#1248 – Entertainment Break Out

AI Constructed Brief

Leading investors should note a dynamic shift in the international leisure entertainment sector, marked by increased M&A activity, notably GENDA’s expansion into Western markets and strategic partnerships in Japan, alongside a resurgence of touchscreen game terminals and new immersive formats like dual- and screen-deluxe cabinets. The industry faces geopolitical trade restrictions impacting Asian releases, while the virtual and eSports landscapes are experiencing valuation corrections, signaling caution. Meanwhile, the growth of sim racing, exemplified by F1 Arcade’s expansion and innovative hardware, reflects rising consumer engagement. Overall, the sector is embracing immersive display technology and strategic consolidation, poised for selective growth amid geopolitical and market valuation challenges.

Full Stinger Report

The end of the summer holidays and we jumped directly into the turmoil of the international leisure entertainment sector – facing Global conditions, increased inflationary impacts and issues surrounding export and import business in key territories.

Let the Fun Begin

During August, and we had the ExperienceUK – ‘Experience On Main Street Conference’. Taking place at Manchester’s Little Lion Entertainment Arcade Arena space. Comprising 23-projectors and offering a flexible entertainment and private event space with ExperienceUK event turning the playspace into a conference venue. Regarding Little Lion Entertainment, they used this event to reveal that they had raised new funding from HSBC UK, towards a new plan to roll out three new UK based facilities. All comprising the multiple projection environment for operation of both the ‘PAC-MAN LIVE’ experience and ‘Chaos Karts’. More details regarding the impact of this move in the Social Entertainment landscape in coming Entertainment Social Arena coverage. This is discussed in greater detail in our coming Entertainment Social Arena feature in the new service.

Ending August and several developments were seen across the traditional amusement trade scene. The industry’s American Amusement Machine Association (AAMA) Gala was held seeing a record-breaking vindication the relocation to Dallas, and the new August window of activities. Most importantly the new “All-Access” Annual Meeting ushered in a new level of engagement between the industry and association.  New and first-time attendees bolstered the record attendance of 108. AAMA business was carried out with the election of new board members, along with the work of the charity investments. Trade evening visits included seeing the latest Chuck E. Cheese location, along with a presentation from the CEO. The association was buoyed by the success of this gathering and looks to build on this for next year including new plans for the Amusement Entertainment International expo in March 2026, (more details on these developments coming soon).

GENDA was in the UK news with the announcement of the entering into a definitive agreement with Inspired Entertainment. The gaming, betting and lottery corporation with Virtual Sports and management solution interest, confirmed they would be offloading their UK holiday park business and associated leisure interests, (representing 100 amusement facilities and 125 mini-locations), into the operation Indigo NewCo that would be acquired by GENDA once the agreement had been ratified, for £18.6m ($25.1m) in cash. Once established the two corporations would also use the new company towards development of gaming content and platforms and would see GENDA’s Japanese IP and branding deployed into the market from these interests.

Yet the latest major facility and operations merger and acquisition from the Japanese corporation since their US deal to acquire assets and operations from Player One Entertainment and from National Entertainment Network (NEN). Long term readers of The Stinger Report will be familiar with our coverage of Inspired Entertainment, and their round of merger and acquisitions of gaming and amusement operations such as NTG along with Bell-Frut, GamesTec and Astro Games. The corporation was also instrumental in establishing the Virtual Sports platform, creating virtual betting experiences. Successfully pivoting from the traditional amusement trade into the gaming sector with some 50,000-gaming terminal running their content.

GENDA has also been growing their home territory business, branching into entertainment venue business away from their GiGO operation, announcement a partnership with ASOBISYSTEM to open ‘KAWAII MONSTER LAND’ in Harajuku, Japan in Winter 2025 – promising to be the world’s most photogenic entertainment space. One of those businesses that Inspired previously was involved within the amusement scene in the UK was that of touchscreen game terminals. Once highly popular in bars and taverns, these units offered casual gaming long before the ubiquity of the smartphone.

There now seems a possibility that the bartop or touchscreen game terminal may be about to make a comeback. For reference, the bartop or terminal business was fought over in the late 1990’s. Companies such as JVL with their ‘Vortex’, Merit, with their ‘MegaTouch’ and Midway with their ‘TouchMaster’. A business that saw Merit as one of the leading providers of platforms, business that cross from the States into the European scene. Eventually the march of technology moved interest in gaming terminals to other application more related to the gaming side of the business and eventually these systems lost their popularity when at the same time the corporations behind them suffered in the changing waters of the end of the Twentieth Century amusement trade.

