Feature: Ctrl V VR the champions


Canadian arcade specialist Ctrl V is betting big on virtual reality opening arcades across the country, offering a variety of games and other experiences. Michael Mascioni found out more…


The company chose the Vive system


arisen about the viability of those arcades. Will they be evanescent novelties or will they become truly sustainable businesses? They also face major challenges in terms of hygiene and operational issues.


A VR arcades are spreading more


rapidly in Asia, particularly China, due to higher demand and greater support by VR hardware and software companies and some leisure facilities there. For example, HTC claims it will launch “thousands” of Viveport VR arcades in China and Taiwan by the end of 2017, and will also add those arcades soon in the US and Europe. VR arcade activity in North America has been more limited, though it is starting to pick up. With a mad rush to VR arcades on the horizon, there is a real risk that many VR arcades may succumb to haphazard execution, direction, and implementation. But some new models are spotlighting more promising paths for VR arcades. One of


February 2017


s VR arcades begin to sprout up around the world, questions have naturally


those is being developed by Ctrl V, based in Waterloo, Ontario. The company has developed a


multifaceted business approach that involves extensive testing of VR games and experiences, pooling of resources with an educational institution, judicious expansion into such new markets as movie theatres, creation of a healthier facility, and the development of a compelling internal user interface. Kevin Williams, founder of out-of- home interactive entertainment consultancy KWP, contends “Ctrl V has developed a strong brand and business model on which to build a franchise,” which parallels the approach of early LAN Centers in such ways as charging users for ‘renting time’ on their VR stations. Ctrl V currently operates two arcades in Waterloo and Guelph, Ontario, and will open eight more in the next year, including arcades in Red Deer, Calgary, and Lethbridge, Alberta, and within Saskatchewan and British Columbia, according to Kevin Brooks, Ctrl V’s CEO.


for its facilities because of its “much larger selection of content, elimination of latency problems, and built-in features preventing users from running into real walls,” he explains. Currently, Ctrl V offers 30 game titles at its arcades, including Job Simulator, Space Pirate Trainer, Smash Box Arena, and Universe Sandbox. Job Simulator and Smash Box Arena have been some of the most popular titles, and the multiplayer games have been particularly popular, reports Brooks. According to Brooks, “over 13,000 unique customers have visited the Waterloo arcade.” Customers are charged $25 an hour (Canadian) to play games in the arcade. Unlike most arcades, Ctrl V “icenses content per minute of play to improve cost efficiency at its arcades and reward developers of better performing content. Surprisingly, Ctrl V’s customers are older than expected.


“45 per cent of our customers are


over 26,” and only “20 per cent are in the 18-25 range,” says Brooks. The company has made a major


move in cinemas through partnerships with Landmark Cinemas and Cineplex in Canada. The company ran a three- month pilot with four VR game stations at Landmark’s Waterloo cinema in the fourth quarter of 2016. Ctrl V has also added VR game stations at Cineplex’s The Rec Room across from its cinema in Edmonton, Alberta. As Brooks explains, cinemas have become greatly dissatisfied with declining revenues from older arcade games and are seeking newer, more exciting games to include in their venues.


Although it’s too early to judge the long term success of Ctrl V’s arcades, the company is carving out an intriguing business model that has strong implications for the future of VR arcades.


www.globalamusementsandplay.com 19


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