Launching a thriving gaming and entertainment lounge in Kenya takes careful planning and preparation. Starting this type of business is a major undertaking, but the payoff of owning a popular hangout spot can be well worth the effort.
This comprehensive guide covers the key steps and considerations for establishing a successful gaming lounge with a movie rental shop.
You’ll learn insider tips on securing financing, choosing the right location, obtaining necessary licenses, purchasing equipment, setting up gaming stations and movies, hiring quality staff, marketing your venue, and managing day-to-day operations.
Let’s dive in!
Requirements needed to start a PlayStation business in Kenya
1. Business plan
A business plan is important for any business and this is why;
- It enables banks to loan you seeing that your business idea is well organized.
- Family and friends can easily loan you money without fearing that you may lose the funds.
- With an organized objective and plan, you will easily achieve your goals.
- It helps you create a marketing roadmap.
- It provides you with clarity in the business you are set to establish.
Important to note is that a business plan is not a compulsory requirement. Many business owners achieve success without it. However, having it proves to be a necessary advantage in the world of business.
By the time you are reading this, you probably have a source of capital. However, if that is not so, here is a summary of how you can save money even when your salary is low.
You may also consider going for a loan from a bank or a different kind of lender. Before you do this, consider analyzing your credit report and score. They are essential in determining if you will be eligible for a loan of around KES600,000, which is the reasonable amount of money you need to start a PlayStation business in Kenya.
Friends and relatives could also help you to raise the money needed to start this enterprise. Here is how to borrow your friend’s and family’s money to invest.
Later on, there is a capital breakdown of a Play Station business coupled with a movie shop.
Choosing the optimal location is critical when starting a gaming lounge in Kenya. Proximity to your target customers can make or break your success.
Ideal spots are close to high-traffic residential areas, schools, universities, or other youth hangouts. Students are a prime demographic, always looking for gaming and entertainment options near campus for stress relief and socializing.
Being conveniently accessible means more foot traffic and word-of-mouth promotion among the gaming crowd.
Think through visibility, public transit access, parking, and competition from other lounges in the area.
Claiming the right location lays the groundwork for building a thriving lounge with a steady stream of eager gamers.
Don’t underestimate this key factor early on. The perfect location combined with the ideal gaming and movie experience will have customers flocking to your doors.
- Single business permit – all businesses in the country require this license.
- Kenya Films Classification Board (KFCB) – for your movie shop.
- Music Copyright Society of Kenya – ensures that you can legally play music in your lounge.
With a tougher economy, prying eyes will always be waiting to steal from you once your guard is down. You should ensure that windows and doors to your business are grilled by experts. Consequently, invest in a good padlock whose keys can’t be replicated easily. Consider buying CCTV cameras that will help you monitor your business when you are away and a security alarm system in case of a burglar attack.
Here are the top strategies you should employ to have a successful PlayStation business.
- Leverage social media – Create pages on Instagram, Facebook and TikTok. Post updates, run contests, and do giveaways.
- Search engine optimization – Optimize your Google My Business listing. Create a website and focus on search engine-friendly content centred around keywords like “gaming lounge Nairobi”, “PS5 gaming zone Kenya” etc.
- Run promotions – Offer free gaming minutes, discounted drink combos, and 2-for-1 movie rental coupons. Bundle packages like gaming minutes + soda + popcorn.
- Partnerships – Tie up with gaming developers, accessories brands, and events companies. Offer their products in exchange for co-marketing.
- Influencer marketing – Invite popular gamers and vloggers to review your lounge. They will showcase it to their ready audiences.
- Campus marketing – Engage students by participating in campus events, sponsoring tournaments, and giving talks.
- Corporate events – Offer packages for corporate team building and employee engagement events.
- Signage – Place visible, eye-catching sign boards and banners outside your premises.
