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Arcade Game Room: Repair Budget

This article was written by our expert who is surveying the industry and constantly updating the business plan for an arcade game room.

arcade game room profitability

Starting an arcade game room requires careful planning around repair budgets to maintain profitability and customer satisfaction.

Arcade machines are mechanical assets that need regular maintenance, timely repairs, and strategic replacement planning. If you want to dig deeper and learn more, you can download our business plan for an arcade game room. Also, before launching, get all the profit, revenue, and cost breakdowns you need for complete clarity with our arcade game room financial forecast.

Summary

Arcade game room repair budgets require systematic planning across machine assessment, parts inventory, and labor allocation.

The total annual budget for a small-to-medium arcade typically ranges from $1,200 to $9,000, depending on machine count, age, and usage intensity.

Budget Category Cost Range Key Details
Minor Repairs (buttons, joysticks, controls) $50–$250 per incident Most common repair type; frequency depends on daily foot traffic and machine usage patterns
Monitor Replacement/Repair $300–$1,000+ per unit CRT repairs cost around $300; full LCD/LED replacement can exceed $1,000
Power Supply Repairs $250+ per unit Common failure point in older machines; critical for preventing extended downtime
Labor Costs (technician) $99–$120 per hour Minimum 1–2 hours per service call; annual maintenance requires 1–2 hours per machine weekly
Annual Maintenance Per Machine $100–$700+ Low-use machines: $100–$300; high-traffic or older machines: $300–$700+
Major Refurbishment $500–$2,000 per machine Required for machines 7–10 years old with heavy use; includes multiple component replacements
Total Annual Budget (10–30 machines) $1,200–$9,000 Includes routine maintenance, emergency repairs, parts inventory, and 15–20% contingency buffer

Who wrote this content?

The Dojo Business Team

A team of financial experts, consultants, and writers
We're a team of finance experts, consultants, market analysts, and specialized writers dedicated to helping new entrepreneurs launch their businesses. We help you avoid costly mistakes by providing detailed business plans, accurate market studies, and reliable financial forecasts to maximize your chances of success from day one—especially in the arcade game room market.

How we created this content 🔎📝

At Dojo Business, we know the arcade market inside out—we track trends and market dynamics every single day. But we don't just rely on reports and analysis. We talk daily with local experts—entrepreneurs, investors, and key industry players. These direct conversations give us real insights into what's actually happening in the market.
To create this content, we started with our own conversations and observations. But we didn't stop there. To make sure our numbers and data are rock-solid, we also dug into reputable, recognized sources that you'll find listed at the bottom of this article.
You'll also see custom infographics that capture and visualize key trends, making complex information easier to understand and more impactful. We hope you find them helpful! All other illustrations were created in-house and added by hand.
If you think we missed something or could have gone deeper on certain points, let us know—we'll get back to you within 24 hours.

What is the current condition of each arcade machine, including functionality, wear, and breakdown frequency?

Arcade machines in active game rooms experience predictable wear patterns that directly affect your repair budget and operational planning.

The most common issues include button and joystick wear from repeated use, display dimming or burn-in on older monitors, and occasional failures in power supplies and coin mechanisms. High-traffic machines see accelerated wear and require more frequent inspections to catch problems before they result in downtime.

Visual inspections and cleaning of controls, screens, and cabinets should happen daily to identify early warning signs of component failure. Deeper maintenance tasks like electrical checks and lubrication of mechanical parts need to occur monthly to prevent unexpected breakdowns.

Machines that operate 40–80 hours per week in your arcade game room will show wear faster than those with lighter usage patterns. Tracking breakdown frequency for each machine helps you identify which units need preventive intervention versus those that are stable and cost-efficient to operate.

What is the estimated cost to repair or replace each malfunctioning machine?

Repair costs for arcade machines vary significantly based on the component that fails and whether you're addressing minor fixes or major system failures.

