This first part of the report highlights the resurgence of retro arcade venues driven by nostalgia and social engagement, targeting audiences from Gen Z to older enthusiasts. Key trends include the rise of established chains like Barcade and UK’s NQ64, alongside emerging brands such as Cobra Arcade and Continue Arcades, expanding through franchising. Major operators are blending classic gaming with food, drinks, and entertainment, attracting investment. The market is highly competitive, with new entrants and franchising opportunities fueling growth. Main challenges include sourcing retro hardware and navigating legal issues, but the sector’s momentum suggests strong future potential for investors in retro-themed social entertainment. 

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On this week's show Brandon and Kevin join Rob Morgan, author of "Storytelling for Spatial Computing and Mixed Reality: The Art of Augmenting Imagination" and lead narrative designer at Wake the Tiger in London for a Guest Gab segment exploring the art of storytelling and spatial computing.

• Shifting from VR to AR storytelling and focusing on how AR makes players the protagonist
• Defining the differences between VR, AR, and MR, while acknowledging that exact definitions matter less than the audience experience
• Analysis of consumer VR market trends, including Sony's PSVR2 and Meta Quest adoption
• The value of location-based shared VR/MR experiences for entertainment venues
• Moving from consumer entertainment to location-based entertainment requires higher standards and more flexibility
• Creating stories where players see themselves in the narrative rather than controlling an avatar
• The challenge of maintaining audience engagement by giving them agency and freedom within the experience
• Drawing inspiration from immersive theater and role-playing to create more compelling spatial experiences

Check out Rob's book "Storytelling for Spatial Computing and Mixed Reality: The Art of Augmenting Imagination" on Amazon or at augmentingimagination.com with discount code DIS20 for 20% off when purchased directly from Routledge.

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This second report looks at the rapid growth of “Sportainment,” blending active, immersive, and gamified experiences across venues worldwide. Innovations include AR-enhanced virtual sports, interactive projection walls, and hybrid venues combining traditional sports with digital technology, such as golf simulators, trampoline parks, and social darts. The sector is expanding with chains like Five Iron Golf and Flight Club integrating hospitality and gamification, while new concepts like “Phygital” environments and eSports-driven facilities gain prominence. This trend signals a shift toward highly interactive, social, and health-conscious entertainment offerings, creating significant opportunities in sports tech, experiential venues, and hospitality integrations. 

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On this week's Sound Off with Kevin Williams, BW and Kevin explore the growing influence of "kidults" in the location-based entertainment industry and how their spending habits are reshaping business models. This demographic shift is forcing operators to rethink their attraction mix, F&B offerings, and overall venue design to capitalize on adults seeking playful experiences with premium food and drink options.

• Kidults (adults seeking entertainment experiences) now represent a major revenue source for many entertainment venues
• Traditional family entertainment centers are discovering that evening business is driven largely by adults without children
• Venues like Swingers and Playground are specifically designed to deliver experiences for the kidult demographic
• Even redemption models are evolving with prizes like shot glasses and adult-oriented merchandise replacing traditional toys
• Chuck E. Cheese is expanding beyond its traditional model with new active play facilities and arcade-only locations
• F1 Arcade is testing a smaller-footprint concept called F1 Box with 12 racing simulators but minimal F&B offerings
• Japanese amusement sector remains vibrant with Silk Hat taking over the iconic Akihabara location
• AI integration is becoming mainstream with Chuck E. Cheese implementing an AI chatbot for customer service
• The XR consumer market is shifting from VR headsets toward AR and mixed reality glasses
• Location-based entertainment venues can differentiate by offering premium VR experiences not available at home

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Asian influence continues to reshape the Out-of-Home entertainment landscape, offering lucrative opportunities through Japanese brands, IP collaborations, and innovative retailtainment concepts. Notable developments include Sony's strategic alliance with BANDAI NAMCO to leverage anime and manga IP, expansion of Japanese-themed venues like Round 1 in the US, and the rollout of self-service capsule and VR attractions by GENDA and DIVR Labs. Japanese IPs such as Resident Evil and Contra are making waves in Western markets, while companies like SEGA diversify via transmedia strategies and new store formats. As Asian culture and IP become central to industry growth, Western operators face critical choices to capitalize or risk obsolescence. 

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On this week's LBX Show, BW dives into the latest location-based entertainment news including Ripley's new glow-in-the-dark mini golf at Icon Park and Merlin's rapid development of two new immersive experiences. Kevin Williams joins us for Open and Shut and Chuck DeMonte discusses the concept of value in attractions marketing with practical implementation strategies.