1. Equipment Cost
|Equipment/electronics||Single Value (KES)||Total (KES)|
|43” Television set x 5||20,000||100,000|
|Play Station 4 (PS4) x 2||50,000||100,000|
|Play Station 5 (PS5) x 2||100,000||200,000|
|Games x 5||5,000||25,000|
|Laptop x 1||30,000||30,000|
|Hard Disk Drive 4TB x 1||16,000||16,000|
|Play Station Controller & Charger x 4||3,000||12,000|
|Water Dispenser x 1||5,000||5,000|
2. Venue Cost
3. Administration Cost
|Requirement||Value (KES) – renewable monthly|
4. Total Cost
|Total Capital investment||680,200|
Is the capital investment too high for you? Here are 15 other business ideas that may be a good fit for you.
To operate smoothly, your lounge needs:
- Gaming attendants – Manage the gaming section. Help customers pick games, provide basic gaming support and troubleshoot issues.
- Movie rental clerks – Manage DVD rentals. Advise customers and handle payments.
- IT technician – Handle maintenance of gaming rigs, internet network and electronic equipment.
- Cashier – Man the checkout counter, and receive payments for gaming time and movie rentals.
- Customer service – Greet customers, address queries and ensure a positive experience.
- Cleaners – Maintain lounge’s cleanliness and ambience.
Hire motivated, friendly staff with a passion for gaming and movies. Train them on customer service standards. Offer attractive commissions and incentives.
Returns on Investment [ROI]
The amount of money your Play Station lounge-cum-movie shop business makes depends on your clientele base and the number of hours of operation.
Largely, gaming lounges open at around 10.00 a.m. and close at around 9.00 p.m. This gives you around 11 hours of operation.
(You may choose to close later but you risk losing your business to burglars)
Considering the Play Stations will not run continuously, factoring in the idle time will give you an average of 7 operational hours.
1. Per-game service returns
The average gaming time (6 minutes) together with an average customer changing time of 4 minutes will give you 6 games played every hour. The average cost per game session is usually KES30.00.
In one hour, a gaming lounge with 4 screens will make KES720 and in one day, the total money made will be;
KES720 x 7hr = KES5040
In one month of 24 operational days, you will have made KES.120,960.
2. Per-hour gaming service returns
Some gaming lounge owners may choose to charge clients on a per-hour basis at a cost of KES200. Given the same parameters above, below are the returns of such an alternative.
Price per hour: KES150
Active Hours: 7Hr
Per day: KES150 x 7Hr x 4 Screens = 4200
In one month, the revenue collected will sum up to KES100,800.
3. Movie shop returns
Movies or series go for an average KES30. With an average of 30 clients per day, a movie shop could make up to KES900. Every month (24 operation days) an average of KES20,000 is made.
4. How much profit can you make from a gaming lounge?
Monthly expenses may sum up to around KES65,000, in the following breakdown;
Gross income from the movie shop and play station lounge will be around KES130,000. Therefore, subtracting total expenses will give you a monthly net income of KES72,000. You will consequently recover your capital investment between six to ten months.
Success factors for a Play Station lounge
The Play Station business can be quite competitive. It is therefore important that you offer the best services in your locale. Here are things you should emphasize on;
- Ensure you have a variety of games that gamers can choose from. Examples include:
- Call of Duty
- Grand Theft Auto
- The Witcher
- The Last of Us
- Blood Borne
- Marvel’s Spider-Man: Miles Morales God of War
- God of war
- Ensure that your gaming lounge service and movie shop business is reliable and secure. Have regular opening, and closing hours and days.
- Have good customer support that answers queries efficiently.
- Focus on a specific target market and learn ways to attract them.
- Choose between offering hourly or per-game services.
Minimizing Risks and Handling Challenges
While a gaming lounge business presents lucrative opportunities, it also comes with risks and challenges to manage. Being prepared helps overcome hurdles.
Managing Security Risks
Security is crucial for a business handling expensive equipment and cash transactions. Effective measures include:
- Install comprehensive CCTV camera coverage, alarm systems, and secure safes.
- Hire experienced security guards to monitor premises overnight.
- Keep minimal cash amounts in registers/drawers. Make frequent bank drops.
- Use anti-theft cables to secure high-value items like gaming PCs and consoles.
