Videogame arcades are pretty much history, the remaining ones now focus more on carnival-style games and collecting tickets and redeeming prizes. The reason is because home video consoles like Xbox, Playstation, and Nintendo enable so much more gaming experience than the standalone game cabinets could.
Could a new style arcade be run with these home consoles, though? Imagine an arcade for the 21st century: buy several consoles (used locally or from eBay to save costs), buy several game discs for the various consoles, buy several screens and mount them in front of individual lounge chairs.
Gamers can prepay at $6/hour for whatever games are on the menu, sit in lounge chairs, and order from the up-to-date catalog of consoles and games the business offers. Obviously if they only have one copy of Hogs of War, there are going to be a limited number of players in that game. Or could the service be organized to maximize player experiences?
The best way to maximize player access is to keep all consoles and discs in an employee-accessible room, perhaps even styled like a DJ booth overlooking the gamers. All the controllers and displays could snake into this DJ booth, be labeled with the chair they originate from, and the employee could swap controllers between the consoles and games playing. This way multiple players could play a game, even if only one copy is available. Friends could play each other in this manner, also, by requesting the same games even if they don’t get to sit next to each other. Of course networked games would be available through services like Xbox live, etc.
The DJ (or call it a VJ?) could dress up as video game characters for extra video game ambiance. If the business is located in an area with some pedestrian traffic, screens could be setup to display ongoing games to passers-by. This would provide free outside entertainment and entice others to play the games inside. Players could also ‘trade’ their consoles and/or game discs for free or reduced playing time.
Video game tournaments would be obvious and could run monthly with prizes awarded. Family games could be played in the daytime, or segregate violent games in curtained rooms or at all stations after certain hours. You could also run educational games and simulations for local school districts and lure class field trips they way local bowling alleys and swimming pools do now. A cafe area could keep players spending between games, and waitresses could serve drinks right to players’ chairs.
This business idea sounds like it would become a popular hangout in addition to re-capturing the arcade business format.
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Gato got runned over by Marcus many moons ago. Be ye daft, 2486? 
Let's have a new poll, alright, Joe?
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I’ve heard of a club like this, they have the major consoles and popular games available for rent. If you bring your own game, you just rent the console for the time period.
It’s billed as more of a culture club than economical. Kind of like why you go to the bar and pay 3x what you pay at home, for the social aspects.
I think I read that this club also sold monthly memberships, and that helped their finances.
Selling snacks and concessions would also help, and stay open until 3 am.
I’ll take any of you suckers down in Call of Duty 3. I mean it. Bring it on.
This may sound nerdy, but anyone here a regular on Xbox Live? We should exchange gamertags.
*pushes glasses up with forefinger.