for an extensive support of the changing jukebox market was marked with a vast increase in connectivity in the market. The first of the powerful broadband-enabled systems showed their promise at the event with the inroads achieved, with Merit following on their launch of the ‘MoDBox’ – while established developers such as NSM show new lines such as the ‘Icon’ wall unit – TouchTunes and Rowe also making strong showings in this sector. Ecast also up the ante of the market with news of location testing of their new music video platform to support their extensive download content; supporting the wireless hardware platform.

The investment in the hospitality / amusement crossover was in evidence at AMOA. New contender to the sector Barden Entertainment and their ‘Ten-O-Six’ wall unit offered a new spin on an establishing sector of broadband units with over 1,000 music tracks and 2,000 music video plays. It is the element of the video jukebox that appears again as a factor of the market’s future.

In the downloadable content sector, one newcomer started a mini-stir. The new developer Jukebox Sports Network showed the ‘PlayMaker’ touchscreen wall unit. Brining downloadable video of sports fixtures and plays to the bar market. This represents a move towards non-musical, pay-to-watch content that has been hinted at for sometime. (Certain touchscreen countertop products have offered this sort of content in the past on a limited basis, but never found strong customer demand.) The amusement sector possibly superseded by the hospitality scene for this style of product, able to take credit card payment and offering a mixed selection of the most popular sports products.

The touchscreen market has grown over the years and looks to be about to go through yet another evolution. The appearance of the European giant FunWorld A.G. in America was an important factor in the market, with the appearance of the ‘Pro Generation Photo Play’ (PC Hardware) touchscreen; the popularity of the Austrian system brought to the American players by Bulldog Entertainment Network. Placing the cat amongst the pigeons with this European appearance, the American market tried to catch up.

The key competitors were JVL with their ‘Retro’ (PC Hardware) system offering unusual 50’s styling for the hospitality market. Costal Amusement showed to the trade their ‘NEXUS’ (PC Hardware) touchscreen that hopes to fit into the cost-effective sector of the small venue operator with extreme pricing. American powerhouse Merit showed their existing range, plus one cosmetic update to a countertop touchscreen cabinet, but also offered to operators a comprehensive selection of new game content for the 2007 season.

On the novelty aspects of AMOA was the appearance of last year’s start-up company Robotic Amusement, who presented the production version of ‘Robo Basho’. As previewed, the completed coin-operated miniature boxing game offers remote controlled robots in a three-player cabinet resembling a crane cabinet. Continuing the move of robot gaming into the amusement sector (see Stinger #494) this new entrant proved an interesting development. 

The popularity of other more-established sectors of the market were reflected by STERN and their extensive pinball products. The company’s 'Pirates of the Caribbean' title proved a draw, and the company also continued to present their own non-connected tournament machine feature between tables that has expanded the application of pinball in all walks of the amusement sector; however 2007 could see an expansion of the video pin table as UltraCade and TAB increase their marketing push of their respective systems.

Breaking Stinger News – The Pinball industry, though small, is still able to make inroads into the resurgence of the amusement economy. This gradual rebirth was however been dealt a blow with the untimely death of TV presenter and self-made naturalist Steve Irwin. His accidental death due to misadventure at the Great Barrier Reef off Australia saw great public sadness (and a sickening wave of attacks on Stingrays). But one aspect of his death has been an impact on a project that had been in development by the new start-up, Melbourne based The Pinball Factory.

The company had been in development of a pinball table called ‘The Crocodile Hunter’ – based on the Steve Irwin brand, with actual recorded audio clips from the presenter. The Pinball Factory – one of the first of a new wave of pinball manufacturers to enter the market in as many years -- had a full advance order book for the game, not only from their Australian clients but also from international interest, marketing having started.

The popularity of the subject matter adding to the interest, the Irwin brand supporting TV programs for his and his daughter’s activities, motion picture, and a zoo visitor centre. It has been reported by the respected Pinball News service that The Pinball Factory, having suspended the project, was still looking at possibly revisiting the project in the future, with a modified playing field and artwork now reflecting more conservational elements, but at this early moment they wanted all thoughts to go to Mr. Irwin’s family.

The American Association…

It was a momentous gathering at AMOA’06, not just for the exhibitors but also for the associations. The July ‘AAMA Distributors Gala’ event offered a great snapshot on what was on display in September – ‘AfterBurner Climax’ and ‘Virtua Tennis 3’ given first previews along with ‘Aliens Extermination’, ‘Ford Racing Full Blown’, ‘Flash Pool’ and ‘Wasteland Racer’ cabinets. But during this event it was the AAMA board of directors meeting at Gala (June, Chicago) that left its imprint on the Las Vegas September event.

Thanks to attendees and information from RePlay magazine, TSR has unprecedented commentary to the Gala gathering. In particular the committee and its members discussions regarding a need for the association to present the market and its members in the face of a downturn in player awareness; comments discussed the association sitting on over $4million in funds for a rainy day. Comments from the floor of the committee meeting suggested that it was already raining – time to utilize the rainy day provisions. And, let it be noted, this was the SECOND year in a row that these exact comments were made at the AAMA board meeting in Chicago!

A word of caution was sounded by the legal council represented at the gathering, especially that the need for capital to fight possible State challenges against violent video amusement or other issues that would need the hiring of legal representation had to be considered.

Regarding the ASI and exhibition status, it was confirmed that the Show Committee was evaluating all possibilities that included merger or other partnerships. Drawn back to Las Vegas following exhibitor and member pressure, the organizers of ASI however stated that a search for another conducive location was on going -- a rumor of a possible consideration of New Orleans leaked to Stinger sources. Continuing the concerns of the exhibition plans; committee members discussed concerns that members did not necessarily want the exhibition to make a profit for AAMA, but to build an industry.

Some of these same concerns were echoed at AMOA’06, as comments from the floor included calls for better industry publicity. The feeling over the AMOA experimental online trivia campaign was not one of high enthusiasm. But AMOA leaders do agree that something needs to be done to get the players back. This was also repeated in the outgoing AMOA president’s speech to attendees. The criticisms of the attempts at improved media and market information were compounded by certain association members throwing Stinger coverage in the faces of association executives.

Sources suggest to the Stinger that a planned attempt to counter The Stinger Reports’ popularity with a news and press release online service of their own – reporting an alternative view – was in development by sources linked to the AMOA. How this ‘spin’ on observations will pan out will be interesting, (it being reported as not an official association project, but a personal ‘pet-project’), especially receiving support from certain trade journals for copy! 

What Could this all Mean:
The feeling reported to the Stinger representatives at AMOA was that the show, although seeing a decline in attendance, saw a positive attitude that was more than just upbeat but excited. A large number of new games to purchase helped this – though a number of the expected attendees for Europe failed o make the trip, linked to pressures on air travel and international issues.

The movement by the new association members (and behind-the-scenes discussions on the publicity of the amusement sector internationally) did play a part in much of the background show noise. AAMA does appear determined to launch some major industry PR campaign, but specific plans (such as, possibly hiring a big PR firm) won’t be finalized until AAMA board members meet at the IAAPA Show, or perhaps later still. The pressure on ASI’07 to continue the momentum of an amusement market on the comeback trail will be great. If The London Show’s increased floor space attracts a larger audience to ATEI 2007, pressure on ASI to succeed will be even greater.