The idea for Game Truck first came to Scott Novis at his son’s fourth birthday party. They were at a pizza arcade and the noise, expense, and frustration caused him to think about a better alternative. What’s more, he knew that the electronic games he was working on at his job were better than anything in the arcade. That experience led to an epiphany. Instead of taking kids to an arcade for birthday parties or similar events, why not bring the arcade to their homes? And what if, instead of making something “kiddy,” the arcade featured the best video games available on the latest consoles? And what if it was something that people of all ages could enjoy?
These thoughts were the foundation for the launching of Game Truck, Novis’s entrepreneurial venture. Game Truck is the world’s first mobile video game theater. The basic idea was to create a mobile arcade or truck that contained the latest video games, video game consoles, and large screens for people to play multiplayer video games. By making the arcade mobile, it could be taken anywhere for people to enjoy.
There are several different models of the mobile arcade or truck, from a tow-behind trailer to a “top of the line” all-in-one unit that looks like a large bus. The mobile theater will travel to any location that has a large enough parking area for it to set up. Once it arrives, it is entirely self-sufficient and provides its own power. It can accommodate up to 16 players, who can engage in multiplayer video games aided by ultra-modern consoles and 54-inch screens. Instructors are available to help participants learn new games or troubleshoot any problems that occur. Along with providing a venue for a fun birthday party or another occasion, a staple concept of the Game Truck experience is to encourage people to play electronic games with one another. A common complaint that parents have is that computer games isolate their children, and cause them to focus on playing against their computer rather than socializing with other kids. The Game Truck experience is designed to bring kids, their friends, and their families together to participate in multiplayer games in a fun and highly engaging environment. Founded in 2006, Game Truck now has over 40 franchisees that are making Game Truck parties available on a weekly basis in cities across the United States.
Sound simple enough? It is, but as straightforward as the Game Truck concept is, it took a great deal of effort and hard work to get off the ground. And there are also questions regarding how Game Truck will continue to grow and evolve its offering.

Scott Novis
Game Truck’s founder, Scott Novis, is no stranger to electronic games. He has nearly a decade of video game development experience, working for several companies. His two stops prior to Game Truck were particularly instrumental. At one point, he was the VP for Development for Rainbow Studios, which is one of the largest video game development studios in the Southwestern United States. During Novis’s tenure, Rainbow Studios was responsible for some of the most successful games of the PS2 era. His stop just prior to Game Truck was with Walt Disney Corporation, where he developed a new kind of video game studio, dubbed the Walt Disney Nintendo Center for Excellence.
Novis’s vision for Game Truck was to create a physical, mobile space where people could play the best video games on the latest consoles with their friends in an effortless, affordable, and fun atmosphere.
It also had to be operable by virtually anyone with a passion for video games and a desire to work with kids and their families.

Fortunate Convergence of Technologies and Early Testing
Novis and Game Truck benefited from a fortunate convergence of technologies, which took place at about the time Novis’s ideas for Game Truck came together.
The three technologies, each of which is instrumental to Game Truck’s offering, are shown next.
The first Game Truck prototype was built in Novis’s garage in Tempe, Arizona, and the basic concept is currently patent-pending. To see how the prototype would perform, Novis and his brother Chris threw the first Game Truck party for a friend and neighbor.

Along with its mobile capabilities and the highly engaging nature of the experience it offers, Game Truck is also a mission-driven organization. Its tagline is “We are redefining the way people play.” Its mission is built on four principles: (1) Respect the Games, (2) Respect the Video Game Lifestyle, (3) Respect Mom, and (4) Respect Education. Collectively, these principles promote the philosophy that rather than separating children from their parents, electronic games can bring children and their parents together via the interactive nature of multiplayer games. In addition, Game Truck’s principles promote the ideals that games should involve physical activity, should be tools that parents can use to set limits and instill discipline, and through instruction regarding how electronic games are made should spur interest among kids in fields like computer programming, mathematics, and graphic design. In fact, as an ancillary offering, Game Truck has taken these principles and formed them into an educational program named P3.

Franchise Setup and Game Truck Offering
Game Truck is selling area franchise agreements.
Depending on the circumstances, the initial franchise fee has ranged from a low of $19,500 to a high of $89,500. Other expenses include the Game Truck trailer(s), along with the equipment that goes inside it, monthly royalties, and other marketing and operational support fees.
Game Truck offers its franchisees multiple levels of assistance and support. The size of a franchisee’s territory is determined by taking into consideration factors such as number of schools in a particular area, the average family income level of the area, and other demographic factors. Each Game Truck franchisee is provided training in regard to how to book parties, how to operate the Game Truck trailer, and how to set up a local marketing plan. Because the training program is so comprehensive, no prior experience is necessary to own and operate a Game Truck franchise. Once a franchise agreement is in place, a Game Truck franchisee can be up-and-running within six to eight weeks.
A Game Truck party costs $299 for the first two hours, and $100 for each additional weekday hour and $125 for each additional weekend hour. Parents choose the games that will be played. For example, M (mature)
rated games can be removed from parties for younger children. Currently, the Game Truck has 62 games for parents to choose from. One unique aspect of Game Truck’s offering to its franchisees is that because most parties are held on weekends, a Game Truck franchisee can be owned and operated by someone who has another job.

One aspect of its business Game Truck points to as a positive indicator for continued success is that its Phoenix, Arizona, headquarters serves as a base for ongoing refinement of the Game Truck experience.
The company remains laser focused on bringing people together in a multiplayer gaming context in the most innovative, cutting-edge, and cost-effective manner possible.

Challenges Ahead
As Game Truck evaluates future growth and the ongoing viability of its basic concept, several questions will need to be answered. First, is there a market for its mobile game studios beyond the staple kid’s party market?
Some Game Truck franchisees have booked corporate events. There may be other possibilities. Second, although many observers see the electronic games market as recession-proof, there is always the possibility that downturns in the economy may deter parents and other potential users from booking a Game Truck party, which costs a minimum of $299 for two hours. What can Game Truck do to minimize that possibility? Finally, is Game Truck’s business model scalable utilizing the franchise concept? Will Game Truck be successful in its efforts to find a sufficient number of future franchisees who are passionate about gaming, have the financial ability to own and operate a Game Truck franchise, and are able to either operate the franchise successfully on a part-time basis or book sufficient parties to make it a full-time pursuit? There is a possibility that some Game Truck franchisees may find themselves caught in the middle—it’s too much work to operate as a part-time business but it doesn’t provide enough income to justify doing it full-time. How Game Truck resolves these challenges will be instrumental to its future success.

Discussion Questions
1. What do you think of Game Truck’s basic concept?
2. Would you characterize Game Truck’s potential nationwide market as small, medium, or large? Would the concept work in the town where your college or university is located? Explain your answer.
3. What qualities do you think Game Truck looks for in prospective franchisees? If you were a prospective franchisee, what questions would you ask the company as part of your due diligence process?
4. Address each of the rhetorical questions posed at the end of the case. Add two challenges that Game Truck may face that are not mentioned in the case. Comment on how problematic each of the challenges are, and whether you think the company will be able to successfully meet its challenges.

Application Questions
1. If you had the choice to open a Game Truck franchise or a video arcade in a popular mall, which would you choose? Why?
2. Game Truck’s overarching mission is to bring families together via multiplayer video games. To what degree do you think this portion of Game Truck’s offering is an important draw?

Transcribed Image Text:

Technologies Instrumental to Game Truck's Founding Inexpensive portable power Cost efficient flat screen TVs Arrival of high definition video game consoles