Gokis Kiosk Self-Service

New Business is a Game for KIOSK

KIOSK Information Systems, in the midst of its best-ever sales season, is getting into a new, riskier sales game targeting the expanding gaming market.

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Tuesday, September 12, 2006
By Rick Redding

New Business is a Game for KIOSK

Popularity of Online Gaming Leads to Creation of ZAZOOX Game Cafe

KIOSK Information Systems, in the midst of its best-ever sales season, is getting into a new, riskier sales game targeting the expanding gaming market.

Specifically, KIOSK is betting that the online gaming community will flock to machines that allow them to play the latest games against others folks – online, in real time – at a variety of public locations.

KIOSK formed a wholly owned subsidiary, ZOOX Stations, Inc., to launch the new initiative. It is calling the new product the ZAZOOX Game Cafe.

Tom Weaver, KIOSK’s sales and marketing vice president, said the company is going into uncharted waters with its new gaming kiosk. While KIOSK is taking a gamble on the initiative, the online player gaming market seems to be one that could pay off.

“We’re not changing our business model. Our OEM business is going very well. We’re not software guys. We are going down a different avenue," he said. "It's really our first push on a turnkey solution."

And Weaver says the new product is having a coming-out party at the Amusement and Music Operators Association Expo Sept. 27 in Las Vegas. It marks KIOSK's first appearance at the show, and Weaver said he hopes to meet potential distributors for the gaming machines, as well as representatives of retail chains with the ability to buy the machines in bulk.

"It's our first real product we've built a go-to-market strategy around," he said.

Thus far, KIOSK has been testing the game stations in about 100 Army barracks and a handful of public establishments, including truck stops, nightclubs, malls and college campuses. He said the mechanics of the operation, including maintenance, Internet connections and payment acceptance, have been fully tested.

The business case is compelling, Weaver said, with a measurable ROI predicted for six to 12 months.

KIOSK’s gamble is that people will go to public places to play online games against others, whether their opponent is sitting in the next game chair or on the other side of the world. The market has typically served individuals in their homes.

“Multi player online gaming is a hot new market,” Weaver said, citing statistics that indicate the market will reach $2 billion in the next year. KIOSK estimates the online gaming market at $500 million.“The secret sauce in the deal is the way content is provided to end user.”

Content is provided by game producers who traditionally sell their software in retail, often for around $50 per game, to be played on PlayStation and XBox systems. When a consumer buys a game, he typically plays it on a home system. But the beauty of KIOSK's system is that it makes popular games available for play for quarters per minute.

Posted by keefner at September 15, 2006 12:13 PM