Repair Type Cost Range Details and Considerations
Minor repairs (buttons, controls, small parts) $50–$250 Most frequent repair category; includes joystick replacement, button swaps, and minor wiring fixes
Monitor/CRT repair $300+ Covers capacitor replacement, degaussing, and other CRT-specific repairs; does not include full replacement
Complete monitor replacement $1,000+ Required when monitor is beyond repair; LCD/LED upgrades fall in this range and offer better long-term reliability
Power supply repairs $250+ Common failure point in arcade machines over 10 years old; includes component-level repair and testing
Diagnostic and repair labor $99–$120/hour Most service calls require 1–2 hour minimum; complex issues may require additional diagnostic time
Major refurbishment or restoration $500–$2,000 Depends on machine age and part availability; includes multiple component replacements and cabinet restoration
Used machine replacement $1,000–$4,000 Alternative to expensive repairs; carries reliability risks and may require immediate maintenance investment

This is one of the strategies explained in our arcade game room business plan.

How many hours per week is the arcade room operational, and how does that affect maintenance needs?

Most arcade game rooms operate 40–80 hours per week, which translates to significant wear on machines and a direct correlation to maintenance frequency.

Daily cleaning and weekly maintenance become non-negotiable when your arcade operates within this typical business hours range. Longer operational hours or heavy customer traffic increase the rate of part consumption and create more frequent repair needs across your machine inventory.

Machines running 60+ hours weekly experience faster degradation of buttons, joysticks, and display components compared to those in lighter-use environments. Your maintenance schedule must account for this usage intensity to reduce unexpected downtime and maintain customer satisfaction.

The relationship between operational hours and maintenance costs is linear—more hours mean more wear, which requires both increased routine maintenance time and higher budget allocation for replacement parts.

Which spare parts are most frequently required, and what is their current availability and cost?

Maintaining a strategic inventory of frequently replaced spare parts reduces downtime and keeps your arcade game room operational during peak revenue hours.

  • Buttons and joysticks: The most replaced components in any arcade, with individual buttons costing as little as $0.50 and complete joystick assemblies ranging from $5 to $30 depending on quality and brand.
  • Power supplies: A common failure point that can cost $50–$200+ depending on the machine model; keeping one or two universal power supplies in stock prevents extended outages.
  • Coin mechanisms and validators: Required for pay-to-play models, with costs ranging from $30–$150; mechanical coin mechs are cheaper but require more maintenance than electronic validators.
  • Monitor components: Backlights, inverter boards, and other display parts range from $20–$200+; CRT-specific parts are becoming harder to source and more expensive.
  • Control board components: Capacitors, fuses, and other electronic parts typically cost under $10 each but require technical expertise to replace correctly.

Parts availability is generally good from specialized arcade suppliers, but older or proprietary cabinet designs can face longer lead times and higher costs. Bulk ordering essential parts reduces per-unit costs and ensures you're not waiting days or weeks for common replacements to arrive.

business plan video arcade

Are there recurring technical issues with certain machines or brands that need preventive measures?

Certain arcade machine types and brands exhibit predictable failure patterns that you can address through preventive maintenance strategies.

Older machines frequently suffer from monitor and power supply issues, along with mechanical faults in coin-operated mechanisms. Brands that use subpar control components experience shorter button and joystick lifespans, requiring more frequent calibration and replacement cycles.

Preventive measures include using quality replacement parts rather than cheap alternatives, regularly updating firmware on digital arcade machines, improving ventilation around cabinets to reduce heat-related failures, and training staff on gentle operation techniques.

Documenting failure patterns for each machine helps you identify candidates for proactive parts replacement before they fail during peak business hours. This approach minimizes revenue loss and improves customer experience in your arcade game room.

What is the average lifespan of the machines currently in the arcade room?

With proper maintenance and care, most arcade machines last 10–20 years before requiring major refurbishment or replacement.

Heavy-use units in high-traffic arcade game rooms may need significant intervention after 7–10 years, including monitor replacement, control system overhaul, and cabinet restoration. Machines that receive daily cleaning, monthly deep maintenance, and prompt repairs when issues arise consistently reach the upper end of this lifespan range.