GENDA was also in the Western news with the announcement of the combining of their 14 different North American operations recently acquired. The combined operation broken into three divisions under the new title of GENDA Americas. We hope to have more information of the impact this will have across the USA and Canadian divisions for our IAAPA Orlando coverage.

The next event of interest to our XR LBE perspective was the Sim Game Expo 2025 – taking place at the beginning of September in Chicago – the event celebrating the explosion of sim racing, and its growing popularity with gamers of all ages. The exhibition component of the expo had a plethora of race rig manufacturers, PC hardware, and sim accessories from force-feedback wheels to full instrumentation. All this and the vital software component of the race experience. The cross over between the prosumers with full race rig setups at home and the casual sim lounge user is self-evident

And several exhibitors were promoting services for the emerging sim racing center. On such was RaceData AI – using AI in the gathering of telemetry data for leaderboard and guest retention. Numerous race rigs employing D-BOX actuator technology. Technology prevalent in the LBE arena. The growth of sim racing in mainstream best illustrated by the recent opening of F1 BOX – as covered in our sister publication the Entertainment Social Arena – we had a chance to visit a private event for the soft opening of this companion location to the expanding F1 Arcade chain. The retail unit based 12-simulator racing hub, offers at the Westfield mall in Stratford a means for novices and F1 fans alike to immerse themselves in the magic of the racing experience. The team behind the concept still using this concept as a popup installation that could evolve into a permanent placement – the venue shares the same points system as employed in the social entertainment parent.

The F1 Arcade operation announcing plans to roll out the concept in Europe with a Madrid, Spain location planned to open in 2027. This part of a roll out in the region through a partnership with Top Racing Iberia. This will see an acceleration of the expansion from the current five UK and US sites. The F1 Arcade and F1 BOX venues partnered with Vesaro deploying their dual screen ‘V-Zero Mark II’ systems, the race simulators motion empowered by D-BOX actuators. With content powered by Motorsport Games‘ ‘rFactor 2’ racing simulation platform. At this time F1 Arcade also opened their latest US venue with the opening of the 15,000-sq.,ft., Denver, Colorado site.

Regarding the wider competition aspect of the entertainment sphere, and the issues impeding the eSports landscape were placed into sharp relief with the news of the sale of one of the largest eSports studios. Luminosity Gaming was sold to Vertiqal Studios for $646k. Luminosity is an eSports organization fielding a roster of teams that compete in high profile events, founded in 2015. With strong social media feeds viewed by supporters of the teams. While Vertiqal is a gaming lifestyle corporation working in the entertainment sector.  The sale allows Luminosity’s previous owner, Enthusiast Gaming to make major cost saving efforts across their business. Luminosity Gaming had seen previous valuations of some $1m and this sales price is a massive drop in valuation – this reflecting a general implosion in valuation of the eSports teams and operations in general. Raising concerns that eSports is about to experience an industry wide correction of the markets worth. Companies previously speculated as being multi-million Dollar concerns corrected down, sending vibrations through the industry and their investors.

Asian Amusement Mix

Jumping across the seas to China and the 17th Game Time International (GTI) China 2025 was held at the China Import and Export Fair, Pazhou Complex, Guangzhou. The September event saw some 600 exhibitors. Covering several of the halls of the complex and revealing Chinese factory aspirations. Some developers looking at the show as a chance to show new releases that will not be able to travel to Spain or Florida.

The new amusement pieces that did not get a AAA’25 showing included from WAHLAP Technology, celebrating their 35th anniversary in business. Presenting ‘Storm Racer 2’ – a motion racing sim seat, released in a configuration that is part of the new style of a vertically mounted 85’’ screen. Superseding the previous dual horizontally mounted 4K screens seen before. A platform configuration we expect to become a norm, and for the sake of brevity we will label as the “Screen Deluxe” platform. A big presentation for a fast-paced racer developed by 3MindWave – who normally work with SEGA Amusement International. Able to be networked into a four-player configuration. This game seen as a highwater mark – being a Asian release that would normally have universal Western appeal but will be hampered by the current trade restrictions.

Another Screen-Deluxe cabinet at the show was the ‘Storm Rider DX’, a motorcycle ride on a cabinet linked to the vertical screen platform using the same screen platform, the four-player network and another supportive development from 3MindWave and WAHLAP. A derivation of the ‘Screen-Deluxe’ placement as we saw a dual configuration of the 85’’ displays (we are labelling “Dual-Deluxe” screen layout), with the release ‘Phantom Vanguard: Modern Combat’. A two-player mounted pistol shooter. A novel approach to the mounted gun – not seen since the SAI Mission-Impossible shooter. This time developed by Gameloft working with amusement configuration with IGS. WAHLAP did not end there, with the releases were reskins of previous releases. WAHLAP partnering hard with KONAMI to re-release previous platform to hope to relaunch these games into the market.
The KONAMI, BEMANI series ‘JUBEAT’ was released a fresh from WAHLAP along with ‘BomberGirl’.

