How Much Does It Really Cost to Open a VR Arena? While the VR market is growing rapidly, many entrepreneurs still believe that opening their own VR arena is too expensive. But the industry has changed radically – the barrier to entry has dropped significantly.

The first VR arenas appeared in 2014–2015. Today, there are over 4,000 VR arenas operating worldwide, and the market is growing at a record pace. According to Research and Markets, by 2029, the segment volume will grow to 27.83 billion US dollars at an average annual growth rate of 32.6%. But back then, ten years ago, the situation was completely different.

How the stereotype of expensive VR entry emerged

When we launched Another World VR in 2018, the industry was in its infancy. There were only small VR clubs and basic equipment for home use. We were trying to create something different – an experience that would be truly unforgettable. This required technology that would allow a person to move freely without wires or technical limitations. But the equipment for precise motion tracking was extremely expensive – over $100,000.

Additionally, each player needed their own powerful computer – another $1500-2000 per person. If 4, 6, or 10 players were playing simultaneously in the arena, the computers alone cost around $20,000. Therefore, the franchises of pioneering companies cost million and up.

Entrepreneurs who were considering opening a VR arena often had doubts. On one hand, there's a large amusement park spanning tens of thousands of square feet, which cost around $5 million. On the other hand, a VR arena of just about two thousand square feet, which required $1-2 million to launch.

Perhaps that's why many entrepreneurs are still convinced that launching a VR arena requires the same serious investment. But over the past 10 years, the industry has changed radically.

How can costs be reduced?

We were able to significantly reduce equipment costs thanks to a combination of technological advancements and optimization of our own software.

The first step was to abandon the expensive OptiTrack tracking system in favor of HTC Vive headsets. It was a simplified but similar technology that allowed for cost reduction. The difficulties had to be resolved through software, but the result was worth the effort.

Next, we moved forward along with the development of the "hardware." The introduction of the Oculus Quest changed the approach to tracking: instead of external cameras and base stations, the headset itself began to determine its position in space. This allowed players to move freely around the arena, and for us to simplify the infrastructure and reduce the load on additional devices.

We have also optimized our own software. We made it so that games run directly on the headsets without each player needing to connect to a powerful computer. Thus, for 10 players, 10 helmets and one gaming computer that connects the network were sufficient. As of 2025, the cost of all the equipment for one arena has decreased from over $120,000 to approximately $10,000–12,000.

By the way, the combination of technological progress and optimization has allowed us not only to reduce costs tenfold but also to create an arena where up to 20 people can play simultaneously on a single site – this is a record for the market.

How much does it cost to launch a turnkey VR arena?

First, the arena needs to be equipped: for 10 players, this will cost approximately $12,000-15,000.

The second important item is the franchisor's license and the software that will run on the equipment. Depending on the size of the city where the project is planned, this expense item can amount to $25,000-50,000.

The largest expense item could be the premises. Its cost depends on many factors: the location, the area, and the availability of additional spaces within the premises – for example, a lounge for celebrating events. Building from scratch in the US can cost up to $150,000, while a ready-made space that needs minimal repairs is around $50,000.

Some franchisees are considering renting space in a shopping mall. In our experience, this isn't the most advantageous option: rent is often inflated, and the administration's requirements can be very strict. Even repairs can be more expensive, as work is only allowed to be carried out through their contractors.

And, of course, you need to plan your marketing expenses. Some people think they'll open an amusement park and people will just come to them – unfortunately, that's not how it works. The audience needs to be introduced to the product and enticed, ideally even before the arena opens. And it's important to note that costs will be highest in the first few months of operation.

Next, it's important to maintain customer interest and motivate them to return. For example, we regularly hold challenges and tournaments, and recently introduced the ability to play between locations. This allows for determining champions in individual cities and holding national online championships – for example, when an arena in New York competes against a location in Los Angeles.

Where is it better to open a VR arena – in a big city or a small town?

Choosing the city to launch a VR arena affects the growth and marketing strategy. In smaller towns, getting started can be easier: word-of-mouth spreads quickly, and the first customers appear fast. However, the market is limited, so it's important to retain visitors by turning them into repeat customers. The emphasis here is on local promotion and building trust with the audience.

The strategy is different in cities with a population of one million or more. The market is wider here, there are more opportunities, but to attract customers, you need to actively work on outreach, including advertising.

High competition and expensive shopping center rents make it effective to locate in specialized plazas or areas with natural foot traffic from people who are there for other reasons and notice your sign. There are other advantages to such formats: convenient parking, sufficient space for corporate events or birthdays, and the ability to accommodate groups of up to 20–30 people simultaneously. Typically, many customers come specifically to play, rather than just passing by by chance.

What will the VR business look like in 2-3 years?

The barrier to entry into the VR business has remained stable in recent years. The payback periods depend on the city and the partner's activity: the average period is 12–15 months, and the best projects can pay back in just 6 months.

Successful partners are expanding their business by opening a second and third location in their city, fully covering the market and increasing profits through effective marketing.

I think the future of the market lies in new formats. For example, we are considering creating not only small VR arenas, but also mini VR parks or large VR complexes with multiple attractions. In this case, the investment will be higher, but the potential for income will also increase significantly.

Marketing and content development remain a priority. It is necessary to constantly improve the games so that every visitor – adult or child – has an unforgettable experience, returns, and discovers new entertainment at our locations. It is the quality of content and experiences that ensures the long-term growth and success of the VR business.