Cover Story
(June 2007)Cover Story
(June 2007)
LAI Games is not a new name in the coin-op amusement industry but it has strengthened its global presence by opening its first office in the United States.
LAI Games has never hesitated to view opportunities with an open mind. It was with this attitude that LAI Games took a gigantic step in increasing and solidifying its growing global presence by recently opening its first office in the United States, located in Carrollton, Texas, just outside of Dallas.
It was about 50 years ago that a motivated teenager named Malcolm Steinberg started Leisure and Allied Industries with 50 pinball machines. Little did he know that his initial investment would grow into a global operation with an international sales division that now operates in 26 countries around the world.
LAI Games, the sales and manufacturing arm of Leisure and Allied Industries (LAI Group), got its start initially by developing games for the LAI Group's more than 200 Timezone family entertainment centers (FECs) in Australia, New Zealand, and Asia.
"When we started to receive positive feedback about our games from Timezone patrons we realized that our games could generate revenue for other operators around the world," said General Manager Alan Freimuth. "We also recognized that we could utilize Timezone locations as a testing ground for the games that we develop. We truly believed that our unique industry background and experience in operations would allow us to create the kinds of games that are both fun to play and profitable for operators. In a way we are operators developing and manufacturing games for other operators."
In 1998 the sales operations division became a reality as LAI Games' first products, Stop the Clock and Ripper Ribbet, rolled off the assembly line. The company quickly began to establish quality distribution channels around the world, but in the United States development was slow. "Most countries have only one distributor for prize vending games, ticket redemption games, and kiddie rides so developing relationships was fairly easy in those countries," stated Freimuth. "In the United States there are over 20 national distributors due in part to the large population and the high demand for games. We understood that we had to find a unique way to penetrate the U.S. market."
LAI Games originally chose to address these challenges by granting licensing rights for their products to other manufacturers already established in the United States. In 2003, with growth still slow, the company gained some momentum by granting exclusive distribution rights to a prominent game manufacturer, yet LAI Games still did not experience the kind of growth it had hoped for.
In November 2006, LAI Games made the decision to open its first office in the United States and market its own games instead of licensing them through others. "The decision was tough," explained Freimuth, "but the timing was right. The United States is the biggest market in the world and we are starting to develop a good assortment of high-quality, innovative games that will be very profitable for our operators. We want to be here to help and support our U.S. distributors and operators in any way we can. The move has also strengthened our brand awareness in the marketplace and helped improve our presence not only in the United States, but also around the world."
LAI Games has streamlined its product mix developing prize vending games, ticket redemption games, and kiddie rides. Why these games? The company once again looked to its operational organization, Timezone, and observed the enthusiasm and excitement players experienced when they won prizes from the games. It didn't matter if the player won instant merchandise or a large number of tickets, the emotions were the same.
LAI Games comprehended that the key to keeping players playing was to reward them for their efforts, something players can't achieve by playing video games at home. The company also noticed that the lifespan of prize dispensing and redemption games appeared to be longer. "The reason," Freimuth observed, "is that people don't get tired of winning prizes because the prizes are always different."
In 2000 LAI Games introduced its first prize vending game, Time Buster, which was an enormous success in Europe but surprisingly received little exposure in the U.S. market. But two years later the company introduced Lighthouse, which was the first hit in the United States. The prize vending game promoted the ability for the player to win the high value merchandise displayed in the game cabinet. Not only was it a bona fide hit, many of the merchandise suppliers offered specific Lighthouse mixes to operators.
In 2003 on the heels of the tremendous success of Lighthouse, LAI Games hit another home run with Stacker, one of the most profitable games to date for U.S. operators. Both Lighthouse and Stacker still dominate the top of the list in Play Meter's Prize Vendor Redemption Equipment Poll.
Since opening it offices in Texas, LAI Games has introduced four brand-new products to the coin machine market. In November you saw two new ball toss games, Squid Spies and Feeding Time; in March, Match Maker, the relationship compatibility and romance advice game; and Super Strike, a bowling game. Attendees at the trade shows agreed that LAI is on a roll.
After working for seven years in LAI Games' Singapore office, Freimuth made the move to Texas. "I've enjoyed the move and am very excited about this opportunity. One of the most important aspects of my job is building a staff that is enthusiastic about the industry and is ready to tackle all opportunities that they face. I think we have gotten off to a terrific start."
One of the first moves Freimuth made was to bring Debbie Gonzalez on board as LAI Games' U.S. Sales Manager. What a brilliant choice. There are few distributors that don't know her from her days at OK Mfg. and Five Star Redemption. She has taken the bull by the horns, so to speak, and insists that she wouldn't have accepted the position if she wasn't so confident in the games and the company. Debbie is well respected and has experience to spare.
To make sure that momentum continues to build and the word gets out about all of the new and thrilling products and offerings LAI Games is bringing to market, the company hired Chris Kinney as the new Marketing Manager. His name might not be familiar in coin-op circles but his 10-plus years of marketing experience makes up for it.
Carl McKinney was added to the team to keep the game technicians happy. He has exceptional customer service skills and has been able to quickly get up to speed on all of LAI Games' support and technical needs.
While its big news that LAI has committed to office space, products, and personnel in the Dallas area, the surprising news is that it's about to grow out of the current office space!
What does Steinberg have to say about all that's happened? "We have established a lot of momentum in the United States in a very short timeframe and we aren't about to let up."
If LAI Games can continue to manufacture products that produce profits for operators that are comparable to what Lighthouse and Stacker have produced, then the company's future in the United States is extremely bright.