- Ensure business assets and equipment are adequate.
- Ensure all wiring and cabling are concealed and tamper-proof.
Maintaining Gaming Equipment
To provide an immersive gaming experience, equipment must be properly maintained through:
- Timely cleaning of monitors, peripherals, and controllers to keep them functional.
- Regular software updates, anti-virus scans, and OS patches on gaming PCs.
- Hardware maintenance checks for devices overheating, damaged cables etc.
- Scheduled PC component upgrades to support the latest gaming hardware requirements.
Handling Customer Issues
Despite best efforts, customer complaints can arise including:
- Hardware malfunctions or technical failures during gaming.
- Movie DVDs with defects or scratches.
- Billing disputes.
- Rowdy customers disrupting others.
- Poor customer service.
Address issues promptly and politely. Have a suggestions/complaints box where customers can share grievances. Follow-up seriously and upgrade processes to avoid recurrences.
Coping With Power Outages
Frequent power cuts can disrupt gaming and movie experiences, leading to unhappy customers. Mitigate with:
- Uninterrupted power supply (UPS) backup for critical equipment.
- Standby generator to power entire premises if outages are prolonged.
- Candles/emergency lights to help customers safely exit premises.
- Communicate and apologize for service disruption. Offer discounts subsequently.
Increasing competition from new gaming lounges can affect revenues. Strategies to stay ahead include:
- Frequently introducing the latest games and movies.
- Offering promotions competitors don’t match.
- Providing premium facilities like food and beverages.
- Building customer loyalty through memberships, rewards programs etc.
- Leveraging a prime location and accessibility.
- Focusing on specialized niche gaming genres.
Managing Staff Turnover
Inexperienced staff with lacking customer service skills can hamper operations. Reduce turnover by:
- Hiring slowly and screening applicants thoroughly.
- Providing extensive onboarding training.
- Incentivizing staff with rewards, commissions, and promotions.
- Treating staff respectfully and listening to concerns.
- Monitoring staff performance weekly and guiding underperformers.
By proactively planning for such challenges, you can handle issues smoothly and build a resilient gaming business. Stay nimble and customer-focused when problems arise.
Make sure you have a solid plan before diving into this PlayStation business in Kenya. Follow the laid-out strategies here and you will be headed for success. We may earn a commission for any purchases you make through us. this, however, does not cloud our judgement
People Also Ask:
Why do people choose to sell their gaming consoles?
With the growing number of gamers in the country, it is only logical that there will be a spike in the number of second-hand gaming consoles. Here are the top reasons why people sell their consoles:
- Financial Crisis/ Emergency – When people encounter unexpected financial difficulties or emergencies, they often seek immediate solutions. To address these pressing issues, individuals may opt to sell their gaming consoles such as PS5, PS4, Xbox, Nintendo, and others in order to accumulate funds.
- Impulse Buying – Some individuals may be drawn to the allure of new gaming consoles and make hasty purchases without considering their long-term commitment or personal interests. As time passes, they may find themselves losing interest or discovering that they have limited free time to dedicate to gaming. In such cases, selling the console becomes a practical decision to recoup some of their investment and eliminate an item that no longer brings them enjoyment or fits into their busy schedules.
- Change of Preference – As individuals grow and develop, their gaming preferences may shift, leading them to explore different genres, platforms, or gaming experiences. In such cases, they may decide to sell their current console to finance the purchase of a different gaming system that aligns better with their evolving tastes.
- Running Out of Business – Gaming lounge owners sometimes face the unfortunate situation of their businesses running into financial difficulties and accumulating losses, leading to the eventual closure of their establishments. There are several reasons why a gaming lounge may face financial challenges:
- A declining customer base due to societal policies or the closure of schools or high-population amenities may lead to a significant loss of clientele.
- Rising operational costs. If the business doesn’t make enough profits to counteract the costs, closure is definite.
- Evolving Gaming Trends that may make gaming lounges obsolete.
- Economic downturns or recessions can have a negative impact on discretionary spending, including entertainment expenses