ZOOX offers online stations to public

LOUISVILLE – Remember those old arcade games like Space Invaders and Centipede? Telling young folks today about the games of years past is like explaining the typewriter. They just don?t get it.

But a Louisville-based company is betting it understands what entertains the younger generation these days ? big kiosks that resemble those old game machines but with newer, wider screens and high-performance sound systems where users can download video, read and send e-mail, chat and link to popular Internet sites including MySpace, YouTube and Yahoo.

They even have built-in Internet video cameras, along with security screening that keeps users off porn sites and anti-spam and virus protection.

These new kiosks are the latest from ZOOX Stations Inc., a subsidiary of KIOSK Information Systems, the maker of indoor and outdoor kiosks, public Internet stations and other electronic terminals. The two companies share a 65,000-square-foot home in Louisville where KIOSK is headquartered.

Cheryl Madeson, marketing manager at ZOOX Stations, said ZOOX was created as a distinct entity to market a new line of gaming products called ZAZOOX Game Café. ZOOX Stations, which has about 80 employees, will be selling and marketing the ZAZOOX game café product line through distributors specializing in the game and amusement industry.

ZOOX systems can be custom branded and come complete with installation, service, remote monitoring and revenue reporting.

Gaming is a fairly new road for KIOSK, which was founded in 1993 and has mostly made hardware for kiosks consumers found in bookstores, airports and train stations. Since its inception KIOSK has manufactured thousands of kiosks.

For its latest offering, picture a kiosk on steroids ? with 26-inch wide screens with liquid crystal displays, broadband Internet and high-tech sound systems. It also includes high-end multiplayer online games, also referred to as MPOGs, such as Battlefield 2 and Halo as well as other popular titles found on Xbox and PlayStation. Broadband connectivity to the kiosks lets gamers compete with anyone in the world.

The company said ZAZOOX is easy to service and comes loaded with remote monitoring and sales reporting. New titles and site links can be added to the machines. In addition to multiple games and the Internet, ZOOX Stations is banking on the extended play and intensely competitive arena provided by online gaming.

Some industry analysts say MPOG is a $500 million market. Rick Malone, president of ZOOX Stations and founder of KIOSK, said the MPOG market is expected to reach $2 billion next year.

He said entering this new market has been challenging. ?But I?d say we?ve been very successful in effectively increasing operator market share and profit opportunity,? he said. ?Given the continued rise in online and home gaming popularity, it?s a completely natural extension to provide this caliber of entertainment in a self-serve environment.?

The company reports that stations that have been in place since January have been ?exceptionally well-received.?

?It?s easy, intuitive and something the players can set up themselves,? Madeson said. ?Best of all, it?s intensely engaging, extending play time and machine profitability.?

Madeson wouldn?t discuss the company?s expected annual revenues. She said ZOOX sold its first 300 units to military recreation facilities throughout the U.S. and Germany.

Malone said contacts at the Army recreation program have said they plan aggressive expansion this year, ?which obviously speaks well to the station?s adoption, performance and return on investment.?

In a press release, Malone said ZAZOOX is designed to address ?the fast-paced criteria advanced gamers demand.?

In locations with multiple ZAZOOX stations, local competitions are very popular, according to Madeson. With grouped machines, multiple players can compete in extended games. The company reports that organized tournaments are a ?distinct revenue and traffic-building opportunity.?

ZOOX Stations launched ZAZOOX at the Amusement and Music Operators of America tradeshow in Las Vegas in late September.

?It?s an exciting turning point for the industry, providing operators, distributors and location owners an affordable venue to tap into the online gaming market,? Madeson said.

KIOSK is the original equipment manufacturer of self-service terminals for Dell, Hewlett-Packard, Sony Photo, U.S. Transportation Security Administration and many others. KIOSK also has facilities in Edinburgh, Scotland.

Its corporate clients include McDonald?s, Ticketmaster, FedEx, Safeway, Citibank, Disney, Exxon Mobil, U.S. Postal Service and Wal-Mart along with several government agencies and universities.

Kiosk made Inc. magazine?s 500 fastest-growing privately held companies list in 1999 and 2000. Sales then were about $13 million a year. After the 2001 recession sales dipped to $8 million and several companies in the industry failed. However sales have risen since then.

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