David Snook takes a look at how and why the US market has moved on in recent times

There is no logical reason for it, but the American trade show was bubbling with vitality this year. The American Amusement Expo, held in Las Vegas in March, was my first US show trip for three years. Last time the show – it was the ASI then – oozed gloom and despondency. It should be remembered that three years ago was 2009 and it was a dreadful year for the entire international industry.

Nevertheless….why the transformation in 2012? Yes, the global economic recession has eased and markets are slowly emerging from it; but that is scant reason for the transformation of fortunes in the US business.

Most operators had expressed a demand for ‘something really new’ as a prerequisite to a future for the amusement industry in the US. But nothing ‘really new’ has emerged. In addition, the US leisure market has lurched still further in the direction of gambling, with more opportunities to gamble opening up as the official stance on the subject softens.

No-one offered a solution to the conundrum. No-one knew why the 2012 AAE was so positive. In the exhibition report I used a quote from Florida operator Robert Noell, who has a street operation and an FEC. I make no apologies for repeating it, as it offers validity: “Right now gas is $4 a gallon; I noticed that a box of cereal last week was $3.50 and this week it’s $5. How can folk cope with these costs to their everyday life and still afford to play games? Our street route is strongly aligned to shopping outlets; we have kiddie rides, novelties and video games in supermarkets and other stores and folk have to walk past them twice, to get in and to get out.

“If they can resist that – if they choose to resist that – then operating a route is difficult anywhere. In the FEC it’s different, it is a destination; folk have to make a decision to visit to play. And we promote it heavily. Every couple of months we hold a $1,000 drawing and match that value with a donation to a local school. We give away four wristbands per family for three hours’ play plus a slice of pizza! We have $20 tied up in those families.

This market report can be read in full in the May 2012 issue of InterGame magazine.