• Ripley's Crazy Golf opens at Icon Park, adding to Ripley's existing Orlando attractions
• Merlin Entertainment launches Wondra and Super Neon immersive experiences through new Merlin Magic Making division
• Camp partners with Universal for a Gabby's Dollhouse experience timed with theatrical release
• Levels Prague expands with 20,000 square feet but uses AI images in marketing to its detriment
• Kevin Williams' Open and Shut segment covers F1 Box, retro arcades, and sports stadia adding entertainment
• Valo Motion introduces smaller four-player Valo Arena option
• Chuck DeMonte shares marketing strategies focusing on highlighting value propositions

Check out Sound Off #88 with Kevin Williams coming out Tuesday, August 26. Next week's LBX Show will be on hiatus as Brandon backpacks Havasupai at the bottom of the Grand Canyon.

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The evolving sports social entertainment sector, driven by "Sportainment" and SSE, is experiencing rapid growth through immersive active experiences like cricket, baseball, and soccer simulations. Key trends include venue expansions, innovative gamified sports tech, and strategic investments, notably in chains like SIXES, Batbox, and TOCA Social, which blend physical activity with social dining. The sector is expanding globally, with significant developments in the US, UK, and Asia, integrating VR, projection tech, and active play to appeal to younger audiences. This shift reflects a broader move toward experience-led venues that combine active participation, entertainment, and social engagement, presenting lucrative opportunities for investors aligned with the growing "active entertainment" wave. 

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The VR and XR industry is undergoing a significant shift marked by widespread hardware and content abandonment, driven by escalating costs and shifting corporate strategies. Major players like Meta, Microsoft, and Magic Leap are retreating from consumer-focused VR, with support for key headsets and IPs withdrawn or scaled back. Meanwhile, enterprise hardware firms like Varjo are refocusing on B2B markets, and new AR-smart glasses from HTC and others signal a pivot toward augmented reality. Despite substantial losses—particularly Meta's $4.5 billion quarterly deficit—the industry is evolving, with upcoming events like Meta’s CONNECT 2025 poised to determine whether VR remains a viable consumer platform or transitions into a niche segment within the broader immersive ecosystem.

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On this week's episode of Sound Off with Kevin Williams we explore how location-based entertainment venues are fundamentally mispricing their offerings, with inconsistent strategies for their attractions compared to their standardized food pricing approaches.

• Significant pricing inconsistencies exist across entertainment offerings at major venues
• Food pricing shows standardization while entertainment pricing varies widely without clear rationale
• TopGolf CEO's unexpected departure creates uncertainty around the planned Callaway spinoff
• Round One announces ambitious plans to reach 200 North American locations by 2030
• Dave & Buster's expanding internationally into India, Dominican Republic, Australia and Mexico
• Shopping malls integrating entertainment experiences like Museum of Illusions and Sandbox VR
• Sega developing "FOG Gaming" - a cloud-based platform leveraging arcade machines as networked supercomputers
• Space Invaders being developed into a motion picture following Sonic's success
• AI systems now track customer behavior and staff efficiency using Lean principles

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On this week's episode of The LBX Show we share new industry association partnerships and market developments during the traditional summer slowdown of the dog days of August. Kevin Williams, Adam Pratt, and Chuck DeMonte join host Brandon Wiley to explore the latest FEC innovations and marketing strategies.

• Fun Across America releases episodes on Albatross, the world's largest indoor mini-golf course, as well as America's largest candy store
• IATP partners with ROLLER as preferred point-of-sale provider for members
• IAAPA announces collaborations with Licensing International and Study Academy USA for educational platforms
• Intercard forms partnerships with GateMaster Technologies and GoTab for integrated arcade operations
• TimeZone continues expansion with new locations in Indonesia and New Zealand
• Mexican cinema chain CineMex upgrading facilities with "cinetainment" components
• Fair Games opens second carnival-themed competitive socializing venue in London
• Kiddleton (owned by Genda) begins converting former NEN arcade locations
• VR entertainment sector sees expansion with Zero Latency, Sandbox VR, and Front Grid installations
• Resident Evil 2 Deadshot arcade game undergoes location testing in UK
• Fast and Furious Arcade being ported to home consoles despite still being in production
• Search campaigns deliver highest ROI for FEC Google Ads compared to other campaign types

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