350+ free-roam venues with happy operators! 

Keys to Success for Standalone Free-Roam VR Venues

The virtual reality industry has made remarkable strides over the past few years, but what does it take for standalone free-roam VR venues to succeed? As a longtime VR industry expert, I’ve seen firsthand both the potential and the challenges of free-roam VR, and it’s time to take a hard look at what works and what doesn’t.

The State of Free-Roam VR

Free-roam VR offers incredible, immersive experiences, but most are designed for short, casual play. I call these “drive-through” VR experiences. They’re designed to be a quick thrill but lack the depth and substance to become a destination attraction. This is a challenge if you want VR to be more than just a brief stop in an entertainment district.

People need a reason to put on their pants and leave the house.

I also keep reading comments from “experts” saying that you must be in a high-traffic mall to succeed. If you build a drive-through VR experience in an expensive mall, you’ll struggle to convert the traffic. You might have more success converting walk-by traffic in one of the new entertainment districts, but the rent will crush you. You won’t generate enough revenue per square foot to survive. 

To make the numbers work, the experience must be compelling enough to draw destination visits, which means an hour or more total experience length. You might be able to bundle experiences together to get to that hour of play, which means your prices will be more than you might have expected. 

That’s the third challenge. Operators still underprice VR experiences. Sandbox VR seems to be the only company consistently pricing at the $2 per minute mark. Most others are half or a quarter of that. It would help if you optimized your business for revenue per hour and revenue per square foot. Do everything you can to sustain the highest price point possible. 

Keys Considerations for Standalone VR Venues

  1. Length and Quality of Experience: If you’re running a standalone VR venue, you’ve got to offer something more than a 10-minute distraction. The reality is that current free-roam experiences, while impressive, often don’t last long enough to be a true destination. This means operators might need to pair VR with other entertainment options—a costly proposition, especially when considering rent, staffing, and the potential complexities of integration.
  2. Complexity and Cost: Adding more features, like food and beverage services, can enhance the experience but also adds a layer of operational complexity that can eat into profits. The more moving parts you have, the higher the risk of failure.
  3. Content Mix: The right content mix is crucial. You need experiences that are engaging for casual players, but also exciting for competitive ones. As of now, no platform offers a perfect mix—and this is something that businesses need to carefully consider before jumping in. You might need to offer content from multipledevelopers. 
  4. Business Model Challenges: The operators that are finding success are those who blend VR with other attractions to create a comprehensive entertainment offering. But it’s a delicate balance—figuring out the mix that maximizes both engagement and profitability is tough, and there’s no one-size-fits-all solution.

Advice for Aspiring VR Entrepreneurs

  • Research and Due Diligence: Before diving in, take time to understand the market. Join The VR Collective Circle to network with experienced successful operators and learn what works (and what doesn’t).
  • Customization: Be prepared to adapt. Relying solely on a franchise or a single provider might be tempting, but flexibility and customization are often key to success.
  • Patient Investment: VR isn’t going anywhere. If you’re thinking about getting into this space, take your time. Make informed decisions rather than rushing in.
  • Networking: Get involved in industry events and communities. Learning from your peers is one of the best ways to avoid mistakes and stay ahead of the curve.

Final Thoughts

Standalone free-roam VR venues have incredible potential, but we’re not quite at the point where they’re a guaranteed hit for mainstream entertainment. To succeed, it requires a careful balance of compelling content, a viable business model, and a willingness to experiment and adapt. The pioneers who approach this space with patience, dedication, and an eagerness to learn will be the ones who ultimately thrive.

My advice if you’re looking to build a standalone VR venue is to go slow. Research the market. Shop your competition. If you have no retail entertainment experience, attend a trade show. You will be amazed to learn how much you don’t know. Filling in that knowledge gap before you sign a lease and commit yourself to investing will go a long way to helping you succeed.

Recent Posts

Cut Through the IAAPA Crowd with Our VR Buyer's Guide

This guide zeroes in on the VR attractions helping you make the most of IAAPA.

Download The Guide

You can access this guide, plus webinars, research reports, and a wealth of knowledge in our online community.
Join The VR Collective Circle for free and meet like-minded people.

Stay In The Know

Get a weekly summary of new VR attractions news in your inbox.