The actual lifespan depends on initial build quality, usage intensity, environmental conditions like humidity and temperature, and the consistency of your maintenance program. Vintage machines from the 1980s and 1990s that were built with robust components can still operate today with appropriate care, while some newer machines with cheaper construction may show problems earlier.

You'll find detailed market insights in our arcade game room business plan, updated every quarter.

How much labor is required for regular maintenance and repairs, and what are the associated costs?

Labor represents a significant portion of your arcade game room repair budget, encompassing both routine maintenance and emergency repair interventions.

Labor Category Time/Cost Scope and Requirements
Daily cleaning and inspection 10–15 min per machine Visual checks, control cleaning, screen wiping; can be handled by arcade staff without specialized training
Weekly maintenance 1–2 hours per machine Deeper inspection, testing all functions, minor adjustments; requires basic technical knowledge
Professional technician rates $99–$120 per hour 1–2 hour minimum per service call; includes diagnostic time and repair work
Annual maintenance per machine $100–$300 (basic) For newer machines with light-to-moderate use; includes parts and routine labor
Annual maintenance per machine $300–$700+ (intensive) For high-use or older machines requiring frequent intervention and parts replacement
Emergency repair response Variable + premium After-hours or same-day service often carries 25–50% premium over standard rates
Major refurbishment labor $200–$800 per machine Included in the $500–$2,000 total refurbishment cost; requires skilled technician time

Are there any machines that are beyond economical repair and should be replaced instead?

The decision to repair or replace an arcade machine depends on a straightforward cost-benefit calculation that protects your budget and revenue stream.

If repair costs exceed 50–70% of the machine's replacement value, replacement becomes the more economical choice. Machines with repeated breakdowns despite previous repairs signal that underlying issues make continued repair investment wasteful.

Parts availability also determines repair feasibility—if critical components cannot be sourced or carry prohibitive lead times, the machine becomes a liability rather than an asset. Older machines with obsolete technology may fall into this category, especially those using discontinued displays or proprietary control systems.

Consider replacement when a machine has been out of service multiple times in a six-month period, as this pattern indicates reliability problems that will continue to drain your repair budget and reduce customer satisfaction in your arcade game room.

business plan arcade game room

What safety or compliance issues must be addressed during repairs or upgrades?

Safety and compliance requirements for arcade game room equipment protect both customers and your business from liability and regulatory penalties.

Address sharp edges, ensure proper electrical grounding, secure all wiring to prevent trip hazards, and verify that all repairs meet local safety and fire codes. Certified technicians should handle all electrical repairs to ensure work meets code requirements and doesn't create hidden hazards.

Regular safety audits identify potential issues before they become problems, including checking for frayed power cables, loose cabinet components, unstable machine placement, and adequate ventilation to prevent overheating. Documentation of all safety-related repairs and inspections protects you in case of incidents.

Some jurisdictions require specific electrical certifications for arcade equipment, periodic inspections by licensed electricians, or compliance with accessibility standards. Research your local requirements and factor compliance costs into your annual repair budget.

What is the projected revenue impact if certain machines are out of service for repairs?

Every machine that sits out of service represents direct revenue loss and potential damage to your arcade game room's reputation and customer loyalty.

The average revenue loss per week ranges from $100–$400 per machine, depending on the game's popularity and your overall foot traffic levels. Popular titles or unique machines generate revenue at the higher end of this range, making their downtime particularly costly.

Extended outages create secondary impacts beyond immediate revenue loss—customers may choose competing entertainment venues if their favorite games are consistently unavailable, and negative reviews mentioning broken machines can deter new visitors. The reputational cost of frequent downtime is difficult to quantify but affects long-term profitability.

Prioritizing repairs on high-earning machines and maintaining spare parts for your most popular games minimizes revenue impact. Tracking revenue per machine helps you make informed decisions about repair urgency and resource allocation in your maintenance budget.

We cover this exact topic in the arcade game room business plan.

Are there cost-effective upgrades or refurbishments that could improve machine reliability or reduce long-term maintenance costs?

