Choosing the Right Equipment Mix for Your FEC: Arcades vs. Fitness Machines
When I'm helping operators plan their facility layouts—which I've done for maybe 40+ venues over the last three years—the question always comes up: Should we focus on arcade games, or should we add fitness-style equipment like rowing machines or ellipticals?
It sounds like a simple choice. But get it wrong, and you're either looking at empty machines or a space that doesn't pull repeat visitors. Let me walk you through the real trade-offs, based on actual performance data and a few mistakes I've seen (and made).
I'll compare arcade machines (think racing games, ticket redemption, and premium cabinets from Bandai Namco and others) against fitness-oriented equipment (rowing machines, ellipticals, and similar). We'll look at four key dimensions: visitor appeal, revenue per square foot, maintenance and operations, and how each fits into a modern FEC strategy.
Dimension 1: Visitor Appeal – The "Want to Play" Factor
This is the most obvious difference, but also the one where operators make the biggest mistake.
Arcade machines—especially racing games and immersive cabinets—have built-in appeal. You walk past a Bandai Namco racing games arcade cabinet, you hear the engine sounds, you see the motion seat. You want to try it. That's not marketing; that's instinct. In my experience, a well-placed racing game can draw first-time visitors who had no intention of spending money.
Rowing machines and ellipticals have the opposite problem. They look like work. Most casual visitors—especially families with kids—will walk right past them. I've seen a facility spend $12,000 on three commercial-grade rowing machines, and in six months, the total play time was less than what a single arcade cabinet generates in two weekends.
But here's where it gets interesting. (Should mention: this is for the family entertainment market. For serious fitness centers, it's reversed.) The appeal of fitness machines depends entirely on your audience mix. If you're targeting competitive groups—like corporate team-building or youth sports teams—a rowing machine challenge can actually be a draw. But for casual drop-in traffic? Arcades win, no contest.
Verdict: Arcade machines have broader immediate appeal. Fitness machines only work for specific audience segments.
Dimension 2: Revenue Per Square Foot – The Numbers
Let's get into the hard data. Based on Q3 2024 operational reports from five mid-size FECs I've worked with (circa 2024, at least), here's what the revenue per square foot looks like:
Arcade machines (average for racing and ticket redemption):
- Low performer: $45/sq ft/year
- Average: $78/sq ft/year
- Top performer: $120+/sq ft/year—no, wait, I've seen one hit $145, but that was a special event setup.
Fitness equipment (rowing machines and ellipticals, when used as paid attractions):
- Low performer: $8/sq ft/year
- Average: $22/sq ft/year
- Top performer: $35/sq ft/year (and that required organized competitions)
The gap is stark. But there's a caveat: fitness equipment can be part of a membership or subscription model, which changes the math. If you're charging $50/month for unlimited access, and the equipment brings in recurring revenue, the per-square-foot numbers improve—but only if you have enough members.
I should add that these revenue figures don't account for elliptical exercise machine depreciation. Arcade machines depreciate over 5-7 years, but fitness equipment often needs replacement in 3-5 years with heavy use. That changes the total cost picture.
Verdict: Arcade machines generate significantly higher revenue per square foot for most FEC models.
Dimension 3: Maintenance and Operations – The Hidden Costs
Here's where fitness equipment gets trickier than most operators expect. (I should mention: I learned this the hard way.)
Arcade machines from reputable providers like Bandai Namco video games division have relatively predictable maintenance:
- Button and joystick replacements: every 6-12 months
- Screen calibration: annually
- Software updates: as released
- Major repairs: typically 1-2 per machine over its lifetime
The cost is around $200-400 per machine per year. Not nothing, but predictable. And most issues are fixable in-house if you have a staff member with basic electronics skills.
Fitness machines—I'm talking about commercial elliptical exercise machines and rowing machines—have different needs. Let me walk you through what I've seen:
We didn't have a formal maintenance schedule for our fitness equipment. Cost us when a $3,000 rowing machine had a belt failure after just 14 months. The replacement belt was $180, but the labor and downtime added another $400. We'd just assumed they'd last longer because they looked solid.
What about the elliptical exercise machine? Fairly similar: moving parts wear out faster than you'd think. The third time we ordered the wrong replacement pulley, I finally created a detailed parts database. Should have done it after the first time.
Here's the real kicker: fitness equipment requires cleaning protocols that arcade machines don't. Sweat, dust, and general use mean daily sanitizing. If you skip it, machines look grimy fast, and visitors won't want to touch them. That's a staffing cost operators often forget.
Verdict: Arcade machines have lower and more predictable maintenance costs than fitness equipment.
Dimension 4: Strategic Fit – The Long View
Okay, so arcade machines outperform fitness equipment on appeal and revenue. Does that mean fitness machines have no place in an FEC? Not exactly.
I've seen a few operators succeed with fitness equipment by positioning it differently:
- Tournament model: Running rowing machine competitions (like how do you play card game 31 but physical). Top scores get prizes. This makes the equipment a social draw, not just exercise.
- Membership perk: Including fitness areas as part of a monthly membership package. This creates recurring revenue that arcades don't provide.
- Adult-focused zones: In facilities where 60%+ of revenue comes from adults (not families), fitness equipment can be a differentiator against other FECs.
But here's the caution I always give (and wish someone had given me): don't add fitness equipment unless you have a clear plan for how visitors will use it repeatedly. If you just install a rowing machine next to the arcade, it'll collect dust.
I knew I should research the operational model before buying those three rowing machines, but thought "people want to be healthy, right?" Well, I was right about the desire, but wrong about the execution without proper programming. The machines sat idle until we started running weekly challenge events—which then required staff to run them. The margin disappeared.
Verdict: Fitness equipment can work strategically, but only with dedicated programming and audience targeting.
So What Should You Actually Do?
Here's my practical advice, based on what I've seen work across different facility types:
For a typical family entertainment center (targeting families and casual visitors):
- Invest 80-90% of your equipment budget in arcade machines, especially premium racing games and interactive cabinets. Bandai Namco racing games arcade consistently perform well across markets.
- Consider 1-2 fitness machines only if you have a programming plan (challenges, tournaments).
- Don't expect fitness equipment to be a revenue driver—treat it as an amenity.
For a facility targeting adults or corporate groups:
- A 50-50 split could work, but only if you build social mechanics around the fitness equipment.
- Rowing machine challenges paired with score leaderboards can work well for this audience.
- Still keep arcade machines as your primary revenue generator.
What to avoid at all costs:
- Installing fitness equipment without a usage plan.
- Expecting comparable ROI from fitness machines vs. arcade games.
- Buying cheap fitness equipment—commercial grade only, or you'll be replacing it in 2 years.
Pricing as of December 2024: A premium Bandai Namco racing cabinet runs $8,000-$15,000. A commercial rowing machine is $2,500-$5,000. The arcade machine will likely generate 3-5x the annual revenue per square foot. But the rowing machine might help you attract a different audience. The question is: which audience is actually in your market?
Based on my experience, most FECs are better off doubling down on arcades and adding fitness equipment as a tested add-on rather than a core attraction. But if your data says otherwise—and I've been wrong before—run your own pilot. Just don't buy three machines and hope.
