GameWorks
From Sega Retro
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GameWorks s a chain of entertainment venues featuring video games, simulators, redemption prizes, and a full service bar and restaurant. Smaller venues which lacked the bar and restaurant aspect of the chain, called GameWorks Studios, once existed, and were usually placed in shopping malls. There are currently 10 GameWorks venues in the United States and two in international locations. The first GameWorks was created by Steven Spielberg and opened in Downtown Seattle in March, 1997.
The chain was created as a joint venture between Sega, Universal Studios, and DreamWorks SKG. The first GameWorks opened in Downtown Seattle in March, 1997 to much fanfare. A typical facility cost about $10 million or more to build, and plans initially called for up to 150 locations. After earnings of the first stores proved disappointing, the scope of the chain was scaled back significantly. Nonetheless, Sega estimates that at its' height, the 18 U.S. locations that existed drew in over 15 million guests per year. Due to the costs involved in the venture, DreamWorks SKG withdrew their involvement in 2001, and the chain itself filed for bankruptcy in 2004. The chain was bought out by Sega Sammy Holdings in November 3, 2005 and was operated by its subsidiary, SEGA Entertainment USA, Inc., until May 2011. GameWorks has since been sold to a private investment group and is no longer affiliated with Sega, although some theming and redemption prizes are still based off of Sega game franchises.
GameWorks is home to many Sega arcade games, from old classics like OutRun to the very newest, state-of-the-art simulators. Imported Japanese games and uncommon SEGA arcade titles such as Monkey Ball can be found at some venues. The Schaumburg Illinois venue has Virtual Bowling, and many locations have interactive driving simulators such as Indy 500. Games are played by loading a Play Card with credits, and then swiping the card through a reader on each game. Tickets can be won and exchanged for prizes at the redemption counter.
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2010 Restructuring
Due to the poor economy, GameWorks began to struggle financially as patrons could no longer afford to spend money on things like entertainment. As part of a major restructuring move, SEGA Entertainment USA, Inc. suddenly closed down seven GameWorks venues on March 29, 2010, in an attempt to focus the chain's mission on profitability and future growth. Employees and patrons were greeted with a sign on the door explaining the sudden closure of the venue. Media spokesmen for SEGA Entertainment USA reported that as a result of the closure, GameWorks employees at the closed locations lost their jobs, although some received 30 days of wages. The ten remaining locations and World Sports Grille in Tucson were to become the focus of renewed efforts going forward.
2011 Sale
In May 2011, Sega sold GameWorks, which now consisted of only seven locations, to an investor group headed by theme park and arcade chain veteran Steve Dooner. Now known as Gameworks Entertainment LLC, the company has moved its headquarters from the Chicago suburbs to Las Vegas. Dooner, GameWorks' new chief executive, said he originally tried to buy Gameworks in 2001 and discussed the possibilities of making the acquisition a second time in 2004 before the chain was declared bankrupt. His third and successful round of negotiations with Sega began in January 2010. Dooner plans to revitalize GameWorks by making broad changes to technology, menus and marketing, increasing the company's emphasis on social media, and eventually opening new locations.
Locations
United States
Schaumburg, Illinois (with The House of the Dead 4 Special, Street Fighter IV arcade machines and new Stern pinball games on test)
International
Locations never built
- Milwaukee, Wisconsin (struck down in the Pabst City project vote)
- Westbury, New York (though a sign outside the Source mall touted its arrival, it never materialized; instead, 'Jillians' took over the location which is now Dave & Busters)
- Harrisburg, Pennsylvania (building built in Harrisburg Mall but the project was abandoned in the wake of the financial crisis of 2007–2010)