Thursday, June 4, 1998
Arcade struggles to escape past debts
ASUCLA: Ackerman gaming room falls short of expected profit
goal
By Neal Narahara
Daily Bruin Contributor
ASUCLA overestimated profits for X-Cape in Ackerman Union, and
as a result, the arcade has been consistently under budget this
year. X-Cape’s failure to meet budget adds to ASUCLA’s continuing
financial woes.
For the 1997-98 fiscal year, which began August 1, X-cape has
made $100,000 less than its expected contribution to the students’
association’s budget.
While in and of itself a small contributor to the overall
budget, the arcade is significant when coupled with shortcomings in
other operations. Running under budget hinders ASUCLA’s ability to
meet its financial obligations.
"It’s not doing as well as we thought it would do or think it
can do," said Richard Delia, ASUCLA Chief Financial Officer.
ASUCLA attributes the lowered performance to lost business
because of construction and the growing popularity of home video
game systems.
Student Union Director Jerry Mann said that the arcade industry
as a whole has been hurt by improved home gaming systems.
"Business is down in the industry as a whole," Mann said.
Introduction of systems such as Nintendo 64 and Sony Playstation
allow video gamers to experience arcade-quality graphics and sound
in the comfort of their own homes.
Michael Madigan, who works at the Westwood Arcade, agrees.
"It’s tough these days," he said. "Home systems have outstripped
what was available even a few years ago."
Students say that there are, however, still reasons to play at
an arcade.
"You can play against a lot of other people," said second-year
physiological sciences student Chao-Ping Lei. "The graphics in
arcades are better at first, and (home systems) catch up
later."
Mann also points out that a lot of the games in X-Cape are newer
versions of older games, or are very similar in nature. Many of the
games in X-Cape are sequels and offer nothing new or attractive to
players.
"There have not been as many new, exciting games coming out,"
Mann said.
The location’s low visibility also contributes to the
disappointing profits. The construction of new dorms in recent
years has "removed a whole class of clients" according to Mann. The
arcade in Sunset Commons gives students less of a reason to walk
down to Ackerman.
"As housing provides more of a life for students, there is less
of a reason to come down to the Union," Mann said.
Lei plays at X-Cape about once a week, and is typical of their
"core" group of customers – students in between classes or on study
breaks.
"It’s a good way to relax between classes," Lei said.
In an effort to maximize profits, X-Cape will remove machines
that award prizes from the so-called "redemption area" near the
entrance to X-Cape.
"The margin for the redemption area is lower because we have to
buy prizes" for the machines, Mann said.
These machines will be replaced by conventional video games this
summer.
Thematic contests have also been proposed to increase business.
During the football season, for example, there could be a
competition on "Blitz," one of the football games in X-Cape, Mann
said.
For the most part, ASUCLA is not concerned with X-Cape falling
short of expectations, because the arcade is still making a profit.
The totals from this year will be taken into account when making
projections for next year.
"It is a problem, (but) it’s not a loss," Delia said.
Mann agrees, saying that the arcade still fulfills its
recreational purpose while generating a profit: "It’s of value
because it’s still a place where students can relax."
DERRICK KUDO/Daily Bruin
Tao Chen, a third-year economics student, plays video games at
X-Cape.