GameWorks
From Sega Retro
GameWorks was a chain of entertainment venues, featuring video games, simulators, redemption prizes, and a full service bars and restaurants. It was created as a joint venture between Sega, Universal Studios, and DreamWorks SKG, and venues began opening across the United States in 1997. GameWorks inevitably became a de facto replacement for Sega City arcades which had operated in the country during the 1990s.
GameWorks is now operated independently from Sega, with the majority of the older venus having been closed.
Contents
Operations
GameWorks was 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 could be found at some venues. The Schaumburg, Illinois venue had Virtual Bowling, and many locations had interactive driving simulators such as Indy 500. Games were played by loading a Play Card with credits, and then swiping the card through a reader on each game. Tickets could be won and exchanged for prizes at the redemption counter.
History
The first GameWorks was created by Steven Spielberg and 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 estimated that at its' height, the 18 U.S. locations that existed drew in over 15 million guests per year.
Smaller venues which lacked the bar and restaurant aspect of the chain were titled GameWorks Studios and were usually placed in shopping malls.
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 until May 2011.
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 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 spokespeople 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 the World Sports Grille in Tucson were to become the focus of renewed efforts going forward.
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 planned 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. Though the franchise is no longer affiliated with Sega, some theming and redemption prizes are still based off of Sega game franchises.
Locations
(Note: this does not include locations post Sega's 2011 sale)
United States
Schaumburg, Illinois (with The House of the Dead 4 Special, Street Fighter IV arcade machines and new Stern pinball games on test)
Tucson, Arizona (GameWorks Studios) (reopened as World Sports Grille in 2008, also operated by Sega)
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)