Over the last few years, we have seen a plethora of news articles about how virtual reality was going to save the classic arcade. The idea goes that the VR gear is too expensive for home users, therefore it creates an opportunity for operators to pony up the big dollars to buy it and kids indoor playground make their money back by charging per match to play it.
"While many high-end cans were released annually that can bring virtual-reality adventures to your living space, adoption of this technology is still in its first days for a bunch of reasons--it's still bulky, pricey, and there is not all that much to do once you've got it on your face. Over two million headsets were shipped worldwide in 2016, according to a quote from market researcher Canalys, but this figure pales compared to the prevalence of, say, video game consoles (earnings of their leading one, Sony's PS4, topped six million throughout the 2016 holiday season alone). Consumer virtual reality will probably catch on as costs come down and cans improve. Meanwhile, however, a number of companies are betting that customers could possibly be pleased to pay a much smaller sum to try out the technology with their buddies at, say, an arcade, theme park, or even bowling alley."
It is tempting to dive into this trap, but from an operator's perspective VR is a terrible deal. Operators are being requested to pay top dollar for tech that is all but guaranteed to plummet in value within the very short term. Aside from buying a brand new vehicle and driving it a time, I can not think of a way you could eliminate money quicker between what you pay and what you will be able to get down the road.
Another limit for operators is that while you might have the ability to provide a space for VR people to wander around in today, as new VR technology is unveiled, we are likely to find the stage expanded from 100 square feet to the entire world. Rather than viewing just the games in your headset, you'll see the real world with game play overlayed. As the technology allows more actual world places to be researched, it's going to make a cramped arcade seem pretty feeble in comparison.
VR is already heading for mass market acceptance, however it's demand isn't being pushed by gamers who wish to pay big buck to play with video games, but like the BETAMAX that came before it, by people who want to watch pornography in their homes.
Even when an operator can make just a bit of money for the upcoming few years, once VR achieves critical mass, it is going to crush whatever revenue stream that operators're dreaming of. Do not believe me? Just check out what's happening in China.
This past year, an eye popping 35,000 virtual reality arcades opened in China. A year after 22,000 of these have closed.
This is an incredible failure rate over such a short time period and one that should serve as a sharp warning to anyone considering investing in the VR games. Perhaps Dave and Busters can afford to take losses on the games more than Chinese startup arcades, but I doubt that most North American operators will fare much better using the technology in their match rooms and will only wind up in debt at the close of the day.
The problem basically boils down to customers not being prepared to pay a premium to the experience. Tech In Asia, describes the issue perfectly in their own article, on the Chinese VR boom and bust.

"Enterprising shop owners leaping into VR are finding it impossible to bill fees comparable to cinemas or bowling alleys to get a VR experience. One VR arcade owner told iHeima he saw excited queues when charging US$1.50 to get a 30-minute session, but everybody disappeared when it rose to US$5. By that sort of revenue it's not possible to cover the rent."
Even if the game was sold out all day, at $1.50 a half hour they are just earning $30 per day.
The real world data flowing in from China must serve as a canary in the quarter mines of North America. Operators who spend large amounts of money on elaborate VR setups will soon find their small VR rooms being substituted by the whole world for a stage. Since the setups get more expensive, smaller and more mobile, the virtual arcades will look more costly, bulky and restricted. I'd love to be proven wrong on this one, but I think that the arcade VR trend is more hype than hope.