Across on other GTI’25 booths, and products of interest included exhibitor Flamestone Amusement (HuoShi Chuan Yu Technology) revealed the unusual twin mounted shooter ‘FlameStone Cannon’ – housed on the now ubiquitous Screen-Deluxe cabinet, but with an unusual physical mounted cannon prop as part of the design. A prop that would not survive Western deployment. The shooting game category was also supported by Flamestone with ‘Treasure Hunt Adventure’ – a machinegun game. Along with a new four player shotgun game called ‘Master Hunter’.

Over at the extensive UNIS Technologies booth, the major Chinese player had presentations with big ramifications for the Western amusement scene. GTI’25 saw the reveal of the non-VR version of ‘Godzilla Kajiu Wars’ from Raw Thrills. The deluxe motion version of the previous VR title offered a sleek design, confirming the existence of this game as an actual release after being seen on secret LocTest. A very telling indication on the cooling of the VR love affair in the amusement scene. That said the game was across the aisle from the previously released ‘Alpha Op VR Strike’ on demonstration.

The reaction to the news of a non-VR version of the popular mounted shooter was positive, reflecting some operators concern with deploying VR games, but wanting to share in the popularity of the title. It would seem this is not becoming an issue of reflection from many amusements manufactures regarding offering a VR and non-VR version of future releases. The UNIS presented ‘Godzilla Kajiu Wars’ non-VR cabinet employed the dual 65’’ UHD horizonal screen configuration as originally seen on Raw Thrills ‘Fast & Furious Arcade’ – what we will call the “Dual-Deluxe” screen layout. This screen configuration was also seen at GTI’25 from UNIS’ new racer ‘Top Speed Legend’ which was an analogue of F&FA. With the same screen and motion layout.  A motor bike racer called ‘Neon Rush’ using the dual-deluxe configuration was presented – previously trailed at AAA’25. And UNIS showed a localized version of ‘Top Gun Maverick’. The Chinese manufacturer representing repurposed Raw Thrills amusement pieces in the local market as well as ‘Goldstorm Pirates’ deluxe from BANDAI NAMCO Experience.

UNIS booth at the show also had some unique releases – including ‘Jump Master’ a pogo stick style racing game, in a twin player cabinet configuration. A highly active arcade racer that builds on the competition seen with the original ‘Pogo Jump’ title from four years ago. Another active play game released, was ‘Monster Jet Riders’ – a jet ski standing experience. The game was teased at AAA’25 but made its official release at GTI’25. While a kid-friendly video was also debuted at the show with ‘Dino Dash’ – players sitting astride little dinosaurs.

Regarding a general snapshot of GTI’25 exhibitors and Oculeap presented ‘Monster Jeep’ VR motion attraction, along with other previously released VR amusement platforms. This reflected a lower than previous representation of VR platforms at this kind of event. More conventional amusement representation was seen from ACE Amusement, who are normally represented by UDC in EMAE sector and Amusement Source International in US. Their rundown of new releases that had been trailed at AAA’25, included ‘Hover Rush’ – sporting a dual-deluxe screen layout and motion cockpit to control your racing hovercraft. With a four-player network configuration available. ACE also showed ‘Dino Attack’ – a shooter, four player machinegun game, shooting prehistoric prey. The system coming in a cabinet with a large 4K display. In a surprise move ACE had a version of the game as a mounted shooter in its own motion bench environment cabinet enclosure. A new development competing against the larger DX enclosure releases, such as ‘Monster Eye 3’, ‘GoldStorm Pirates’ and the like.

The supporting of new configurations of cabinet presentation seemed to be indicated by ACE’s lineup of titles. Best illustrated by the availability in both dual-deluxe, with motion, and a slightly smaller screen-deluxe variants, of the motorbike racer ‘Biker Madness’ – the ride on action following a proven popular formula.

The Chinese expo offers an excellent opportunity to chart trends shaping video amusement – though the impact on the Western market may be slightly less compared on previous years. The move to dual-deluxe and screen-deluxe formats, seems to one example that may make Western landfall if priced attractively. A greater level of display immersion an inevitability in a market that had been promised so much by immersive technology such as headsets but had found the transition difficult. It was interesting that the Chinese show was also used as a venue for high level meetings on possible franchise expansion of existing LBE chains. Representatives from Chuck E. Cheese attended the GTI’25 event arranging franchise appointments. Our thanks to partner Arcade Heroes for filling in the details of the event.