Strategic upgrades to arcade machines can significantly reduce long-term maintenance costs while improving reliability and customer experience.

  • CRT to LED/LCD monitor upgrades: Modern displays have lower failure rates, consume less power, and produce less heat than aging CRT monitors; initial investment of $300–$1,000 per machine pays off through reduced repair frequency.
  • Electronic payment system conversion: Replacing mechanical coin mechanisms with electronic validators or card readers eliminates frequent maintenance issues and reduces cash handling labor; systems cost $100–$400 per machine.
  • Arcade-grade control components: Upgrading to commercial-grade buttons and joysticks with longer rated lifespans costs $20–$60 per machine but reduces replacement frequency by 50% or more.
  • Preventive power supply replacement: Proactively replacing aging power supplies before failure costs $50–$200 but prevents unexpected downtime and potential damage to other components.
  • Bulk spare parts inventory: Purchasing commonly needed parts in bulk reduces per-unit costs by 20–40% and ensures immediate availability for repairs without premium rush shipping fees.

These upgrades require upfront investment but deliver measurable ROI through reduced maintenance frequency, lower parts costs, decreased downtime, and improved customer satisfaction in your arcade game room.

business plan arcade game room

What is the total budget range needed to ensure the arcade room operates fully functional for the next year, including parts, labor, and contingencies?

For a small-to-medium arcade game room operating 10–30 machines, your annual repair and maintenance budget should range from $1,200 to $9,000.

Budget Component Cost Range Planning Considerations
Routine maintenance per machine $100–$300/year For newer machines or those with light-to-moderate use; covers cleaning supplies, minor parts, and basic labor
Intensive maintenance per machine $300–$700+/year For high-traffic or older machines requiring frequent intervention; includes more frequent part replacement
Spare parts inventory (initial) $500–$2,000 One-time investment in commonly needed parts; bulk purchasing reduces per-unit costs and shipping fees
Emergency repair contingency 15–20% of total budget Buffer for unexpected major failures, proprietary parts with long lead times, or urgent same-day service needs
Professional technician services $1,000–$3,000/year Covers quarterly deep maintenance, diagnostic work, and repairs beyond in-house capability
Major refurbishment (1–3 machines) $500–$6,000/year Budget for refurbishing aging machines rather than full replacement; spreads major expenses across fiscal year
Total annual budget (10–30 machines) $1,200–$9,000 Scales with machine count, age, usage intensity, and operational hours; larger arcades plan toward upper range

Larger arcade game rooms or those with higher foot traffic should plan toward the upper end of this budget range and maintain a more extensive spare parts inventory. The specific budget for your arcade depends on machine age, brand reliability, usage patterns, and whether you handle basic maintenance in-house or rely entirely on professional technicians.

These industry ranges apply globally, but final costs vary by machine type, local parts pricing, and labor rates in your market. A precise budget requires a line-by-line assessment of each machine's current condition and your specific operational parameters.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are encouraged to consult with a qualified professional before making any investment decisions. We accept no liability for any actions taken based on the information provided.

Sources

  1. Made-in-China Insights - How to Effectively Choose and Maintain Arcade Game Machines for Maximum Profit
  2. VR Arcade Game - How to Maintain Your Arcade Game Machine for Long-Term Use
  3. Quality Arcades - Arcade Machine Maintenance 101: Tips for Keeping Your Cabinet Running Smoothly
  4. Betson Parts - Arcade Game Parts You Should Always Have in Stock
  5. Video Game Repairs - Arcade Machine Repairs
  6. Business Plan Templates - Retro Arcade Store Running Costs
  7. Dojo Business - Arcade Game Room Budget: Maintenance and Repairs
  8. YP Funs - 2025 Price: How Expensive Is It to Start an Arcade
  9. Palm Fun - How Important Is Preventative Maintenance for Arcades: Ensuring Uptime and Profitability
  10. Made-in-China Insights - Optimizing Arcade Game Machine Maintenance: Tips, Schedules, and Success Stories
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