
Virtual reality has been the next big thing for a number of years, but, so far, VR arcades haven’t been the moneymaker that some have hoped.
In December, IMAX announced it was shutting down its remaining three VR arcades, after shutting down four already, and a number of other major VR entertainment projects have also shuttered.
The Treasure Valley is no exception. Like any business, people sometimes open a VR arcade thinking they can make a lot of money but without doing basic business planning, said Igor Bjekic, owner of VR Tech Lounge. He said he knows of two or three arcades that have opened in the Treasure Valley and then closed within three months.

Part of the problem is getting people to try VR games in the first place. Some people are shy about putting on headsets, and the value proposition isn’t always clear.
“If they go to the movies and spend $17, they know what they’re getting,” said Matthew Lind, CEO of Labyrinth Escape Games. “There’s not enough awareness that an hour of VR is worth the cost.”
In fact, several arcades take advantage of their locations next to trendy eateries by offering patrons something to do while they’re waiting for their table.
The VR arcade landscape
At three years old, VR1, in Eagle, is the oldest of the four Treasure Valley virtual reality arcades. (A fourth, located in Boise Towne Square, declined an interview.) CEO Brendan Smythe got into VR through architecture and design.
“Kids started coming in, and we realized there’s a whole entertainment side to this,’” he said.
VR1 has seven stations – six wired and one wireless. Nominally, the price is $25 per hour, but often there are weekday specials, Smythe said.
The arcade is particularly busy during school breaks, he said. Though it’s located in Eagle, the arcade draws from locations as far away as Nampa and East Boise, he said.

Nampa is the home base for Labyrinth Escape Games, which has brand affiliates in about a dozen states, said CEO Matthew Lind. Opened in July, it’s located downtown in an old brick storefront, formerly a used bookstore, with a great look for the company’s line of escape rooms.
“Strip malls don’t normally get 12-foot ceilings,” he said.
Labyrinth has four VR stations. The arcade offers a $10 15-minute introduction, and typically charges about $26 per person per hour for the actual games.

Meridian hosts the VR Tech Lounge, which opened in April 2018 and has eight stations, which is also priced at $24.99 per hour. Like the other two, it offers a variety of specials, such as a date night, as well as food, Bjekic said.
In 2016, when the first Treasure Valley arcade opened, there were about 200 pieces of VR content available. Today, there are thousands. In addition, in some arcades, people can log into their own Steam accounts, allowing them to save their content when they play at the arcade.
Going corporate
In addition to gaming, some arcades are looking at the corporate market to both expand their clientele and keep the arcade busy during the day, when business is typically slower. VR1 typically rents out the facility a couple of times a month to clients like AT&T and Dutch Bros. A two-hour party costs about $300, while four hours costs $500. Companies can also bring in their own catering or food trucks.
Lind is looking into offering his facility for training during the day on topics like law enforcement, fire safety and food safety, once he finds some good software.
“It’s a huge potential area,” he said.
VR is a much cheaper way of offering training than requiring a shooting range and role players, he said.
VR Tech Lounge isn’t looking much at corporate, but is working with schools and other student groups to offer STEM education programs. The organization draws from the West Ada school district, and as far away as Nampa and Kuna.
Customer service
Because VR is still new, customer service is a priority.
“There’s a learning curve,” Smythe said.
VR1 has guides to help people put on and take off the headsets, and learn how to play the games. Lack of such customer service is a big reason arcades close, he said.
“If you’re not being coached, if something is pulling on your hair and you have to fix it yourself, it’s not a fun experience,” he said.
At Labyrinth, staff members are with customers the entire time, Lind said.
Labor costs are a big factor for VR arcades in general. VR1 has nine employees. Two are college students with the remainder high-school students, who all work under 20 to 30 hours per week. VR Tech Lounge has seven employees, and Labyrinth has five employees, but it will likely add another when it opens a new escape room, Lind said.
Ultimately, Treasure Valley VR arcades are more cooperative than competitive, Smythe said, because it’s in their best interests for customers to enjoy whatever arcade they visit and keep coming back for more.
“The last thing I want to see is another arcade open up and close,” Smythe said.