Claw machine stores are gaining popularity across the nation, with many saying that it is an easy way to earn extra money on the side.
According to a man identified only as Stanley, the business model is simple, and claw machine store owners can break even within a year, after which they can start making revenue of up to NT$150,000 (US$5,112) a month.
The store owner is responsible for setting up the infrastructure — finding a space, buying 26 to 30 claw machines and installing security cameras — which usually costs under NT$1 million, he said.
The owner then rents out each machine at about NT$5,000 a month to those interested in managing one as a source of additional income, said Stanley, who is himself a manager.
With all 30 machines rented out, the arcade owner can make NT$150,000 a month.
The prospect has drawn many into the business as store owners or managers, one owner said, adding that owners have to understand what makes players want to return to an arcade — namely the possibility of winning a prize.
Claw machine manager Chang Hsiao-yi (張小翼) said the most important thing for managers is to give players a realistic chance of winning.
If the machine is set to an unbeatable level, then it will dissuade players from coming back, which in turn will cut revenue, Chang said.
While it might be difficult to predict the demand for playing claw machines, the managers’ monthly earnings paint a clearer picture.
Stanley, who manages eight machines, said that on average, he makes a monthly profit of NT$3,000 to NT$5,000 from each machine.
The game is addictive and people who play regularly have been known to spend NT$4,000 to NT$5,000 per month on claw machines, an issue that has raised concern among lawmakers.
It should be investigated whether the machines contain prizes prohibited for children, and if so, the stores should be a certain distance from schools, Chinese Nationalist Party (KMT) Legislator Apollo Chen (陳學聖) said.
As the stores can turn into hangouts for adults to drink alcohol, they should not be near schools or be readily accessible to children, Democratic Progressive Party Legislator Chang Hung-lu (張宏陸) said.
Lawmakers have suggested that the claw machine arcades follow the regulations for video game arcades, which stipulate that they must be at least 50m from junior-high or elementary schools, high schools, vocational schools or hospitals.
Realtors also weighed in on the matter, saying that the “arcade claw machine bubble” will burst within six months.
Chang Hsing-ming (張欣民), general manager of a real-estate firm and a real-estate investment consultant, said it is extremely doubtful that claw machine store owners will be able to continue to afford paying rent.
Once the trend fades, store owners would have a difficult time making enough money to pay NT$50,000 to NT$70,000 per month for the space rental and would be forced to close, he said.
Starlux Airlines, Taiwan’s newest international carrier, has announced it would apply to join the Oneworld global airline alliance before the end of next year. In an investor conference on Monday, Starlux Airlines chief executive officer Glenn Chai (翟健華) said joining the alliance would help it access Taiwan. Chai said that if accepted, Starlux would work with other airlines in the alliance on flight schedules, passenger transits and frequent flyer programs. The Oneworld alliance has 13 members, including American Airlines, British Airways, Cathay Pacific and Qantas, and serves more than 900 destinations in 170 territories. Joining Oneworld would also help boost
A new tropical storm formed late yesterday near Guam and is to approach closest to Taiwan on Thursday, the Central Weather Administration (CWA) said. Tropical Storm Pulasan became the 14th named storm of the year at 9:25pm yesterday, the agency said. As of 8am today, it was near Guam traveling northwest at 21kph, it said. The storm’s structure is relatively loose and conditions for strengthening are limited, WeatherRisk analyst Wu Sheng-yu (吳聖宇) said on Facebook. Its path is likely to be similar to Typhoon Bebinca, which passed north of Taiwan over Japan’s Ryukyu Islands and made landfall in Shanghai this morning, he said. However, it
Taiwan's Gold Apollo Co (金阿波羅通信) said today that the pagers used in detonations in Lebanon the day before were not made by it, but by a company called BAC which has a license to use its brand. At least nine people were killed and nearly 3,000 wounded when pagers used by Hezbollah members detonated simultaneously across Lebanon yesterday. Images of destroyed pagers analyzed by Reuters showed a format and stickers on the back that were consistent with pagers made by Gold Apollo. A senior Lebanese security source told Reuters that Hezbollah had ordered 5,000 pagers from Taiwan-based Gold Apollo. "The product was not
COLD FACTS: ‘Snow skin’ mooncakes, made with a glutinous rice skin and kept at a low temperature, have relatively few calories compared with other mooncakes Traditional mooncakes are a typical treat for many Taiwanese in the lead-up to the Mid-Autumn Festival, but a Taipei-based dietitian has urged people not to eat more than one per day and not to have them every day due to their high fat and calorie content. As mooncakes contain a lot of oil and sugar, they can have negative health effects on older people and those with diabetes, said Lai Yu-han (賴俞含), a dietitian at Taipei Hospital of the Ministry of Health and Welfare. “The maximum you can have is one mooncake a day, and do not eat them every day,” Lai