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What are the most common revenue-sharing models between arcade operators and manufacturers?

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Update time : 2025-05-31

Revenue-sharing models between arcade operators and manufacturers are essential for sustaining profitable partnerships in the gaming industry. The most common models include:

1. Percentage-Based Revenue Split: A widely used model where the operator and manufacturer agree on a fixed percentage split (e.g., 50/50 or 60/40) of the revenue generated by the arcade machine.

2. Flat Fee Lease: The operator pays a fixed monthly or annual fee to the manufacturer for leasing the machine, keeping all additional revenue.

3. Hybrid Model: Combines a base lease fee with a smaller percentage split, offering flexibility for both parties.

4. Profit-Sharing with Minimum Guarantee: The manufacturer ensures a minimum payout to the operator, with additional profits shared based on performance.

5. Consignment Model: The manufacturer places machines in the arcade for free, taking a higher revenue share until costs are recovered.

Choosing the right model depends on factors like location, machine popularity, and business goals. Clear agreements ensure long-term success for both operators and manufacturers.

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