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Griffin said there are three types of location-based virtual reality: arcade, free roam and premium. When it comes to arcade VR experiences, the simplest to understand, Griffin believes the biggest challenge is related to the growth of the VR games that players can achieve in their homes.

“As the consumer market takes off, I think that there won’t be enough differentiation between the types of products that VR arcades [have] versus what is offered at home," Griffin said. "I’m concerned about how those businesses continue to compete with the home market when that takes off.”

“Taking off” would mean VR has become a mass consumed product similar to home gaming consoles, thus challenging arcades to make the price of access worthwhile. Non-VR gaming has already achieved this and arcades remain relevant in some ways. The path to evolution for VR arcades may lie with the other two location-based formats: free roam and premium.

“The challenge from the business perspective [for free roam VR] is there’s a limited number of customers that can occupy that space at any given time," Griffin explained.  free roam games That means a relatively low throughput and, if you think about location-based entertainment as being a Friday, Saturday, Sunday business, you need to be able to accommodate customers when you have them.”

An established example of free roam VR is  The company has 30 venues across 18 countries and offers six different games including team-based shooter Sol Raiders and VR puzzle game Engineerium. Freeroam’s biggest opportunity is something premium location-based VR encounters as well but Griffin points out an even bigger obstacle for those hoping to invest in experiences like Dreamscape, The Void, and Nomadic.

Nomadic delivers the third type of location-based VR, premium, in Orlando, Florida. Free-roam gives you large, open spaces to explore in VR but premium experiences enhance that with real physical interactions like doors that you actually open, motion platforms, buttons you press, and more. This makes it more difficult to switch up the different games visitors can try but gives them a more immersive experience.

“The biggest challenges are the capital expenditures to startup these locations," he said. "We all tend to put a lot of time and effort into ensuring that the customer journey starts at the door, not when you put the VR headset on. So, we all do nice, high-quality build-outs of the lobby, [which creates] a good on-boarding experience for consumers to come through. All that costs