Episode 120 - Pinball Economics 102
PodcastAnalysis updated last month38 min listen
Kineticist’s take
TL;DR
Individual game earnings are misleading; operators should optimize ROI, variety, and ecosystem fit over coin box totals.
Synopsis
Alan from Wedgehead A A Pinball Podcast argues that operators fixate too heavily on individual game earnings (coin box totals) rather than holistic metrics like total gross income and return-on-investment timelines. He explains how local ecosystem saturation, game rotation, lineup variety, and purchase price dramatically affect profitability, and that older, cheaper classic games often outperform new games when accounting for ROI, not just raw coin earnings.
Highlights
- At the time of this writing, there are 29 Godzillas on location in the Portland metro area, which has lowered their earnings overall due to overpopulation.
- A game earning $50/week costing $3,500 and a game earning $100/week costing $7,000 have identical ROI timelines (~18 months) if you measure by payoff period rather than coin box totals.
- Classic 90s DMD games like Fishtails or Getaway can be found for ~$4,000, which is 57% of a new Stern Pro at $7,000 MSRP.
- If a new Stern game earns 30% more in coins than a classic game but costs 43% more to purchase, the classic game actually outperforms on ROI by 13%.
- Operators rarely measure plays; they measure money, which obscures the true popularity of lower-priced games.
- Pat Lawlor, legendary pinball designer, described operators as being 'in the moving business,' emphasizing the importance of game rotation.
- A new game to a location can draw 3-4x the initial earnings of an older game, but this effect settles into ~30-40% premium over 18 months.
- Having a single oddball/rare game in a lineup acts as a marketplace differentiator that draws players and provides 'clout' that cannot be easily duplicated by competitors.
Entities
- Stern Pinball· company
- Wedgehead Pinball· company
- Williams· company
- Attack from Mars· game
- Baywatch· game
- Cheetah· game
- Eight Ball Deluxe· game
- Fishtails· game
- Getaway· game
- Gilligan's Island· game
- Godzilla· game
- Hoops· game
- King Kong· game
- Metallica Remastered· game
- NASCAR· game
- Paragon· game
- Robocop· game
- Star Wars (Fall of the Empire)· game
- TX-Sector· game
- Warlock· game
- WHO dunnit· game
- Wipe Out· game
- Alan· person
- Pat Lawlor· person
- Rhodes· person
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