how to start a gaming zone business  

Key Learnings from the Article

1. Business Idea – Gaming Zone Business

The gaming industry started with the TV games.

  • TV Games – Mario and Contra.
  • Computer games – Pac-Man, Road Rash, Need for Speed, Shooting games, etc.
  • Smartphone games – Candy Crush, Ludo, PubG, etc.

Gaming platforms for hard-core game lovers are Play Station, Xbox, Nintendo Wii, etc. because of their:

  • Best performance
  • Best graphic
  • Better gaming control

The present worth of the ‘World Gaming Industry’ is $150 billion and it may cross $250 billion by 2025.

There are many countries wherein gaming is a full-fledged career option. The potential of the gaming industry is quite large, but in India, it is not properly explored.

2. Steps to Start a Gaming Zone Business

i. Licence: A licence is required to start a gaming zone business. It is acquired from the ‘Registration for Licensing and Controlling Places of Public Amusement’ after submitting the following documents:

  • 4 photos
  • NOC
  • Rent receipt

ii. Infrastructure: It should include:

  • A room divided into compartments
  • 5 monitors/TV screens
  • 5 consoles and controller
  • 5-7 popular games
  • 10 headphones
  • 2 employees
  • 5-7 tables
  • 10-15 chairs/bean bags
  • Canteen
  • 2 Air Conditioners

 iii. Capital expenditure (CAPEX): The capital expenditure includes the following:

Capital Expenses (CAPEX)Value (Rs.)
5 New Gaming Consoles125000
Cost of Original Games15000
Cost of 5 Screens25000
Cost of  10 Headphones10000
Cost of 2 air conditioners50000
Cost of Furniture20000

iv. Operational Expenditure (OPEX): The operational expenses include the following:

Operational Expenditure (OPEX)Value (Rs.)
1 helper salary12,000
Electricity bills20,000
Marketing cost5,000

v. Acquiring customers: The low-cost ideas to attract customers are:

a. Pamphlets: Print the pamphlet and distribute them in your locality, posh areas, and big colonies within your 10 kms radius.

b. Gaming competition: Announce a gaming competition e.g. colony 1 versus colony 2. This will spread the gaming business all over the colony. You can also get gifts sponsored by a big brand for the competition.

c. Online promotion: Do online promotion with Facebook ads when the business starts running well.

d. Host events: You can also host events. In this, customers book the space for the whole day like for birthday party or gaming competition. This increases your revenue.

vi. Costing:  You can charge Rs. 50 to Rs. 150 per game. The charges can be fixed on the following basis:

  • Rs. 50 per session with an average session of less than 15 minutes
  • Rs. 100 per session with an average session of 30 minutes
  • Rs. 150 for the average session of above 30 minutes

You will earn Rs. 2500 daily for 50 sessions per day at a rate of Rs. 50 per session.

Based on the above estimates, the monthly revenue will be Rs. 65,000.

The monthly footfall of customers will be 1300 with a daily footfall of 50 customers on 26 working days.

The monthly profit from beverages and snacks can be Rs. 6,000 to 7,000 if half out of the total people visiting you purchase them and you earn a profit of Rs. 10 per order.

vii. Quarterly revenue plan: The tables given below shows the revenue plan for the three months:

Quarterly Plan
Month 1
Month 1 Expense(Rs.)Month 1 Revenue(Rs.)
Setup Cost24500050 game sessions per day at Rs. 5065000
Rent15000Food profit per person @ 106500
Employee Salary12000  
Marketing cost5000  
Electricity Cost12000  
Total Cost289000 71500
Month 2
Month 2 Expense Month 2 Revenue 
Rent1500080 game sessions per day at Rs. 50104000
Employee Salary12000Food profit per person @ 1010400
Marketing cost5000  
Electricity Cost15000  
Total47000 114400
Month 3
Month 3 Expense Month 3 Revenue 
Rent15000120 game sessions per day at Rs. 50156000
Employee Salary15000Food profit per person @ 1015600
Marketing cost5000  
Electricity Cost20000  
Total55000 171600
Total Expenses for 3 Months391000Total Revenue for 3 Months357500

3. Important Factors of Gaming Zone Business

i. Location: Good footfall is required for gaming zone business. The location should be convenient for your target customers. The business will be good in a crowded area like:

  • Residential areas
  • Near colleges and schools

ii. Games latest collection: You should have a good and latest collection of games that generate interest among people. New games not only help in attracting new customers but also provide additional options to loyal customers.

iii. Affordable costing: The price of the games should be as per the affordability of the customers. High prices may not bring customers to the business.

Massive Action Plan

  • Before doing the investment in the business, watch the Bada Business video, ‘Hit or Flop.’
  • Evaluate gaming zone business for your area.

 Key Outcomes of the article

  • Obtain a licence from the ‘Registration for Licensing and Controlling Places of Public Amusement’ to start a gaming zone business
  • Do online promotion of your gaming zone business to attract customers
  • Charge affordable price from customers to get more customers   

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