Viking Game Room back on track after financial woes

After falling short of projected revenues in its first six months of business, the newly renovated Viking Game Room finished the school year with revenues totaling $93,000–$17,000 short of the funds needed to break even with operating costs.

In early July 2006, just before the recreational facility in Portland State’s Smith Memorial Student Union was remodeled, administrators had anticipated that the game room would earn $139,000 in annual revenues. However, by Dec. 2006 the facility had brought in just $32,000. The game room had until June to earn $110,000 to cover base operating costs.

Despite the $17,000 shortfall, Viking Game Room revenues have nearly doubled since Jan. 2007. With revenues up 20 percent over the 2006-07 academic year, the Game Room is expected to make a profit next year, according to administrators in charge.

Cassandra Hill, an accountant in the Auxiliary Services Department, said that the game room fell short of its projected revenue this year in part because the projection was too aggressive.

The figure was arrived at by calculating what the game room could make if it was continuously operating at near capacity, said Hill.

“The formula we were using was not a good one, so we based it more along the lines of what we’ve generally been hitting,” Hill said.

Between March and April, Hill said, the projected revenue was adjusted to $85,000, which the game room exceeded.

Those involved with the game room, which received a $30,000 facelift last summer that included 12 new computers and four Microsoft Xbox 360 consoles projected on giant screens, attribute the increase in business to revised marketing strategies and increased word of mouth.

Rather than depend on student foot traffic to fill the game room, more emphasis has been placed on attracting business from the community, said Kristine Wise, manager of auxiliary retail services.

“There’s a lot of exploring in downtown Portland and sometimes going to the basement of Smith is not the first thing [students] want to do,” Wise said. The basement, she said, is “not a natural traffic flow pattern for most people. I think that we’ve just come to the realization that we have to scaffold our revenue more with scheduling.”

The game room has scheduled 44 events since May, including 10 children’s birthday parties, several corporate events and a host of local high school field trips.

While there is no clear plan for advertising next year, Wise said marketing would likely concentrate on drawing in the community and attracting families. “There are a lot of people with small children on campus that we can reach out to.”

To help make the game room more visible, Auxiliary Services is discussing installing signs on the first floor of Smith, and will attempt to attract more students by offering free parties to residence halls.

Wise said if six or more floors of a residence hall want to organize an event, the game room would provide one free hour in the facility. The parties must be coordinated by resident assistants, she said.

Viking Game Room Manager Aaron Faw said that after the first six months of business, he has seen an increase in the number of people who use the facility.

“People know where we are and who we are,” he said. “We’re doing a lot better and it’s kinda nice.”

Faw said he hopes to attract more students by keeping the selection of video games fresh and this academic year, he hopes to install a Nintendo Wii in the facility.

The Viking Game Room, formerly known as Viking Bowl and Billiards, was revamped in August of 2006. Old school arcade games, which were contracted out by a private business, were replaced with movie screens, theater seats, console rentals as well as a computer gaming area. The old game room cost roughly $85,000 to operate. During the 2005-06 academic year, the facility brought in $75,000 in revenues.

Next year, the Game Room is expected to make $128,000 in revenues.

“It did not lose as much as it did last year,” Hill said. “I would foresee that we’re not on a continued loss. We’re on an upswing.”