i bumped into this topic... so .. my view

based in surveys done in penang

i think gaming cybercafe is profitable only if u are the GIANT. Small shops (less than 25pcs) hardly survive


The ancient cybercafes that only offer internet services are all dying...

Look at USM area. Used to have 15-20 cc there but now, only a few n all struggling to survive.

I went there recently..and found so many cc looking for buyers... some have closed shop already.
This could be due to the low rate charged rm1-rm1.50.

I talked a to a cc owner and he told me the business started to drop in 2005. Losses were made in 2006 too...
and now 2007, they might bungkus.

But he also mentioned that many new cc investors make a wrong decision n still invest in this area. they never survey the market but just invest ...only to break even n eventually make losses,.

So i walked around and was surprised to see so many signboards..CC, but all closed down.

But further away from usm, near PELITA nasi kanday, got 2 big GIANT CC. seem to be very good business but 100% gamers. But the crowd is mainly locals ..chinese n malay youngsters..

recently microsoft is after cybercafes too for licencing...

they r forced to use windows 7 pro.....and sign and agreement wt microsoft...
money is again involved here to buy the s/wares..

and previously used home editions r now illegal for cc. have to be pro versions...
this could leed to smaller cc closing but might benefit larger cc.